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
Showing posts with label higher import duty. Show all posts
Showing posts with label higher import duty. Show all posts
Monday, December 12, 2011
Sunday, November 6, 2011
India heavy industries ministry to push for 14pct duty on power gear imports
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)
Friday, February 18, 2011
Budget update - Steel industry wants infrastructure status higher import duty and export tax of iron ore
Friday, 18 Feb 2011
The domestic steel industry, which raised prices in wake of some stimulus measures being withdrawn after the last budget, has warned of another price hike if stimulus is completely withdrawn in Budget 2011-12. An industry official said that “We will have no option but to pass on the burden to the consumers if excise duty concessions are withdrawn.”
1. Infrastructure status to the steel industry
The steel industry has also reiterated its long standing demand of being accorded infrastructure status. Steel firms have asked the finance ministry to grant infrastructure status to the steel industry. Such a move by the finance ministry would ensure long term funds and tax holidays for the steel industry.
A SAIL spokesperson told Business Line that “SAIL has submitted its demands and expectations from Budget 2011-12 to the finance ministry. The crux of it is that we want steel to be given infrastructure status. This would help in securing long term funds for the expansions taking place in the domestic steel industry.”
2. Hike import duty on HR coils
For the growth of industry, steel makers along with Associated Chambers of Commerce and Industry has called on the finance ministry to raise import duty on HR coils to 10% from the current 5%. ASSOCHAM in a statement said that “Pro active policy measures adopted by government of India can help extend HR coil capacity by an additional 8 million tonnes during 2011-12, making India surplus for HR coils by more than 6 million tones.”
3. Export tax on iron ore
Steelmakers have also asked the Finance Ministry to increase the export duty on iron ore. A Jindal Steel and Power Ltd spokesperson said that “Recent hikes in steel prices have been mainly driven by the increasing commodity prices. To contain this, the Government should consider increasing the export duty on iron ore.”
The government had last year raised export duty on iron ore lumps to 15%. The industry expects at least a 5% increase on the export of iron ore lumps, but it wants duty to be increased on iron ore fines as well.
An industry official that “It is time we start conserving iron ore fines as technology is coming up which will also make domestic steelmakers to use iron ore fines increasingly.”
(Sourced from BL)
Tags:Budget update, Indian steel industry, infrastructure status, higher import duty, export tax of iron ore, steelmakers, raw material, Indian government
The domestic steel industry, which raised prices in wake of some stimulus measures being withdrawn after the last budget, has warned of another price hike if stimulus is completely withdrawn in Budget 2011-12. An industry official said that “We will have no option but to pass on the burden to the consumers if excise duty concessions are withdrawn.”
1. Infrastructure status to the steel industry
The steel industry has also reiterated its long standing demand of being accorded infrastructure status. Steel firms have asked the finance ministry to grant infrastructure status to the steel industry. Such a move by the finance ministry would ensure long term funds and tax holidays for the steel industry.
A SAIL spokesperson told Business Line that “SAIL has submitted its demands and expectations from Budget 2011-12 to the finance ministry. The crux of it is that we want steel to be given infrastructure status. This would help in securing long term funds for the expansions taking place in the domestic steel industry.”
2. Hike import duty on HR coils
For the growth of industry, steel makers along with Associated Chambers of Commerce and Industry has called on the finance ministry to raise import duty on HR coils to 10% from the current 5%. ASSOCHAM in a statement said that “Pro active policy measures adopted by government of India can help extend HR coil capacity by an additional 8 million tonnes during 2011-12, making India surplus for HR coils by more than 6 million tones.”
3. Export tax on iron ore
Steelmakers have also asked the Finance Ministry to increase the export duty on iron ore. A Jindal Steel and Power Ltd spokesperson said that “Recent hikes in steel prices have been mainly driven by the increasing commodity prices. To contain this, the Government should consider increasing the export duty on iron ore.”
The government had last year raised export duty on iron ore lumps to 15%. The industry expects at least a 5% increase on the export of iron ore lumps, but it wants duty to be increased on iron ore fines as well.
An industry official that “It is time we start conserving iron ore fines as technology is coming up which will also make domestic steelmakers to use iron ore fines increasingly.”
(Sourced from BL)
Tags:Budget update, Indian steel industry, infrastructure status, higher import duty, export tax of iron ore, steelmakers, raw material, Indian government
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