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News Brief | June 2013

Power sector's slowdown hits demand for electrical gears

The Union Heavy Industry Minister Praful Patel has said that the installed capacity of electrical equipment in the country is under utilised due to sluggish demand in the power sector. Last week, the Minister told the Rajya Sabha that electrical equipment industry has enough installed capacity to meet the power sector demand. However, this built-up capacity currently stands under utilised across several products due to sluggish domestic demand, he added. He said sluggish domestic demand is on account of the slowdown in the country's power sector and a surge in imports of electrical equipment in recent years. The slowdown in the growth of power sector is on account of problems in fuel linkage for new and power generation projects, land acquisition issues, delays in environmental and other clearances, precarious financial health of the power distribution utilities etc, Patel added. The government has taken steps towards ameliorating upon this problem.
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