India bans power equipment imports from China and Pakistan

India bans power equipment imports from China and Pakistan

India will not import electric equipment from China and Pakistan in wake of recent border tensions and security concerns, stated power minister R K Singh.


Power minister R-K Singh has announced on Friday morning that India would not allow the import of electric equipment from China and Pakistan on account of the recent transgression in border areas and cybersecurity threats. Permission would be mandatory for imports from other nations.

Power Minister stated that India imported INR 71,000 worth power equipment in 2018-19 of which INR 21,000 are Chinese. This is when, all equipment that is required for power generation, transmission, and distribution is being produced in India today. Thus, all imported equipment will need permission. And we won’t give permissions for equipment from China and Pakistan.

He added that it cannot be tolerated that, even when India has the ability to manufacture this (equipment) ourselves, yet we are creating jobs for the country that do wrong in our country.

Transmission Segment at Risk

Pointing out that the power grid is vulnerable to malware attacks which can shut down the communications, database, and security systems. Power Minister added that all imports need to be checked and only a few countries need to be excluded.

While giving an example of other countries that often limit essential power equipment imports. Singh added that in May, a White House executive order blocked and mitigated transactions involving electric equipment, a bulk-power system manufactured or supplied by “foreigner adversary”.

In this regard, the power minister sought after that state governments’ support to discontinue the imports of tower elements, transformers, and meter parts that are indigenously available.

BCD on Renewable Equipment imports

Talking about the renewable energy sector, the power minister stated that high imports, particularly from China, were also a matter of great concern. He pointed out that China sells equipment at artificially low rates having the intention of dumping and hurting the Indian manufacturing sector.

Thus, to prevent the domestic manufacturing sector, the government plans to impose a 25% duty on solar equipment imports from August 1, which is proposed to be increased to 40% from next year.

A close watch on Thermal Sector:

The government is closely watching on the tender by the thermal power sector of its INR 55 000 crore emission control equipment requirement. Some of the state power utilities have issued tender inviting global bidders for the procurement of equipment going against the Centre’s public procurement rules.

Meanwhile, many private and various state power companies are in discussion with Chinese companies for emission control gear. While many have placed large orders on Chinese companies.

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