Home » Finance » Cheap chinese import may hit BHEL’s Rs 20 billion solar plan

Cheap chinese import may hit BHEL’s Rs 20 billion solar plan

According to reports, Bharat Heavy Electricals Ltd’s Rs 2,000 crore investment plan for manufacturing solar equipment might become unviable if measures against dumping of Chinese items in the sector are not in place, according to sources.

“The company is planning to invest Rs 2,000 crore in this (solar power) segment for manufacturing of silicon wafer, solar cell and solar module,” a source in the know said.”But then, this investment will be viable only if there is a minimum offtake which is guaranteed by the Indian industry and countervailing measures against dumping from China,” the source told PTI.

The domestic solar equipment industry is grappling with tough market conditions, mainly on account of cheaper imports from China that are adversely impacting local players.

Dumping of cheaper Chinese gear is hurting existing players in the solar equipment manufacturing space, the sources said.

According to them, BHEL is working on renewable energy systems such as photovoltaic systems but faces issues of dumping of Chinese equipment at low prices.

The state-run major is looking to diversify its business activities, amidst challenging scenario in the power sector.

Against this backdrop, the company is focusing more on sectors such as defence, nuclear power, transportation and railways.

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