Chinese firms dumping, but it is okay: BHEL

Bharat Heavy Electricals (BHEL) has accused Chinese companies of grabbing equipment supply contracts for mega power projects by dumping, but the navratna PSU has declined to move the government on the issue.

"The Chinese currency, yuan, is under-valued. There is a case of dumping," K Ravi Kumar, chairman and managing director, BHEL, told PTI when asked as to why his corporation lost out on contracts for the two ultra mega power projects (UMPPs) to Chinese companies.

He added: "I dont want to take up (the issue) in a very aggressive way. I will consider...we need not go and fight with the Chinese. We don't want 100% market share. With 60% market share and enough profits, it should be okay with us."

In terms of performance, BHEL equipment were much better than the competitors, Ravi Kumar said, and referred to independent studies to establish that the plant load factor of its projects was 90% while it was 60% in the case of Chinese equipment.

Claiming that BHEL was fully geared up for any competition from China, Ravi Kumar said there was a price difference of up to 20% and the Chiense valuation was also not as per international competition. "Today, we have almost matched the Chinese price...we are very competitive," he said, adding BHEL had an advantage of giving complete solutions for any project as against product leaders like Siemens and GE and cost leaders like Chinese companies.