Report on Impact Analysis: Antidumping Duties on Import of Power Equipments
The availability of Chinese equipments has helped in the timely commissioning of power plants at cheaper rates, as BHEL the leading equipment and service provider in the country has a limited production capacity. Currently, there is zero import duty on import of equipments for mega power projects. The problems of domestic manufacturers gets accentuated by the fact that foreign manufacturers enjoy 14 percent cost advantage, mainly due to nil duty imports and lower financing cost.An empowered government committee has been setup to examine the option of duty concessions to domestic power equipment manufacturers. However, the Ministry of Power is of the view that any such options cannot be implemented before the start of the next Plan period (April 2012), as the orders for equipment during the current Plan period (2007-12) have already been placed and these modalities may hamper the capacity addition programme. Also, BHEL and L&T have recently asked the government to provide level playing field, in terms of taxes and duties levied on import of foreign equipments for mega capacities.
Report Highlights
There are some key questions that rely on the outcome of this debate between Indigenous and Foreign manufacturer's -
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Is it justified to levy custom duty on import of equipments, if yes, how much?
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Will such a move impact the generation cost of future plants, and hence the end use consumers?
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What could be the possible measures for ensuring the level playing field?
A must buy for:
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Equipment Manufacturers
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Power Developers
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Banks, Project Financers and Investment Bankers
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Consultants
Table of Contents:
Introduction
The China Factor
Key Chinese Equipment Suppliers to India
Chinese Power Equipment Supply Scenario in India
XI Plan Capacity Addition Status
Impact on Capacity Addition Programe
Trade Practices of Chinese Power Equipment Industries
Performance of Power Projects Ordered on Chinese Equipment
Domestic Manufacturers
Key Domestic Manufacturers
Domestic Power Equipment Supply Scenario
Disadvantages to Domestic Manufacturers
Level Playing Field
Conclusion
Annexure
List of Power Projects already Commissioned with Chinese Equipment
List of Power Projects with Chinese Equipment for Commissioning in XI Plan
List of Projects with Chinese Equipment for commissioning in XII Plan
List of Projects with BHEL Equipment for commissioning in 2010-2011
List of Projects with BHEL Equipment for commissioning in 2010-2012
