t&d equipment covering all product divisions

• IEEMA PVC

• IEEMA Statistics

• IEEMA Product Divisions

• Generic Issues and Actions/ Solutions

• ISQA

• DRUM Program

IEEMA Price Variation Clauses

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

IEEMA Price Variation Clause (PVC) – A Fair Pricing Tool

Transformers–Domestic 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 EquipmentWave 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

Generators 800 MWTransformers* HVAC 800 MVA/765/1200kV

HVDC 945 MVA/500 kVTr. Lines & Towers* 800 kV/HVDC 1200kV UHVACHT Circuit Breakers* 765 kV/1200kVPower Cables 230/400 kV XLPEHT Capacitors 400 kV

These are all high end ratings *Currently development in progress for 1200 kV HVAC

product jointly with Power Grid Corporation (PGCIL)

Primary T&D Products- Range & Ratings

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 IEEMA Actions/Solutions

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

Inadequate high voltage short circuit testing facilities

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

IEEMA is working closely with CPRI, Planning Commission and Ministry of Power in helping CPRI to get adequate funding for their required expansion

Low Qualifying norms for Distribution Transformers (DTs)

IEEMA’s collaboration with BEE has resulted in star labeling norms for DTs up to 200KVA which has had a +ve impact on DT quality.

Industry aware of Global developments

Transformers with super conducting

material

Dry formers, Power formers for

specific applications

1200 KV transformers

under development

1200 KV ACTest station at Bina,

MP

Transformers using

vegetable oil

Compact /EE Transformer

Designs

Est. Market Size of Insulators (excl. Polymer) (` Crore)




Non-IEEMA Members

2000

300

150

3.7

17

45

Industry Weightage (IEEMA Electrical Industry Index)

Est. Market Size of Polymer Insulators (` Crore) 200

Estimated Players in the Polymer Insulator Category 10


Packaging wood has become increasingly scarce

Specification and Qualification of Polymer insulator is a challenge

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

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


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 alreadysupplied by ABIL, MIL & WSI of largevolumes.


Station post Insulator design under development

Hollow Insulator for CVT already developed

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

Cables






Non IEEMA Members

12700

700

730

24.4

60

100


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


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.

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.


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

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


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

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

EHV Cables of 132kV and above

Distribution Cables up-to 33kV

Application Specific Cables

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

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.

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.

Instrument Transformers (ITs)





Non IEEMA Members

1000

110

< 1%

50

50


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

CPRI should reconsider high test charges. Government also needs to encourage indigenous R&D which needs test facilities ( specially for small manufacturers )

Oil theft during transit of equipment Could lead to dangerous accidents

Manufacturers have tried various methods to stop this practice but it has unnecessary cost implications

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


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

Through IEEMA, we need to present a memorandum for up-gradation of these facilities within India

Marking of Indian standard reference number on ITsAll 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.

Non-conventional Instrument Transformers. SF6 insulated Current and Voltage Transformers.

Optical Instrument Transformers.

PTFE (Polytetrafluroethelene) Insulated Instrument Transformers-Dry Transformers

1200 kV CVT CGL

1200 kV CVT AREVA

Switchgear and Controlgear (Swgr & Ctgr)

Estimated Market Size # (` Crore)





Non IEEMA Members

12000

2600

3374

15.2 *

135

25

# Includes RMUs, GIS, Domestic switches* Excludes RMUs, GIS, Domestic switches


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

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)





Non IEEMA Members

125

25

< 1%

7

3

Key IssuesIEEMA Actions/Solutions

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

CPRI not having facility and repeating of tests every 5 years is taking its toll on the industry

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

Comprehensive testing facility totake care of all the tests to becarried out on the product as singepoint responsibility

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 .

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

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

Capacitors





Non IEEMA Members

430

120

0.8

20

70

Estimated Imports (` Crore) 106


Absence of Power Quality related standards in India

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

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.

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

Best of the process technology for both manufacturing of LV capacitors and backward integration upto metalized di-electrics 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

LVHV

Rotating Machines (RMs)

Estimated Market Size (Excl. Imports) (` Crore)




Non IEEMA Members

5590

450

10.8

31

250

Estimated Imports (` Crore) # 2005

# Import figures include allied machinery and accessories


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.

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

To increase the awareness amongst and prepare analysis of the potential impact on Indian RM industry

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

Statistics

Seven Indian Standards recommended for harmonization with BIS Percentage of EFF1 Motors more than doubledMembers 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

Mandatory BIS Certification for CRGO & CRNGO rescinded. Status of Industry as seen by other Divisions &

Executive Council meeting updates made part of meeting Agenda

Others

Energy Meters (EMs)





Estimated No. of Players across India (Non IEEMA)

1600

160

3.1%

30

35

Estimated Imports (` Crore) 49

Total Sales (Nos.) (in millions)19(-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


Purchase Processes of Utilities – the largest Customer

Purchases Practices of EPC Contractors

proper QR and past experience

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.


Unpredictability of Business through EPC Contractors

Long Guarantee period and impractical contract closure requirements & SLA’s

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

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


Change of Business model from Supply to Supply & Install – End to End Solution

Back to Back Contracts for RAPDRP –Payment Issues based on main Contractor SLA’s / Contract

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

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 Non-RAPDRP towns / cities

Information Technology Implementing Agencies (ITIAs) appointed in over 15 states

Smart Grid and Smart metering requirements

Prepayment metering is being deployed in some states

Anti Tamper features

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

MIOS – Solution for Legacy Meters

Energy Mtrs -Technology

Developments

Different communication media desired

Energy audit and loss analysis


Need for standardization of ratings and specifications

IEEMA has constituted various committees for (transformer, cables etc.)

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

Inadequate testing facilities for HV and EHV equipment

IEEMA is working closely with CPRI, Planning Commission and Ministry of Power in helping CPRI to get adequate funding for their expansion


Inadequate skilled work force

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

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

Industry should focus more on R&D and innovation – industry institute partnerships should also be encouraged


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

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

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

Prepayment metering is being deployed in some states

Anti Tamper features

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

MIOS – Solution for Legacy Meters

Energy Mtrs -Technology

Developments

Different communication media desired

Energy audit and loss analysis

t&d equipment covering all product divisions

Documents