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ARTICLE : Indian Electrical Equipment Industry Mission Plan 2012-2022: the 5 key areas
Thursday, 08 August 2013 10:36

Indian Electrical Equipment Industry Mission Plan 2012-2022: the 5 key areas

The ‘Indian Electrical Equipment Industry Mission Plan 2022’ has identified five key areas for action which are as follows:

(i) Industry competitiveness;

(ii) Upgrading technology;

(iii) Skill development;

(iv) Promotion of exports; and

(v) Conversion of latent demand.

Industry competitiveness : To enhance industry competitiveness, the Mission Plan calls for providing a level playing field in the country to domestic electrical equipment manufacturers vis-à-vis foreign manufacturers, replacing the L1 criteria of procurement by power utilities in India with two part bidding, augmenting domestic testing facilities to cover the type testing of all equipment, mandating type testing of imported small equipment in Indian labs, supporting SMEs in technology up gradation and testing, standardisation of product ratings and specifications of electrical equipment, providing funds at globally competitive rates of interest to domestic manufacturers, establishing clusters of electrical and component manufacturers and providing them funds for technology up gradation.

Technology Up-gradation: For this the Mission Plan recommends a coordinated and collaborative effort by industries and utilities. For any R&D project, the user organisation or main beneficiary should be supported by the government for leading the research in a planned and committed manner. It also recommends public-private partnership (PPP) for fast development of new technology / systems.

Skills Development: It is suggested to set up a Sector Skill Council (SSC), which will undertake skill mapping and interact with the industry to provide training to the workers and also train the trainers / teachers, propose changes in curriculum, etc. It will also arrange for accreditation of the institutes and certification of the students. The Mission Plan calls for greater involvement of industry in the periodic review of the curriculum of technical institutes, summer training of students and for guest lectures by industry experts.

Boosting exports of electrical equipment: the Mission Plan recommends providing policy support to domestic manufacturers to enhance their competitiveness in the global market and address issues of quality of the products, high transaction costs, non-recognition of test certificates of CPRI by some countries, high cost of production, high cost of finance, etc. The Mission Plan calls for more project specific lines of credit by the EXIM Bank to other countries with an emphasis on acceptance of equipment / material only from India for such projects.

Conversion of latent demand: To convert the latent demand for power in the country, the Mission Plan calls for timely completion of power generation projects and the downstream transmission projects for evacuation of power and improvement in the health of power distribution companies. It recommends the State Governments to acquire land, construct approach roads, and arrange construction power supply and other clearances, with the project developers reimbursing the costs. It suggests that urban areas with high aggregate technical & commercial losses be handed over to private sector on the input-based franchisee model with the provision for investment by the franchisee for system improvement, with the franchisee being asked to set up decentralised distribution-cum-generation (DDG) projects in identified rural areas.

The Indian electrical industry has come a long way, with both big and small companies having contributed to its growth. The Mission Plan has been launched because the Government’s positive intervention was required to give domestic industry the needed boost. Detailed recommendations have been formulated for strategic and policy interventions in the above five critical areas that need to be addressed by the industry, with support from the government. The Mission Plan envisages to make India the country of choice for the production of electrical equipment and reach an output of US $100 billion by balancing imports and exports. It has been evolved by the Department of Heavy industry through an elaborate exercise involving all stakeholders and with the support of the Indian Electrical and Electronics Manufacturers’ Association (IEEMA).

To carry forward the recommendations arising out of the Mission Plan, Inter-Ministerial Groups, comprising of representatives of the Department of Heavy Industry and other concerned Ministries / Departments, IEEMA, industry and other stakeholders will be constituted for monitoring the implementation of the recommendations and for periodic follow-up of its status.