BHEL wants Chinese equipment cos to set production base in India

Equipment major, BHEL, which is facing competition from cheap equipment supplies from China, has demanded level-playing-field and wants Chinese firms should set manufacturing bases in India. BHEL opined that since duty on capital goods equipment for power sector is zero, Chinese equipment supplies are posing a price threat and affecting margins. It also added that the Chinese government was subsidising their exports while Indian suppliers are paying sales tax and excise duties. Taking everything into account, Chinese equipments are 15 to 20 per cent cheaper as compared to Indian supplies. Contact: Bharat Heavy Electricals. Tel: 011-6633 7000. Fax: 011-2649 3021. Website: www.bhel.com