Power ministry seeks higher duty on imported power gear

The power ministry has come out with a fresh proposal for imposing higher duty on imported power gear, which is expected to be taken up by the cabinet in the next two to three weeks.

The plan to levy higher duty on overseas equipment seeks to provide a level-playing field for domestic manufacturers such as BHEL and Larsen & Toubro against cheap imports, especially from China.

According to power secretary P Uma Shankar, the ministry had moved the cabinet note on imposing higher levy on imported power gear.

The proposal is likely to be taken up in 15-20 days, he told reporters in New Delhi. He did not elaborate on the quantum of levy that has been proposed.

Late last month, the prime minister's office had directed the power ministry to prepare a fresh cabinet note on the same.

According to unnamed sources, quoted by PTI, the power ministry was likely to suggest the quantum of overall levy on overseas gear at 19 per cent, as proposed in the earlier cabinet note. With the government hiking the excise duty by 2 per cent to 12 per cent in the budget, the total levy would be 21 per cent.