Bhel for Chinese firms setting up production base in India

Bhel for Chinese firms setting up production base in India

Kolkata: Demanding level-playing-field, state-run Bhel, which is facing uneven competition from cheap equipment supplies from China,on Friday said that Chinese firms should set manufacturing bases in India.

“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 Trichy unit told reporters in Kolkata.

He added that on the top of that Chinese government is also subsidising their exports.

Krishnan said on the other hand, Indian suppliers are paying sales tax and excise duties. He said that taking everything into account, Chinese equipment are 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, Krishnan stated that Bhel is increasing capacity from 15,000 MW per annum to 20,000 MW by March 2012.

He said that this would match Planning Commission’s target of increasing one lakh MW during the next plan period.

Krishnan said that 5000 MW capacity addition would involve an investment of Rs800 crore.