Levy of 14% import duty will lift power cost by 1-2%: Maira

Heavy industry minister Parful Patel has decided to push for levying 14% duty on importing power equipment as recommended by the Maira Committee.

Speaking to CNBC-TV18, Arun Maira, member of Planning Commission said that if import duty on power equipments is restored to 14% then the cost of power would rise only by 1-2%. This rise can be absorbed within a year through improved efficiencies, he added. Maira who chaired the Maira committee, said that the paramount objective of his committee was to ensure that equipment for power sector will be mabe available at the cheapest possible cost. Below is the edited transcript of Maira's interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying videos. Q: The criticism has come from the power utilities and the power generators suggesting that they are not having a good time in any case with their cost going up, unavailability of raw material and now the project cost will go up quite significantly because of this move? A: Let me explain the whole picture. The panel that I chaired was asked to look into the conflict between two national objectives. One, the supreme objective is to ensure that we have more power generated in the country and at the least possible cost. Second objective is to build up our own capacity, produce power equipment with the growth of our power sector. Produce our own means not by Indian companies only but by companies that will set-up production capacities for power equipment in the country. This objective is a very important one for us on two counts. Firstly, to create more employment in the country which the manufacturing sector hasn