The Heavy Industries Ministry has pitched for 14 per cent import duty on power generation equipment for the projects above 1,000 MW. It claimed that the Power Ministry had already circulated a Cabinet note in this regard. The Heavy Industries Minister, Mr Praful Patel, said, “Such a duty will provide a level playing field to domestic companies such as BHEL and L&T, which have significant disadvantage.” The move is primarily aimed at imports from China. At present, equipment for power projects with capacity over 1,000 MW attract marginal duty. This makes imports cheaper and is the key reason for power producers, such as Reliance ADAG and Adani, going in for imports from China. This is a blow to domestic producers, who are already facing slower order flow because of fewer projects being planned and executed. We have already involved the Prime Minister's Office in this matter, while the Planning Commission and the Power Ministry are already on board,” Mr Patel told reporters after his meeting with the Power Minister, Mr Sushil Kumar Shinde, on Monday
Source: The Hindu Business line
No comments:
Post a Comment