Power producers write to FM on import duty hike

The Association of Power Producers (APP) has written to Finance Minister regarding the import duty on power equipments. CNBC-TV18's Mehak Kasbekar reports.

In its letter, the APP has expressed its disapproval with the draft Cabinet note by the power ministry. The power ministry is looking for a 14% duty on imported equipment.
The APP is arguing that capital cost will go up for the power producers and this in turn will be passed on to the consumers. Therefore, the association says power prices will rise.
It also highlighted that project might get delayed as the power producers are dependent on imported equipment.
However, the heavy industry is not happy with the Cabinet note as it wants more duty on imported equipments.