Chinese power equipment makers look to set shop in India

India has long been facing a chronic shortage of electrical power. Its peak electricity demand has on average exceeded supply by nearly 10%. To remedy this, the government has encouraged the development of large-scale power plants that generate power in the range of 1,000 to 4,000 MW. But India's domestic power equipment manufacturers have been unable to produce enough equipment to meet the demand for these new plants. This has led to a dependence on imports of power equipment, mostly from Chinese firms. In-order to protect the local suppliers, India imposed a 21% duty on imported power equipment. Because of this China's top power equipment makers want to set up manufacturing facilities in India. They a re now seeking easier visa and i mport rules. But Indian suppliers like BHEL are resisting such moves of their Chinese counterparts. This is because they are worried that they may face unfair competition from China, which restricts access to its own market and helps its suppliers. The Indian suppliers believe that the Chinese have an advantage as they started manufacturing equipment at least two decades ahead of Indian companies. 

04:45