19 % import duty likely on power equipment for mega projects

Power generation equipment for projects above 1000 MW may attract import duty at the rate of 19%. The Cabinet Committee on Economic Affairs (CCEA) is expected to take a call on the issue in next two weeks. If the proposal is approved, it will give domestic equipment manufacturers such as BHEL, L&T and Bharat Forge a major boost. At present, power generation equipment for projects below 1000 MW bears a duty of 5% while there is almost nil duty for equipments for projects above 1000 MW.