BHEL concerned over cheaper Chinese funds

New Delhi, Dec 13 (IBNS) Bharat Heavy Electricals Ltd.(BHEL) has raised concerns over the availability of cheaper Chinese funds for power project.

This information was given by the Minister of Heavy Industries and Public Enterprises Praful Patel in the Rajya Sabha on Tuesday.

The Minister said Chinese power plant manufacturers would enjoy unfair distinct advantage in the event of cheaper finance made available to the Indian power developers by the manufacturers or the Chinese banks and other Chinese financial institutions.

This would certainly make their equipments comparatively cheaper by the differential cost of interest as applicable to the normal finance available and that to the cheaper Chinese finance. In such a scenario, the equipment of the domestic power plant manufacturers would cost the domestic power developers more, Patel said.

"This situation would shift business from domestic manufacturers to the Chinese manufacturers. Ultimately the domestic power equipment manufacturers would stand to lose orders in the already dried up market," read Patel´s written reply.

The Government had constituted a Committee headed by Member (Industry), Planning Commission to suggest options and modalities to take care of the disadvantages suffered by the domestic industry relating to power sector. The Committee suggested some measures including imposition of duty on import of power equipments.

Patel said Ministry of Power has recently circulated, for inter-ministerial consultation, a draft Note for Cabinet on altering the duty structure on imported power plant equipment.

Further, Government has recently announced National Manufacturing Policy with an objective to promote and give strength to the domestic capital goods industry including Heavy Electrical Equipments Industry.