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
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- Celebrities Suffering From Lupus: Facts About the Disease
Join the Conversation
- Man Swindles Apple for $309,768 in 16 States
- Texas Man Selling Condo With ‘Funniest and Most Revealing Ad’
- Toyota Tops World Sales of Cars, Sells Over 5K Million Vehicles in First Half of 2014
- Air New Zealand Pays $1000 to NZ9 Passengers After Three-Night Delay
- Tweens Fool Their Parents Online, McAfee Reports
- Transfer News: FC Barcelona, Man Utd to Compete for Juan Cuadrado's Signature as Fiorentina Reveal Willingness to Sell
- Hilary Duff's New Music Video Chasing the Sun Goes Viral on YouTube [WATCH VIDEO]
- LeBron James to Return to Miami, Face Heat on Christmas Day 2014
- Shanghai Stock Exchange Will Not Extend Trading Hours
- Qatar's Surging Real Estate Prices Won't Affect Thriving Economy – Report