India’s power ministry endorsed a
plan to almost triple import duty on generation equipment to
help local manufacturers BHEL and
L&T compete for orders with Chinese rivals.
Chinese suppliers won 34 percent of new equipment orders in India in the five years ending March 31, according to the Ministry of Power. Orders were placed with Chinese companies for equipment for 21,100 megawatts of the 61,237 megawatts of capacity expected to be added in the five years ending March.
The go-ahead came after the Finance Ministry, a holdout till now, gave its consent to 5 per cent custom duty, 10 per cent countervailing duty and 4 per cent additional duty. Countervailing duties are essentially anti-subsidy duties that are to be applied if the country of import has grossly subsidised the product in question.
Bloomberg: India’s Power Ministry Endorses Tripling Duty on China Equipment
Chinese suppliers won 34 percent of new equipment orders in India in the five years ending March 31, according to the Ministry of Power. Orders were placed with Chinese companies for equipment for 21,100 megawatts of the 61,237 megawatts of capacity expected to be added in the five years ending March.
The go-ahead came after the Finance Ministry, a holdout till now, gave its consent to 5 per cent custom duty, 10 per cent countervailing duty and 4 per cent additional duty. Countervailing duties are essentially anti-subsidy duties that are to be applied if the country of import has grossly subsidised the product in question.
Bloomberg: India’s Power Ministry Endorses Tripling Duty on China Equipment
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