Import duty on equipmnt halved to 2.5% for mega power projs

The government has halved the duty on import of equipment used for mega power projects to 2.5 per cent to boost electricity supply.
    
A recent notification issued by the Central Board for Customs and Excise says that customs duty are now placed at 2.5 per cent on "goods required for setting of any mega power project". Such equipment were attracting an import duty of 5 per cent earlier.
    
This means that lower customs duty would be imposed on power equipment used for 700 mw capacity thermal and 350 hydel plants located in Jammu and Kashmir, Sikkim and seven northeast states.
    
However, capacity of thermal and hydro power plants will have to be 1,000 MW and 500 MW respectively in other parts of the country to enjoy the lower tariff.
    
Mega power projects are 700 MW and above capacity projects. Power experts welcomed the move, saying the move would also benefit the end consumers.
    
"It is a welcome step, power is a regulated commodity. Whatever the investment benefit, is passed on to the consumer," former Power secretary Anil Razdan said.
    
However, some domestic players may face competition with imports becoming cheaper.
    
But, Razdan said, "BHEL is a national asset and their capacity is booked for the next couple of years, so right now it would not have an impact. If they expand in the future, then it may."