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Bhel demands 10% import duty on power equipment
Press Trust of India / New Delhi June 15, 2009, 19:07 IST

State-run Bhel has demanded a 10 per cent customs duty on import of equipment for both the projects awarded through the international competitive bidding route and mega power plants.

"We would like to have 10 per cent custom duty on imported power equipment sourced for both mega power projects or the ones being set up through the international competitive bidding route (ICB)," CMD Bhel K Ravi Kumar told PTI over phone.

At present, 5 per cent customs duty is imposed on equipment imported for the projects that have been awarded to the developers through the ICB process. Whereas, there is no duty on power equipment sourced for the mega projects (1,000 Mw and above).

"We want a uniform import duty for type of power projects," Kumar said.

Bhel is the country's largest public sector power equipment player and manufacture units that can generate 10,000 Mw of power annually. The company plans to take this capacity upward to 15,000 Mw by the end of the current financial year.

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B.S.Shetty
BHEL must prove themselves competitive in quality as well as quantity especially to Chinese equipments. It is understood BHEL is unable to cater to the demand on time. Without putting its own house in order BHEL cannot dictate terms.
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