Surat, Gujarat: Engineering firm Larsen and Toubro Ltd (L&T) has said that China is systematically “killing the Indian manufacturing sector” and has sought a 25% anti-dumping duty on Chinese goods.
“China has a fixed currency. It is not a market economy like ours. China is systematically killing the Indian manufacturing sector,” A.M. Naik, who was in Surat for the foundation stone-laying ceremony of a forgings unit at Hazira, said on Saturday.
“There are taxes on goods manufactured locally, but none on imported products (from China). This is an unfair situation for Indian goods. This is why there should be 25% anti-dumping duty on Chinese products,” Naik said.
Speaking specifically about the power equipment sector, in which L&T is a major player, Naik said: “The Indian power companies, especially those in the private sector, have placed huge orders for power plant equipment with China. We can say that Chinese power sector is virtually working for India.”
“It is not good that 80% of our dependence for power plant equipment is on one country, and that too China,” he said, adding that China should not be allowed to grow at the cost of Indian companies.
“The day China opens its economy, its prices are bound to go up by 25%,” he said. “But unfortunately, we are not taking any steps to stop it,” Naik said.
L&T’s special steel manufacturing and ultra heavy forgings unit at Hazira is a joint venture with Nuclear Power Corp. of India Ltd, in which L&T holds a 74% stake while the latter has 26%.
The plant is being set up at an investment of Rs1,750 crore, and will supply finished forgings for nuclear reactors, pressurizers and steam generators, besides heavy forgings for critical equipment in the hydrocarbon sector, as well as thermal power plants and steel plants.
The unit is expected to begin operations between March and May next year.
L&T is also investing at least Rs5,000 crore for setting up facilities to manufacture boilers, turbines and modular fabrications. It is also establishing a shipbuilding unit and a power plant at its Hazira facility.
“The boiler shop will be opened in March or April this year, which will be followed by the turbine shop in August or so,” Naik said.