India to Levy High Tariffs on Power Equipments from China

According to a report on August 28, 2010 from the Indian Express, the Ministry of Power of India has proposed to the Indian Cabinet, demanding to levy a tariff of 21% on the equipments for mega power plants originating in China.

As per the report, the Ministry of Power of India proposed to the Indian Cabinet to levy tariffs on Chinese power equipments from April 2010 following the first mentioning of imposing a tariff of 10% and a special additional duty of 4% on the imported power equipments in the report of Arun Maira, member with the Planning Commission of India, and under the lobbying of domestic manufacturers of power equipments.

The proposed incidence of taxation includes: tariff of 5%, anti-subsidy duty (CVD) of 10% and SAD of 5%, SAD is a compensation to the cost increase of electric power resulted from the collection of tariffs and anti-subsidy duties.

In all, it appears that the proposed tariff on the imported power equipments will be more than 21%.