DHI For Import Duty On Power Plants During 12th Plan.

New Delhi: The Department of Heavy Industries, the administrative ministry for the BHEL, is making a case before the Planning Commission that domestic power equipment manufacturers should be protected against duty-free imports, mainly from China.
    
The Department of Heavy Industries (DHI) is drafting a proposal for the 12th Five-Year Plan (2012-17) with a suggestion that 14 percent duty be levied on import of the electrical equipment.
     
"We will be sending the proposal soon to the Planning Commission for the next Five-Year Plan," a DHI official said. The proposal is for the next plan because orders have already been placed for building several power generation plants, mainly in the private sector.
     
At present, power equipment for projects above 1,000 MW attracts no import duty which is levied at 5 percent for the plants with lesser capacity.
     
The DHI is in favour of a uniform 14 percent import duty, arguing it is required to protect the domestic equipment manufacturers like BHEL and L&T.
     
The DHI proposal in sync with the state-owned BHEL's demand, seeking 10 percent customs duty besides four percent special additional duty.
     
The country has witnessed increased imports of power equipment mainly from China. Big ticket projects of promoters like the Anil Ambani Group have signed contracts with major Chinese vendors for their power plants.
     
However, the Power Ministry officials said that a "balanced view" needs to be taken. "We will discuss the matter with all the stakeholders -- generation companies and equipment manufacturers and then take a call," an official said.
      
While India needs to add 1,00,000 MW generation capacity in the next five years, capacity with the BHEL and other domestic vendors is not beyond 20,000 MW.
      
The current installed generation capacity is over 1,80,000 MW.

Source : zeenews.india.com