Economic Times reported that amid continuing debate over imposing higher duty on overseas gear, the power ministry is believed to be in the process of collecting information to evaluate the performance of Chinese and other imported equipment that are being used at various power plants.

Many power projects are running on overseas equipment and some of the developers have placed big orders, especially with Chinese companies, for upcoming plants.

A panel set up by the power ministry is collecting data on imported equipment, especially from China, that are being used at different power plants. After collating the necessary information, the performance of overseas gears would be evaluated.

Sources said that even though the panel was set up last year, not much headway was made in the absence of necessary information.

According to sources, in recent months, power project developers have started providing requisite data and the evaluation process is expected to be completed in a couple of months.

A significant percentage of power generation plants in the country are running on imported equipment.

Going by the estimates, Indian entities have placed orders for more than 40,000 mw of overseas power equipment and most of them are to come from Chinese firms.

To provide a level playing field for domestic equipment manufacturers, such as Bharat Heavy Electricals Ltd and L&T against cheap Chinese imports, the government is planning to slap higher duty on overseas gear. A final decision on the issue is yet to be taken but the quantum of hike could be as much as 19%.

Source - Economic Times

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