The Government has informed in the Parliament on 22 April 10 that, no new import duty will be imposed on imports of Chinese Power Equipments.
Minister of State for Heavy Industries & Public Enterprise Arun Yadav said that during the pre-budget 2010 exercise, the proposal to impose import duty on power equipment was examined and it was decided not to make any changes in the present duty structure.Discussions were held with different stakeholders on the issue before it was decided to maintain the current level of duty on power equipment imports.
Cheap Chinese power equipment imports are posing a threat to domestic manufacturers like BHEL. State-run BHEL (The Largest Domestic Power Equipments manufacturer) was demanding a 10 per cent customs duty on import of equipment for projects awarded through the international competitive bidding route and mega power plants.
At present, 5 per cent customs duty is imposed on equipment imported for projects awarded through the ICB process, while there is no duty on power equipment sourced for mega projects with a capacity of 1,000 MW and above.
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