The government today said that cheaper Chinese solar power equipment as well as overcapacity are posing a threat to domestic manufacturers, including Bharat Heavy Electricals.
The government today said that cheaper Chinese solar power equipment as well as overcapacity are posing a threat to domestic manufacturers, including Bharat Heavy Electricals .
In a written reply to the Lok Sabha, Heavy Industries and Public Enterprises Minister Praful Patel said the government is aware of the threat posed by cheap Chinese equipment for BHEL's solar power equipment project.
Going by an estimate, Chinese entities have a share of about 57 per cent of solar equipment using crystalline technology.
"This is affecting photo-voltaic manufacturers worldwide," the Minister said.
According to him, it is estimated that the global production capacity for solar power items/equipment is in excess of the demand worldwide.
"This overcapacity coupled with cheaper prices offered by the Chinese manufactured cells and modules is a threat for Indian solar equipment manufacturers including BHEL," the Minister said.
State-run BHEL is a leading power equipment manufacturer. Patel said the government has initiated steps to protect the domestic solar power equipment manufacturing industry, under the Jawaharlal Nehru National Solar Mission (JNNSM).
BHEL stock price
On August 22, 2014, Bharat Heavy Electricals closed at Rs 227.55, down Rs 1.85, or 0.81 percent. The 52-week high of the share was Rs 291.50 and the 52-week low was Rs 102.75.
The company's trailing 12-month (TTM) EPS was at Rs 13.03 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 17.46. The latest book value of the company is Rs 138.52 per share. At current value, the price-to-book value of the company is 1.64.
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