Status - Indian Electrical Industry

April to March

2016-2017

Source: CEA & MNRE

112% achievement with Thermal power achieving 127% addition on planned Generation

60% achievement with power achieving 104% addition on planned Generation

13th Plan Capacity Addition ‘NIL’ addition of Thermal Power as 50,025 MW

projects are already under construction Gas–4340MW; Hydro-15300MW, Nuclear-2800MW

Solar – 81,237 MW

Wind –29034 MW

Other RES

5,055 MW

Source: CEA

Transmission Addition in ‘CKM’ during 12th Plan Up to March 2017

Sub-station Addition in MVA/ MW during 12th Plan Up to March 2017

400 KV Transmission & Sub-Station completion is over achieved in 12th Plan; 765kV also achieved >95%.

HVDC & 765 KV will be the key focus area in the 13th plan period up to 2019

64%

31%

Draft 13th plan published; however, to be finalized after adding Intra-state additions Source: CEA, MNRE

Growth Index for Electrical Equipment industry for the period

Marginal growth in motors, declining trend for HT motors due to core sector industry capex not taking off

Decline in Dist. Trf. – REC range & Meters due to delay in DDUGJY & IPDs implementation Growth for Power TRF, LV and MV_HV SWGR Cable, TLT register moderate growth; decline in Conductors Exports playing major role in overall growth

64%

31%

Overall Growth Index

Sector wise break up of weightages

64%

Sector wise break-up of Growth Index

Sector wise break-up of % Quarterly Growth Index

Cum growth Till Mar 17

In Q4 HV Swgr shown high growth, MV Swgr

shown moderate growth

1. Conductors declining consistently in all Qtrs

2. TLT declined in Q4 due to low off-take

3. Insulator sales picked up in Q4

22.3 (-) 0.7 11.8

4.7 (-) 5.1 3.5

Sector wise break-up of % Quarterly Growth Index

Cum growth Till Mar 17

Meters & Capacitors declining due to less

domestic & export orders; RM maintain sustain growth

Decline in DTs in all Qs due to delay in order finalizations

thru various schemes; Pick-up in Power Trf. & Cables

3.8 15.5 (-) 11.1

1.0 (-) 4.0 (-) 13.9

64%

31%

Source: DGCI&S, MoC, GOI Trend of Imports & Exports

High Imports (Main Country) HV Custom Built products (Korea), Insulator (China), Power Cap (USA), Power Trf.–HVDC(UK), AC motors > 75 KW (China), AC Generators > 750 KVA (China)

ITC codes Product Groups

Apr-Feb. 2016-17 % Growth over

2015-2016 Domestic Industry Size for 2015-16 Rs. Crs

Domestic Growth

%

Import Export Import Export

Value in Rs. Crores

8501 excl. 850110 & 20 Motors & AC Generators 1660 1392 (-) 9.7 (-) 7.8 6360 1.0

850423 Power TRF 315 1303 59.0 20.0 5000 15.4

850421-22, 850433-34 Distribution TRF 115 960 (-) 40 (-) 17.6 7000 (-) 11.7

853210 Capacitors 104 206 85.0 0.0 568 (-) 4.0

8535, 853720 HV SWGR incl. Panels 2037 1808 70.0 5.3 5040 11.8

8536, 853710 LT Switchgears incl Panels 7733 5500 18.0 4.7 12260 22.3

854442/49/60 Cables - LV & HV 576 1955 (-) 1.1 14.5 39200 3.4

854610, 20, 90 Insulators 722 465 25.0 1.2 2050 3.5

902830 Energy Meters 20 643 25.0 44.0 3000 (-) 14

73082011 Tr. Line Towers 137 1188 430.0 (-) 47.6 7150 4.7

7604 & 7614 Conductors 342 1396 5.5 (-) 28.7 8125 (-) 5.1

Raw Material Price Trend for past 3 years 2014-15 to 2016-17

Consistent growth in AL & CU price in last 6 months of about 20% CRGO prices now stabilized & showing rising trend in Q4 Growth in Steel prices due to MIP support

Raw Material Price Trend for past 3 years 2014-15 to 2016-17

USD Exchange rate declined in Q4; however remained above 67 levels during the year

Decline in Labour Index in last 9 months indicate inflation under check

Growth in ‘Fuel & Power’ WPI by 12% in FY16-17 due to increase in prices of petroleum products & Coking Coal

Important discussion points in IEEMA Divisions

Dist Trf – Poor visibility of demand beyond 2019 due to introduction of solar pumps in rural electrification

RM – Serious concern due to increase in Imports; Recommending mandatory IS:12615

Cable – Impractical & Unacceptable tender conditions in some utilities

MV_HV Swgr – Need for workshop with Utilities, DHI & MoP for model terms & conditions & promoting Make in India and CEA Advisory on domestically funded projects; exploring use of technology evolutions and engaging with R&D institutions for the same;

LV Switchgear - voltage for DC applications in Rural areas was agreed for 48V DC for DC applications in remotely located rural areas. Standard approved by ETD50 under printing

Capacitor -explore the genesis of penalty imposed on harmonics at TNEB and MSEDCL

Power Trf – Vendor development for world class quality and explore medium term status of demand drivers

EIM – EU exports declining; Defense sector demand picking up

Renewables- 90% of Solar Capacity installed is thru Imports of equipment’s from China.

Power Generation- Thermal business are going down drastically with no point of returning normal anytime soon.

Common Point – Review of Test gaps with CPRI and ERDA + high testing charges particularly at CPRI

Thank you!