Import duty on equipments a boon for BHEL, L&T

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about BHEL, L&T.

In a huge shot in the arm for most of these majors like BHEL, L&T, 14% duty slapped upon imports of equipment. But not looking good for the others like Reliance Power and Tata Power. We will start off with BHEL and L&T, your take on that and then probably some of these power majors?

Definitely is a positive news for BHEL and L&T because India envisages huge investment in power sector and these are the 2 companies that will maximise benefits from any increase in import duty. So definitely a positive for these companies. As far as the power companies go say a Tata Power or Reliance Power, definitely there would be some concerns there because the cost of funding their new projects would increase because of the increase in import duty. So yes, there is a concern on some of these power companies.

ref:
http://economictimes.indiatimes.com/markets/stocks/views/recommendations/Import-duty-on-equipments-a-boon-for-BHEL-LT/articleshow/6620355.cms