India’s power gear imports being ₹71,000 crore last year, including ₹21,000 crore from China, Govt. pushes for stepping up of the expansion of local manufacturing range
New Delhi, August 19: In view of replacing items being imported, specially from China, with local replacements, the power ministry has asked all domestic manufacturers including majors such as L&T and state-run BHEL to launch a phased manufacturing programme, assuring them of contracts having 100% preference to ‘Made in India’.
“We are creating a separate division in the ministry for 100 per cent indigenisation of the power industry. This will review the domestic manufacturing ecosystem and work with the industry towards making local replacements for items that are not made here so there is no need for imports”, Raj Kumar Singh, Power and Renewable Energy Minister said.
India’s power gear imports accounted for ₹71,000 crore last year, which includes ₹21,000 crore from China. The power sector currently imports 604 items, out of which 392 items are also manufactured in the country, leaving 212 items that are not manufactured here, but then local alternatives also being available for 102 items. And that leaves 101 items needed to be manufactured locally.
Raj Kumar Singh has urged the industry to step up and expand the range of local manufacturing after the ministry had put curbs on power gear imports from China. He asked L&T chairman AM Naik last week to make prepaid meters instead of smart meters, and is also expected to ask BHEL to expand its portfolio during a forthcoming review.
“At the cost of our domestic manufacturing, foreign companies, especially China, keep their prices artificially low to capture our market. This is what they did in Thermal Generation. We have sufficient manufacturing capacity, capability to make supercritical power plant equipment. But private companies opted for Chinese gear. This can’t go on, I have told the industry that if you make it here you will get the orders”, Singh iterated, stating that steps had already been initiated for manufacturing solar cells and modules regarding the solar power industry.
