L&T seeks duty on power equipment from China
Larsen and Toubro chairman and managing director AM Naik said on Wednesday that he has written to the government for imposing a 25 per cent safeguard duty on the import of power equipment from China.india Updated: Aug 12, 2009 23:41 IST
Larsen and Toubro chairman and managing director AM Naik said on Wednesday that he has written to the government for imposing a 25 per cent safeguard duty on the import of power equipment from China.
“We are not afraid of competition,” Naik said. “In fact, we welcome it. But in case of the Chinese equipment manufacturers, there is no level playing field because of their currency (Yuan) being undervalued,”
He said the Chinese have “artificially kept their currency undervalued because it is not floating.”
On the quality concerns by the industry over the equipment supplied by the Chinese, he said “The issue is not just of quality but of their currency.”
Naik said that China is not allowing free trade in its currency, which is controlled by the state mechanism. Once there is a level playing field, the duty can be done away with.
Naik was speaking on the sidelines of signing a Rs 4,000-crore contract with the Jaypee group’s Jaiprakash Power Ventures.
The Jaypee Nigrie Super Thermal Power project comprising 2 X 660 MW super-critical unit is being set up by Jaiprakash Power Ventures Ltd at Nigrie village in Singrauli district in Madhya Pradesh.