HIGH PRIORITY MARKET - POWER
FAVOURABLE POLICIES HAVE AIDED THE SECTOR
De-licensing
Ü The electrical machinery industry has been de-licensed ; 100 per cent FDI is allowed in the sector .
Ü This has facilitated the entry of global majors into the electrical machinery industry in India .
Tariffs & custom duties
Ü Government has removed tariff protection on capital goods .
Ü Government has lowered custom duties on a range of equipments .
Ü Relatively lower custom duties ; 5.0 per cent for power generation equipment and 7.5 per cent for T & D .
Initiatives to increase power generation
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Planned capacity addition of 115 GW in the 12th Five-Year Plan . The government is targeting to provide 24 / 7 power by 2022 . Through the Accelerated Power Development Reform Programme , the government plans to provide reliable , affordable and high-quality power to all .
National Electricity Policy ( NEP )
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The government aims to achieve per capita electricity consumption of 1,000 kWh through its “ Power for all by 2012 ” mission under NEP .
SEZ
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The government has cleared significant number of SEZs for the engineering sector across the country ; electrical machinery is a part of the sector . Delhi Mumbai Industrial Corridor being developed across seven states could boost the engineering sector .
VISION 2022 FOR INDIAN ELECTRICAL EQUIPMENT INDUSTRY
Vision statement
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To make India the country of choice for the production of electrical equipment and reach an output of USD100 billion by balancing exports and imports .
Focus on industry competitiveness
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To focus on technology and R & D and bring it on par with global benchmark , the government has lowered customs duties on a range of equipment .
Identify skills to support industry ' s requirement
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 .
Develop and strengthen support infrastructure
Ü The government plans to establish electrical equipment industry clusters .
Ü It plans to take steps to enhance product-testing infrastructure in the country .
Increase share in export market
Ü The government plans to provide credit support to economically less-developed export markets .
Ü It aims to create a dedicated fund for EXIM bank to support exporters in the electrical machinery industry .
Source : Ministry of Power , TechSci Research
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