The power generation capacity addition target in the 12th Plan is expected to be 88 gigawatts (GW). Close to 100 GW of capacity addition is envisaged in the 13th Plan (2017û2022).
The Indian electrical equipment industry is expected to peg a business of $100 billion (Rs 550,000 crore) by the year 2022, says Ambuj Sharma, joint secretary, Department of Heavy Industry, ministry of heavy industries & public enterprises. "Though there is a tough time for the industry at present as the demand of equipment remained muted for few quarters, it is expected to regain the pace with policy reforms in the country, and the industry will grow at the rate of 15-20 year-on-year basis," said Sharma. The industry has reported an annual sales growth of over 9 per cent at Rs 120,235 crore for the fiscal year 2011-12.
However, at present electrical and equipment industry is facing dual whammy due to slowing domestic sales leading to 33 per cent over capacity and cheaper imports from China and Korea.
According to Sharma, the electrical equipment sector accounted for 1.46 per cent of India's GDP in the FY2011-12 and this has to change. While there is a growing importance for the domestic electrical equipment industry, GDP growth and related employment, it is paramount to see the growth momentum maintained. "This sector has to at least double in sales and reach a figure of $100 billion in the next 10 years," Sharma said.
The power generation capacity addition target in the 12th Plan is expected to be 88 gw. Close to 100 gw of capacity addition is envisaged in the 13th Plan (2017û2022). The government's plans to increase power generation capacity will be accompanied by commensurate transmission & distribution (T&D) capacity enhancement.
"The Indian electrical equipment industry must, therefore, increase its preparedness and enhance its competitiveness to meet the current and future demands of our power sector. We need a plan to steer, coordinate and synergise the efforts of all stakeholders to accelerate and sustain the growth of the domestic electrical equipment industry and also, enhance its global competitiveness," he added.
In value terms Electrical Equipment sector is:
1. FY2012 - Rs 1,20,235 cr
2. FY2011 - Rs 110,000 cr
3. Nominal growth - 9.3 %