Online edition of India's National Newspaper
Friday, Dec 24, 2004

About Us
Contact Us
Business
News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Classifieds | Employment | Obituary |

Business Printer Friendly Page   Send this Article to a Friend

Duty cut sought on captive power plant equipment

By Our Special Correspondent

NEW DELHI, DEC. 23. The Associated Chambers of Commerce and Industry of India (Assocham) has asked the Union Finance Ministry to bring down the import duty on goods required for setting up of captive power plants by 50 per cent in the budget proposals for 2005-06 to give a boost to the captive power sector.

The chamber has also demanded that the new duty structure should be within the range of 20 per cent instead of the prevailing duty structure of 40 per cent.

In a representation submitted to the Government, the President of the chamber, Mahendra K. Sanghi, has said that at present, equipment required for captive power plants, the capacities of whose exceed 5 MW attract a basic custom duty of 20 per cent along with additional custom duty of 16 per cent. Thus, the total duty works out to about 40 per cent, which is on the high side, and, therefore, needs to be brought down.

He further pointed out that in his previous budget proposals, the Finance Minister liberalised the mega power project policy by bringing down the import duty on equipment needed to set up mega power plants of over 1,000 MW capacities by about 40 per cent in totality.

He, therefore, proposed that the cap for mega size power projects should be removed and the tax structure for captive power plants should be brought on a par with the other power projects.

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Classifieds | Employment | Obituary | Updates: Breaking News |


News Update


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu