The low-priced Chinese power equipment imports pose a serious threat to the local manufacturers and hence, the heavy industries ministry has sought government's aid to address the crucial issue in the Union budget 2010-11.
Currently, power equipments for mega power projects enjoy a duty free import, while a negligible duty of 5 percent is imposed on the import of smaller power project equipments. On the flip side, China, levies a custom duty of as much as 30 percent on the heavy engineering equipment imports which makes it almost impossible for the Indian players to compete in the Chinese market.
Minister for Heavy Industries, Mr. Vilasrao Deshmukh stressed on the need of safeguarding the domestic industries from foreign and hence, suggested a 10 percent custom duty on power equipment imports from all the countries other than China which can be entitled for an additional 5 percent import duty.Currently, power equipments for mega power projects enjoy a duty free import, while a negligible duty of 5 percent is imposed on the import of smaller power project equipments. On the flip side, China, levies a custom duty of as much as 30 percent on the heavy engineering equipment imports which makes it almost impossible for the Indian players to compete in the Chinese market.
The import issue has though, raised a contradictory situation within the power sector. On one side the heavy equipment manufacturers like BHEL and L&T are favoring the import duty on Chinese products while the power producers on the other hand, are apprehensive about the duty.
