Live Markets »News & Advice»Latest Stories»Latest Stories Details
Latest Stories Details
Back

Govt may soon ban import of used capital goods

Press Trust of India/New Delhi 08 Aug 12 | 06:43 PM

The government will soon impose restrictions on imports of used capital goods to protect domestic manufacturers and increase their competitiveness, a top official said today.

The Department of Heavy Industry (DHI) has received several representations from all segments of the industry to impose restrictions on such imports, DHI Secretary S Sundareshan said.

Related Stories

    No Related Stories Found

"... Necessary notification in this regard will be issued shortly," he said at a function organised jointly by CII and Indian Construction Equipment Manufacturers' Association (ICEMA), which also launched its new website and logo here.

Sundareshan, however, did not reveal further about the restrictions to be put in place.

To restrict such imports, the National Manufacturing Competitiveness Council (NMCC) has also moved a proposal to the Department of Industrial Policy and Promotion.

Speaking on the occasion, NMCC Member Secretary Ajay Shankar said: "Besides anti-dumping duty, there is a provision of safeguard duty which is rarely used ... Other provision is quality control order that could be used in some segments of the industry."

According to officials, the government is considering to stop giving benefits under the Export Promotion of Capital Goods (EPCG) scheme for importing used goods.

Under the scheme, a domestic manufacturer can import capital goods at only 3%  customs duty, irrespective of the applicable duty rate.

In May this year, the Committee of Secretaries, headed by Cabinet Secretary Ajit Kumar Seth, had expressed serious concerns over the growing imports of used capital goods.

Besides, a Parliamentary panel has suggested to the government to consider imposition of duty on imports of capital goods in a bid to provide a level-playing field to domestic capital goods manufacturers vis-a-vis foreign players.

Capital goods imports are estimated to have crossed $40 billion at present. They were $6.5 billion in 2003-04.

The capital goods output declined 7.7%  in May as against a growth of 6.2%  in the same month last year.

The construction, textiles and machine tool sectors are among those which import used machinery in large numbers.

Sensex

Company Price Gain (%)
Larsen & Toubro1,377.302.48
GAIL (India)384.201.48
B H E L189.301.42
Tata Steel426.601.32
M & M1,036.751.22

Poll

Will Nifty spot breach 7,000 levels in May?


Online Portfolio

You can create Online Portfolio here using the below button.