Domestic power boost a must for make in India: IEEMA

Chandigarh, April 6, 2015: Indian Electrical & Electronics Manufacturers' Association (IEEMA) - the apex association of power transmission & distribution in India and whose more than 800 have 90 percent power equipment installed in India, today reiterated the need for a consistent dialogue between transmission and distribution service providers and the Haryana Utilities. A meeting under the banner of Empowering Make in India was organised with the Utilities of Haryana and IEEMA top officials and Members in Chandigarh, focussing on the stakes of the industry and facilitation by state government for Make in India.

It was felt that the key areas needing attention in the domestic manufacturing included domestic manufacturing capabilities versus cheap imported equipment from non-market economy. The responsible role of Utilities to adopt Technology and Standards of Specifications and standard bidding documents were also discussed.

In discussion on linkage to power economics the power situation and impact on agriculture in Haryana and steps taken by the utilities to manage risks were also taken up. The members discussed testing of imported electrical equipment by test houses in India, steps taken to improve transmission and distribution losses and electricity theft in Haryana and need for single window clearance for projects.

Shri Rajan Kumar Gupta, IAS, Additional Chief Secretary to Govt. of Haryana (Power), Chairman – HVPN, UHVPN, DHBPN, HPGCL, Shri Nitin Yadav, Secretary Power – Haryana and Managing Director of UHBVN and HVPN (additional charge)and central and state utility officials were present at the meeting.

IEEMA brought to notice the burgeoning issues in the wake of low investment in research and development and poor financial health of discoms and much needed technical skill gaps training of plant and field level staff relative to generation, transmission and distribution. The demand for power in Haryana is around eight-ten per cent per annum at state level and 15-20 per cent per annum in Gurgaon and Faridabad.

Addressing to the Utilities, Vishnu Agarwal, President  IEEMA, said, “While it is an acknowledged fact that increase import of electrical goods has put the domestic industry at the brink of vulnerability, yet it is an opportunity for domestic industry to  do serious introspection as well. Strategies for competitiveness for India have become need of the hour. Lowering the tariff barriers in domestic market has unleashed growing competition. The Make In India campaign of the government will help the domestic market to become competitive to earn sufficient foreign exchange. Only way we can stay afloat is by creating a competitive edge. The utilities should be sensitive to the price variation in raw materials and how the suppliers get affected”.

IEEMA Director General Sunil Misra said, “Currently the manufacturing sector faces challenges but right policies, incentives, infrastructure and encouragement from Government will act as a catalyst for ‘Make-in-India’, drive. This will transform import driven Indian electrical and industrial electronics industry to an indigenous manufacturing hub, leading to a self-sustained economy. Also convergence in policies at the centre and state government levels would further drive inclusive growth.” 

There is an urgent need to improve fund availability to the power sector and provide fuel linkages and faster regulatory clearances for timely completion of power projects. In addition to this, IEEMA also recommend framing of guidelines for Model procurement for Utilities with standardized and fair contract terms and conditions and clear path for increased spending in R&D will help develop cost effective technologies.

Deliberations were made on stalled power projects which need to be prioritised to augment existing grid capabilities as well as stimulate production in allied sectors such as coal, iron and steel, power plant equipments and so on. Furthermore assured power supply from the grid determines the sustenance of SMEs that cannot afford to set up captive sources of power.

Among other key points were - Lack of domestic orders is Liquidity/ Credit Crunch issue starting from Utilities & percolating down to EPC, Equipment suppliers and Component Suppliers (primarily: SMEs/MSMEs) and substantial quantum of funds that are held up on account of non-closure of contracts due to disputes between the customer utilities and the EPC (engineering, procurement and construction) contractors.

IEEMA is working closely with various key stakeholders including developers, contractors, reputed consultants, legal firms and regulators with primary intent of sensitizing the policy makers on prevailing problems which are hampering the growth of Generation, Transmission and distribution sector. IEEMA has been echoing voice of Modi’s Government ‘The economic situation in the country demands that more jobs be provided for young, talented, well-educated skilled people of India’. This falls in line with the Made in India brand focus of IEEMA.