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Industry Expectations - Budget 2008
Mr. V.P. Mahendru - Chairman & Managing Director, Indo Asian Fusegear Ltd
 Excise Duty cut for CFL & correct inverted duty structure
To promote usage of energy efficient Compact Fluorescent Lamps (CFLs) and to save Power , we would appreciate if government reduces Excise Duty rate on CFL to 4% from current 8% .
The excise duty on all raw materials for CFL need be reduced from 16% to atleast 8% as was done for complete CFLs in 2006 Budget. This will make domestic manufacturing cheaper than the imported product and correct the inverted duty structure between raw materials and finished CFL.
Further, the differential rate of VAT across the country makes it difficult for many producers to operate in a fair/level playing field. Sometimes government is also at the receiving end when the producers would detour their products through a state where the VAT is low and thereby losing a sizeable amount of taxable revenue. This could be addressed by making an uniform VAT across the country.
The government should also take steps to reduce the import of cheap and inferior quality of CFL.
Make BIS mandatory with star ratings for all electrical devices
The government should make BIS Star ratings mandatory for all electrical devices across the country which will further extend benefits of safe and energy efficient products to the end-consumers.
It should be compulsory for imported CFL to pass through BIS rating test and should also levy an import duty of 100% on these inferior quality CFLs as anti dumping duty measures.
Import Duty Cut on Power Distribution equipments and components
Power distribution system is a critical link between power generation and power consumer. To make the system world class, safe and efficient available at a fast speed , it is suggested to permit import of power distribution equipments at a reduced Import Duty of max 5% . Besides import of components that goes into the manufacturing of the power distribution equipments should also be levied Import Duty at the same rate as of equipments. In a stage where the electrical equipment industry is in a nascent stage to become a world class Indian industry, it is important for the government to ensure that the industry receives all the support in the form of low/nil duty import of raw materials/ components.
More Public - Private Partnership in Power Distribution System
It is welcome initiatives by some of the State's Electricity Boards' going for public-private partnership process, though in a small way to improve the efficiency of the power system as a whole. The successful execution of incorporating the private players into the distribution of the power should be encouraged by introducing well designed Franchisee system for private players.
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