Low solar power rates to boost equipment import

Reduction in indirect taxes on import of solar cells further dampens prospects for domestic sourcing

Amritha Pillay  |  Mumbai 

With solar power bidding rates touched a new low of Rs 2.44 a unit this week, sector experts say there will be a problem for equipment makers. "The current bids are not viable if one was to consider the true cost of manufacturing, even for Chinese import. These bids are also forward looking, with an expectation that solar panel prices globally will fall further," said Santosh Kamath, partner at consultancy KPMG India. Over 80 per cent of India's solar equipment requirements are met through import and Vimal Kejriwal, managing director at KEC International (into ...

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Low solar power rates to boost equipment import

Reduction in indirect taxes on import of solar cells further dampens prospects for domestic sourcing

With solar power bidding rates touched a new low of Rs 2.44 a unit this week, sector experts say there will be a problem for equipment makers. "The current bids are not viable if one was to consider the true cost of manufacturing, even for Chinese import. These bids are also forward looking, with an expectation that solar panel prices globally will fall further," said Santosh Kamath, partner at consultancy KPMG India.Over 80 per cent of India's solar equipment requirements are met through import and Vimal Kejriwal, managing director at KEC International (into power transmission engineering), expects this to continue. "Modules will predominantly remain a market dominated by Chinese suppliers, unless there is major growth in the indigenous wafer and cell manufacturing industry. Structures and trackers are largely sourced from Indian players today and likely to remain that way. The balance systems equipment will be dominated by multinational companies, with last-mile assembling and/or ... With solar power bidding rates touched a new low of Rs 2.44 a unit this week, sector experts say there will be a problem for equipment makers. "The current bids are not viable if one was to consider the true cost of manufacturing, even for Chinese import. These bids are also forward looking, with an expectation that solar panel prices globally will fall further," said Santosh Kamath, partner at consultancy KPMG India. Over 80 per cent of India's solar equipment requirements are met through import and Vimal Kejriwal, managing director at KEC International (into ... image
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