HIGH PRIORITY MARKET- POWER
STRATEGIES ADOPTED
New technologies
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High voltage technology is being developed in the electrical equipment industry, for economical power transmission. Firms are diversifying into nuclear reactor business, as government wants to increase its nuclear power base.
Capacity addition
Ü India plans to increase investment in infrastructure( including electricity), as it lags behind other countries.
Ü With more capacity addition in power sector, demand for electrical machinery would rise, prompting the companies to increase their production capacity.
Promotion of R & D
Skill upgradation & incentives
Ü Government is helping companies enhance the level of research to match the best in the world.
Ü Government has relieved custom duties on some equipment.
Ü Companies, too, are enhancing their R & D departments to take advantage of the situation.
Ü Skill upgradation is necessary as firms need to have the desired talent pool.
Ü The government plans to set up the Electrical Equipment Skill Development Council( EESDC) which would focus on identifying critical manufacturing skills required for the electrical machinery industry.
Ü It is enhancing export incentives by removing export barriers.
GROWTH DRIVERS OF ELECTRICAL MACHINERY SECTOR
Demand-side drivers
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Capacity addition for power generation Rise in demand for backup equipment Industrialisation leading to demand for boilers and turbines
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De-licensing of power Reduction in Tariff and Customs Hike in duty on foreign products Easy fuel linkages and faster regulatory clearance for power projects |
Policy |
Investment |
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Entry of global majors through joint ventures Increasing FDI inflow Easy credit and subsidised loans to power companies |
Spotlight on Indian Electronics 2016 | 162