Renewables ministry moots duty correction for inputs in wind power component manufacturing

New Delhi: India’s push to localize wind turbine components may hinge on a crucial fix: making the specialty steel that goes into gearboxes for turbines cheaper to source. The ministry of new and renewable energy has recommended lowering the 15% basic customs duty on this high-grade steel in the upcoming Union Budget, two people aware of the proposal said.

Currently, the import duty on special grade steel used in gearbox manufacturing is 15% while that on gearboxes is 7.5%, making imported gearboxes more attractive for buyers than the ones locally produced.