Much against expectations that the budget will impose a 19% duty on imported power equipment to check on low-quality gear imports from China, finance minister Pranab Mukherjee chose against introducing any such new duties.
While the move came as a disappointment for domestic power
equipment manufacturers such as BHEL and L&T, it provided the much-needed relief to power producers such as NTPC and Reliance Power.
“The continuation of a mega power policy (which gave customs duty exemption benefits to power projects of 1,000 mw and above) signals stability of policies, said JP Chalasani, chairman, Association of Power Producers (APP) and CEO, Reliance Power.
The move would greatly benefit overseas supplier firms such as US-based GE besides European power suppliers like Alstom, Siemens and Chinese major Shanghai Electric, which recently announced plans to set up a manufacturing unit with French major Alstom in India.