Heavy industries minister, Vilasrao Deshmukh has said that his ministry has asked the finance ministry to impose safeguard duty on import of cheap power equipment from China given the fact that such imports are now posing a threat to domestic players such as BHEL.
Deshmukh said the ministry had expressed its concern and requested the finance ministry to take action. Deshmukh was speaking to reporters after handing over a dividend cheque to finance minister, Pranab Mukherjee on behalf of BHEL.
He added that India should not be allowed to become a dumping ground for Chinese goods, even though meeting the huge demand for power necessitated import of power equipment.
Deshmukh said dumping was happening but he accepted that there are constraints to domestic production. He added that power generation should, however not be allowed to suffer.
He said that reports have been received regarding many private producers using cheap Chinese power equipment, instead of indigenously built equipment from domestic players like BHEL. However, he said the players have now started coming back to BHEL.
Safeguard duties are imposed by the Directorate General of Safeguards under the finance ministry to counter the negative impact of cheap imports on domestic industry.