L&T seeks anti-dumping duty on windmill castings from China

NEW DELHI: Government has initiated a probe into dumping of certain castings for windmills from China on a complaint by engineering major Larsen & Toubro, which has sought anti-dumping duty on the items to protect domestic industry from cheap shipments.

In an application to the Directorate General of Anti-dumping and Allied Duties (DGAD), L&T has alleged dumping of certain castings meant for wind operated electricity generators/windmills, originating in or exported from China.

Acting on the complaint, DGAD initiated a probe into the matter.

"The Authority (DGAD) finds sufficient prima facie evidence of dumping of the subject goods from the subject country, injury to the domestic industry and that causal link between the dumping and injury exist," DGAD said while issuing notice to initiate the probe.

If the probe concludes that there is dumping of the product, the DGAD will recommend the Finance Ministry to impose anti-dumping duty of an amount "which if levied would be adequate to remove injury to the domestic industry".

A windmill requires a number of casting parts, like the hub, main frame, bearing housing, main axle, rotor shaft and torque arm support.

These castings are used in the wind turbines along with some other non-casting parts and components like blades, which leads to the generation of electricity.

"All such castings, whether or not machined, in raw, finished or sub-assembled form, or as a part of a sub-assembly, or as a part of an equipment/component, meant for wind-operated electricity generators are covered in the present investigation," the DGAD added.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap import of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.