Govt may hike duties on insulators to help local cos like Aditya Birla Group, BHEL

- Advertisement -

Chinese companies are threatening the survival of not just power equipment industry in the country, but also manufacturers of insulators for transmission systems who claim that a fifth of their market has already been usurped by subsidised products from across the border.

The commerce department is working on a proposal for imposing higher duties on insulators, currently at a low 7.5 per cent, to give a breather to local players such as the Aditya Birla group and public sector BHEL.

“Representatives of power insulator manufacturing companies have approached us with details of Chinese products taking over the domestic market. We are studying the matter and may recommend higher import duties soon,” a commerce department official said.

- Advertisement -

The Indian industry for insulators, a material that resists the flow of electric charge and is used to coat cables and wires, is estimated at over Rs 20 billion, but is complaining of idle capacities due to a surge in imports from China.

“Chinese firms enjoy pricing benefit of 22.9 per cent arising from export subsidy, low interest rates and beneficial tax policies. They have captured over 20 per cent share of the Indian market over the past four years,” says Murli Venkatraman, MD, WS Industries and past president Indian Electrical and Electronics Manufacturers Association (IEEMA). Imports of insulators from China, which was worth just Rs 180 million in 2006, crossed Rs 3.03 billion in 2010.

Public sector transmission companies like Power Grid and state electricity boards have started giving bulk contracts to Chinese companies leading to protests from industry associations which claim that many such companies do not have the necessary experience or qualifications and are using inferior material.

In a letter to the Maharashtra state electricity transmission company on contracts for glass insulators that were given to a Chinese company Yibin, IEEMA pointed out that the company’s major business was manufacturing of glass bottles for alcoholic products, and it had started production of insulators only in 2010 and had no experience in India.

“Chinese companies are engaging in predatory pricing with EPC contractors to gain market share in the Indian market and put Indian insulator companies out of business,” IEEMA insulator division chairman KS Ramiah said. Similar letters have been sent to many other state boards.

Indian companies were asked by Power Grid and the energy ministry in 2008 to make investments to increase capacities, but now domestic players are suffering as there is no protection from Chinese companies, Venkatraman said.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Buzz

Rohde & Schwarz Joins Hands with Chemnitz Univ for R&D in Cybersecurity

0
Realizing this two-year cooperation project supports knowledge transfer, safeguards jobs and fosters the industry's independence: ipoque ipoque GmbH, a Rohde & Schwarz company, recently announced...

Rapido, RACEnergy Collab to Deploy Electric Autos in India

0
Battery-swapping tech-enabled e-autos will be deployed in Hyderabad and will be subsequently scaled to other Indian cities The partners termed it a revolutionary...

Aptiv Opens Technical Campus in Bengaluru to support OEMs

0
The $14 million state-of-the-art campus for its centre aims to accelerate the transformation to the software-defined vehicle Center will support OEMs in passenger...

Exclusive

Pandemic Boosted Organic LED (OLED) Tablet Penetration

0
Samsung, making OLEDs since 2014, leads the way Emerging tech and declining manufacturing costs making OLED popular Apple expected to bring OLED iPads...

India’ 22: Premium Segment Share Up by 11%; Overall Fall in Smartphone Shipments

0
Smartphone shipments fell 9% YoY in 2022 in India The premium segment brought 35% of total smartphone market revenue in 2022; Apple led...

ONE Raises $300 mn; Set To Launch LFP Cell Factory

0
Our Next Energy (ONE) raised $300 million in Series B equity led by Fifth Wall and Franklin Templeton Michigan-based energy storage technology company, Our Next...

Important Sectors

Rohde & Schwarz Joins Hands with Chemnitz Univ for R&D in Cybersecurity

0
Realizing this two-year cooperation project supports knowledge transfer, safeguards jobs and fosters the industry's independence: ipoque ipoque GmbH, a Rohde & Schwarz company, recently announced...

Rapido, RACEnergy Collab to Deploy Electric Autos in India

0
Battery-swapping tech-enabled e-autos will be deployed in Hyderabad and will be subsequently scaled to other Indian cities The partners termed it a revolutionary...

Aptiv Opens Technical Campus in Bengaluru to support OEMs

0
The $14 million state-of-the-art campus for its centre aims to accelerate the transformation to the software-defined vehicle Center will support OEMs in passenger...

SET Launches Solar Boost Tech for Water and Gas AMI Endpoints

0
Claiming the technology to be a game changer, the company said that it is environmentally durable and extends the endpoint battery to a 20-year...

Hit By Weak Smartphone Demand, Qualcomm Revenue Falls 12%

0
Qualcomm posted a downcast earnings outlook after the chipmaker was hit by the decline in the handset market. Semiconductor manufacturer Qualcomm reported a 12% decline...

Manufacturing

Infineon Beats Estimates With Stellar Q1 Results

0
The demand for chips by automakers has led to a steady rise in profits for Infineon. German semiconductor manufacturer Infineon Technologies topped estimates of its...

Honda, GM Partner To Develop Hydrogen Fuel Cell

0
The global hydrogen fuel cell vehicle market is estimated to generate $43,208.3 million by 2031. Japanese automaker Honda Motor Co announced that it would collaborate...

Adding The Edge In The Embedded Edge Market With SiMa.ai

0
SiMa in Hindi means edge, and that is exactly what this startup has brought to the embedded edge market. By integrating machine learning on...

Foxconn Hires Former Nidec CEO As Strategy Chief For EVs

0
Foxconn Technology group's latest hire has decades of experience in the automotive industry with names such as Nissan and Dongfeng Motors in his portfolio. Foxconn...
Bharat

Bharat Electronics Misses Profit Estimates For Q3

0
Bharat Electronics has declared an interim dividend of 60% payable to all the eligible shareholders holding shares as of the record date. Shares of Bharat...