Bulk orders resulting from the government’s rural electrification and transmission system strengthening schemes will boost small and medium enterprises that may pose competition to established players, Indian Electrical & Electronics Manufacturers Association (IEEMA) said.

The industry registered 6.8% growth in 2015-16 over that in the previous fiscal on the back of the improved order flow. Most electrical equipment makers registered growth while a few like power contractors and LT motors recorded decline in growth due to poor off take, data available with IEEMA showed.

“We are cautiously optimistic. Things are looking up as the various schemes are showing results. The Centre has done enough and the policies are broadly clear. It is for the states to take it up. The success of the schemes depends on how well the state governments control their losses and eventually pay their dues,” IEEMA President Babu Babel told.

Power Minister Piyush Goyal has said that all households will be electrified by December 2018. In a two-day conference with the minister last week in Goa, state power ministers resolved to award contracts for projects sanctioned under the Centre’s Deen Dayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme by August end.

Decisions like implementation of intra-state transmission system through bulk procurement of equipment and installation of smart meters for new connections were also taken.

HPL Electric & Power Ltd Joint Managing Director Gautam Seth said, “We are beginning to see a big turnaround in switchgear. The various government initiatives are aiding the demand for electrical products, specially switchgear. Post monsoon we expect the demand from the housing and building segment to rise. The onset of smart meter should push up the energy meter market within FY17.”

Source: The Economic Times