Duty on power equipment: CCEA to take up proposal on Mar 1

The Power Ministry's proposal to levy a 19% import duty on power project equipment is expected to be taken up by the Cabinet Committee of Economic Affairs this Thursday, reports CNBC-TV18's Rituparna Bhuyan. 

The proposal is to levy 5% customs duty, 10% countervailing duty and 4% special additional duty as against 10% customs duty and 4% CVD, which the Maira Committee had recommended and was backed by the Department of Heavy Industries. The Commerce Ministry has differed with the Power Ministry and has proposed a higher duty level on power equipment imported from abroad. Commerce Ministry has also opposed the carveout proposed by the Power Ministry for already notified UMPPs from higher import duty. Meanwhile, the Association of Power Producers has now written to the Prime Minister opposing proposed customs duty for imported power equipments. The power producers have said that the domestic manufacturers are already burdened with a huge order book and the cost of financing imports is very competitive. The letter also mentions that rupee depreciation is already impacting imports and would delay power projects.