NEW DELHI: The government is considering imposing safeguards duty on import of power generation equipment from China to protect domestic manufacturers such as state-run Bhel, heavy industries minister Vilasrao Deshmukh said on Monday.
I have spoken to the finance minister (Pranab Mukherjee) and am waiting for his response,'' Deshmukh said. Admitting that there were shortages of power equipment manufacturing in the country, he said Chinese companies should not be allowed to use India as a dumping ground since they pose a threat to the local industry.
Indian power producers have sourced equipment from China worth Rs 2.5 lakh crore in the past one year period.
Business chamber Assocham recently said in the last one year, the domestic manufactures have lost supply opportunities aggregating 50,000 mw. The 2008-09 Economic Survey also raised concerns over zero-duty import 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.
"These (Chinese imports) are creating a lot of problem for Bhel. We don't want the country to be turned into a dumping ground," the minister said adding the trend was changing, with several private power producers now sourcing supplies from domestic players.
Source : TOI