POWER EQUIPMENT: Import Duty to Go Up to Check China

Special duty benefits on the import of equipment for mega projects (Hydro 500MW+ & Thermal 1000MW+) and ultra-mega power projects (4000MW+) are all set to go as the government tries to check the surge in imports of cheap power equipment, especially from China. Instead, a uniform duty structure has been proposed for all categories of power projects. The move will protest BHEL and L&T.

Proposed regime A customs duty of 5 per cent A countervailing duty of 10 per cent (equal to excise duty on domestic industry for level playing field) A special additional duty (SAD) of 4 per cent To avoid disruption in the ongoing capacity addition programmes, the government plans a suitable clause to provide exemption from import duty

Companies such as Toshiba, Jindal's JSW, South Korea's Doosan Heavy Industries, Italy's Ansaldo, Alstom and Bharat Forge are planning to set up power equipment manufacturing facilities in India.