December 03, 2008

BHEL accuses Chinese companies of dumping

Indian power equipment major Bharat Heavy Electricals Limited has accused Chinese companies of grabbing the equipment supply contract for mega power projects by resorting to dumping.

Mr K Ravi Kumar CMD of BHEL said that "Chinese currency Yuan is under valued and there is a case of dumping.”

Mr Kumar however added that “I do not want to take up the issue in a very aggressive way. I will consider and we need not go and fight with the Chinese. We don't want 100% of the market share. With 60% of the share and having enough profits, it should be okay with us."

He emphasized that in terms of performance, BHEL equipment were much better than the competitors and referred to independent studies to establish that the plant load factor of its projects was 90%, while it was 60% in the case of Chinese equipment.

Mr Ravi Kumar said that there was a price difference of up to 20% and the Chinese valuation was also not as per international competition. He added that "Today, we have matched almost the Chinese price. We are very competitive with the competition."

BHEL has an advantage of giving a complete solution for any project as against the product leaders like Siemens and GE and cost leaders like Chinese companies.