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UMPPs to be asked to source gear from domestic market

New Delhi, Aug 26, 2013, dhns: 23:18 IST
In a major reprieve to domestic equipment markers, the Centre will soon make it mandatory for companies executing ultra mega power projects (UMPP) to buy equipment from the domestic market.

According to the new Standard Bidding Documents (SBDs) for power projects, which was approved by a high level ministerial committee headed by Defence Minister A K Antony a couple of days back, upcoming 4,000 MW UMPPs have to secure equipment from the domestic manufacturers, sources said. This decision will benefit to indigenous power gear makers who have been urging the government to take steps to protect them from inflow of cheap imported equipments mainly from China.

However, the private power companies have expressed their concerns to the government. In a letter to Finance Minister P Chidambaram, the Association of Power Producers had said that if the proposal is accepted it will benefit only a few players.

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