The government is considering fiscal incentives to promote indigenous manufacturing of select equipment used in electricity transmission and distribution. The estimated business opportunity is about ₹ 7 lakh crore that would go to overseas vendors if the domestic industry is unable to capitalise on it.
The power ministry is proposing five-year tax holidays and a levy of safeguard or anti-dumping duties on imports of about 10 identified equipment for transmission and distribution projects under a phased manufacturing programme. The twin measures are expected to make the domestic industry competitive against imports.
