Deshmukh for safeguards duty on Chinese power equipment import

Heavy Industries Minister Vilasrao Deshmukh today said his ministry has asked the finance ministry to impose safeguard duty on cheap import of power equipments from China as such inflow is posing threat to domestic players such as BHEL.

"We have expressed our concern...We have requested the finance ministry. They have to take a call," Deshmukh told reporters after paying a dividend cheque to Finance Minister Pranab Mukherjee on behalf of BHEL.

He said China should not be allowed to use India as a dumping ground, even though huge demand of power requires imports of equipment.

"Dumping is being done...(But) there is some limitation in our own production too...Power generation should not suffer," Deshmukh said.

There were reports that many private power producers have been using cheap Chinese power equipment, instead of those supplied by domestic players such as BHEL.

However, the minister said these players are coming back to BHEL.

"We have received complaints. However, most of the private companies which have cancelled their orders are coming back to BHEL...If, the (Chinese) equipments are not that good as compared to BHEL, then the companies are coming back to BHEL," Deshmukh said.

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

Heavy Industry Secretary S N Dash said first safeguards duties are generally imposed, which are followed by anti-dumping duties if investigations reveal that imports are being dumped into India.

Dumping means imports at cheaper prices than those prevailing in the home country.