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India: Customs Duty for Battery Storage Systems Set at 10%
The Indian Ministry of Finance has provided clarification regarding customs duties for battery energy storage systems (BESS). Stationary, grid-scale, and industrial lithium-ion BESS are eligible for a concessional basic customs duty rate of 10%. These systems are not classified as power banks, which attract a higher rate of 20%. This clarification is expected to support the import and deployment of large-scale energy storage in India.
The Indian Ministry of Finance has recently issued a clarification regarding the import duties applicable to battery energy storage systems (BESS). It has been confirmed that stationary, grid-scale, and industrial lithium-ion BESS are eligible for a concessional basic customs duty (BCD) rate of 10%. This clarification is of considerable importance for project developers, manufacturers, and other stakeholders active in the Indian energy storage market, providing a clear framework for the cost structure of such systems.
The Ministry's statement explicitly differentiates these BESS units from 'power banks,' which are subject to a significantly higher BCD rate of 20%. By establishing this distinct classification, a more favorable import tariff is applied to large-scale energy storage solutions. This decision is anticipated to provide a significant positive impetus for the continued deployment of battery storage systems across India. It contributes to the stability and sustainability of the electricity grid by facilitating the integration of renewable energy sources. Furthermore, it encourages the import of critical components for energy storage projects, potentially accelerating the country's energy transition efforts and enhancing overall energy security.
This information was sourced from Mercom India.
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