The government has been asked to levy import duty on Chinese power equipment, by industry body Assocham, since the domestic industry is being hampered by the products from the neighboring country.

Via a statement, the chamber said: "Indian power equipment manufacturers are loosing thriving business opportunities vis-à-vis their heavily incentivised counterpart from China."

It added: "The only way out left to restrict the Chinese imports of power equipment to India is through the imposition of tariff and non tariff barriers by the Indian government."

In the last one year, the domestic manufactures have lost business opportunities to supply equipment to mega power producers in India, to the extent of 50,000 MW. The Indian power producers sourced equipment from China worth Rs 2.5 lakh crore, in the past one year period.

When such equipment is imported to India and China gives incentives and rebates to its manufacturers for exports, no customs or other duties are required; whereas, according to the statement, "The locally manufactured equipment, even when given a 'deemed export' status, attracts duties and taxes of nearly 6 per cent of the equipment cost."

Going by the Economic Survey for 2008-09, of particular concern is the zero-duty import, pertaining to import of power generation equipment. The imposition of a uniform 10 per cent import duty on power equipment was demanded by BHEL last week.