Coming to the rescue of domestic equipment manufacturer Bhel, the ministry of heavy industries and public enterprises and the department of industrial policy and promotion (DIPP) have strongly opposed the amendments proposed by the ministry of power to the mega power policy.
Responding to the power ministry?s Cabinet note on revised mega power policy, the ministry of heavy industry (MOHI) alleged that the proposed amendments suggested a move towards favouring imports while hurting the domestic industry involved in manufacturing capital goods. The DIPP, too, blamed the power ministry of proposing amendments, which it said would rather jeopardise the country?s efforts to create a Made in India brand image for domestic industry.
It may be noted here that the power ministry had recently moved a Cabinet note proposing significant revisions such as the removal of 15% price preference for domestic suppliers, doing away with the requirement to privatise distribution in cities with more than 1 million population, inclusion of merchant and captive power plants for availing the benefits of mega power policy besides removal of the clause on inter-state sale of power.
According to the heavy industries ministry, in order to continue to encourage indigenisation and at the same time avoid misrepresentation, it has been suggested to rename the criteria of 15% price preference as ?15% loading factor?, since it is uniformly applied on the imported price component of both domestic and foreign bidders.
Moreover, the heavy industries ministry says providing this loading factor will encourage foreign manufacturers to either maximise indigenous content or set up facilities in India, thereby ensuring availability of spares and services to the new and existing plants and obliterating energy security risks.
Even the National Manufacturing Competitiveness Council (MNCC) under the ministry of commerce feels that the present price preference of 15% to domestic manufacturers under mega power policy should continue till a level playing field is created for the Indian manufacturers vis-?-vis the foreign manufactures in the competing countries like China who do not suffer them.