Sunday, 06 Nov 2011
India heavy industries minister, Mr Praful Patel said that his ministry supports the demand of local power equipment makers for the imposition of a 14% duty on imported power gear.
Mr Patel told reporters that “There is a strong case for a tax on imported equipment… Besides tariff barriers, other options are also being looked at.”
Mr Patel had met top executives from domestic power equipment firms such as Bharat Heavy Electricals Ltd, Larsen & Toubro Ltd and Bharat Forge Ltd, as well as power generation major NTPC Ltd, on the demand by power equipment firms for a level playing field vis à vis imported gear. Apart from industry players, senior officials of the ministries of heavy industries, power and commerce attended the meeting.
There was, however, no decision on the proposal for levying 14% duty on imported power equipment. Other options on the table include action in the form of safeguards or anti dumping measures that could be examined by the domestic manufacturers affected by cheap Chinese imports, in consultation with the Commerce Ministry.
The issue comes up at a time when equipment contracts for around 37,626 MW of upcoming power capacity are estimated to have been placed with Chinese vendors. Currently, equipment imports attract zero levy under the centre's Mega Power Policy for thermal projects of 1,000 MW and above.
(Sourced from BL)
India heavy industries minister, Mr Praful Patel said that his ministry supports the demand of local power equipment makers for the imposition of a 14% duty on imported power gear.
Mr Patel told reporters that “There is a strong case for a tax on imported equipment… Besides tariff barriers, other options are also being looked at.”
Mr Patel had met top executives from domestic power equipment firms such as Bharat Heavy Electricals Ltd, Larsen & Toubro Ltd and Bharat Forge Ltd, as well as power generation major NTPC Ltd, on the demand by power equipment firms for a level playing field vis à vis imported gear. Apart from industry players, senior officials of the ministries of heavy industries, power and commerce attended the meeting.
There was, however, no decision on the proposal for levying 14% duty on imported power equipment. Other options on the table include action in the form of safeguards or anti dumping measures that could be examined by the domestic manufacturers affected by cheap Chinese imports, in consultation with the Commerce Ministry.
The issue comes up at a time when equipment contracts for around 37,626 MW of upcoming power capacity are estimated to have been placed with Chinese vendors. Currently, equipment imports attract zero levy under the centre's Mega Power Policy for thermal projects of 1,000 MW and above.
(Sourced from BL)
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