Based on the final findings of Directorate General of Trade Remedies (DGTR), the Government have imposed Safeguard duty on import of solar cells whether or not assembled in modules or panels, as follows:
- twenty five percent. ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30th July, 2018 to 29th July, 2019 (both days inclusive);
- twenty percent. ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30th July, 2019 to 29th January, 2020 (both days inclusive);
- fifteen percent. ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30th January, 2020 to 29th July, 2020 (both days inclusive);
There may be some impact on the Solar Power Developers due to imposition of safeguard duty on the solar cells or modules. However, the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects notified on 3rd August, 2017, provides that "In the event a Change in Law results in any adverse financial loss/ gain to the Solar Power Generator then, in order to ensure that the Solar Power Generator is placed in the same financial position as it would have been had it not been for the occurrence of the Change in Law, the Solar Power Generator/ Procurer shall be entitled to compensation by the other party".
Further, Ministry of Power, on 27 August, 2018 has issued directions to the Central Electricity Regulatory Commission (CERC) under section 107 of the Electricity Act, 2003, inter-alia, stating that:
- Any change in domestic duties, levies, cess and taxes imposed by Central Government, State Governments/Union Territories or by any Government instrumentality leading to corresponding changes in the cost, may be treated as "Change in Law" and may unless provided otherwise in the PPA, be allowed as pass through.
- The order for pass through giving the calculation for per unit impact will be issued within 30 days of filing of petition.