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| 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 -
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
