B. Lal, Secretary General, Indian Transformer Manufacturers' Association, New Delhi, shares insights into the Indian transformer industry. Apart from discussing the current problems faced by the industry, he outlines how ITMA is pursuing key issues with the government to ensure growth of the industry. An interview by Mrinalini Prasad.
What is the current membership of ITMA?
There are about 200 members in the ITMA fraternity comprising big, medium and small players in the transformer industry covering the length and breadth of the country. The cross-section of ITMA membership has companies like Bhel, Crompton, ABB, Areva T&D, Bharat Bijlee and Emco, to name a few.
What are the main issues facing Indian transformer manufacturers and how is ITMA taking them up with the government?
The main challenge facing Indian transformer manufacturers is non-availability of CRGO (cold rolled grain oriented or electrical silicon steel). This has to be totally imported as it is not produced in India. The second problem is the import of second (defective) CRGO by unscrupulous suppliers, being freely allowed by Government of India, is causing lot of losses in the distribution system. The third problem is inadequate testing facilities for distribution and power transformers of EHV/UHV class units in the country.
As far as the import of defective CRGO is concerned, ITMA had been trying its level best with all concerned like Central Electricity Authority, Union power ministry and Union steel ministry to get the import of second/defective CRGO material banned, but all in vain.
Government of India is regularly importing this material and the known figure (for 2005-06) is that 1,27,000 tonnes of defective CRGO was imported against 90,000 tonnes of prime material. This is causing colossal amount of losses besides burning of distribution transformers necessitating four times the maintenance of system. This is culminating in unlimited losses of industrial production, affecting the overall Indian economy.
Given that India has targeted to add 1.6 lakh mw of new power generation capacity in the 11th & 12th Plan periods, there is a huge demand for transformers. Are Indian transformer manufacturers geared up?
The transformer market is now pegged at Rs 10,000 crore and will grow two-three times in another five years. Power transformers account for 50 per cent of the total value of the industry with remaining accounted for distribution and special transformers. Big players are engaged in manufacture of power transformer up to 400kV class who are now actively developing the knowhow to manufacture 765kV class transformers, as the HVDC/UHV system is being developed in a very big way due to capacity addition of about 200,000 mw in the 11th & 12th Plan periods, with announcement of NEP and NTP for attracting investors both in national and international markets.
The transformer at UHV level will assume priority due to operation of national grid, currently having a capacity of 20,000 mw, which will be augmented to 38,000 mw by 2012, and the linking of trunk lines for inter-transfer of bulk power from surplus to deficit states.
India has a strong and mature base of over 500 transformer industries with overall capacity of 1000 GVA sufficient for domestic and export market. Medium and small manufacturers are producing transformers for sub-transmission and distribution networks and are well equipped in design, and have successfully developed transformers with latest technology. They have a good share of export market of about 30-35 per cent of their annual production.
Is ITMA satisfied with the pace at which India is adding T&D infrastructure?
Not at all. Till the 10th Plan (2002- 07) transmission had been relegated to secondary position resulting in total collapse of power as surplus power could not be transmitted from one state to another. The distribution is the weakest link and is notorious for AT&C losses due to theft and other reasons. Now the power sector has been neglected in current budget allocations.
In order to achieve the intended growth, the government ought to have given adequate impetus to power sector but it has directed its focus only to rural electrification and distribution reforms by allocating Rs 2,080 crore for APDRP and Rs 7,000 crore for RGGVY which is not enough even to meet the commitments of the 11th Plan period.
The government has allowed Rs 1,00,000 crore for building new infrastructure during the ensuing one and a half years through Indian Infrastructure Finance Company Ltd that will use this fund for refinancing 60 per cent of bank loan for PPP projects. But it is not clear what will be share of power sector.
On the whole the budget allocation for the year 2009-10 has left the power sector in the lurch since it is already in a very precarious condition due to high expectation all around of (i) generation capacity addition of 80,000 mw with matching T&D infrastructure (ii) reduction of AT&C losses from 35 to 15 per cent for making all SEBs financially self-supporting (iii) electrification of 63,000 villages (iv) providing electric connections to 2.43 million BPL families, and finally (v) raising the per capita annual electricity consumption from 700 kwh (units) to 1,000 kwh, by 2012.
India is known to be an active supplier of transformers to developing nations worldwide. What is the likely export growth in the coming years and from which countries would the demand be most significant?
Since the transformer industry is matured enough as a reliable supplier, it is already exporting transformer in various part of the world including even to the western countries and some parts of USA. Our export market is mostly confined to the developing countries such as Middle East, Gulf and African countries etc. |