CEA Invites Stakeholder Feedback To Boost Domestic Manufacturing Of Critical Power Sector Components

The Central Electricity Authority (CEA) has started an important discussion to reduce India’s dependence on imported critical components used in the power sector. To begin this process, CEA has created a draft list of items that are currently being imported and is now inviting feedback and suggestions from all stakeholders. These include industry associations like the Indian Electrical & Electronics Manufacturers’ Association (IEEMA), public sector undertakings (PSUs), utilities, equipment manufacturers, and user industries.

The main aim of this initiative is to identify the key items that should be prioritized for Indigenous development and to determine the kind of support manufacturers will need to make this possible. Many of these items are being imported due to several challenges faced by domestic manufacturers. These challenges include the absence of local producers, lack of access to product and manufacturing designs, unavailability of specialized machinery, technology gaps, and shortage of raw materials, and component supplies. In addition, imported items often have cost advantages and meet very specific, customized requirements that vary by manufacturer, making them harder to replace with local alternatives.

Some of the major items currently being imported are pipes for Gas Insulated Bus Ducts with internal diameters above 300 mm, hollow core insulators for Gas-Air Bushings above 245 kV, and key electronic components like IGBT, MOSFET, and Thyristors. These products are mainly sourced from countries like China, Taiwan, Germany, Korea, Turkey, Spain, France, and Japan. To reduce dependency on these imports, the CEA is proposing a variety of support measures for domestic manufacturing.

Financial incentives and subsidies are being seen as essential tools to help local manufacturers grow. Many believe that these should be provided during the early stages of development and then gradually reduced over time. Policy and regulatory reforms are also considered important. There is a strong suggestion to improve domestic testing and certification infrastructure, as this will help ensure that locally produced items meet global standards.

In addition, the CEA is considering ways to encourage international Original Equipment Manufacturers (OEMs) to set up their production units in India. This could be supported by government initiatives like the Production Linked Incentive (PLI) scheme, which may also help in transferring technology and building local capabilities.

The draft list also includes specific examples of complex items where technology transfer is required. For instance, triple-layer extruder lines for 550 kV need support in the form of technology transfers from countries such as Finland, England, Poland, France, Germany, China, and the United States, along with financial incentives and regulatory reforms. For high-voltage cable materials like XLPE and SEMICON in the 66 kV to 220 kV range, technology transfer is needed from companies like DOW in the USA, BOREALIS in Abu Dhabi, and HANWHA and LG in South Korea. Currently, only one approved make of XLPE and SEMICON exists in India.

The CEA is requesting stakeholders to share data, including the cost and quantity of imports over the past three years, the proportion of imported components in final product costs, and specific support levels needed in the form of interest subvention, grants, or subsidies. All feedback must be submitted to the Chief Engineer (ET&I) at ce-rndcea@nic.in by June 20, 2025. This step is expected to help India move towards greater self-reliance in the power sector.