Ensure level playing field for power equipment makers: IEEMA

To safeguard the interests of local players against cheap Chinese imports in the power sector, electrical equipment makers body IEEMA today said the government should take steps to ensure a level playing field for everyone.

Indian Electrical & Electronics Manufacturers Association said the problems faced by the industry are more structural in nature and need government intervention.

The domestic industry has been concerned about cheaper power equipment imports from China, saying that they hurt their business and have made representations to the government in this regard.

"We are not opposed to the move of the government to have service centres (for Chinese equipment)... All we are saying is that the government should create a level playing field," IEEMA President Raj H Eswaran told reporters here.

Earlier this week, during the visit of Prime Minister Manmohan Singh to China, the two sides agreed on setting up of power equipment service centres in India by the Chinese suppliers/manufacturers themselves or through some suitable mechanism.

The service centres are to be adequately provided with equipment, personnel, spares and other facilities so as to enable them to provide all requisite spars and services support within India.

India is a key market for Chinese power equipment makers. During the 11th Five Year Plan period (2007-12) about 18,000 MW of thermal projects in the country were commissioned using the Chinese gear. Around 40,000 MW of power projects are currently under construction using China-made equipment.

In July last year, the government had slapped 21 per cent import duty on power equipment.

According to IEEMA, the association has more than 800 members whose combined annual turnover is worth about USD 25 billion.

IEEMA said it will be organising 'ELECRAMA' exhibition in January next year in Bengaluru. The event to be held from January 8-12 would showcase domestic products related to power transmission and distribution segments, among others.