Ministry Of Power Phases Local Content Norms For HVDC Projects To Boost Domestic Manufacturing

The Ministry of Power has issued a new directive aimed at strengthening domestic manufacturing in the power sector by revising local content requirements for High Voltage Direct Current (HVDC) substations. The order, dated April 30, 2026, focuses on Line Commutated Converter (LCC) based HVDC systems and forms part of the government’s broader Make in India initiative to promote local sourcing.

Earlier, the minimum local content requirement for such substations was fixed at 60 percent. However, the Ministry has now introduced a phased approach to make the transition easier for industry players. As per the revised schedule, projects initiated up to March 31, 2028, will require only 30 percent local content. This will increase to 40 percent from April 2028, 50 percent from April 2030, and eventually return to 60 percent by April 1, 2032. The 60 percent requirement will continue at least until March 2035.

The change reflects the government’s understanding of the challenges involved in manufacturing complex HVDC infrastructure within the country. By lowering the immediate requirement and providing a clear long-term roadmap, the policy allows domestic manufacturers and global partners to gradually build supply chains, invest in local facilities, and develop technical capabilities. This approach is expected to support steady growth without affecting ongoing or upcoming power transmission projects.

The directive was signed by Under Secretary Kumar Amrendra and maintains that all other provisions of the 2021 Public Procurement Order remain unchanged. It has been circulated to key government bodies such as NITI Aayog, the Cabinet Secretariat, and the Comptroller and Auditor General of India, along with State Chief Secretaries.

With this structured roadmap, the government is sending a clear message to investors and manufacturers about the future direction of India’s power sector. The policy aligns with the vision of Aatmanirbhar Bharat by encouraging local production while ensuring a practical and achievable transition for the industry.