CUSTOM DUTY EXEMPTED ON CAPITAL GOODS USED FOR PRODUCTION
News: Custom duty has been exempted on capital goods used for production of solar cells and panels from 7.5% earlier to ‘Nil’ rate, and on certain additional goods for use in petroleum exploration operations from as rates were applicable to ‘Nil’ rate.
Views: Reduction in custom duties on capital goods will give boost to domestic manufacturing activity and reduce manufacturing costs of solar cells and panels. The same will also apply to exploration activity undertaken for finding and extracting natural resources in the country. The energy sector in India will benefit in longer term from economies of scale achieved by producing locally.
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