L&T has shelved its plans to expand its power equipment manufacturing capacity of 5,000 MW per annum in reaction to government’s refusal to impose duty on imported equipment, especially from China. The finance ministry has ruled out the imposition of import duty on power equipment sourced from overseas, even though domestic manufacturers had made several representations for a level-playing field with Chinese equipment firms. Under the Mega Power Policy, imports of power equipment for thermal projects with a capacity of 1,000 MW and above and hydel plants of more than 500 MW are exempted from excise and customs duty.
