IndiaCore logo IndiaCore
India Core AD


Interview

 
Featured Publications
 Upcoming Titles


Overview of New & Renewable Energy Sectors in India


Energy Efficiency Scenario in India

 




IndiaCore Site




 

 

 
 


The major expectations of the industry from the upcoming Union Budget 2013-14- J G Kulkarni, President, Indian Electrical and Electronics Manufacturers Association (IEEMA)


The downturn in the demand for domestic electrical products and increase in imports have spelled double trouble for the Indian market for electrical products, resulting in negative growth of -6.14% over the last nine months. This kind of negative turn has become visible for the first time in the last decade. In the backdrop of such negative industry sentiments, J G Kulkarni, President, Indian Electrical and Electronics Manufacturers Association (IEEMA), in an interaction, highlighted the major expectations of the industry from the upcoming Union Budget 2013-14.

Question: How is the Indian electrical equipment industry evolving?

Answer: The Indian electrical equipment industry is expected to touch approximately USD100 billion (Rs. 5,50,000 crore) by 2022. The total fund requirement during the 12th Plan, considering each aspect of the power sector, is expected to be about Rs. 14 lakh crore, including Rs. 1,35,100 crore required for renewable energy.

The industry has all the potential to grow to the next level, but it is struggling with multiple issues. The government can help the industry by coming up with a policy document which can protect its interests and by creating a growth-oriented environment.

Question: What are the challenges that the industry is facing presently?

Answer: The current market scenario does not present a rosy picture for the industry. The industry witnessed a negative growth of 4.1% in Q2 of 2012-13, the second consecutive quarter of negative growth, which, according to me, is an ’alarming statistic’.

The entire power sector value chain hinges on the financial viability of the power distribution sector, and the poor financial health of state distribution utilities continues to adversely affect both existing and planned projects, leaving developers with no option but to run projects at sub-optimal capacities or go slow on commissioning schedules.

The domestic electrical equipment manufacturing industry suffers a substantial cost disadvantage of 14%, as compared to imports, while supplying to power projects, due to many local taxes such as VAT, entry tax/octroi, higher financing cost, project imports at nil or low customs duty, lack of quality infrastructure, and dependence on foreign sources for critical raw material and components.

Question: What are the key recommendations that you would like to make for the upcoming budget?

Answer: Even though a number of policy initiatives have been put in place, the task of transforming the power sector is yet to be achieved. IEEMA has sought extension of service tax exemption to all power projects, including power generation, transmission and distribution projects, in line with other infrastructure projects like roads, airports, ports, railways, transport terminals, bridges, tunnels and dams.

The government should follow the recommendations of the Arun Maira Committee, and provide a level playing field to domestic manufacturers by making customs duty 10%, CVD nil and SAD 4% on all categories of power projects. Simultaneously, deemed export benefits in the form of excise duty exemption/refund should be provided to the domestic suppliers.

All imports are currently exempted from CST/VAT, while all domestic supplies attract CST of 2% and VAT ranging from 5% to 14.5%. Although SAD has been removed on CRGO, its imports should be allowed at nil duty, till indigenous production is made available. There is a delay in the publishing of applicable indices, for reasons beyond the control of the suppliers.

Question: How can the industry cope with its present tough economic conditions?

Answer: Dynamic production techniques must be imbibed to enhance cost efficiency, even while supplying products conforming to highest standards of quality. Critical attention is required in enhancing cost competitiveness, especially to withstand competition from overseas markets.

The policy makers should come up with a document that encourages electrical manufacturing companies to venture into global markets. The motto should be: ‘Think, and go global’. This must be considered as a survival strategy rather than an expansion strategy, considering the poor economic scenario of the electrical industry.

line

The information and opinions expressed here are believed to be accurate, based on the best judgement available. The statements or opinions or views are those of the individual and are not necessarily agreed or authorised or endorsed by IndiaCore. IndiaCore acknowledges occasional differences in opinion and welcomes the exchange of different viewpoints.

IndiaCore.com, India Core Publishing, International Publications & Information Services (IPIS) and/ or the authors cannot accept legal liability for any error nor do we assume any responsibility or any liability for any reliance thereon or for any loss to any person/ organisation caused by inaccuracy in the information available. Any discrepancy found may be brought to our notice at info@IndiaCore.com


India Core is a commercial business d
isseminating comprehensive and well-researched information on the infrastructure & core sectors scenario in India through our online & offline platforms since early 2000.

We provide information products & services on payment basis and are unable to provide specific information or advice free to users.

Further detailed & updated information on this Sector is accessible only to India Core members/ subscribers/ paying clients.

To gain access, please login if you are a member/ subscriber:


Member's Email
Password
line


For Fee Based detailed analysis & value added information on the Indian Core Sectors, please contact us at info@IndiaCore.com

 
Upcoming IndiaCore Organised/ Partnered Events


Smart ICT India Conclave 2016, September 30, 2016 || New Delhi. INDIA

internet-of-things-india-submit-2016


FPSO and FLNG ASIA 2016, October 20- 21, 2016 || Shanghai. CHINA

-fpso-flng-asia-2016


Power Purchase Agreement 2016, November 1- 4, 2016 || Singapore


Power Week 2016, November 7- 11, 2016 || Singapore

power-week-2016


13th Edition of International Mining and Machinery Exhibition 2016, November 16- 19, 2016 || Kolkata. INDIA

imme-2016


World Startup Expo 2016, November 21- 23, 2016 || Bengaluru. INDIA

world-startup-expo-2016


Smart Tech Healthcare 2016, Nov 24- 25, 2016 || Bangalore. INDIA

smart-tech-healthcare-2016


India Security Conclave 2016, November 25, 2016 || Delhi. INDIA

india-security-conclavet-2016


Solar Tec- 2016, December 4- 6, 2016 || EGYPT

solar-tec-2016


Electricx 2016, December 4- 6, 2016 || EGYPT

electricx-2016


The 13th Deepwater Asia Pacific 2016, December 7- 8, 2016 || Jakarta. INDONESIA

deepwater-asia-pacific-2016


Pharma CIO Conference 2016, December 8, 2016 || Mumbai. INDIA

The Madhya Pradesh Agri Summit & Mela, end 2016 (TBA) || Bhopal. Madhya Pradesh

agri-summit-mela-2016


Solar Middle East 2017, February 14- 16, 2017 || Dubai. UAE

solar-middle-east-2017


Middle East Electricity 2017, February 14- 16, 2017 || Dubai. UAE

middle-east-electricity-2017


16th Coaltrans India 2017, February 21- 22, 2017 || New Delhi. INDIA

16-coaltrans-india-2017


PVPC EXPO - 2017 (Pumps, Valves, Pipes and Compressors), March 6- 8, 2017 || Abu Dhabi

pvpc-expo-2017


India Logistics Expo 2017, April 17- 19, 2017 || Mumbai. INDIA

india-logistics-expo-2017


23rd Coaltrans Asia 2017, May 14- 16, 2017 || Bali. INDONESIA

23-coaltrans-asia-2017


Renewable Energy World Conference and Expo 2017, May 17- 19, 2017 || New Delhi. INDIA

powergen-india-2017


Powergen India 2017, May 17- 19, 2017 || New Delhi. INDIA

powergen-india-2017


 

Road Infrastructure- Safety, Operation & Management, TBA || Mumbai. INDIA


Mining & Mineral Exploration Conclave- ‘Need for Modernisation & Capacity Enhancement in the Indian Mining Industry’, TBA || New Delhi. INDIA


'Thermal Power India’, TBA || New Delhi. INDIA

TPI-2012


Indian Solar Thermal Energy & PV Conference, TBA || New Delhi. INDIA


Energy Efficiency Forum, TBA || New Delhi. INDIA


Info Security India Conclave 2017, 3rd quarter of 2017 || Udaipur. INDIA


6th Edition CIO India Conclave 2017, 3rd quarter of 2017 || Goa. INDIA


Digital Disruption Conclave 2017, 3rd quarter of 2017 || Mumbai. INDIA


Smart Energy & Smart Metering India- 'Convergence of IT, Automation, Control & Communication', TBA || New Delhi. INDIA


India Core Reports
Directories
Conference Proceedings

global-water-conference-2016
 
 

Join our Mailing List to receive Information Updates on Events, Happenings, Book Release, Developments in the Core Sector

IndiaCore listing

 

 
    IndiaCore Banner


Copyright © IndiaCore. All Rights Reserved. Terms of Use & Privacy Policy
Site Designed & Maintained by India Core
IndiaCore.com - The Online Resource for Information on the Indian Infrastructure & Core Sectors