Chinese Power Equipment

Large capacity addition is envisaged in 11th Plan and utilities have been sourcing power equipment from domestic as well as foreign manufacturers based on their techno-economic evaluation. The Central Electricity Authority (CEA) has informed that as per mid term appraisal of 11th Plan, about 50,757 MW thermal generation capacity is likely to be added with high degree of certainty out of which orders for main plant equipment for about 16000 MW capacity have been placed on Chinese suppliers. In addition, out of the 10480 MW thermal projects of 11th Plan on best effort basis, orders for main plant equipment for about 5100 MW have been placed on Chinese suppliers.

In respect of Hydro Power plants, about 334 MW capacity with TG set supplied by Chinese manufacturers has already been commissioned in the 11th Plan and about 170 MW is under construction.

A Committee was set up under Member (Industry), Planning Commission to look into disadvantages being suffered by the domestic manufacturers of power equipment. The Committee has submitted its report and amongst others, has made recommendation for imposition of 14% custom duty on import of equipment for Mega power projects. The recommendations of the Committee are under consideration by the Government.