New Delhi: Rising import of Chinese equipments for power projects has become a cause of concern for the government as it is severely affecting government run manufacturers.

Following a hike in Chinese imports, the government companies are facing huge losses. Consequently, a review of entire affair has become indispensible.

The Ministries of Heavy industries and Public Enterprises will hold a meeting on Thursday which will review imports from China.

Meanwhile, the Independent Power Producers (IPP) has written a letter to the Finance Ministry opposing the custom duty on import of equipments. The domestic manufacturers are demanding protection against foreign suppliers.

Heavy Industries and Public Enterprises Minister Praful Patel will meet secretaries of the concerned ministries.

As the big power projects are being awarded to foreign companies, domestic companies like BHEL have grievances.

As per the government policies, no custom duty is levied on the import of equipments for more than 1, 000 MW power projects. For projects less than this, five percent duty is imposed.

The domestic companies are demanding to impose 15-20 percent duty on import of equipments. Meanwhile, the Power Ministry is in favour of a balanced decision as there is need of improving power situation in the country.

JPN/Bureau