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