New Delhi: Ministries are at loggerheads over imposing custom duty on import of Chinese power equipments. On the one hand, few ministries are in favour of duty to provide level playing field to domestic players , on the other, Ministry of Power is opposing the move.

The Heavy Industry Ministry had convened a meeting of ministries related with this matter and proposal for imposing 14 percent custom duty on Chinese power equipment was discussed.

According to sources, the Energy Ministry opposed this proposal arguing that there was a need to add more capacities to encourage power production. It was dependent on imports in a bid to expedite power related schemes of private companies.

Sources divulge that the Finance Ministry was also against levying custom duty. However, it is causing losses to the government exchequer.  But the ministry argues that keeping investments and new avenues of power sector in view, revenues can be ignored.

On the contrary, Heavy Industry Ministry and Commerce and Industry Ministry are in favour of custom duty on Chinese imports in order to provide relief to domestic players.

Following the difference in opinion among ministries, no consensus has reached on the matter.

Meanwhile, the Heavy Industry Ministry said that even 10 percent custom duty can provide relief to the domestic manufacturers.

JPN/Bureau