Economics  »   Heavy Electrical Industry In India

Heavy Electrical Industry covers power generations, transmission and distribution equipment. These include turbo generators, boilers, various types of turbines, transformers, switchgears and other allied items. The demand for power generation equipment depends upon power development programme targets.

The targets for additional power generation during the Tenth and Eleventh Plan period is 1,13,000 Mega Watt, entailing an investment of Rs. 5750 billion in power generation, i.e., addition of about 11,000 MW per year. New power plants to be set up will generate substantial demand for heavy electrical equipment.

Electrical equipments such as transformers, switchgears etc. are used by several sectors of the Indian Economy. Some major areas where these are used are the multi-crore projects for power generation including nuclear power stations, petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc.

The Industry has been continuously upgrading the technology and is now capable of taking up turnkey contracts both in India and abroad. Technology transfer is allowed in this core sector of industry with 100 percent FDI.

A strong manufacturing base has already been established for heavy electrical equipment and existing installed capacity of the industry is of the order of 6,400 MW of thermal, 22,40 MW of Hydro and about 600 MW of Gas based power generation equipment per annum. The Indian Heavy Electrical Industry is also capable of manufacture and supply of equipment required for setting up nuclear power plants. The present share of the Indian industry is about 66 percent of the country’s power generation capacity.

The Heavy Electrical Industry is capable of manufacturing, transmission and distribution equipment upto 400 KV AC and high voltage DC. The industry has taken up the work for upgradation of transmission to the next higher voltage system of 765 KV and have upgraded their manufacturing facilities to supply 765 KV class transformers, reactors, CTS, CVT, Bushing and insulators, etc. Large electrical equipment used in steel plants, petrochemical complex and other such heavy industries are also being manufactured inn the country.

The domestic heavy electrical equipment manufactures are making use of the developments in the global market with respect to product designs and upgrading of manufacturing and testing facilities.