Levy higher duties on power equipment imports: Commerce Department

The commerce department has opposed power ministry's attempt to protect existing ultra mega power projects (UMPPs) from the proposed duty hike on imported power equipment. It has said the higher duties should be imposed on all imports from the day the Cabinet approves the proposal. "In the Cabinet note on power equipment imports, the power ministry has proposed a carve out for all approved UMPPs stating that the import duties would not be applicable on orders already placed," a government official said. The commerce department feels this is not warranted, the official said. The power ministry has proposed a 5% basic customs duty on power equipment imports, a 10% countervailing duty and a 4% value added tax in the Cabinet note to shield domestic manufacturers like BHEL, L&T and Bharat Forge against cheap imports from China. The commerce department has a point of dispute with the duties as well. It wants a 15% basic customs duty.

Source: Economic Times