New Delhi (PTI): Industry body Assocham has asked the government to impose import duty on Chinese power equipment as products from the neigbhouring country are hampering the domestic industry.
"Indian power equipment manufacturers are loosing thriving business opportunities vis-a-vis their heavily incentivised counterpart from China...," the chamber said in a statement.
"The only way out left to restrict the Chinese imports of power equipment to India is through the imposition of tariff and non tariff barriers by the Indian government...," it said.
The domestic manufacturers in the last one year have lost business opportunities to supply equipment to mega power producers in India to an extent of 50,000 MW, it said.
The Indian power producers sourced equipment from China worth Rs 2.5 lakh crore in the last one year, it added.
China gives incentives and rebates to its manufacturers for exports and when such equipment is imported to India, it does not attract any customs or other duties, it said.
While locally manufactured equipment, even when given a 'deemed export' status, attracts duties and taxes of nearly 6 per cent of the equipment cost, it added.
The Economic Survey for 2008-09 has also said, "Of particular concern is the zero-duty imports, relating to import of power generation equipment".
BHEL had last week demanded an uniform 10 per cent import duty be imposed on power equipment.
Source : The Hindu