NEW DELHI: Minister of state for power Bharatsinh Solanki on Monday told the Rajya Sabha that import of power generation equipment from China has increased, even as the heavy industries ministry has been discussing with the finance ministry a move to impose safeguards duty on such items to protect domestic manufacturers.
"At present, 21,519 mw of capacity -- both in thermal and hydro -- is being implemented using equipment from China," Solanki said in a written reply in Rajya Sabha. About 1,200 mw out of this capacity is being implemented in the central sector, 3,594 mw in the state sector and 16,725 mw in the private sector.
On November 24, TOI had reported that worried over surging imports from China in the power sector, the heavy industries ministry was seeking a duty barrier to protect domestic manufacturers such as BHEL. "I have spoken to the finance minister (Pranab Mukherjee) and am waiting for his response," heavy industries minister Vilasrao Deshmukh had said.
Indian power producers have sourced equipment from China worth Rs 250,000 crore in the past one year. Business chamber Assocham recently said in the last one year, domestic manufactures had lost supply opportunities aggregating 50,000 mw.
The 2008-09 Economic Survey had also raised concerns over zero-duty import of power generation equipment. In contrast, locally manufactured equipment, even after getting `deemed export' status, attract duties and taxes of nearly 6% whereas Chinese manufacturers get plenty of government incentives.
Admitting that there were shortages of power equipment manufacturing in the country, Deshmukh had said Chinese imports were creating a lot of problems for state-run BHEL. There were reports that many private power producers were using cheap Chinese power equipment, instead of those supplied by domestic players such as BHEL.
"People are coming back from China because of their sub-standard (product). They are again coming back to BHEL," he had said.
He added that Jindal Steel and Power Ltd has already started giving orders to BHEL for power equipment parts giving up on Chinese suppliers, first reported in TOI.
Source : TOI