New Delhi, Dec. 9 -- India's push to localize wind turbine components may hinge on a crucial fix: making the specialty steel that goes into gearboxes for turbines cheaper to source. The ministry of new and renewable energy has recommended lowering the 15% basic customs duty on this high-grade steel in the upcoming Union Budget, two people aware of the proposal said.

Currently, the import duty on special grade steel used in gearbox manufacturing is 15% while that on gearboxes is 7.5%, making imported gearboxes more attractive for buyers than the ones locally produced.

The proposal aims to correct the inverted duty structure that discourages domestic manufacturing, even as India imports nearly 100% of its specialty steel requirements and ...