Centre may get tough on power equipment from China .

The Centre could get cracking on power equipment imports, especially those coming in from China.

The Cabinet Secretary is slated to chair a high-level meeting on May 25 to deliberate on implementing recommendations of a Planning Commission-led panel on ways to provide a level playing field for domestic equipment manufacturers.

The measures under consideration include the immediate adoption of strict performance standards, safeguard or anti-dumping actions against Chinese suppliers and levying a Customs duty of 10 per cent and SAD of 4 per cent for both mega power projects and upcoming UMPPs (ultra mega power projects).

The meeting comes in the backdrop of about 33,000 MW of power equipment orders already having been placed on Chinese manufacturers.

The report, prepared by a committee set up under the Planning Commission Member, Mr Arun Maira, which had representations from the Power Ministry, the Department of Heavy Industries and the Department of Revenue, concluded that the extent of duty disadvantage faced by the domestic equipment players is about 14 per cent in case of mega power projects and the UMPPs. The Committee constituted four separate groups to examine specific issues — an analysis of the life-cycle cost of Chinese plants, assessment of domestic power manufacturing capacity and the disadvantages faced by them as well as the unfair trade practices of Chinese manufacturers.

Apart from the tariff measures, the implementation of regulations proposed by the Central Electricity Authority on both efficiency norms and environmental standards could be implemented. Besides, actions for safeguards or anti-dumping protection could be on the anvil.

Source : Business Line