Kolkata: Demanding level-playing-field, state-run power equipment major BHEL, which is facing uneven competition from cheap equipment supplies from China, today said that Chinese firms should set manufacturing bases in India, reports PTI.
"Since duty on capital goods equipment for power sector is zero, Chinese equipment supplies are posing a price threat and affecting margins," BHEL's executive director A V Krishnan unit told reporters here.
He added that on the top of that the Chinese government is also subsidising their exports.
Mr Krishnan said on the other hand, Indian suppliers are paying sales tax and excise duties. He said that taking everything into account, Chinese equipment is becoming 15% to 20% cheaper as compared to Indian supplies.
This, he said, can be addressed correctly only if Chinese companies started manufacturing in the country.
Saying that BHEL is poised to meet India's energy demand in the 12th Five Year Plan, Mr Krishnan stated that BHEL is increasing capacity from 15,000MW per annum to 20,000MW by March 2012.
He said that this would match the Planning Commission's target of increasing one lakh MW during the next plan period.
Mr Krishnan said that 5000MW capacity addition would involve an investment of Rs800 crore.
Mr Krishnan said that BHEL's order book as of date stood at Rs1,52,000 crore.
He said that the company's Trichy plant, which was the boiler manufacturing unit, is now producing specialised boilers which would suit all types of coal.
The BHEL official said that the company has also designed boilers which would use lignite as fuel.
Mr Krishnan said that the company has six production bases across the country which included Haridwar, Bhopal, Hyderabad, Ranipet near Chennai and Mangalore.
Referring to Chinese power plants, he said that plant load factor (PLF) of BHEL plants are much higher.
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