Finance ministry rules out Customs duty relief for magnet PLI scheme

Finance ministry has ruled out customs duty exemption for REPM-making machinery, saying capital subsidy under the PLI scheme will offset high import costs amid China's export curbs

No exemption from Customs duty or cess is required for importing machinery and equipment used in manufacturing rare-earth permanent magnets (REPM) under the proposed production-linked incentive (PLI) scheme, the Department of Revenue in the Ministry of Finance has told the Ministry of Heavy Industries.

 

Officials said the capital subsidy being planned under the scheme would be sufficient to offset the higher costs involved.

 

Expenditure on plants and the machinery to be imported to set them up in India is expected to be significantly higher since almost all such equipment will have to be sourced from countries other than China, such