NEW DELHI: Centre's decision to impose higher duty on imported power equipment will help bring improvement in the competitiveness of the local manufacturers, said state-run BHEL.
The private power producers have claimed that the decision will raise the electricity tariffs due to the expensive equipment.
The Cabinet gave nod to 21% duty on imports of power equipment. This move has been aimed at helping local firms from the cheap Chinese shipments.
BP Rao, chairman and MD, BHEL, said, “The move to impose higher import duty on power equipment is definitely good and in the right direction. It will help in improving the competitiveness of domestic manufacturers.”
Out of the overall 21% levy, just 5% would be customs duty.