The Union Cabinet would take up the issue of imposing import duty of power equipment in two weeks. The Prime Minister’s Office that reviewed the matter on Wednesday has asked the ministries concerned to fast-track the matter.
“The Power Ministry will circulate a new-note on imposing import duty on power equipment. The Cabinet will take up the matter in two-weeks,” said a Government official.
However, it is not known immediately if import duty to be imposed on power equipment would be fixed at 19 per cent, as decided earlier, or it would be changed.
This matter was discussed on Wednesday in a meeting chaired by the Principal Secretary to Prime Minister, Mr Pulok Chatterji. The meeting was attended by senior officials from Ministries of Power, Heavy Industries, Finance and Commerce and Industries.
Earlier, the Finance Ministry has favoured the imposition of 5 per cent basic Customs duty, 4 per cent additional import duty and 10 per cent countervailing duty (imposed in lieu of excise duty for domestic producer) making a total of 19 per cent.
If the proposal sails through, it will give a major boost to domestic equipment manufacturers such as BHEL, L&T and Bharat Forge.