Power sector's slowdown hits electrical gear demand
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 reducing the disadvantage level suffered by the domestic power equipment industry vis-a-vis foreign suppliers including from China. The current capacity of PSU power equipment major BHEL stands at around 20,000 mw, he revealed.