India to Levy Power Equipment Import Tariff

Indian authority disclosed that the government of India is planning to impose import tariff of 19% on power equipments and add clauses of compulsory local purchase in the competitive bidding for extra-large power plants.

Reportedly, during the last two years, Indian local manufacturers have been pushing forward the imposition of import tariffs on power equipments, and India Planning Commission specially built a team to discuss that and the team proposed imposing 14% tariff. However, considering that the measure will likely decrease the speed of newly added electric power, India Ministry of Finance didn't approved the proposal.

In early February 2012, Indian Prime Minister's Office got involved in pushing it once again, and finally the Ministry of Finance agreed to impose 5% tariff, 10% anti-subsidy duty and 4% surtax.

It is predicted that at the end of February, the India Cabinet Committee on Economic Affairs will examine that decision.