Govt likely to slap 21% duty on imported power gear

[illusion8]

NEW DELHI: The power ministry, in the next couple of weeks, will move a note to the Union Cabinet proposing a levy of 21% on imported power equipment, a senior government official said.

On Wednesday, the Prime Minister's Office (PMO) asked the power ministry to float the note to protect local equipment manufacturers, including state-run BHEL, from Chinese and Korean competitors. Power companies have stoutly resisted any increase in duty on equipment import, especially after they have become costlier as the rupee had depreciated by 28% in the past two years.

"With this, the domestic manufacturers should be able to compete much better with the imported manufacturers as prices of the latter have gone up by over 28% in rupee terms," he added.

Govt likely to slap 21% duty on imported power gear - Economic Times

Trade restrictions to help out domestic manufacturers and prevent the Chinese from flooding the market with their cheap state subsidized power plant equipment - their quality is sub standard anyways. China and Korea will lose billions worth of business.

 

[rashtriya.rifles]

good move...

 

[Diamond_Gold]

good move...

Gd move? Have you ever give a thought to who is going to be the utimate victims of such sudden price hike?

 

[somebozo]

NEW DELHI: The power ministry, in the next couple of weeks, will move a note to the Union Cabinet proposing a levy of 21% on imported power equipment, a senior government official said.

On Wednesday, the Prime Minister's Office (PMO) asked the power ministry to float the note to protect local equipment manufacturers, including state-run BHEL, from Chinese and Korean competitors. Power companies have stoutly resisted any increase in duty on equipment import, especially after they have become costlier as the rupee had depreciated by 28% in the past two years.

"With this, the domestic manufacturers should be able to compete much better with the imported manufacturers as prices of the latter have gone up by over 28% in rupee terms," he added.

Govt likely to slap 21% duty on imported power gear - Economic Times

Trade restrictions to help out domestic manufacturers and prevent the Chinese from flooding the market with their cheap state subsidized power plant equipment - their quality is sub standard anyways. China and Korea will lose billions worth of business.

tell you frankly the Chinese and Koreans are far better than India....Chinese power plant equipment are approved by Saudi Electricity Company - which follows American standards where as every Indian vendor I know has failed the evaluation either due to managerial faults in the company structure of quality / integration issues.

 

[ashok321]

The most luxurious cruise ship is queen elizabeth II.....
And the air cooling and refrigeration was done by Indian Company against all odds and International tender....

 

[scorpionx]

tell you frankly the Chinese and Koreans are far better than India....Chinese power plant equipment are approved by Saudi Electricity Company - which follows American standards where as every Indian vendor I know has failed the evaluation either due to managerial faults in the company structure of quality / integration issues.

Probably you are not aware of the ground realities about the performance of chinese made power plant in India. The quality has been hugely compromised and performance is no better than BHEL. The equipments are below standard, malfunctions most of the time. The Controllers which are supposed to function automatically had to be kept in manual or fixed position because most of the positioners have gone to heaven. This is a common problem in all the chinese plant.On the contrary, BHEL is doing substantially well. We have some BHEL plants which are operating for 60 years and still running.

 

[Kyusuibu Honbu]

Probably you are not aware of the ground realities of the performance of chinese made power plant in India. The quality has been hugely compromised and performance is no better than BHEL.

True! But they turn out to be cheaper than BHEL ones.

 

[ironman1]

so much so for few people crying out for depreciating rupee. we Indians see opportunities in difficulties.

 

[scorpionx]

True! But they turn out to be cheaper than BHEL ones.

No, not anymore. They have increased their price quote hugely and lost a big project to BHEL in West Bengal.

 

[Fazlu]

In moozhiyar KSEB purchased a Chinese generator to replace the one lost in an unfortunate fire accident. The thing already started malfunctioning despite it being very new.

Meanwhile, the remaining generators are American ones which have been functioning without any major issues for the last 30 something years.

 

[ENRL]

tell you frankly the Chinese and Koreans are far better than India....Chinese power plant equipment are approved by Saudi Electricity Company - which follows American standards where as every Indian vendor I know has failed the evaluation either due to managerial faults in the company structure of quality / integration issues.

I friend of mine who I worked with a few years back was telling about the reliability of BHEL's heavy gear. They have done 25 years in service. Also, he mentioned how customers are increasingly saying NO to chinese vendors as their reliability can be questioned. Look at their high speed rail development, they go like nuts developing experimental technology (for them) and what do you get? A train crash

 

[scorpionx]

In moozhiyar KSEB purchased a Chinese generator to replace the one lost in an unfortunate fire accident. The thing already started malfunctioning despite it being very new.

Meanwhile, the remaining generators are American ones which have been functioning without any major issues for the last 30 something years.

One turbogenerator in amarkantak and one in durgapur,West bengal failed terribly due to serious lackness of safety issues causing severe damage to the rotor which costed the buyers 25crores approx each to repair. U can add the generation losses to that.

 

[rashtriya.rifles]

The ONLY reason vendors are going to chinese companies is because BHEL has it's order book filled for many coming years..

# SIEMENS IMO has one of the best MTBF rates among power gear manufacturers.

 

[Boson]

Gd move? Have you ever give a thought to who is going to be the utimate victims of such sudden price hike?

Yes, it's Gd move..

The customs duty is applied at the import price .... chinese will not have to pay any duty, it they sell for a price of Zero.

Unless you are too weak at maths, you would know ... Zero x (any) customs duty = Zero.

So, it's a signal to chinese power companies to reduce the price to Zero .... otherwise, well sorry..

Lastly, kudos to the "zero".. after all we invented it... Ha ha...

 

[cloud_9]

Shanghai Electric and Doosan are already building manufacturing plants in India.