The Indian power ministry, in the next couple of weeks, will move a note to the Union Cabinetproposing a levy of 21% on imported power equipment, a senior government official said.
On Wednesday, the Prime Minister's Office (PMO) asked the power ministry to float the note to protect local equipment manufacturers, including state-run BHEL, from Chinese and Korean competitors. Power companies have stoutly resisted any increase in duty on equipment import, especially after they have become costlier as the rupee had depreciated by 28% in the past two years.
“The power ministry will send a new note to the Cabinet to impose 5% basic, 12% countervailing and 4% special additional duty on imported power equipment, and it is expected to be taken up in the next 20 days,” the official said after attending the PMO meeting.
Source: The Economic Times
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