Power ministry may withdraw price preference to BHEL

BS reported that power ministry will soon approach the cabinet to do away with the 15% price preference to domestic manufacturers, under the mega power policy. This proposal will primarily affect state run Bharat Heavy Electrical Ltd.

In a draft cabinet note, the power ministry has recommended imposition of 5% customs duty, 10% CVD and 4% special additional duty (SAD) to be uniformly applicable to all categories of power projects.

The move has been opposed by private power generating companies, including TATA Power, Reliance Power and Lanco, as it will increase the cost of generation.

Once the imposition of duty is approved, the policy for 15% price preference to domestic manufacturers in case of cost plus projects of public sector units will be withdrawn.

ref:
http://www.steelguru.com/indian_news/Power_ministry_may_withdraw_price_preference_to_BHEL/161417.html