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Press Release | August 2012

Power Secretary P Uma Shankar assures strong support for level....

Power Secretary P Uma Shankar assures strong support for level playing field for domestic transformer makers

  • Power Secretary promises to look into cheaper Chinese and S Korean Transformer imports that are hurting local manufacturers
  • Power Secretary promises he will look into compulsory BIS certification issue of CRGO Steel and represent IEEMA’s concerns at the Ministerial level
  • Asks Power Utility companies to increase on-site condition monitoring tests for Power Transformers and requests them to opt for mobile vans
6th Aug, Mumbai: The Union Power Secretary P. Uma Shankar today assured strong support for IEEMA’s request for level playing field against cheaper imports of power equipments in the Transmission and Distribution segment from China and South Korea. The statement came on the back of frequent power failures in India as compared to Europe, US, and the Far East.

Mr. P Uma Shankar was delivering his keynote speech at TRAFOTECH 2012 - a high-power workshop and exhibition to deliberate best practices for transport, storage, installation, operation and maintenance of large power transformers. He said: “As Power Secretary I assure you of strongest support to deal with the issue of cheaper imports especially from China and S Korea. We have understood from your representation that large scale power transformer imports from these two countries are hampering the growth of our domestic industry.”

He added: “Also we will surely look into the CRGO Electrical Steel BIS certification order and the ministry fully understands your challenges.”

“On the issue of Transformer failures, I urge Power Utility companies to increase on-site condition monitoring tests for all their assets including Distribution Transformers. Utilities can opt for mobile vans which can repair the transformers on-site and reduce the transportation risk and costs,” said Mr. P Uma Shankar.

The Power Secretary was responding to a direct request presented by Mr. Ramesh Chandak, President, IEEMA in his inaugural speech at TRAFOTECH 2012. Mr. Chandak told Mr. Uma Shankar:

“Sir, the Second Steel Quality Control Order, coming in to effect from 12 September 2012, mandating compulsory BIS certification for CRGO Electrical Steel will directly impact transformer manufacture. This is a serious situation and it will bring the entire Indian transformer industry to a standstill in the very near future, if enough number of mills is not certified by 12th September. Moreover, the larger issue is that the compulsory BIS regime will not be applicable on the imported transformers, and the foreign manufacturers will be free to use non BIS quality CRGO in their transformers.”

Mr. Chandak informed the Power Secretary about the double whammy. He said: “As you are aware, the Indian transformer industry has over the last several years more than doubles its capacity in alignment with the announced government planned power addition programs for 11th and 12th plan, however the expected demand has not materialized leading to over capacity. Add to that cheaper imports and your industry is headed for hard times.”

He further told Mr. Uma Shankar: “As if this was not enough the Ministry of Steel has mandated compulsory BIS certification of all CRGO steel imports currently amounting to about 3 lakh tons per anum. This is strange, since CRGO is a fully imported raw material, adhering to international standards followed by 14 overseas steel mills which control the supply of CRGO steel. This mandatory order has doubly hit the transformer industry. Till date only three mills have been able to get the said BIS certification.”

It should be noted that India has plans to add about 80,000 MW of generation capacity and increase in the transmission system in the 12th five year plan, said Mr. Uma Shankar.

About IEEMA

IEEMA is a 63 year old apex industry association representing the Indian electrical, industrial electronics and allied equipment industry. IEEMA has over 750 Members with a combined annual turnover of over USD 25billion. IEEMA is consulted for policy formulation as the industry-government interface, and evolves product standards alongside India’s standards setting body the BIS. IEEMA publishes statistics pertaining to trade and growth, export promotion, raw material price indices etc. IEEMA facilitates industry – user interactions through international technical conferences, roundtables and training/tutorials sessions, and the monthly publication IEEMA Journal. It also organizes ELECRAMA, the largest transmission and distribution equipment and services exhibition in the world. For more information visit www.ieema.org
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