Demanding level-playing-field, state-run BHEL, which is facing uneven competition from cheap equipment supplies from China, today said Chinese firms should set up manufacturing units 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 of Trichy unit said, adding that the Chinese government was also subsidising their exports.
On the other hand, Indian suppliers are paying sales tax and excise duties, Krishnan said, adding that taking everything into account, Chinese equipment are becoming 15 per cent to 20 per cent cheaper as compared to Indian supplies.
The issue, 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 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 Rs 800 crore.
Krishnan said that BHEL's order book as of date stood at Rs 1,52,000 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 the company had also designed boilers which would use lignite as fuel.
Krishnan said the company had six production bases across the country which included Hardwar, Bhopal, Hyderabad, Ranipet (Chennai and Mangalore.
Referring to Chinese power plants, he said plant load factor of BHEL plants are much higher.
