Dependence of Indian power sector on China for equipment is increasing with every passing day and domestic equipment supplier, BHEL, is at the receiving end of this phenomenon. For example, during 2012-13, 11,324 MW capacity addition was facilitated through imports from China. During the same period, BHEL could facilitate capacity addition of just 9,298 MW, clearly indicating the diminishing clout of PSU power equipment supplier in the sector. Currently, 60,000 MW projects under construction are dependent on imports from China for their equipment.
It may be recalled here that last year the government had levied 21 percent import duty on power equipment sourced from overseas, mainly to protect domestic power equipment manufacturers from Chinese imports. Further Indian suppliers are resisting move by China’s top power equipment makers who are keen to set up manufacturing facilities in India.