Duty on power equipments: Sharekhan shares winners & losers

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Duty on power equipments: Sharekhan shares winners & losers

The government is considering imposing customs duty on imported power equipment. In an interview to CNBC-TV18, Nidhi Agrawala of Sharekhan says the as the Chinese imports pose a serious threat to Indian manufacturers, if the duty is indeed imposed it will be negative for Reliance Power and Lanco.

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Excerpts from Business Lunch on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

The government is considering imposing customs duty on imported power equipment. The consensus post the meeting is that the level of 14% import duty should be imposed. However, the final decision will be taken later.

In an interview to CNBC-TV18, Nidhi Agrawala of Sharekhan says the as the Chinese imports pose a serious threat to Indian manufacturers, if the duty is indeed imposed it will be negative for Reliance Power and Lanco . However, she is positive on L&T. "There are lot of opportunities in the infrastructure sector. As and when orders start coming in, L&T will be the biggest beneficiary," she adds.

Below is an edited transcript of Nidhi Agrawala's interview to CNBC-TV18. Also watch the accompanying video.

Q: It is not as high as level of 17-19% which was the buzz earlier on, what kind of an impact would you see going ahead now?

A: Right now nothing concrete has come out but if it is 14%, it will be good because Chinese imports are posing serious threat to Indian manufacturers. Recently, we have seen lot of orders being lost to Chinese players whether it is with Reliance Power or Lanco, so there we see lot of competition.

Q: What are your thoughts on BHEL, L&T going ahead?

A: I am positive on L&T, there are lot of opportunities in the infrastructure sector. As and when orders start coming in, L&T will be the biggest beneficiary. BHEL has a very large exposure to power equipment, so I feel if Chinese continue to pose threat to Indian industry, BHEL will be the biggest looser. Otherwise, if something happens on import duty then BHEL is going to be the biggest beneficiary. It depends on how the situation turns out.

Q: How are you viewing power utilities in response to this move?

A: If the duty is imposed, it will be negative for particularly for Reliance Power and Lanco which have placed huge order with Chinese players.