Electricity industry eyes $100 billion biz

The Indian electrical equipment industry plans to achieve an output of $100 billion by balancing exports and imports under the Vision 2022 articulated in the Indian Electrical Equipment Industry Mission Plan 2012-22 unveiled by Union Minister for Heavy Industries & Public Enterprises on Wednesday.

The Mission Plan has been evolved by the Department of Heavy Industry (DHI), through an elaborate exercise involving all stakeholders and with the support of the Indian Electrical & Electronics Manufacturers’ Association (IEEMA), according to an IEEMA release.

The goal is to make India the country of choice for production of electrical equipment by ensuring the rapid development of the domestic electrical equipment industry and enhancing its competitiveness.

Patel, while launching the Mission Plan, said, “It is imperative to build our own industry to make it competitive for its global growth, also looking at ways and means to draw in more investment. The size of the sector is growing, and companies can pool their resources for investing in R&D for moving ahead.”

Patel said that while making plans was the easier part, industry and the government needed to work in synergy to translate them into reality.

The Mission Plan will steer, coordinate and synergise the efforts of all stakeholders to accelerate and sustain the growth of the domestic electrical equipment industry.
Under the Mission Plan, detailed recommendations have been formulated for strategic and policy interventions in five critical areas that need to be addressed by the industry, with support from the government.

These are industry competitiveness, technology upgradation, skills development, exports and conversion of latent demand.

 To carry forward the recommendations of the Mission Plan, inter-ministerial groups comprising representatives of the Department of Heavy Industry and other concerned ministries and departments, IEEMA, industry and other stakeholders will be constituted for monitoring the implementation of the recommendations and periodic follow-up of its status.

Patel said that the Indian electrical industry has been hampered by the slowdown plaguing the entire power sector. He admitted that policy makers may have adopted a lopsided approach to problems in the past, which was the cause of sluggish progress and attendant problems in the sector.

Imports have grown while exports have lagged. Imports from China have been on the rise, while a multiplicity of controls is not helping the cause of the industry. Huge capacities have been added, which coupled with the overall economic slowdown, have badly affected the electrical industry. “India’s electrical exports are currently a rather modest $5 billion.

5% additional levy sought

NEW DELHI, dhns: To protect struggling domestic power equipment manufacturers, the Union Heavy Industries Ministry has sought an additional levy of 5 per cent on imported power gear.

The move of the Union Heavy Industries Ministry came against the backdrop of local power equipment makers, including state-run BHEL, facing tough market conditions due to overall economic sluggishness and cheaper imports from China.