India is considering cutting its import tax on solar panels by half and is seeking a rollback in goods and services taxes on the devices to make up a shortfall in local output amid rising demand for renewable energy, three government sources said.
which won solar power supply contracts by quoting aggressive tariffs but face shortage of local equipment to complete the contracts.
However, domestic capacity is falling short ... imports are required to fill in the gap," said one of the sources. India's finance ministry did not immediately respond to emails seeking comment. A spokesperson for the renewable energy ministry said a comment would be made as soon as possible. Though solar currently makes up over half of India's renewable energy capacity, domestic component supplies have been slow to pick up, and the industry was also spooked by higher import taxes.
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