Jun 21, 2012, 12.20 PM IST

L&T, BHEL gain on likely import duty on power equipment

State-owned capital goods company Bharat Heavy Electricals (BHEL) rallied over 2.5% after The Economic Times reported that the government is likely to impose a 21% duty on imported power equipment (including 5% basic duty, 12% countervailing and 4% special additional duty).

Source: Moneycontrol.com

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State-owned capital goods company Bharat Heavy Electricals ( BHEL ) rallied over 2.5% in early trade after reports indicated that the government is likely to impose a 21% duty on imported power equipment (including 5% basic duty, 12% countervailing and 4% special additional duty).

Meanwhile, Larsen & Toubro ( L&T ) also rose 0.8% to Rs 1,352.35.

Yesterday, Prime Minister's Office had asked power ministry to float a cabinet note on the pending issue of duty on imported power equipments.

Domestic power makers have requested import duties for the past two years to curtail the supply of cheaper equipment from China. Equipment makers, much like other exporters from China, benefit from low interest rates and an undervalued currency.

If the proposal sails through, it will give a major boost to domestic equipment manufacturers such as BHEL, L&T and Bharat Forge.