India plans duties on import of Chinese power equipment

In a move that may spell trouble for private sector utilities and Chinese makers of power generation equipment, heavy industries minister Praful Patel has called a meeting on Thursday to discuss and push for the imposition of customs duties on imports of such equipment.

The meeting will be attended by officials from the ministries of heavy industries, commerce and power, and follows demands by local manufacturers to restrict Chinese power equipment imports.

“This is because domestic companies have been long complaining that they are becoming increasingly uncompetitive due to the cheaper power equipment imported from China,” said a top government official aware of the meeting, who requested anonymity. “If customs duty along with excise duty is imposed on Chinese power equipment, then the effective tax on such imports will be around 17-18%.”

Bharat Heavy Electricals Ltd (Bhel) and Larsen and Toubro Ltd (L&T) have been lobbying with the government to limit Chinese competition. According to the contours of an earlier proposal, the imported equipment will be subjected to 5% customs duty, 10% countervailing duty and a special additional duty of 4%.

ref:
http://www.livemint.com/2011/10/30224105/Indiaplansduties-on-import-o.html?atype=tp