India may impose import duty on power equipments.

Indian Minister of State for Power Mr KC Venugopal informed the Lok Sabha that a Committee was set up under Member (Industry), Planning Commission (Maira Committee) to suggest options and modalities to take care of the disadvantages suffered by the domestic industry related to power sector.

The committee had made the following recommendations

1 Immediate adoption of the proposed regulations for performance standards for power generation equipment;

2. Levy of Custom Duty @10% additional custom duty - ‘Nil’ and Special Additional Duty (SAD) @ 4 (adding to 14%) for Mega and Ultra Mega Power Projects. Consequential adjustments in duty rates applicable for brownfield (expansion) projects to bring duty structure at par to Mega Power projects to also apply;

3. If and when the general remedy proposed is applied, the prevalent price preference policy can be withdrawn; and

4. Actions for safeguards/anti-dumping protection may be initiated by Indian manufacturers themselves who are affected by the trade practices of the Chinese.

One of the recommendations on early notification of performance standards for power generation equipment has been implemented. As far as imposition of import duty is concerned, the matter is under consideration.

Source : steelguru.com