IEEMA's response on impose of import duty

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

The Indian Electrical & Electronics Manufacturers’ Association (IEEMA) has called for immediate imposition of import duty on power equipment for mega and ultra-mega power projects over 1,000 MW. 

According to IEEMA, the industry is 10.56% of the manufacturing sector is terms of value and 1.5% of the GDP. It also provides direct and indirect employment to 1.5 million people and over 5 million across the entire value chain. The Indian electrical equipment industry, Rs. 1, 10,000 crores in 2010-11, comprises of two segments - generation equipment which constitute 24% of the industry, and T&D and allied equipment which constitute the rest 76%. T&D equipment manufacturers are working at only 65% of their production capacity. In the last few years, the domestic manufacturing capacity of generation equipment has being ramped up and currently stands at 20,000 MW per annum against a requirement of about 16-17,000 per annum. With 6-7 joint ventures coming up in India, the capacity will increase to 40,000 MW per annum by 2014-15. The power generation capacity addition target for the 12th Plan may also be scaled down to about 75,000 MW. As a result, even the generation equipment sector will soon be sitting on huge surplus capacity.

Ramesh Chandak, President, IEEMA said, “This issue of providing a level playing field for domestic manufacturers of electrical equipment vis-à-vis imported equipment has been debated and discussed for long at the highest levels of the government and action must now be taken immediately. There is equally a strong case for even increasing import duty on transmission & distribution (T&D) equipment and generation equipment for non-mega projects.” 

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