In the first nine months of the current fiscal, April-December, cumulative growth has been only 4.41 per cent, says IEEMA.Growth of the Indian electrical equipment industry has sharply decelerated to 0.6 per cent in the third quarter (Q3) of the current financial year 2011-2012 after growing at 13.8 per cent and 3.6 per cent in Q1 and Q2 respectively. In the first nine months of the current fiscal, April-December, cumulative growth has been only 4.41 per cent, according to data compiled by Indian Electrical and Electronics Manufacturers’ Association (IEEMA).Current export-import trends based on select major ports trade data indicates that import continues to rise for 765 kV transformers and reactors (mostly through project imports), insulators, LV switchgear and HV cables.The marginal growth represents an absolute increase in output over a similar period of the last financial year and may differ from the growth in value terms. Ramesh Chandak, President, IEEMA, and MD, KEC International, said, “All product sectors have been showing a decline in their growth momentum over the three quarters this financial year. The financial growth has worsened due to the severe competition from domestic and overseas suppliers have an adverse impact both on top line and bottom line.”The 11th Plan period is on the verge of completion and the 12th Plan (April 2012 to March 2017) throws huge opportunities for growth with envisaged investment of $300 billion, coupled with exports growth. However, in the medium term the industry is witnessing a decline in enquiries and order finalisations. It has reported a ‘wait and watch’ stand adopted by purchasing bodies including core sectors due to uncertainty in economic and financial situation in the country.Growth in transformers, switchgear and rotating machines in Q3 has turned negative, implying distinct slowdown in industrial capex activities and slowdown in off-take by users due to credit squeeze, high interest costs, etc. There has been some improvement in Q3 in production of transmission line towers, conductors, power cables and energy meters as supply has improved to major PSUs and power utilities. The current order book position also remains strong and improved.The slowdown in the sector and the escalating imports of equipment is impacting the commercial viability of the industry and can have severe long term consequences. All three segments of the power sector – generation, transmission and distribution are facing several challenges which need to be addressed expeditiously. Absence of a level-playing field for the domestic industry to compete with imported electrical equipment, especially from China, is a clear and present threat. Urgent policy interventions are required by both the Central and the state governments to rev up the growth of the equipment industry.Based on government projections for capacity enhancement in generation, transmission and distribution in the 10th, 11th and 12th Plans, the domestic equipment manufacturing industry has made huge investments in doubling and, in some cases, even tripling its production capacity. However, this built-up capacity currently stands under-utilised across several products due to lack of demand and surge in imports of equipment in recent years, especially from China, with uncertain lifecycle and quality. Absence of a level-playing field for the domestic industry to compete with imported equipment is a clear and present threat. This is impacting the commercial viability of the industry and can have severe long-term consequences. The domestic testing and calibrating facilities for electrical equipment, especially high voltage equipment, is inadequate and costly. Manufacturers have to either send their products abroad for testing or bear the long waiting period at CPRI, which results in high logistics cost and delay in project execution. The government needs to take urgent steps for up-gradation of testing and calibrating infrastructure in the country, especially for high voltage equipment. Since the capital required to set up such facilities is quite high, these will have to be financed by the government.CRGO and Steel Quality Control OrderCRGO – Cold Rolled Grain Oriented Electrical Steel - is the most critical and major input raw material for manufacturing transformers. It is a special alloy steel which requires controlled processes and precision manufacturing techniques. As such this type of steel cannot be produced in all mills. Very few mills have technology and capability to produce and supply CRGO. Moreover, the technology is also not easily accessible. World over, there are only 14 manufacturers of CRGO, who work in tandem, influencing prices and deliveries, leading to scarcity and higher prices from time to time. These CRGO manufacturers are based in countries such as Japan, Germany, South Korea, USA, UK, Italy, France and Russia. Total world production capacity of CRGO material is of the order of about 1.8 million tonne. There is no indigenous manufacturing of CRGO in India; hence entire requirement has to be imported. Indian Transformer Industry is estimated to have imported about 260,000 tons of CRGO in FY 2010-11. Attempts have been made in the past to establish an indigenous manufacturing facility, so as to insulate the industry from the effect of availability/ prices of CRGO, which are governed by global demand supply dynamics. As the technology is not easily accessible, no manufacturing facility has come up. To match the capacity addition programme, about 450,000 MVA of transformation capacity would be required in 11th Plan and additional 500,000 MVA would be needed for 12th Plan. To manufacture transformers to meet these transformation requirements, over 750,000 MT of CRGO is estimated to be required per annum by the end of the 12th Plan. Globally CRGO is in short supply, and the manufacturers reportedly resort to rationing from time to time. In the recent past, non-availability of CRGO has led to delays in Project implementation. Reduced or lack of availability of CRGO will impact initiatives such as expansion of National Grid, APDRP and RGGVY etc., which are planned to achieve self sufficiency in electricity.
I wish to start pvc / pp electric wire unit in Delhi. What kind of information I can get if I subscribe for your magazine
Pls invite me all auction in gujarat
we are doing business developing for solar power ,thermal power , customer supporting and we have 45 mw splar power on hand needs investors.....
pls call +910842559230