New Delhi: No new duty will be imposed on imports of Chinese power equipments, the government informed Parliament on Thursday.
“During the pre-budget 2010 exercise, the proposal to impose import duty on power equipments was examined and it was decided not to make any changes in the present duty structure,” minister of state for heavy industries and public enterprises Arun Yadav said in a written reply to a Lok Sabha question.
Yadav said that discussions were held with different stakeholders on the issue before it was decided to maintain the current level of duty on power equipment imports.
According to sources, cheap Chinese power equipment imports are posing a threat to domestic manufacturers like BHEL.
State-run BHEL was demanding a 10% customs duty on import of equipments for projects awarded through the international competitive bidding route and mega power plants.
At present, 5% customs duty is imposed on equipments imported for projects awarded through the ICB process, while there is no duty on power equipments sourced for mega projects with a capacity of 1,000 MW and above.
BHEL is the country’s largest public sector power equipment player and manufactures units that can generate 10,000 MW of power annually. The company plans to take this capacity upward to 15,000 MW by the end of the current financial year.