July 4, 2012. The Power Ministry has floated a fresh proposal for imposing higher duty on imported power gear and it is likely to be taken up by the Cabinet. The plan to slap higher duty on overseas equipment is aimed at providing a level-playing field for domestic manufacturers such as BHEL and Larsen & Toubro against cheap imports, especially from China. Power Secretary P Uma Shankar said the Ministry has moved the Cabinet note on imposing higher levy on imported power gear. The proposal is expected to be taken up in 15-20 days, he told reporters. However, he did not provide details on the quantum of levy that has been proposed. The Prime Minister's Office had directed the Power Ministry to prepare a fresh Cabinet note on the same. The Power Ministry was likely to suggest the quantum of overall levy on overseas gear at 19 per cent, as proposed in the earlier Cabinet note. With the government raising the excise duty by 2 per cent to 12 per cent in the Budget, total levy would be 21 per cent. At present, equipment imported for projects of less than 1,000 MW capacity attract five per cent customs duty while those above enjoy exemption.