The Indian Electrical & Electronics Manufacturers' Association (IEEMA), which is the representative body for the sector welcomed the new domestic procurement norm issued by the Central Electricity Authority (CEA).
The norms announced last week prescribe, "Any equipment or material for government-funded power projects will have to be procured locally through domestic competitive bidding." The decision also emphasised, if any international competitive bidding is necessary then the quoted price has to be in India Rupees only.
"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," said IEEMA President, Babu Babel.
IEEMA said since foreign manufacturers will be required to establish 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.
Citing that the decision will go a long way in making "Make in India" initiative of the government a reality, Sunil Misra, Director General, IEEMA said, "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."