IEEMA seeks policy support to overcome biz challenges

New Delhi: The Indian Electrical and Electronics Manufacturers' Association (IEEMA) on Wednesday urged the government to help its members overcome certain business-related challenges.

Availability of raw materials and component is a challenge currently, IEEMA President Anil Saboo said while addressing the IEEMA Annual Convention 2021, which was also attended by Power Secretary Alok Kumar.

IEEMA is the first ISO-certified industry association with more than 800 member organisations encompassing the entire value chain in power generation, transmission and distribution, equipment, and electronic goods. "I would like to mention few important pointers for support needed from the government. Raw material and component availability is a challenge today — CRGO (cold-rolled grain-oriented steel) and electronic items in particular. The Ministry of Power's guidance will be of great help in tiding over the crisis," Saboo said in his virtual address.

He added that there is a need to strengthen testing infrastructure and international recognition of Indian test labs. The government should work on this at the fastest possible pace. Saboo also said that due to fluctuations in raw material availability and its prices, the implementation of price variation clause in procurement by central public sector undertakings (CPSUs) and State utilities in centrally funded schemes will be a big relief.

The president also said payment securitisation for vendors in centrally funded schemes will be of great help. "The past 18 months have been a tough time for the electrical industry. The production output reduced by 14 per cent in FY 2020-21 over FY 2019-20." "Capacity utilisation, which was 65-70 per cent in FY 2019-20, dropped to 50 per cent in FY2020-21. We look forward to government support for our industry at this crucial juncture," Saboo informed.

In his address, the power secretary assured full support to the domestic electrical equipment manufacturing industry. He said India is undergoing an energy transition, and there will be large-scale electrification of the energy supply system. "The demand for electric generation and consumption is going to almost double in the next 10 years, and IEEMA will play a central role in meeting this demand," Kumar said. He added that load and data centres will come up. "We will have to expand our distribution and transmission system and increase our generation capacity mainly for non-fossil fuel-based sources." Kumar also said that in this scenario, "we are working closely with IEEMA to see whatever is the demand for infrastructure expansion in the power sector, almost whole of it is met through local manufacturers."