Monday, November 29, 1999

Grapevine

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Divided we standWith BSNL CMD Kuldeep Goyal due to retire in two months, it is still unclear if the Sam Pitroda committee's recommendation to split the post of chairman and managing director would be followed. The committee's logic was that if the posts were split, the managing director would run the PSU's day-to-day operations, while the chairman would act as a buffer for the MD to handle political pressure. But the Telecom Commission is yet to ratify the recommendations, let alone implement them.Tussle over Chinese equipmentReports suggest that an empowered government committee would meet by the month end to examine the option of duty concessions to domestic power equipment makers. PSU Bhel is bearing the brunt of duty-free imports of equipment from China. Chinese machinery allows power project developers to cut project costs. The via media option could be to allow import of equipment from China for all the projects in the current Five Year Plan, and raise the tariff levels a bit for the 12th Plan projects. In the next couple of years, domestic producers like Bhel and private player L&T (there is a rare unity among the these companies to oppose Chinese equipment imports), would do well to augment their capacities and capability to face competition.

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