Home > Capital Goods, Power > Power Equipment Imports: Demand For Curb Continues

Power Equipment Imports: Demand For Curb Continues

Currently, the treatment of imports of new and used capital equipment is same in India. However, most other countries including China, Thailand and Australia, have specific policies on second-hand machinery and capital goods imports.

The Power Ministry demands that certain restrictions or checks need to be imposed on second-hand machinery imported in to India. Such restrictions may be in the form of: 

  • higher customs duty on second-hand machinery imports compared to that applicable for import of new machinery in the same sector.
  • restrictions on the age of second-hand machinery
  • curbs on the number of ports through which such imports would be allowed
  • pre-shipment inspection for used machinery by designated inspection agencies recognised by Indian authorities, prior to the equipment being loaded onto vessels for shipment to India
  • adherence to energy efficiency norms
  • guaranteed spare parts availability

A sharp rise in imports of capital goods, particularly from China had led to a stir among the Indian manufacturers and they demanded a ban on imports from China. However, the government did not allow such an imposition.

It must be noted that the ratio of imported machinery to domestically available machinery is rising with huge order book position of capital goods manufacturers and long waiting period from order till delivery. However, some power plants which used imported Chinese machinery have faced problems with respect to  service levels and efficiency of the machinery used. Hence, the demand for restrictions to be imposed on used or second-hand machinery is made.

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Categories: Capital Goods, Power
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