ANNOUNCEMENT 11 Dec 2009In December 2009, the government of India announced a change in import duties.
NUMBER OF INTERVENTIONS
On 11 December 2009, the Ministry of Finance of India issued several notifications to decrease the customs duty and additional customs duty applicable on imports of goods for the construction and expansion of mega power projects (MPP).
The following changes have been made:
1) Exemption of customs and additional customs duty on import of such goods for construction of a new MPP are extended to thermal power plants of capacity 700 MWp or more (earlier 1000MWp) and hydel power plants 350 MWp (earlier 700 MWp) or more, provided that these are constructed in certain specific states
2) Customs duty on import of goods for expansion of an existing MPP (with size limites as before), reduced to 2.5%. These were also made exempt from any additional customs duty and any education cess.