Mumbai, March 1
THE Indian Electrical and Electronics Manufacturers Association (IEEMA) has expressed satisfaction over the correction of the inverted import duty structure, where, on the one hand, the import duty is placed at the peak rate of 15 per cent, and on the other, duty on primary and secondary metals brought down to 10 per cent.
The long-pending demand of the industry for a duty differential between that on finished goods and on raw materials has been satisfied, said a statement from IEEMA.
With this correction, the Indian industry will be in a position to compete with imports on equal terms; therefore, it is not worried about lowering of the peak duties to 15 per cent, said Mr S. Ramaswamy, President, IEEMA, who said the electrical industry would also welcome VAT.
The electrical industry is also happy with the special mention of rural electrification with commitment to electrify 1.25 lakh villages in next 5 years with one 33kV/11kV substation in each block and minimum one transformer in each village. The allocation of Rs 1,100 crore for the first year would accelerate the programme.
However, there was not much mention of the power sector in the Budget, said IEEMA.