MUMBAI (Reuters) - Shares of power equipment makers rise after the Prime Minister's office convened a meeting to discuss the contentious issue of imposing duties on foreign equipment imports.

The power minister is expected to submit a new proposal for a potential import tax to a cabinet of ministers, two government sources tell Reuters, in what would be a procedural matter.

Domestic power makers have requested import duties for the past two years to curtail the supply of cheaper equipment from China.

A panel of minister on economic affairs in March had deferred a decision on import duties.

Bharat Heavy Electricals , India's largest power equipment maker by capacity, advances 1.5 percent, while engineering conglomerate Larsen & Toubro gains 0.7 percent.

Mid-sized power gear makers BGR Energy and Thermax gain 2.4 percent and 1.8 percent respectively.