The Ministry of Power announced import restrictions on equipment used for “power supply systems and networks”, citing security and cyber threats. While banning imports from China, the ministry said prior permission would be needed to import from countries in the ‘prior reference’ list, which includes China and Pakistan.
“All equipment, components, and parts imported for use in power supply systems and networks shall be tested in the country to check for any kind of embedded malware, Trojans, or cyber threat, and for adherence to Indian standards,” said the order issued by the ministry.
Power supply equipment includes products used in power transmission and distribution infrastructure, such as transmission towers, transformers, cables, metres, and motors. Some of them can be monitored and operated remotely. As the power infrastructure is increasingly powered by information technology and artificial intelligence, the vulnerability to cyber attacks has also increased.
The electrical equipment industry, in its representation in the Ministry, had previously signaled the threat of cyber attacks by China if that country’s power equipment continued to flood the Indian market , particularly in the power distribution sector.
Addressing the States on Friday, R K Singh, Minister of State for Power, New and Renewable Energy of the Union, said that they should stop giving orders to Chinese power plant companies. “The power system is vulnerable to malware attacks, which can shut down our communications, database, and defence systems. That is why all imports need to be inspected and a few countries need to be banned,” Singh said.
Singh was speaking at the State Power Ministers’ Conference, a congregation of power departments of all states, held through video conferencing this year.
“We cannot tolerate a country that transgresses into our territory. We create jobs in that country when we have the ability to manufacture it (equipment) ourselves. We have decided not to buy from prior-reference countries. Any equipment imported will need permission. And we will not give permission for equipment from China and Pakistan,” Singh said.
The order, which followed the announcements, also stated that any import of equipment, components or parts from “prior-reference” countries would require prior permission of the government of India and would have to undergo testing in certified and designated laboratories approved by the ministry.
Singh urged States to avoid importing equipment for which sufficient capacity was available.
According to data collected by the Indian Electrical and Electronic Manufacturing Association (IEEMA), of the 58 identified equipment used in power supply infrastructure, there are only four products for which there is no domestic capacity. Alternative technology is available in India for two products.
In the electrical equipment segment, imports from China accounted for nearly 30 per cent of total imports of Rs 71,570 crore in FY19. This includes power and distribution transformers, conductors, cables, metres, motors, switchgears, etc. These equipment are mainly used in the power transmission and distribution sectors. The size of the Indian market for electrical equipment is Rs 2.08 trillion. Domestic production amounts to Rs 1.9 trillion.
