Why the budget could benefit L&T, BHEL

The Union budget 2012-13 could benefit certain companies like L&T, BHEL and Bharat Forge because the government might hike import duty on power generation equipment for projects above 1,000 MW capacity, said an article in Business Line.

The government has two options, the report said. While the first is to bring all the power projects at par by levying a uniform duty on all kinds of power generation equipment, the second could be to impose a basic import duty of 5 percent. While this move will benefit Indian capital goods manufacturers, it will affect power producers who import machinery from China.

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The government had been expected to increase the import duty last year but did not go ahead with that plan. For now, attention will be focused on 16 March – the tentative date for the budget proposals to be announced

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