BHEL Shares up 3 pct as Duty Imposed on Chinese Insulators
January 2, 2013 8:38 PM EST
Shares of Bharat Heavy Electricals (BHEL) were up 3 percent on Wednesday after the government imposed a 35 percent safeguard duty on electrical insulators imported from China, in a bid to protect domestic manufacturers from cheaper shipments.
State-run BHEL, India's biggest power equipment maker, and other companies had complained that Chinese producers were resorting to predatory pricing to capture the market.
The customs and excise department of the finance ministry imposed the duty on Chinese imports for one year, to be lowered to 25 percent the year after that, according to a finance ministry notification dated December 20.
The notification was posted on the customs department website earlier, but was not widely reported by media until Tuesday.
"The duty has been imposed to protect domestic producers, and would be applicable on imported electrical insulators of ceramics or porcelain as well," a senior finance ministry official told Reuters.
He said imports of electric insulators mainly used by power transmission companies had gone up to 35,000 metric tonnes in the 2010/11 fiscal year, and said predatory pricing by Chinese producers was hurting domestic firms.
Officials estimate that imports from China have captured over 40 percent of domestic demand, and now contribute to around 90 percent of total imports.
The new tax will not be applicable on insulators used by the telecom companies or retail consumers, and excludes imports from other countries, the official said.
Most Popular Slideshows
Join the Conversation
- iOS 8 Jailbreak Release Date Likely this October 2014 with Pangu not Evad3rs Firming Up as Creator
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu
- The Pirate Bay Blockade: Cost Of Blocking Websites Like TPB Is Ridiculously High
- Top 4 Free-To-Download Apps for Fuller iPhone 6, 6 Plus Experience
- Battery Saving Android 5.0 Lollipop Feature Extends The Battery Life Of Your Android Device By 90 Minutes And Displays Orange Bar While Power Saving Mode Is On
- Russia Beefs Up Gold Reserves To Offset Heat of Sanctions And Undercut Dollar