Industry welcomes national capital goods policy

  Indian Electrical & Electronics Manufacturers’ Association (IEEMA) welcomed the National Capital Goods Policy of the Department of Heavy Industry, which is a major step to unleash the potential of this promising sector and is envisaged to contribute significantly to achieving the overall vision for manufacturing and “Make in India”.
The key recommendations of the Department of Heavy Industry includes, procurement of electrical equipment under local competitive bidding and not under internationally competitive bidding in domestically funded projects under Ministry of Power, Ministry of Steel and Ministry of Non-Conventional Energy, CPSUs and in projects funded by Power Finance Corporation and Rural Electrification Corporation.
The policy also mandates testing of foreign equipment in Indian laboratories, like Central Power Research Institute and Electrical Research & Development Association, wherever test certificate is a prerequisite.Terming this initiative as ‘landmark policy’ IEEMA President, Babu Babel said that the national capital goods policy will go a long way and will also help in upgrading testing and calibrating infrastructure in the country, especially for high voltage equipment, on a high priority basis under PPP mode and also by providing funding support to the existing testing facilities like CPRI. “The policy will also address the concern of large scale penetration of foreign equipment in the sensitive power sector,” he adds.
The policy also emphasizes on directing REC/PFC to ensure that utilities follow a transparent two-part bidding process / e-tendering in procurement in central schemes and in projects funded by REC/ PFC. Also to foster collaborative R&D with application across the sector backed by the government or a government owned agency or by partly financing a consortium of companies. To extend Phased Manufacturing Programme for another 3 years beyond current validity of October 2015 for all state and central power projects and to cover higher percentage of incentives to electrical and mechanical power generation equipment under Merchandise Exports from India Scheme. 

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Industry welcomes national capital goods policy

  Indian Electrical & Electronics Manufacturers’ Association (IEEMA) welcomed the National Capital Goods Policy of the Department of Heavy Industry, which is a major step to unleash the potential of this promising sector and is envisaged to contribute significantly to achieving the overall vision for manufacturing and “Make in India”.
The key recommendations of the Department of Heavy Industry includes, procurement of electrical equipment under local competitive bidding and not under internationally competitive bidding in domestically funded projects under Ministry of Power, Ministry of Steel and Ministry of Non-Conventional Energy, CPSUs and in projects funded by Power Finance Corporation and Rural Electrification Corporation.
The policy also mandates testing of foreign equipment in Indian laboratories, like Central Power Research Institute and Electrical Research & Development Association, wherever test certificate is a prerequisite.Terming this initiative as ‘landmark policy’ IEEMA President, Babu Babel said that the national capital goods policy will go a long way and will also help in upgrading testing and calibrating infrastructure in the country, especially for high voltage equipment, on a high priority basis under PPP mode and also by providing funding support to the existing testing facilities like CPRI. “The policy will also address the concern of large scale penetration of foreign equipment in the sensitive power sector,” he adds.
The policy also emphasizes on directing REC/PFC to ensure that utilities follow a transparent two-part bidding process / e-tendering in procurement in central schemes and in projects funded by REC/ PFC. Also to foster collaborative R&D with application across the sector backed by the government or a government owned agency or by partly financing a consortium of companies. To extend Phased Manufacturing Programme for another 3 years beyond current validity of October 2015 for all state and central power projects and to cover higher percentage of incentives to electrical and mechanical power generation equipment under Merchandise Exports from India Scheme. 

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