Imports are having a negative impact

The electrical equipment sector in India comprises of more than 1,000 manufacturers and suppliers (organised segment), of which approximately 80 per cent are SMEs. Indian manufacturers have sufficient capacity to meet the domestic requirement of electrical equipment (both power generation as well as power transmission and distribution equipment). Imports, primarily cheaper electrical equipment, are having a negative impact on the domestic electrical industry. The low-capacity utilisation of the domestic manufacturers severely impacts business performance, hurting their top lines and bottom lines.
Additionally, the cheaper imports of electrical equipment has resulted in poor quality equipment being used, severely impacting the performance of power plants. There are few instances of power plants of Independent Power Producers (IPP) with Chinese BTG equipment, where there have been component failures. Due to the absence of local servicing workshops of the Chinese BTG suppliers, equipment had to be sent back to China for repairs, adding logistics cost of transporting the equipment to China from India, resulting in power generation plants being shutdown.

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Imports are having a negative impact

The electrical equipment sector in India comprises of more than 1,000 manufacturers and suppliers (organised segment), of which approximately 80 per cent are SMEs. Indian manufacturers have sufficient capacity to meet the domestic requirement of electrical equipment (both power generation as well as power transmission and distribution equipment). Imports, primarily cheaper electrical equipment, are having a negative impact on the domestic electrical industry. The low-capacity utilisation of the domestic manufacturers severely impacts business performance, hurting their top lines and bottom lines.
Additionally, the cheaper imports of electrical equipment has resulted in poor quality equipment being used, severely impacting the performance of power plants. There are few instances of power plants of Independent Power Producers (IPP) with Chinese BTG equipment, where there have been component failures. Due to the absence of local servicing workshops of the Chinese BTG suppliers, equipment had to be sent back to China for repairs, adding logistics cost of transporting the equipment to China from India, resulting in power generation plants being shutdown.

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