Chennai, July 6 (IANS) Indian boiler manufacturers can compete with Chinese companies if China depegs its currency, yuan, from the dollar and let it move more freely within a basket of currencies, said a boiler manufacturer here.
Many private power projects in India are being executed with Chinese equipment as they are cheaper and available nearly off the shelf.
‘The Indian boiler manufacturers are handicapped by nearly 15 percent in terms of cost as compared to the Chinese players. This difference would vanish if the Chinese currency is made to float than pegging it to dollar,’ G. Pattabhiraman, managing director, GB Engineering Enterprises, told reporters Monday.
Many of China’s trading partners have objected to the yuan-dollar de-facto peg, saying that it keeps the yuan artificially weak and thus gives Chinese exports an unfair advantage. A weaker yuan makes Chinese goods less expensive overseas.
Under international pressure, the Chinese central bank last month said it would allow the yuan float in line with a trade-weighted basket of currencies.
Pattabhiraman said India can be a global hub for medium-size boilers that generate steam between 20 and 200 tonnes per hour.
‘This segment is populated with waste heat recovery boilers and India can supply the world,’ added Pattabhiraman, who is also the President for Boiler 2010, a three-day boiler industry seminar and exhibition organised by Tamil Nadu Boilers Association.
Boiler 2010 will be held September 17-19 here.
He said the Indian boiler industry is stretched to its limits with massive addition in thermal power generation capacity.
Several international boiler and turbine generator manufacturers like Toshiba, Ansaldo, Mitsubishi and Alsthom are setting up production bases in the country.
Around 11,000 MW capacity of fresh boiler manufacturing capacity and 12,000 MW of turbine generator production capacity are being added in India.
Indian power equipment major Bharat Heavy Electricals Ltd (BHEL) has a boiler manufacturing capacity of 15,000 MW and turbine generator capacity of 20,000 MW per annum. The company is also expanding its capacities.
