Department of Heavy Industry

Vision 2022 for Indian Electrical Equipment Industry To make India the country of choice for the production of electrical equipment and reach an output of US$ 100 billion by balancing exports and imports

Indian Electrical Equipment Industry Mission Plan 2012-2022

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Department of Heavy Industry

2.0 Indian Power and Electrical Equipment Industry

2.1 Indian Power Sector Power is a necessary fuel for a growing economy. The Indian economy is on a rising path targeting GDP growth rate of 8-9%. To achieve this growth, it is imperative that the proper power infrastructure is in place. India has the fifth-largest generation capacity in the world with an installed capacity of over 199 GW, as on 31st March, 2012 6 and is also the sixth-largest electricity consumer, accounting for 3.4% of total global consumption. Indias total consumption in 2009 was estimated at 632 TWh. This is expected to increase to 2,465 TWh by 20357. The industrial sector, due to increasing capacity additions, has the highest demand for electricity across all sectors and is expected to remain high. The domestic and commercial sectors are likely to experience a steady demand for electricity, but the share of agriculture is expected to see a decline in the coming years8. 2.1.1 Generation

2.1.1.1 Thermal energy accounts for the major share of generation in India. Share of wind and other renewable forms of energy currently stands at around 12% of the total installed capacity. Government plans to increase the share of power generated from renewable sources in the coming Plans. India currently stands as the 5th largest and 3rd largest producer in the world of hydro and wind energy respectively. 2.1.1.2 With envisioned capacity additions, India is expected to reach an installed capacity of 400 GW by 2022. This increase will be in line with the countrys GDP growth plans of 89% per year. Figure 2.1: Installed Total Capacity (as on 31st March 2012) Thermal Coal 56%

Thermal Others 10%

Hydro 20% RES* 12% Source: CEA *RES Renewable Energy Sources Nuclear 2% Total 199 GW

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Ministry of Power International Energy Agencys World Energy Outlook 2011 Crisil

Indian Electrical Equipment Industry Mission Plan 2012-2022

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Department of Heavy Industry Figure 2.9: Growth in Industry Size of Major T&D Equipment (` 000 crores) 52 60 64

39 18

46

47

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Source: IEEMA Figure 2.10: Market Size of T&D Equipment (201112) Rotating Machines 10% Switchgear & Controlgear 15% Transformers 19% Source: IEEMA Domestic Capacity and Utilisation 2.2.3.3 There is significant capacity in Indias T&D equipment segment, which is operating broadly at 70% capacity utilization. The domestic T&D segment is geared to cater to the expected growth in the demand for T&D equipment. Figure 2.11: Domestic T&D Capacity Utilization (2011-12)
85% 56%

Energy Meters 4% Capacitors 1% Cables 28% Transmission Line and Conductors 23%

79%

81% 72% 72% 66% 68% 61%

HT Switchgear

Cables

Capacitors

Transfor- Transmissmers ion Line Towers

Motors

AC Conductors Generators

Energy Meters

Source: IEEMA

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