Powering Ahead Full Steam

The equipment industry, which forms a vital component of power sector, witnessed a 4.25 per cent growth in FY16-17, with exports worth $6 billion.

- Jocelyn Fernandes

Indian electrical equipment industry, broadly classified as generation equipment and transmission and distribution (T&D) equipment, manufactures products ranging from high- technology equipment to low-technology electrical components. The electrical and industrial electronics industry has witnessed a 4.25 per cent growth in financial year 2016-17 (FY16-17), over the previous year. The industry exported ₹38,580 crore ($6 billion) worth of electrical equipment in 2015-16 (₹35,276 crore April to February in 2016-17- $5.25 billion).

The growth in exports is helping the industry to grow especially in power transformer and high-voltage switchgear products, energy meters and cables. Policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival in the sector, according to Indian Electrical and Electronics Manufacturers’ Association (IEEMA).

The major drivers in this growth are low-voltage switchgear which has registered a growth of 22 per cent due to revival in growth of realty, infrastructure and other manufacturing industries. distribution transformer (especially up to 25 kVA – REC range) and energy meters demand has declined by 12 per cent and 10 per cent respectively due to poor off-take from utilities due to delay in finalisation of orders under government schemes like Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGVYJ) and Integrated Power Development Scheme (IPDS).

The growth in power transformer and high-voltage switchgear can be seen due to domestic orders arising from new sub-station additions especially for above 220 KV. While there is marginal growth in LT motors, declining trend for HT motors due to imports and core sector industry capex is not taking off. The demand for conductors has slumped by 5 per cent owing to delay in order finalisations.