In the face of the fact that 40 per cent of the power equipment sector in India has been captured by China, the Indian Electrical and Electronics Manufacturers' Association (IEEMA) has sought a debate on whether the Government wants to leave the super critical sector like power in the hands of Chinese equipment makers, who don't even share the technological know-how with their clients.
The need for a discussion on the issue has arisen in the wake of rising demands by Indian power equipment makers from the Government, to rely more on domestically produced machinery in the sensitive power sector.
IEEMA Director General Sunil Misra told mediapersons on Monday that Chinese equipment makers don't share technological know-how with Indian companies to whose power projects they supply their machinery. Therefore, in the probability of an emergency situation like military confrontation or economic stand-off, domestic companies would be left clueless about operating the machines imported from that country, which could even lead to a power shutdown in case the equipments develop a snag.
"The issue is that in case of a probable emergency-like situation, Indian power companies which have installed Chinese equipments to support their mega power projects, won't be able to find any solution if these develop any fault, as no personnel from the Chinese entity's side would be accessible to rectify it. So, there is an urgent need to start a debate on whether we can leave our sensitive and critical power sector at the mercy of Chinese companies," Misra explained.
While Chinese manufacturers have now agreed to set up service centres in India to address faults, in case of a stand-off, these too would be of no use as China would evacuate all its personnel along of course with the diplomatic staff, leaving their Indian customers high and dry, the association added. He added that though Indian equipment makers are not averse to competition, it is the gradually increasing reliance on imported equipments, which is an issue of concern for them.
In FY13, the power equipments sector registered a negative 8 per cent growth and though in the first six months of the current fiscal the growth has been a positive, the association said that in order to maintain the tempo, focus needs to be on greater usage of domestic equipments. The association which has even prepared a 10 year mission plan for the electrical equipment industry, has said that by enhancing greater usage of domestic equipments, an output of $100 billion can be reached.
Misra said that gradually Indian power equipment giant BHEl has increased its capability at par with foreign entities and so at the tendering level itself, power companies notably state-owned NTPC are now putting conditions which favour greater participation of Indian manufacturers.