Solar Power Project | Rajasthan 900 MW solar power project in Rajasthan stalled over high import duty on equipment
The 900-megawatt (MW) solar power project in Rajasthan has come to a halt after the companies behind the project decided to discontinue work citing bottlenecks and rising import prices, media reports said.
Norway's Scatec and India's ACME have decided to put the $400 million solar power project on hold, the Norwegian company said, due to lack of supply of domestic solar panels and a 40 percent import duties to be imposed on solar panels from April, 2022, reported Reuters.
Scatec stated this in its qurterly earnings report. The Norwegian company entered India last year by partnering with Acme to build the solar power plant under a 25 year power purchase agreement with Solar Energy Corporation of India (SECI).
The project was expected to be completed in 2022 but building work had not yet begun, the Reuters report said.
India has decided to impose customs duty on solar cells and solar modules to cut its dependence on China-made imports and boost ocal production.
On Tuesday, Finance Minister Nirmala Sitharaman announced an allocation of $2.62 billion to give a push to solar equipment manufacturing as India seeks to deploy 280 gigawatt of solar capacity by 2030.
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