IEEMA PVC IEEMA Statistics IEEMA Product Divisions Generic Issues and Actions/ Solutions ISQA DRUM Program

IEEMA Price Variation Clauses

IEEMA Price Variation Clause (PVC) A Fair Pricing Tool

A 3 decade old proven tool for arriving at a reasonable price variation Enjoys good credibility with buyers & sellers Helps avoid payment disputes especially in long term variable contracts. Proven process of systematic and unbiased approach for evolution/revision of PV clause and circulation of prices/indices Transparency - The entire process is audit ready/serviced by IEEMA secretariat

TransformersDomestic Market Transformers Deemed Exports Power Electronics Instrument Transformers Switchgear And Control gear Bus-ducts Lightning Arresters Battery and Battery Chargers Capacitors Cables

AC/DC Rotating Machines T L T , Accessories & Hardware Insulators Glass Laminates/Components PLCC & Tele-metering Equipment Wave Traps Elevators & Escalators Civil Works & Erection Transformer Oil Base Stock Not Specifically Covered (NSC)

IEEMA Statistics

Compilation of industry statistics right from inception of IEEMA- Circulated monthly 1948 onwards - A unique service Collection and compilation of production/sales data on monthly basis in the format designed by respective division members IEEMA statistics is well trusted and enjoys credibility with all stake holders including government, industry bodies , consultants etc. IEEMA statistics is widely used for validation/planning

Way forward- Use of web based data submission/collection and latest software for compilation Under finalization

Transformers Insulators Cables Instrument Transformer s Switchgear and Controlgear Surge Arrester s Capacitors Energy Meters Rotating Machines

Primary T&D Products- Range & Ratings

Generators Transformers* 800 MW HVAC 800 MVA/765/1200kV HVDC 945 MVA/500 kV Tr. Lines & Towers* 800 kV/HVDC 1200kV UHVAC HT Circuit Breakers* 765 kV/1200kV Power Cables 230/400 kV XLPE HT Capacitors 400 kV
These are all high end ratings *Currently development in progress for 1200 kV HVAC product jointly with Power Grid Corporation (PGCIL)

Transformers

Estimated Market Size (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) Industry Weight age (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

13150 2200 754 25.3 143 257

Key Issues
CRGO steel - Raw material of strategic importance not manufactured in India

IEEMA Actions/Solutions
In September 2010 FoI announced a JV between SAIL and BHEL for setting up CRGO plant in India

Inadequate high voltage short circuit testing facilities

IEEMA is working closely with CPRI, Planning Commission and Ministry of Power in helping CPRI to get adequate funding for their required expansion
IEEMAs collaboration with BEE has resulted in star labeling norms for DTs up to 200KVA which has had a +ve impact on DT quality.

Low Qualifying norms for Distribution Transformers (DTs)

Industry aware of Global developments Transformers using vegetable oil

1200 KV transformers under development 1200 KV ACTest station at Bina, MP

Transformers with super conducting material

Dry formers, Power formers for specific applications

Compact /EE Transformer Designs

Est. Market Size of Insulators (excl. Polymer) (` Crore) Est. Market Size of Polymer Insulators (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non-IEEMA Members Estimated Players in the Polymer Insulator Category

2000 200 300 150 3.7 17 45 10

Key Issues

IEEMA Actions/Solutions

Packaging wood has become increasingly scarce

The Division is in the process of appointing a professional packaging consultant for developing alternative packing media The Division has constituted a sub committee of polymer manufacturers to suggest model specification

Specification and Qualification of Polymer insulator is a challenge

Quality/ availability of ball clay and forgings and castings

The division has invited vendors for interaction in the next insulator division meeting at Jaipur

TRANSMISSION LINE INSULATORS 765KV AC Application More than 10,00,000 Nos. of 210KN Disc Insulators have been supplied by established IEEMA members and they are working satisfactorily. 500KV HVDC Application 160KN & 210KN Insulators IEEMA members have already supplied.

600/800KV HVDC Application 320KN / 420KN Developed by members

1200KV AC Application 320KN Developed and supplied by ABIL, BHEL. MIL & WSI. 420KN Developed by members Polymer Insulator manufacturer have also now taken development of 320KN

INDIAN INSULATOR INDUSTRY ALREADY GEARED FOR 800KV / 1200KV REQUIREMENTS

SUB-STATION EQUIPMENTS 765KV / 800KV AC Application Bus Post & Hollow Insulators already supplied by ABIL, MIL & WSI of large volumes. 1200KV AC Application Station post Insulator design under development Hollow Insulator for CVT already developed

Indian Insulator Industry has kept pace with global advancement s & technology

Cables

Estimated Market Size (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

12700 700 730 24.4 60 100

Key Issues

IEEMA Actions/Solutions

Dependence on Imports indigenous manufacturing base for EHV cable Jointing kits, terminations & accessories is a critical requirement

Currently cable manufacturers have JVs for manufacturing and selling EHV cable jointing kits and accessories. The need of the hour is to explore domestic manufacturing of these items to meet likely demand

Key Issues

IEEMA Actions/Solutions

No mandatory cable testing approval required by foreign suppliers from Indian national laboratories. However Indian suppliers have to get their cables type tested from National laboratories when they supply to utilities outside India or even within India.

This issue has been discussed with Utilities, SEBs in various IEEMA meetings with them as well as with the GoI & Media through Cable Industry Conclave.

High qualification criteria for procurement of EHV cables by Indian utilities. However, Chinese certifications of local supplies are acceptable, which are found fabricated in certain cases.

Taken up with Utilities, SEBs in various IEEMA interactions with them as well as with the GOI & Media through Cable Industry Conclave.

Key Issues

IEEMA Actions/Solutions

Mega projects involving submarine cables is the technology for the future.

With offshore wind farms expected to play an increasing role in renewable energy in the near future submarine cable manufacturing may become imperative

Huge capacity expansions but underutilization (slow growth in demand) due to global slowdown

The division has taken up Growth of the Industry on its agenda

Key Issues

IEEMA Actions/Solutions

Lack of standardization for cables across the country

We have conveyed this to Utilities , SEBs at Cable Industry Conclave. The division has also formed Cable Technical Committee for updating the existing standards. The comments were taken up with BIS Committee in their meeting held in May 2010 at New Delhi

Distribution Cables up-to 33kV

Indian Power Cable Manufacturers have attained maturity interms of technology for HV cables up-to 33kV and can face Global competition.

EHV Cables of 132kV and above

Some of the Cable manufacturers have established world-class technology platform in this voltage range through technical collaborations. However, commercialization in this segment requires much support from the Power Utilities.

Application Specific Cables

With renewables forming the thrust of energy, the industry is now looking to supply cables for solar, wind, oil & gas, railway applications, and other specialized segments.

The Industry has kept pace by continuously upgrading the technology to meet the technical demand from the Power Sector.

Instrument Transformers (ITs)

Estimated Market Size (` Crore) Estimated Exports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

1000 110 < 1% 50 50

Key Issues
Huge price hike in testing at CPRI During last year there is huge price hike (approximately 50%) in testing at CPRI.

IEEMA Actions/Solutions
CPRI should reconsider high test charges. Government also needs to encourage indigenous R&D which needs test facilities ( specially for small manufacturers ) Manufacturers have tried various methods to stop this practice but it has unnecessary cost implications

Oil theft during transit of equipment Could lead to dangerous accidents

EPC contractors Issue Increasingly procurement by EPC contractors is on a rise and manufacturers have to adapt themselves to the new emerging business scenario

Key Issues
Calibration facility available only up to 145 KV. These need to be upgraded for higher voltage range.

IEEMA Actions/Solutions
Through IEEMA, we need to present a memorandum for upgradation of these facilities within India

Marking of Indian standard reference number on ITs All the manufacturers of CTs and PTs mark the label Made to or Manufactured to IS 2705" for CTs and IS 3156 for VTs. Manufacturers can put this label without license, however they can not put IS mark on the equipment.

In this context IEEMA had represented a few years back

As informed by one member, recently BIS Chennai has objected for marking of Indian Standards reference number IS 3156 on the name plate of Voltage transformers without the license for IS mark.

1200 kV Technology The Indian manufacturers have succeeded in developing 1200 kV CVT and CTs and are in advance stage final design and development.

1200 kV CVT CGL

1200 kV CVT AREVA

Non-conventional Instrument Transformers.

SF6 insulated Current and Voltage Transformers. Optical Instrument Transformers. PTFE (Polytetrafluroethelene) Insulated Instrument Transformers-Dry Transformers

Switchgear and Controlgear (Swgr & Ctgr)

Estimated Market Size # (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

12000 2600 3374 15.2 * 135 25

# Includes RMUs, GIS, Domestic switches

* Excludes RMUs, GIS, Domestic switches

Key Issues
Lack of standard specification and design parameters clubbed with increasing trend of customization is adversely impacting the delivery schedules as well as taking away the benefits of economies of scale

IEEMA Actions/Solutions

The industry has to work with organizations like CEA & MoP for pushing standardized specification and model procurement guidelines

Entry of unproven contractors/ sub contractors with minimal technical knowledge

Weak PQRs are leading to entry of fly-by night operators. Strengthening of PQRs and creating awareness about selection, application, commission, installations and maintenance is the need of the hour.

 Increased acceptance of electronic releases in circuit breakers Embedded Intelligence and communication enabled switchgear Improved materials for cost saving, environmental reasons and ROHS Movement from motor starters to submersible pump controllers Soft Starters Increased use of RCDs in building electricals. Vacuum contactors for higher ratings.

 More use of magnetic actuators Shift from Electromagnetic to Numerical relays Shift from Electrical sensors- CT/PT to electronic sensors. Intelligent Ring Main Units with SCADA Harmonization of Protocol IEC: 61850 Packaged substations VCBs with higher ratings (50KA-4000Amps) Smart Grid

 RMUs, GIS and AIS Compact switchgear Hybrid Switchgear Controlled switching for switchgear Solid State switchgear Polymers for HV equipment 800-1200KV Circuit Breakers under development Substitute for SF6 gas??

Surge Arrestors (SAs)

Estimated Market Size (` Crore) Estimated Exports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

125 25 < 1% 7 3

Key Issues
Lack of test facilities in India specially for short circuit testing of Surge Arresters above 120kV

IEEMA Actions/Solutions

CPRI to look at expanding the lab to meet the upcoming 50 & 63kA requirements and for comprehensive testing of units larger than 120kV IEEMA to look at taking up with utilities for acceptance of type test reports with validity for minimum period of 10 years at least CPRI to give comprehensive offers for carrying out all tests as per standards and taking overall responsibility to get completed in time at their various labs .

CPRI not having facility and repeating of tests every 5 years is taking its toll on the industry Comprehensive testing facility to take care of all the tests to be carried out on the product as singe point responsibility

Transmission Line Arresters Transmission Line Arresters, to minimize damages due to lightning strikes on transmission lines, becoming common world over. Ratings for up to 500kV. PGCIL envisaging interest.

Polymer Housed Arresters Light Weight Ease of installation Long term Hydrophobicity Superior anti-tracking property Enhanced life & performance. Independent of environment Resistance to vandalism. Self cleaning property

Series Parallel Arresters Parallel column arresters for higher energy handling & reliability. Ratings for up to 1200kV

Capacitors

Estimated Market Size (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

430 120 106 0.8 20 70

Key Issues

IEEMA Actions/Solutions
We are now working with BIS and CPRI to bring out a standard on APFC Panels and harmonics and its controls. Further educate the target group SEBs, PGCIL on this subject and a method to contain it.

Absence of Power Quality related standards in India

There has been no concentrated efforts to contain harmonics and improving power quality

HV
State of art technology considered to be on par with International technology. Technology improvements : Dynamic Compensation and Switched Capacitors. SVC in steel industry The FACTS solutions like series capacitor and HVDC are gaining ground as this decreases line losses and increase power transfer capability In Railways hybrid solutions involving HV fixed compensation and LV Dynamic Compensation is now established. State of art technology Indian LV Capacitors at par with International standards

LV

Best of the process technology for both manufacturing of LV capacitors and backward integration upto metalized dielectrics is now available in India. System engineering around capacitors like APFC and TSC are also available Power Quality solutions for system study and management of harmonics to reduce THD and improve power factor is available

Rotating Machines (RMs)

Estimated Market Size (Excl. Imports) (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) # Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Non IEEMA Members

5590 450 2005 10.8 31 250

# Import figures include allied machinery and accessories

Key Issues
Preparedness of Indian industry to meet new global standards of efficiency (IE 1/ IE 2 / IE 3) is not in line with developments worldwide, including China.

IEEMA Actions/Solutions
To increase the awareness amongst and prepare analysis of the potential impact on Indian RM industry

General trend of increase & Steep fluctuations in raw material prices make our industry less competitive

Improve Indices data to reflect market pricing better (RM Division is working on the same). Create awareness amongst major industries of the benefits of IEEMA PVC

Technical

Seven Indian Standards recommended for harmonization with BIS Percentage of EFF1 Motors more than doubled Members encouraged to participate in S & L program
8 non reporting members brought into the fold ; IEEMA market vis-a-vis non-IEEMA increased by 11 & 15% in lower and medium ranges Separate reporting of EFF1 motors Above 450 broken up into individual frame sizes up to 800

Statistics

Others

Mandatory BIS Certification for CRGO & CRNGO rescinded. Status of Industry as seen by other Divisions & Executive Council meeting updates made part of meeting Agenda

Energy Meters (EMs)

Estimated Market Size (` Crore) Estimated Exports (` Crore) Estimated Imports (` Crore) Industry Weightage (IEEMA Electrical Industry Index) No. of Players (IEEMA Members) Estimated No. of Players across India (Non IEEMA) Total Sales (Nos.) (in millions) (-of which sales of IEEMA Members is 16 mn and sales of Non IEEMA Members is 3 mn) Sufficient Capacity to meet the changing and diverse requirements of meters in India

1600 160 49 3.1% 30 35

19

Key Issues
Purchase Processes of Utilities the largest Customer

IEEMA Actions/Solutions
proper QR and past experience

Purchases Practices of EPC Contractors

Utilities to approve manufacturers based on their past experience to be considered

Dilution of PQ Requirements

as there are many suppliers supplying meters with different quality , a guideline is required wherein new bidders are required to meet minimum financial and quality parameters including type testing , performance in at least 2 utilities.

Key Issues
Unpredictability of Business through EPC Contractors

IEEMA Actions/Solutions
as RE / Infra contracts are on long gestation timescales, the clarity on material deliveries / planning suffers.

Long Guarantee period and impractical contract closure requirements & SLAs

payments are kept on hold for a long time period because there is no clarity on closure of contracts. stage wise payments to be planned

Violation of BIS /CEA recommendations & guidelines

some utilities have not followed guidelines / gazette notifications of BIS / CEA. CEA and state regulators to enforce

Key Issues
Change of Business model from Supply to Supply & Install End to End Solution

IEEMA Actions/Solutions
supply and installation orders are given in one order with implication of WCT is some states and also payments are with held for a longer time period due to sites unavailability / site installation etc.. separate tenders to be floated for installation

Back to Back Contracts for RAPDRP Payment Issues based on main Contractor SLAs / Contract

MDAS / GIS s suppliers payments to be delinked form main contract

GST Implementation in Fixed Cost Contracts

As GST is likely to be implemented from next FY, some utilities are issuing orders on fixed terms contract prices even though bidders have stated that GST is to be paid at actual when applicable. This has huge financial implication and penalizes the bidders on government taxation deductions,, IEEMA to approach utility for allowing GST change

 Focus on strengthening of IT backbone Focus on Metering of consumers, feeders, DTs, Ring fencing & metering of boundary points of RAPDRP towns / cities Automated Meter Reading (AMR) on a large scale, integration with Data Centre, proper measurement and billing Consumer Indexing & GIS mapping of end points, setting up of CRM / CIS Reduction of AT&C losses to less than 15 % for towns/ cities, extension to NonRAPDRP towns / cities Information Technology Implementing Agencies (ITIAs) appointed in over 15 states

Smart Grid and Smart metering requirements MIOS Solution for Legacy Meters Different communication media desired

Indian Companion standard released for DLMS based metering, demand for such meters increasing under RAPDRP

Energy Mtrs Technology Developments

Prepayment metering is being deployed in some states

Anti Tamper features

Energy audit and loss analysis

Key Issues

IEEMA Actions/Solutions
IEEMA is working closely with CPRI, Planning Commission and Ministry of Power in helping CPRI to get adequate funding for their expansion IEEMA has constituted various committees for (transformer, cables etc.)

Inadequate testing facilities for HV and EHV equipment

Need for standardization of ratings and specifications

Acceptance of IEEMA PVC not up to desired levels

IEEMA has to chalk out an aggressive program for creating awareness about the benefits of IEEMA PVC

Key Issues

IEEMA Actions/Solutions
IEEMA had instituted a skill gap study and submitted it to the to Ministry of Heavy Industry for study and needful Some IEEMA members have put up special training facilities for addressing skill gaps Some manufacturers have adopted ITIs for specialized skills development Industry should focus more on R&D and innovation industry institute partnerships should also be encouraged

Inadequate skilled work force

Slow absorption of Technology & Low investments in R&D/ Integration/Assimilation of new technologies

Key Issues

IEEMA Actions/Solutions
Taken up with Utilities, SEBs in various IEEMA interactions with them as well as with the GOI & Media through Cable Industry Conclave.

Discrimination towards Indian suppliers as regards payment mode and terms are concerned as compared to foreign suppliers

No mandatory testing approval required by foreign suppliers from Indian national laboratories. However Indian suppliers have to get their equipment type tested from National laboratories when they supply to utilities outside India or even within India.

This issue has been discussed with Utilities, SEBs in various IEEMA meetings with them as well as with the GoI & Media through Cable Industry Conclave.

Smart Grid and Smart metering requirements MIOS Solution for Legacy Meters Different communication media desired

Indian Companion standard released for DLMS based metering, demand for such meters increasing under RAPDRP

Energy Mtrs Technology Developments

Prepayment metering is being deployed in some states

Anti Tamper features

Energy audit and loss analysis