Lok Sabha Question No. 227 (STARRED), answered on 2016-12-01
Subject: Electrical Equipments for Power Sector
Ministry: POWER
Asked by: DINESH TRIVEDI

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.227 TO BE ANSWERED ON 01.12.2016

## ELECTRICAL EQUIPMENTS FOR POWER SECTOR

*227. SHRI DINESH TRIVEDI:

Will the Minister of POWER be pleased to state:

(a) whether the Central Electricity Authority has prescribed norms for domestic  procurement  of  electrical  equipment  for  power  projects  and  if so, the details thereof;

(b) the quantum and percentage of electrical equipments imported from China  for  meeting  the  requirements  of  Power  Sector  during  the  last  10 years (2006-2016);

(c) the details of manufacturing base set up in the country to meet the electrical  equipment  requirements  of  Power  Sector  under  Make  in  India Policy; and

(d) whether  any  budgetary  allocation  was  made  for  increasing  the output of electrical equipments manufacturing in the country and if so, the details thereof and the results achieved thereon?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) to (d) : A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF STARRED QUESTION NO.227 TO BE ANSWERED IN THE LOK SABHA ON 01.12.2016 REGARDING ELECTRICAL EQUIPMENTS FOR POWER SECTOR.

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- (a) : Central Electricity Authority (CEA) issued an Advisory in February,  2010  to  Central/State  sector  thermal  generating  utilities  for incorporating  the  condition  of  setting  up  of  indigenous  manufacturing facilities as per Phased Manufacturing Programme (PMP) by the successful bidders  in  the  bids  to  be  invited  for  Boilers  and  Turbines  generators  of supercritical thermal power projects.

Further, in May, 2016, CEA has advised Central/State utilities in power sector as under:-

- i. In  domestically  funded  projects,  procurement  of  equipment/material should be from domestic/local manufacturers through local competitive bidding. If at all International Competitive Bidding (ICB) is to  be  resorted  to,  the  quoted  price  should  invariably  be  in  Indian Rupees only to create a level playing field.
- ii. In the absence of domestic manufacturing capability, foreign suppliers may be allowed in the tendering process provided a consortium/JV is formed with an Indian bidder and shall have to establish manufacturing facility  in  India  within  a  specific  time  frame  and  ensure  transfer  of technology in phased manufacturing programme.
3. (b) : The  year-wise  details  of  quantum  and  percentage  of  electrical equipments  imported  from  China  for  meeting  the  requirements  of  Power Sector during the last 10 years (2006-2016) are as under:-

## Import of Electric Machinery and Equipments

(value in Million USD)

| Year       | Import from China   | Total Imports   | % Share Imports from China   |
|------------|---------------------|-----------------|------------------------------|
| 2006-07    | 444.26              | 2639.65         | 16.83                        |
| 2007-08    | 961.93              | 4217.81         | 22.81                        |
| 2008-09    | 1028.34             | 4581.74         | 22.44                        |
| 2009-10    | 1273.78             | 4403.2          | 28.93                        |
| 2010-11    | 1562.52             | 5614.72         | 27.83                        |
| 2011-12    | 2049.24             | 7291.74         | 28.1                         |
| 2012-13    | 1894.79             | 6353.48         | 29.82                        |
| 2013-14    | 1726.4              | 5492.46         | 31.43                        |
| 2014-15    | 1835.01             | 6061.64         | 30.27                        |
| 2015-16    | 2170.23             | 6040.66         | 35.93                        |
| 2016-17    | 977.65              | 3123.5          | 31.3                         |
| (Apr-Sep)* |                     |                 |                              |

..........2.

- (c) : In  order  to  meet  the  electrical  equipment  requirement  of power  sector,  the  foreign  manufacturers  have  set  up  manufacturing facilities  through  following    joint  ventures  with  Indian  partners,  for manufacturing super-critical boilers and turbine generators:
- i. L&T - Mitsubishi Heavy Industries (MHI)
- ii. Alstom -Bharat Forge
- iii.
- Toshiba- JSW
- iv. Thermax-Babcock & Wilcox
- v.
- Doosan Power Systems

Further, BHEL have also entered into a technology collaboration with M/s Alstom and Siemens for manufacturing of supercritical boilers and turbine generators respectively.

- (d) : No  budgetary  allocation  has  been  made  for  increasing  the output of electrical equipments manufacturing in the country.

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