Budget 2018 impact: 10% surcharge on customs duty to pinch power sector

India would lose competitive edge while exporting in a highly fluctuating market

The 10 per cent surcharge on Customs duty for import of all items would hit the power sector. The equipment and generation industry is expecting an increase in cost across the value chain.
 
“Most of these items across the chain are governed by commodity pricing, which in the past few months has already seen an upswing. Items such as aluminum conductors, wires, etc, are procured in bulk at a fixed price and will see increase in cost. These items constitute 60 per cent of the cost of power,” said Harish Agarwal, vice-president, Indian Electrical and Electronics Manufacturers Association.