The Union Minister of State for Power, Shri K.C.Venugopal, informed Lok Sabha today in a written reply that in order to create a level playing field to the domestic power equipment manufacturing industry vis-à-vis foreign vendors and promote self-sufficiency in this vital sector, Government has decided to levy Custom Duty @5%, Countervailing Duty (CVD) @ 12% (as applicable and equal to excise duty on domestic industry from time to time) & Special Additional Duty (SAD) @ 4% to be uniformly applicable to the imported equipment of all categories of Power generation projects, viz., Mega Power Projects (including UMPPs) and non-Mega Power Projects with effect from 19.07.2012, except for those projects which have already been granted final mega/provisional mega certificates.
He further informed that all the mega projects coming up during 12th Plan have been issued final/provisional mega certificate and will get the benefit of duty exemption. Thus it will not affect the tariff structure for projects coming up during 12th Plan. In subsequent years, the competition amongst domestic manufacturers is likely to have no major impact on cost of power.
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