Lok Sabha Question No. 107 (STARRED), answered on 2017-02-09
Subject: SCADA Contracts for Chinese Companies
Ministry: POWER
Asked by: JAYAKUMAR JAYAVARDHAN, HEENA VIJAYKUMAR GAVIT

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.107 TO BE ANSWERED ON 09.02.2017

## SCADA CONTRACTS FOR CHINESE COMPANIES

*107.   DR. J. JAYAVARDHAN: DR. HEENA VIJAYKUMAR GAVIT:

Will the Minister of POWER be pleased to state:

(a) whether  Chinese  companies  have  recently  bagged  Supervisory control and data acquisition (SCADA) contracts for 18 cities and if so, the details thereof;

(b) whether the Government is aware of world's first confirmed hacking of  Power  Distribution  System  in  Ivano-Frankivsk  region  and  if  so,  the details thereof;

(c) whether Indian power equipment manufacturers have raised alarm over  vulnerability  of  the  country's  transmission  network  to  hacking  as Chinese companies make steady inroads into SCADA system and if so, the details thereof;

(d) whether  the  domestic  power  gearmakers  have  opposed  Chinese venture into this sector; and

(e) if so, the details thereof and the corrective steps taken/being taken by the Government in this regard?

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 (e) : A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION NO.107 TO BE ANSWERED IN THE LOK SABHA ON 09.02.2017 REGARDING SCADA CONTRACTS FOR CHINESE COMPANIES.

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- (a) : The State Power Utilities of Rajasthan, Madhya Pradesh, Tamil Nadu, Odisha and Puducherry have awarded Supervisory Control and Data Acquisition systems (SCADA) implementation of 20 towns to M/s Dongfang Electronics,  a  duly  empanelled  company  from  China  under  Restructured Accelerated Power Development & Reforms Programme (R-APDRP).
- (b) : No information is available in this regard in Ministry of Power. However,  Indian  Computer  Emergency  Response  Team  (CERT-In),    has quoted a media report that a regional electricity distribution company, in the  Ivano-Frankivsk  region  in  Ukraine  experienced  unscheduled  power outages  impacting  a  large  number of  customers  on  December  23,  2015. Subsequently, it has been reported that the outages were due to a cyberattack through spear phishing and malware infections in plant systems.

(c) & (d) : Indian  Electrical  &  Electronics  Manufacturing  Association [IEEMA] had expressed apprehensions against the Chinese Company.

- (e)  : Central Electricity Authority (CEA) in May 2016 has issued an advisory  to  Central/State  utilities  regarding  domestic  procurement  of electrical equipment in power sector in which the following were advised:
-  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.
-  In the absence of domestic manufacturing capability, foreign suppliers  may  be  allowed  in  the  tendering  process  provided  a consortium/Joint Venture (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.

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