(a) whether the Government proposes to allow price preference to domestic power equipment
manufacturing companies in procurement of equipments;
(b) if so, the details and the reasons therefor;
(c) whether the Government has decided to withdraw the price preference concession; and
(d) if so, the details and the reasons therefor?
THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI SONTOSH MOHAN DEV)
(a) & (b) : As per the present mega power policy of the Ministry of Power, the import of
capital equipment is free of customs duty for the mega power projects. In order to ensure
that domestic bidders are not adversely affected, price preference of 15% is given for the
projects under public sector, while deemed export benefits as per the EXIM policy are given
to domestic bidders for projects both under public and private sector. The domestic bidders
are allowed to quote in US Dollars or any other foreign currency of their choice.
(c) & (d) : No Sir. However, a proposal to modify the existing mega power policy is under
consideration of the Ministry of Power.