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| Electrical equipment sector grows 16.6% |
| BS Reporter / New Delhi Aug 06, 2011, 00:50 IST |
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Despite fears of a slowdown in the power sector projects, the Indian electrical equipment manufacturing industry grew 16.6 per cent during the first quarter of 2011-2012, almost the same as previous year.
Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment, has based these growth figures, after rigorous analysis, on the production and sales data collected from its member organisations, which represent 95 per cent of the entire sector.
Vimal Mahendru, president, IEEMA, in a statement issued today said the industry was passing through a challenging phase.
On the one hand, there was the huge opportunity presented by the mandated ‘Electricity for All by 2012’, and yet, the challenge of meeting this inspiring goal within the balance time of this financial year was becoming a daunting task.
"While the electrical equipment industry was geared with production capacity, it seemed that procedural delays in releasing tenders and contracts, and runaway cost escalation due to price of commodity inputs were holding back electrification of the country.”
The almost flat growth compared to 16.73 per cent last year is, however, a cause of concern since barring rotating machines, cables and capacitors, there has been a decrease in growth of all other segments during the first quarter of this year.
According to Ramesh Chandak, vice-president, IEEMA, "This may be due to the rising interest cost and liquidity position. We expect the situation to improve in the coming quarters."
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