cu CEOSpea Opportunities Unfolding In The Indian Power Transmission Space What is the present status and growth potential of the Indian transmission industry? The Indian power transmission industy has witnessed reasonable progress over the years, Planned generation capacity enancements have led tothe expansion of transmission network across India, Howeves, ‘the current transmission and clstribution (1&0) infrastructure inthe country is highly inadequate/ imbalanced which manifests into massive growth prospects for the Justiy. Presently, in value terms, the size of the Indian T&D industy is estimated at RS, 1,10,000 to 1,20,000 crore, The industy is mature and caters not only to domestic demand but also international demand. Performance wise, while the coveral electrical equipment industry has crown by 10 per cent YoY in FY 2015, transmission line industry in particular has witnessed 2 nominal decline of around 0.7 per cent. However, during the last 2 quarters of FY 2015, a pickup in growth was witnessed mainly backed by increase in orders from Power Grid Corporation of India Limited State Electicity Board (PGCIL SEBS). Thrust on overall nfestructure development by the Indian Government would also culminate into high growth prospect for this sector. Focused emphasis on development of solar energy, green energy comdors, iter and intrastate transmission tins, inittives pertaining to strengthening of transmission ‘and distribution system in the Northeastern region, doubling of existing capacities, refurbishment demand etc entails addtional transmission infrastructure development. In action, the proposed development of smart cities is also expected to generate good ‘opportunites for the industry. On ground level, we ate also seeing a revival installed Projets, a move necessary for expediting the growth ofthis sector, Globally aso, demand from under-developed Vinal Kejriwal Chairman of CI Fansmission Line Dvson and ‘Managing Decor & CEQ, KEC Ineratienal Limited and developing nations as well as overall demand from developed countries is expected to ensure a long term positive outlook for the Indian transmission fine players who are well placed and have the capacity to cater to increase in domestic as well a5 global demand. What are the factors affecting the growth motion? | would sa progress is lrgely hampered due to cficultis inland acquston and geting Sear: Kg 27sec com Right of Way (RoW) and forest clearances, approvals for which continue to be highly time consuming. Delay on account of this ‘creates uncertainties, csrups the targeted completion time of the projets and also leads to cost overuns Another citial issue is that vansmission line industry is not treated as part of infrastructure industry. Transmission lines being an important part of overall infrastructure development should be ‘covered under the infrastructure sector and should be granted infrastructure industry status. The Cl Transmission Line Division has taken up this issue withthe Goverment and is proactively working with the Government for reslving the same, ‘Other issues include funding constraints for R&D, inadequate testing facilities and lack of enhanced Government support and incentives for exports. \Whatis the way forward for the industry to overcome these challenges? Considering the huge funding requirement, ‘emphasis on public private participation seems to be the apt route. The industry is quite enthusiastic with regard to the Public Private Partnership (PPP) mode. The PPP mode would also pave the way for faster development of new technology! systems. Speaking of which, | would say ‘companies inthe Engineering, Procurement and Construction (EPC) space are also engaging and adapting newer construction technologies. Further towards the development of the entire electrical equipment sector, the Ministry of Heavy Industies and Public Enterprises, in consultation with the industry and related bodies has already launched 2 compressive mission plan (2012-2022), which will pave the way for future development and enhance global competitiveness of this sector thereby POLICY WATCH 17CEOSpea ensuring achievement of its vision by the year 2022 which is to make India the countiy of choice for the production of electrical equipment and reach an output of USD 100 billion by balancing exports and imports, The Cll Transmission Line Division is an ideal platform for all transmission industry stakeholders to interact on the various issues and resolve challenges by pooling together the combined expertise. Ci, through its seminars and conferences, is promoting the mmission of the Government to make India the choice of import destination. Going forward, for rapid development, thete is a need for sustained, proactive and cohesive efforts by all the stakeholders. in the industry including the Government. Steps have to be taken towards building on the strengths of the industry and enhancing exports. There is a need to focus on innovation, technology, R&D, developing local talent, logistics management and cost competitiveness, Indian companies must benchmark themselves against Global best practices being followed across processes, What support will the Cll Transmission Line Division seek from the Government? Cl would like to recommend the following to the Government to expedite the progress of the Indian transmission line industry ‘+ Remove procedural bottlenecks: First there isa need to expedite and remove the execution and procedural botlenecks for which strong Government intervention and support is required. Remedies hike the Plug and Play model, creation of a special purpose vehicle which wil sek all the approvals etc. are some of the ways which wil boost the progress of this sector. Although the Government is taking steps, there is @ need to address these issues more expeditiously. ‘© Support required on export front: Indian electrical equipment and projact management capabilities are accepted globally as credible and reliable. A large number of Indian companies have successfully executed projects in many underdeveloped, developing and developed nations. However, the overall electrical equipment industry's share cm of exports to country’s total exports is marginal, accounting for about 1-1.5 per cent only, Hence, there is 3 need to enhance exports for which policy evel ‘and incentive level support is required from the Government. The Government of India should extend the support to domestic players as is enjoyed by our foreign competitors in their respective counties ike China. Aso, in the recently announced Foreign Trade Policy (year 2015-20), the Government has done vay with lot of benefits ie. withdrawn incentive support which is needec order to facilitate and expedite the growth of exports. Financial Suppor: Supports also required towards funding for developmental and R&D initiatives, manpower planning and still upgradation for the transmission line industry. AS there is a severe shortage of skiled technical manpower, more dedicated programs and initiatives specifically pertaining 10 transmission line industry have to be designed and commenced jointly by the Government in conjunction with the industry and Cll