Bharat Heavy Goes Into China

The senior managers of a three-year-old thermal power plant in North India say that the Chinese equipment they installed has been giving them trouble due to low quality. They are not alone. Around the country, power plants have claimed that they bought cheaper Chinese boilers, turbines and generators in preference to Indian equipment only to see them malfunction too quickly.

On the surface, it looks like a demand for better quality. But look closer and it is clear that a quite different battle is brewing. It is one way the local industry is reacting to the Chinese invasion into the country's power equipment sector.

But not everyone is unhappy. Take Lanco Infratech, in the power business for more than two decades. It has enough confidence in its Chinese suppliers to have them equip half its requirements for the next four years. Lanco is clearly not the only one vouching for the viability of Chinese equipment. Between 2004 and 2007, firms in China accounted for equipment in 18 power plants in India.

more at:
http://www.forbes.com/2011/05/10/forbes-india-bhel-ready-to-battle-for-market-share.html