Levy import duty to push local LED bulbs: Par panel to govt

Government should impose import duty on LED bulbs and its components in such a way that it encourages domestic production and disincentives import of finished LED products, a Parliamentary panel said.
"Custom duty and countervailing duty (CVD) on LED lamps and its components should be levied in such a manner that it encourages local production and disincentives import of finished LED products," the Parliamentary Standing Committee on Power said in its report on energy conservation tabled in Parliament today.
Finished LED (light emitting diodes) lamps attract lesser amount of duties as compared to its components such as LED chip, electronic part and housing/fixture part.

"Keeping in view the huge demand of LED lamps in the country, import of these items can be one of the option but this cannot be permitted at the cost of local enterprise," it said.
The panel has also asked the government to reduce aggregate technical and commercial (AT&C) losses saying that although they form a separate subject, steps are required to bring down commercial pilferage.
Government has planned to bring AT&T losses from a level of 25 per cent to 15 per cent. It is implementing Indian Power Development Scheme (IPDS) for the purpose.

The committee noted that central government has given Rs 2 crore to each state for starting State Energy Conservation Fund (SECFs) and 26 states have set up SECFs.

The panel recommended that the government should persuade remaining 9 states and UTs to set up SECFs and ensure prompt and adequate funding to these funds.
It also asked the government to review the scope, provision of energy audits and also the concept to use same.
It said that an enabling financing regime should be created in which the risk perception with regard to energy efficiency projects can be minimised.
It also said that energy efficiency projects should be considered at par with energy generation projects and may be considered for providing lending under priority sector.
The panel suggested that Power Ministry may take up with the Finance Ministry to declare the conversion of street lights into LED based street light projects into infrastructure project.

The panel said that immediate steps should be taken to make available adequate and reliable testing facilities for LED lights in the country.
It recommended that a study may be undertaken to include more industries in the compulsory energy efficiency list.
It also said that all malls, multiplexes should have energy efficiency plans and programmes and there should be energy efficiency code for small cities.