Govt Issues Clarification on Tariff Based Bidding Process for Solar PV Projects

The move will allow solar power developers to pass on the burden of any increase in duties on solar equipment to discoms.

The Ministry of New & Renewable Energy (MNRE) has issued a notification with respect to ‘Clarification to guidelines for the tariff based competitive bidding process for procurement of power from grid connected solar PV power projects’.

According to the clause 5.7.2 of the said guidelines, the term ‘Change in Law’ includes any change in the rates of any taxes which have a direct effect on the project.

The Ministry clarifies that, “In order to bring more clarity and remove uncertainty, it is hereby clarified that the term ‘change in the rates of any taxes’ as mentioned in clause 5.7.2 of ‘Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects’ notified on 03.08.2017, includes ‘change in rates of taxes, duties and cess’.”

The move will allow solar power developers to pass on the burden of any increase in duties on solar equipment to discoms.

It will help in reducing the solar power developers’ uncertainty up to some extent about likely impact of possible anti-dumping and safeguard duties on imported equipment.

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