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Monday, December 12, 2011

Power equipment producers unhappy with 14% import duty

Mon, Dec 12, 2011

The struggle for domestic power equipment manufacturers against their Chinese counter parts is gathering steam. Sources tell CNBC-TV18 that they are not happy with the Power Ministry proposing only a 14% import duty on power equipments from China, reports Mehak Kasbekar.

This proposal has been on the back burner for a while and finally a draft Cabinet note has been floated by the Power Ministry. The Ministry note says that 5% will be charged on import duty, 5% of special additional duty and 4% of countervailing duty, totaling to 14%.

However, as we know, the Heavy Industries Ministry is not happy with it. Big names like BHEL were hoping that the import duty would at least be between 19-24%. The Maira Committee report which had done in-depth analysis of this had also recommended 14%, but additional duty on top of it would have taken it to between 19-24%.

Big companies that are hurt by import of Chinese equipments just want a level playing field, so sources say that the DIPP and Heavy Industries will be writing their comments this week voicing their displeasure with the draft Cabinet note.

Source : CNBC-TV18

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