A. M. Naik, Chairman and Managing Director, L&T is stated to have said that Chinese imports of power equipment have increased unabated and several players have descended here. The Chinese have captured 80 % of the market. India imports equipment worth $30 billion, half of it being power equipment. “Demand today is at 12,000 MW due to lack of coal. When you look at all the benefits, China has more than 50 per cent advantage — 30 per cent on currency and 10 per cent each on subsidy and low interest rates,”
Indian manufacturers have to pay 14 per cent sales tax in addition to octroi. Now, even Indian power equipment manufacturers are importing equipment and the ancillary manufacturers have not grown as envisaged. It is a very difficult situation.