Seeks duty on Chinese import
Bhel has asked the government to ensure level-playing filed vis a vis Chinese players by imposing import duty on the equipment to ensure equality among all players in the power sector.
Admitting competition emerging from across the border, Bhel CMD BP Rao said, “Competition is bound to happen when there is huge opportunity. We are not worried about competition. But we are (domestic players) facing disadvantage factors. We need level-playing field. We have moved the Plan Panel and we hope the government will impose import duty on power equipment.”
“We expect the government to look into the matter seriously and hope in the forthcoming Budget, the government will take some decision on this issue,” he said.
On the Chinese threat, he said: “The cost is no more an issue now as the Chinese companies sell the equipment more or less on the same price that of ours. We don’t see competition as we are an end-to-end player in the Indian market. We don’t supply equipment alone. We will ensure that Bhel continue to maintain and grow its market share and will be at high competitive edge.”
“More than 90% of those who have gone for Chinese equipment are coming back to us for their second set of equipment and we have nothing to lose as the market throws huge opportunities for us,” he said adding “Given the order book size of Rs 1,54,000 crore and continuous demand from number of customers, Bhel expects to cross the Rs 45,000-crore turnover by 2011-12 and will further grow substantially,” he said.
Meanwhile, Bhel is planning to float a non-banking financce company to fund power equipment, power projects among other things.