Five-year tax holiday, dumping duties in works to push power gear production

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.