Power Equipment quality is a major risk factor and will affect the long term viability of generation sector in India. With the country reeling under deficit of power equipment manufacturers the quality of imported equipment from China which is arguably cheaper in price is a risk which the policy makers and investor need to keep in mind.
As reported by Forbes, the senior managers of a three-year-old thermal power plant in North India say that the Chinese equipment they installed has been giving them trouble due to low quality. They are not alone. Around the country, power plants have claimed that they bought cheaper Chinese boilers, turbines and generators in preference to Indian equipment only to see them malfunction too quickly.
But not everyone is unhappy. Take Lanco Infratech, in the power business for more than two decades. It has enough confidence in its Chinese suppliers to have them equip half its requirements for the next four years.
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