Cabinet slaps 21% duty on import of power equipment

Reliance and Tata must suck it up and buy equipment from India even if it costs more. Unless Indian manufacturing gets an opportunity for scale, costs and hence prices wont come down. The duty is an excellent move. To hell with Chinese crap. Our industry needs a shot in the arm.

Its not like Reliance and Tata are gonna pull out of projects due to cost escalation. There is a shitload of money to be made in power infra even with this.

Doesn't hurt our EPR since we get zero tarrifs under the mega project scheme. Same likely applies to Russia. This is directed at China.

Of course its directed at China. CCP is using its stashes to heavily subsidize a host of industries so that they can out compete their global peers. Look at the whole Suntech drama. There is not a single firm worldwide that is able to compete with their solar panels due to massive subsidies. Once they have managed to shut down competition, they will sit back and rake in the monies. The same with telecom and power equipment. Shoddy quality, cheap labor and massive government subsidies. How are private firms supposed to compete?

In the case of EPR, Areva is building the entire plant and I doubt they are sourcing anything from India (maybe L&T, not sure). The deal is for the entire package and not mapped against equipment.

India should place a ban on all Chinese goods and services and live happy thereafter。

cir said:

India should place a ban on all Chinese goods and services and live happy thereafter。

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I would love if that happens. We can live without the cheap chinese stuff.

cir said:

India should place a ban on all Chinese goods and services and live happy thereafter。

Click to expand...

Which will be a fantastic way of kickstarting a host of industries that will drive self sufficiency and what more - quality products too. You are a genius cir.

does indian has local industry to produce power equipment.apart form bhel, LnT which local public or private industry can produce power equipments

anoop_mig25 said:

does indian has local industry to produce power equipment.apart form bhel, LnT which local public or private industry can produce power equipments

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Nothing has stopped private players to open up manufacturing of power equipment. They can form JVs, bring in foreign investment, get instant loans from public banks. But most of them are apparently not interested. The private power generators like Reliance, Tata wants to import power gears from china which costs cheap and thus increases profit margin. Sooner or later these conglomerates will end up opening their own manufacturing facility for these power equipment. This will not only increase competition in domestic market (which is currently dominated by BHEL, L&T), but will also lower the cost of running due to market survival factors.

Import duty on power equipment

The cabinet has also decided to slap 21% duty on imports of power equipment , mainly to protect domestic companies from cheap Chinese shipments.

The Cabinet has approved 5% basic customs duty, 12% counter-veiling duty and 4% special additional duty on import of power gear. Earlier this month, the power ministry had floated a proposal seeking higher duty on import of equipment for the power sector.

At present, equipment imported for projects of less than 1,000 MW capacity attract 5% customs duty, while those above that enjoy exemption.

http://www.moneycontrol.com/news/ec...-dutyimportpower-equipment_732880.html?page=2

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This will surely affect our imports from China.

A.w.e.s.o.m.e.

Good news, Chini power out... French power in.