Govt Considers Duty Cut On Specialty Steel To Boost Domestic Wind Gearbox Manufacturing: Report

New Delhi, Dec 10 (KNN) The Ministry of New and Renewable Energy (MNRE) has recommended reducing the current 15 percent basic customs duty on high-grade steel in the upcoming Union Budget to address an inverted duty structure that favors imported gearboxes, as per a report in business daily Mint.

Inverted Duty Structure Hurts Local Manufacturing

Imported gearboxes, taxed at 7.5 percent, remain cheaper than locally made ones despite high specialty steel imports. Around 60 percent of domestic wind power gearboxes are imported.

Specialty Steel: Critical for Performance

Specialty steel is a high-value, performance-driven material with precise alloying and processing, used in aerospace, defence, automotive, and power generation.

Gearboxes manufactured in India, by private companies, are costlier due to steel imports, limiting domestic competitiveness.

Government Push for Localisation

The government has mandated enhanced localization of wind turbines, including gearboxes, for utility-scale and government-backed projects, with prototype testing of local components planned for 2027. 

Lowering steel prices is expected to make Indian gearboxes more competitive both domestically and in export markets, where India currently ships around 50 percent of its wind turbine gearbox production.

(KNN Bureau)