IEEMA welcomes Central Electricity Authority decision to procure domestic equipment for government-funded power projects Move to aid the underutilized domestic manufacturing facility

New Delhi 24th May 2016: Indian Electrical & Electronics Manufacturers’ Association (IEEMA) today welcomed the new domestic procurement norm by Central Electricity Authority, according to which, any equipment or material for Government-funded power projects will have to be procured locally through domestic competitive bidding.

IEEMA President, Mr. Babu Babel said,” We at IEEMA are delighted and welcome this landmark decision of CEA. This decision will go a long way to address the underutilization of existing manufacturing facilities of domestic electrical equipment manufacturers. The decision will also address the concern of large scale penetration of foreign equipment in the sensitive power sector”.
“Domestic manufacturers have invested heavily in technology transfer from their principals or have developed technology indigenous for creating and expanding manufacturing capacities, manpower and skill development to meet the growing demand. This decision will go a long way in making “Make in India” a reality. Thus the Indian Electrical Equipment Industry whole heartedly welcomes domestic procurement norm issued by the Central Electricity Authority.” said Mr. Sunil Misra, Director General, IEEMA.

The decision also emphasizes that, if any international competitive bidding is necessary, then the quoted price has to be in India Rupees only. Since foreign manufacturers will be required to establish manufacturing facility in India within a specific timeframe and ensure transfer of technology under a Phased Manufacturing Program, this will pave way for the domestic manufacturing sector.
This point was a part of the four point agenda, represented by IEEMA, during the first meeting of “Make in India” chaired by the Prime Minister on 25th September 2014. IEEMA had made a four point agenda recommendation to the GOI to create a conducive climate for Make in India and for encouraging indigenous manufacturing and technology development (attached).

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