IndiaMarch 2012 | Risk Summary
The Indian government is set to approve a proposal to impose a 19% duty - 5% custom duty, 10% countervailing (anti-subsidy) duty and 4% additional duty - on imported power generation equipment. We believe that the move will increase the costs for Indian private independent power producers (IPPs) and make it less likely for domestic power equipment manufactures to improve their cost competitiveness. Without a doubt, these proposals are aimed at boosting the ability of local manufacturers to compete for orders with Chinese power equipment companies. Chinese suppliers have been gaining market share since their entry into the Indian power equipment sector at the start of the 11th Five-Year Plan.
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