- Joined
- Apr 17, 2009
- Messages
- 43,132
- Likes
- 23,835
This was a decision taken by the Cabinet recently
***********************
The cabinet has approved a 21 per cent duty to protect the domestic power equipment makers and offer a level-playing field.
Imported equipment will attract a 5 per cent basic customs duty, 12 per cent counter-vailing duty and 4 per cent special additional duty, sources said.
At present, projects with less than 1,000 MW of generation capacity have to pay 5 per cent duty on equipment imports, while those above this limit enjoy duty-free imports.
The duty protection is likely to benefit firms such as L&T-Mitsubishi Heavy Industries, Bharat Forge-Alstom, Ansaldo-GB Power, Toshiba-JSW, Thermax-Babcock and BGR-Hitachi, which had entered into joint ventures to produce power equipment in the country.
However, it would affect Chinese power generation equipment firms such as Shandong Electric Power Construction, Shanghai Electric Group, Dongfang Electric and Harbin Power Equipment, and their Indian customers such as Reliance Power, Lanco Infratech and Adani Power. The duty would result in increased cost of equipment leading to higher power tariffs.
Private power generation companies expressed dissatisfaction with the government's decision.
"It will increase the cost of power. The government has only gone by the protection of domestic equipment makers. They have not really addressed the concerns of private power generation companies," Association of Power Producers director-general Ashok Khurana said.
Cabinet prop for selloff, power gear
******************************
It will obviously increase cost, but will add to reliable power supply.
***********************
The cabinet has approved a 21 per cent duty to protect the domestic power equipment makers and offer a level-playing field.
Imported equipment will attract a 5 per cent basic customs duty, 12 per cent counter-vailing duty and 4 per cent special additional duty, sources said.
At present, projects with less than 1,000 MW of generation capacity have to pay 5 per cent duty on equipment imports, while those above this limit enjoy duty-free imports.
The duty protection is likely to benefit firms such as L&T-Mitsubishi Heavy Industries, Bharat Forge-Alstom, Ansaldo-GB Power, Toshiba-JSW, Thermax-Babcock and BGR-Hitachi, which had entered into joint ventures to produce power equipment in the country.
However, it would affect Chinese power generation equipment firms such as Shandong Electric Power Construction, Shanghai Electric Group, Dongfang Electric and Harbin Power Equipment, and their Indian customers such as Reliance Power, Lanco Infratech and Adani Power. The duty would result in increased cost of equipment leading to higher power tariffs.
Private power generation companies expressed dissatisfaction with the government's decision.
"It will increase the cost of power. The government has only gone by the protection of domestic equipment makers. They have not really addressed the concerns of private power generation companies," Association of Power Producers director-general Ashok Khurana said.
Cabinet prop for selloff, power gear
******************************
It will obviously increase cost, but will add to reliable power supply.
Last edited: