Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:15 IST

Concessions and Exemptions Extended to Energy Saving Devices, Plants and Equipments Required for Solar Thermal Projects

Presenting the Budget in the LokSabha today, the Union Finance Minister ShriPranab Mukherjee has proposed concessions and exemptions for encouraging the consumption of energy-saving devices, plant and equipment needed for solar thermal projects. The Finance Minister proposed to fully exempt a coating chemical used for compact fluorescent lamps from basic customs duty. Excise duty on LED lamps is also being reduced to 6 per cent. Concession from basic customs duty and special CVD is being extended to certain items imported for manufacture for hybrid or electric vehicle and battery packs for such vehicles. Specified parts required for the manufacture of hybrid vehicles enjoy full exemption from basic customs duty and special CVD with concessional excise duty / CVD of 6 per cent.

Shri Mukherjee proposed to increase basic customs duty on import of gold and other precious metals as a measure for reducing current account deficit. It has been proposed to impose basic customs duty of 2 per cent on cut and polished, coloured gem stones at par with diamonds.

DSM/YSK/nb/8

Concessions for energy saving devices extended to solar thermal equipment and hybrid vehicle components with duty relief measures. Concessions and exemptions are proposed to encourage energy saving devices and equipment for solar thermal projects, including full exemption from basic customs duty for a coating chemical for compact fluorescent lamps and reduced excise duty of 6% for LED lamps. Concessions from basic customs duty and special CVD are extended to items imported for manufacture of hybrid or electric vehicles and battery packs, with specified hybrid vehicle parts receiving full exemption from basic customs duty and special CVD and a concessional excise duty/CVD of 6%.