Big power sector players oppose imposition of 14% levy
In what can be called an expected move, almost all the major power players have shown their opposition to the imposition of 14 per cent levy of custom duty on foreign equipments. These are the ones that are used for generating power.
The list includes bug names like Reliance Power, Tata Power, Essar Power, AES India, and Adani, to name a few.
While the government says that the duty has been imposed to be able to control the access of relatively cheaper and bad quality Chinese goods; the players are saying that it will hamper the production. This, they say, will impact badly the already power-deficient nation.
The proposal has not yet been approved by the cabinet and analysts say that it will help domestic players like BHEL and Larsen & Toubro. But, power companies like Reliance Power, who are totally dependent on Chinese products are going to face the heat.
The Association of Power Producers (APP) submitted a letter to the Prime Minister. In it the power companies have written all their woes and demanded the PM to look into the matter.