Generators’ import soars by 87pc

[LahoreEstate]

Mechanics at work repairing generators in Lahore


KARACHI: Anticipating huge demand for generators in view of intense load-shedding in upcoming summer, dealers have expedited the imports to pile up stocks for the season.

The power generating gadgets have already become costlier by 10-30 per cent in view of appreciation of yen against the rupee coupled with rupee devaluation against the dollar in 2008.

Imports of power generators in July-Jan 2008-09 had swelled by 87 per cent to $992 million as compared to $531 million in the same period of last fiscal year.

In January 2009, imports stood at $138 million as compared to $122 million in Jan 2008. Imports in December 2008 were recorded at $130 million.

Already hit by load-shedding in the winter, many consumers fear more nerve- wrecking experience in upcoming scorching heat.

‘Not only the importers but the consumers are now certain that the load- shedding will be severe in summer as nothing serious has been done to control it,’ chairman Karachi Machinery Merchant Group (KMMG), Sikandar Shahzada said.

He said that the demand of generators had been thriving as the power cuts had been more acute in the last two to three years.

Prices of generators of US, Japan and Chinese origin have gone up by 25-30 per cent due to change in currency parities, making imports costlier. However, the price of Chinese generators had surged by 10 per cent. Mr Sikandar claimed that the prices of generators in these countries had not declined.

The buying season of generators gets underway usually from February and lasts till August. To meet the demand, importers place huge orders from October to January. It takes at least eight month for local delivery of Japanese generators, while imports from China and the US land in 20 days.

He said an anomaly at the Customs stage has been going on for the last two years under which petrol and gas generators are cleared at five per cent duty at the Lahore Dry Port but the same is cleared at 10 per cent at the Karachi Port. There is no change in the import duty of diesel generators at the two ports.

The import duty on diesel generators up to 60KV is 20 per cent, while on 100KV and above the duty is 15 per cent. There has been no sales tax on its imports for the last two years. The Punjab consumes more than 60 per cent of the total imports because of intense load-shedding in the last one and a half years.

Mr Sikandar pointed out that he had been discussing the anomaly issue with the Customs and other government officials, who assured to rectify the same but so far no practical step had been taken.

There is also a difference in generators’ prices available in Punjab as compared to Karachi due to five per cent difference in the import duty on two different ports, he added.

After substantial price cut in petrol, the sale of petrol generators has picked up slightly but 90 per cent of gas generators are sold in the markets.

Some people are now installing a local device made of Chinese parts at Rs35,000 for making the generator auto-start when power goes off and switch it off when power supply resumes.

He said the original gas generators of US and Japanese from five to 25KV are now available, which do not require a device for running into gas. For example a 25KV sound proof gas generator of Japan is priced at Rs900,000, while a 17KV American generator sells at Rs450,000. A 10KV US-made generator is available at Rs330,000, while a five KV ordinary Japanese generator is priced at Rs150,000.

There are two varieties available in Chinese types (branded and unbranded). For example, a branded 2KV generator is available at Rs18,000, while unbranded is priced at Rs12,000. An unbranded 5KV sells at Rs30,000 while branded one sells at Rs45,000. A Japanese 2KV generator is available at Rs52,000, while one of 5KV costs Rs120,000 and 10KV is selling at Rs250,000.

http://dawn.net/wps/wcm/connect/Dawn%20C...y-87pc--il