China’s power sector imports to face drastic cuts under the new Atmanirbhar Bharat plan


The Ministry of Energy is set to establish three manufacturing centers across the country to produce critical power and transmission equipment, which are currently imported in full from other countries, including China, under the Atmanirbhar Bharat plan announced by Prime Minister Narendra Modi.

According to authorized government officials, the Indian energy sector in 2018-2019 imported Rs 71,000 crore of equipment, of which Rs 21,235 crore came from China, according to the Directorate General of Business Intelligence (DGCI). While the government has managed to reduce imports from China, the numbers are still huge considering that several of this equipment was made in India.

Annual Chinese imports in the energy sector have been worth Rs 17,289 crore (2009-2010); Rs 22,114 crore (2010-2011); 34,000 crore rupees (2011-2012); Rs 29,062 crore (2012-2013); Rs 22,679 crore (2013-2014); 19,658 million rupees (2014-2015); Rs 19,301 crore (2015-2016); Rs 19,757 crore (2016-2017) and Rs 19,682 crore (2017-2018).

To be self-sufficient and reduce imports, particularly from China, the ministry has prepared two lists.

The first or mandatory list has 239 items for which India has zero manufacturing capacity and therefore must rely on imports until manufacturing centers emerge.

The second or embargo list contains 95 items that are being imported by the energy sector despite being manufactured in India. It has been decided that no company in the electricity sector, PSU or private, will be able to import items on the embargo list. Both lists will be annexed to the policy of Atmanirbhar Bharat.

While the Center will ask states to submit a bid for manufacturing sites for the required items, it plans to provide budget grants for the creation of common infrastructure in these centers, including water, power, roads and common 24-hour test facilities. of the day, 7 days a week. A special purpose vehicle will be created for these centers, which are expected to be established in the next three to four years.

The energy ministry has already informed major PSUs such as NTPC, NHPC, PGCI and power sector associations about its plans to limit imports to a minimum and improve national capacities.

The ministry has also decided not only to prepare its own designated laboratories for the testing of imported power equipment, but also to mint its own references and protocols for other countries. This is being done to ensure that imported equipment does not contain malware that is activated by the country where the equipment was manufactured in times of national security crisis.

Cyberattacks by activating embedded malware by country from where the power equipment was imported can lead to the shutdown of India’s power grid in adverse times, experts say.

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