Nov 22, 2012, 06.03 PM IST

Cheap Chinese solar power gear threat to BHEL, others: Govt

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.

Source: PTI

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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).

Among others, companies developing solar power developers under Phase I of JNNSM using crystalline silicon technology are required to procure cells and modules manufactured in the country.