Assocham against higher import duty on power equipment

Industry body Assocham today said that any move to hike import duty on power equipment will send "negative signals" to the country's trade partners.

The chamber also said the move would affect investment climate in the key sectors.

"The government's proposal to hike tariff on imports of some Chinese goods or impose a complete ban on specific items like power and telecom equipment will send negative signals to India's trade partners," it said.

The indigenous power equipment makers have been demanding a levy of 14 per cent on imported equipment -- mainly from China -- in order to provide them a cushion against local taxes.

The move for import duty is being opposed by the private sector power producers.

Giving some comfort to BHEL and L&T, the government has broadly agreed to a level-playing field for the domestic power equipment manufacturers against imports at zero or low duty.

At present, 5 per cent duty is levied on equipment imported for projects less than 1,000 MW capacity power projects. No levy is charged on imports for projects above 1,000 MW capacity.

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