New Delhi: In a bid to promote domestic companies making electrical equipments for power plants, the Union Government is all set to levy import duty on such products.

The main aim behind the proposed move is to reduce the dependency of the electrical equipments being imported in the country from China. Therefore, in a strategic manner, plans are afoot to levy 14 percent import duty of electrical equipments.

Giving hints in this regard, the Ministry of Heavy Industries has indicated at presenting a proposal in this regard before the Finance Ministry.

According to sources in the domestic industries, China provides incentives on export of equipments to its tool industry. As a result the tools provided by China are cheaper when compared to the electrical equipments provided by the Indian industry.

However, the Heavy Industries Ministry argues that in order to remain in competition with foreign counterparts, it is extremely important to give equal opportunities and facilities to Indian electrical equipment manufacturing units.

A committee headed by Planning Commission member Arun Mayra has already proposed 14 percent import duty on electrical equipments. However, the Centre has yet not taken any decision in this regard.

JPN/Bureau