Whats the interest rate differential?
The interest rate differential could vary between two and eight per cent. In fact, a CII study quantified the total disadvantage between 14 and 21 per cent. This figure may have come down to 10 to 12 per cent due to sales tax reduction in some states. Based on this, the Planning Commission has written to the government recommending the imposition of a safeguard duty to protect domestic manufacturers. Second, new capacities are also coming up in the country. BHEL has about 15,000 Mw and additional 10,000 Mw is coming up from L&T, Bharat Forge [ Get Quote ], JSW and so on, so there is a case to look at how these domestic capacities could be encouraged. Even assuming the cost disadvantage has narrowed as you say, it is still quite significant, but you’re not complaining. Although we do take these issues with the government, at the same time we have to find a way to manage the competition – we can’t only keep complaining about it. So, internally, we have also drawn up a number of strategie
