Duties likely on Chinese power tools to safeguard BHEL biz.

HEAVY industries minister Vilasrao Deshmukh on Monday said cheap China- made power equipment is posing a problem for Bharat Heavy Electricals Ltd ( BHEL) and the government needs to check the menace.

" We have already written to the finance ministry about imposing safeguard duties on Chinese power equipment and are waiting for their response," the minister said. " We want some duty to be imposed to protect the domestic industry," he added.

The minister said it is creating a lot of problems for BHEL. " They cannot use our land as a dumping ground. That will create lot of problems for local manufacturing and we have to take into account their concerns.

We have to protect their business," he said.

However, the minister said many companies that were sourcing equipment from China have started shifting back to Indian companies because of quality concerns.

" People are coming back to BHEL to buy power equipment as the products of Chinese companies are sub- standard," he said.

He disclosed that Jindal Power has already started giving orders to BHEL for power equipment parts. " Jindal Power had already booked their orders with China but they again came back to us and signed a MoU with us recently," he said.

Safeguard duties are imposed by the Directorate General of Safeguards under the finance ministry, in cases where it feels that cheap imports are posing a threat to the domestic industry.

Imposition of safeguards duties are followed by antidumping duties if investigations by the commerce ministry reveal that the imported goods are being dumped in India.

Dumping means imports at cheaper prices than those prevailing in the country of origin and which in turn causes harm to Indian industry.

The minister also said no headway has been made regarding the disinvestment of BHEL. " Nothing has happened as yet because the department of disinvestment has not communicated on the issue to us. It is up to the board of BHEL," he said.

" We can't direct the board has to take a decision. But so far, nothing is in writing," Deshmukh said.

The government has plans to sell to the public up to 10 per cent of its equity stake in the blue- chip power equipment maker.

The government at present holds 67.72 per cent equity stake in BHEL, which would come down to 57.72 per cent if it divests 10 per cent equity.

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