New Delhi The power ministry has stuck to it its original proposal to levy a total of 21% import duty on power equipment despite changes sought by a host of central ministries seeking higher duty protection for the domestic engineering firms such as Bhel and L&T.

In a recent draft Cabinet note, the power ministry has retained the proposal to levy 5% basic customs duty, 12% countervailing duty (after the excise hike announced in the Budget to 12%) and 4% special additional duty on power equipment for all categories of projects bearing non-mega, mega and ultra mega tags. Cumulatively, the duty works out close to 23%, which power ministry feels is adequate disincentive for power producers to go for imported equipment.