India: Energy Policy IEEMA Welcomes CEA Decision to Procure Domestic Equipment
The Indian Electrical & Electronics Manufacturers’ Association (IEEMA) has welcomed the new domestic procurement norm by Central Electricity Authority (CEA), according to which, any equipment or material for government-funded power projects will have to be procured locally through domestic competitive bidding.
New Delhi/India – President, IEEMA, Babu Babel said, “We at IEEMA are delighted and welcome this landmark decision of CEA. This decision will go a long way to address the underutilization of existing manufacturing facilities of domestic electrical equipment manufacturers. The decision will also address the concern of large scale penetration of foreign equipment in the sensitive power sector”.
“Domestic manufacturers have invested heavily in technology transfer from their principals or have developed technology indigenous for creating and expanding manufacturing capacities, manpower and skill development to meet the growing demand. This decision will go a long way in making the ‘Make in India’ initiative a reality,” said Director General, IEEMA, Sunil Misra.
The decision also emphasis that, if any international competitive bidding is necessary, then the quoted price has to be in Indian Rupees only. Since foreign manufacturers will be required to establish a manufacturing facility in India within a specific timeframe and ensure transfer of technology under a Phased Manufacturing Program, this will pave way for the domestic manufacturing sector.