Need for level playing field against dumping & low quality imports

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Q. What are your top priorities for IEEMA MEMBERS as a President of IEEMA? What are the challenges/targets to resolve and achieve before you? As IEEMA President, please summarize the five most important items in your agenda?

The key priorities is to make the association relevant and value adding for its members and prepare a strategic road map. We need to bring congruence between the national policy making and industry direction. IEEMA divisions have been effective in promoting the products and their needs. Through the association we will align the common issues and help the country provide affordable 24X7 electricity for all.

  1. Assistance to the central and state Governments in their efforts to improve the T&D networks and reduce losses. Continue the Utility outreach programs
  2. Support the SME and non utility segments electrical industry as required.
  3. Focus on quality and reliability and exports growth. Support skill enhancement efforts of the government
  4. Effective brand building, through world – class exhibitions, seminars and interaction with key players.
  5. Interact with other leading industry association and educational institutes.

Q. What is your perspective on the current state of the power sector? What trends do you foresee in the sector? What is your take on the industry’s performance for the rest of the year and in future?

The Government of India has identified the power sector as a key sector of focus to promote sustained industrial growth. The Indian power sector has an investment potential of Rs 15 trillion (US$ 237 billion) in the next 4–5 years, thereby providing immense opportunities in power generation, distribution, transmission, and equipment. By 2022, the installed power capacity in India is expected to reach 350 gigawatts (GW) from 243 GW in 2014, on the back of increasing industrialisation and economic development. The total market size of electrical machinery in India is anticipated to reach US$ 100 billion by 2022 from US$ 24 billion in 2013.

Q. What will be IEEMA’s strategy in tackling the general slowdown in the Power Sector Equipment Industry? What are your major demands with the Government of India?

  1. The key concern has been under utilization of established manufacturing capacity across the industry.
  2. Need for level playing field against dumping and cheap low quality imports.
  3. Need for change in buying practices by Government organisations to take care of overall ownership cost rather than the lowest initial cost.
  4. Ease of doing business with government organisations.
  5. Wide Currency fluctuations.
  6. Non tariff barriers faced by exporters

Q. There is a demand for standardizing the industry, what steps are being taken to meet this demand and what role is IEEMA’s metering division playing in this?

Like other divisions of IEEMA, the metering division members actively participate in the standardisation activities with BIS as well as IEC. Indian meters have several features developed specifically for Indian requirements. It is widely discussed that the Indian electrical equipment industry is not investing sufficiently in R&D.

Q. As an IEEMA President what are your views? What is your advice to Industry?

DHI has formed a committee on increasing R&D activities in the electrical sector and IEEMA is actively participating in it. Our members have done some exceptional work in areas of 1,200KV design. A lot more can be done and we are creating awareness for that.

Q. What will be the impact on Power Equipment manufacturers of the boost to Rural Electrification and Renewable Energy in this Budget for the year 2015-2016? Do feel that T&D Sector will get advantage and enhancement in Order Positions from the State?

Govt. of India is focussed on all sectors of power and has very well articulated its programs like IPDS, DDUGJY and the recently launched UDAY. These are clear time bound plans and the industry is committed to support them. T&D sector, which saw slow down in past years should see revival of the market.

Q. What is the Customer’s home of the future going to look like (In terms of energy-related technologies) and what role are energy meters likely to play in the future?

Customers need comfort at affordable price, without compromise. Smarter technologies have evolved in all areas and metering is no exception to that. Technologies should support it and not intrude into privacy or life style.

Q. How is the metering industry doing in India and how do you see the future of this market? More than 100 Cities in the Country are to become SMART CITIES, What will be the demand for ELECTRICITY METERS in coming days for this mega project?

Metering industry has grown in last couple of years in providing technology as well as in numbers but at the same time prices are fluctuating and it is going downwards trends. It’s a pleasure to inform you that almost 99% of the utilities requirements of products and solutions are design and developed indigenously by the metering industry which is a great achievement by the industry. Govt. of India made Prepayment Metering compulsory for all Govt. Offices and Govt building but still it is not being implemented all across the country, only few states has started implementation. States utilities should see the implementation of Govt. of India directives so as to implement prepayment metering systems.

Q. What, according to you, are the reasons for low uptake of Smart Metering in India – is it because of low demand or lack of technologies? What is the New Technology Trend IN ENERGY METERS globally and in India.

I think the Government should take initiative to conduct various training programs involving IT experts, Metering experts, communications experts , Power distribution experts, users and network service providers etc., so that they can share their experience with the power sector employees so that their skill are upgraded . This will help utilities to move forward towards automation of power sector which is need of the hour. In next five years I would see, industry would move towards Smart metering / AMI solution. This can only be achieved if Govt takes bold decision for implementation of Smart Meters technology without considering the price criteria. Prices would automatically goes down with the mass roll out of solutions.

Q. Smart Meters are indispensable for making smart grid a success. What’s your opinion on this?

India was second country after England to introduce Electronic energy meters, way back in 1988. These were a lot smarter than the Ferraris disc meters. The meters bought today have reasonable intelligence. It is what we do with intelligence that is important. We need to be smarter there. Our key focus has to be reducing revenue losses and looking at revenue completeness. Smart metering Solutions used in the western world are not directly relevant for India. Our challenges and business drivers are different. Expensive solutions will not be justified. We need a combination of Technology, a cadre of competent people to run the utilities (with continuity) and processes that will support. Working smartly is more relevant than using western style smart meters. It is not a magic bullet for our power sector ailments.

Q. What are the challenges that the metering industry in India is facing and how is it taking on these challenges?

The main challenges faced by meter industry is not getting payment in time, Penalties imposed by utilities inspite of delayed payment, frequent type testing of products which is adding additional cost impact to the industry, return of defective meters (tampered b, burnt, damaged etc.) without any fault of manufacturing ,performance guarantees encashment, purchase policy without considering the field performance during the vendor evaluation etc are the major pain areas of the industry. Field performance measurement is the key point to be considered during the vendor selection and proper weight should be given while deciding the contract. As IEEMA, we are representing our pain areas to different utilities from time to time but still I feel we have not achieved the desired success and long way to go. In near future we shall again highlight our industries issues to respective utilities so that we could sustain our growth and able to provide our services and support.

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