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
Ü
Ü
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)
Ü
The government aims to achieve per capita electricity consumption of 1,000 kWh through its“ Power for all by 2012” mission under NEP.
SEZ
Ü
Ü
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
Ü
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
Ü
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
Spotlight on Indian Electronics 2016 | 164