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MSME bodies approach Power Minister Piyush Goyal to overrule biased and irregular advisory of CEA

Updated: Aug 09, 2016 06:25:18am

New Delhi, Aug 9 (KNN) The Central Electricity Authority (CEA) is the highest advisory body of the Government of India on implementing the national electricity policy, and sub-serve the interests of the national economy and to provide reliable and affordable electricity for all consumers.

However, of late it is more interested in protecting the interest of the multinational power equipment Companies.

Recently it has issued an advisory to all power utilities and power generating companies, a cursory reading of which shows that it is biased in favour of the multi - national power distribution equipment suppliers and their Indian subsidiaries.

Particularly, it is directed against medium / small cap Companies of India, quite a few of whom are striving to manufacture state of the art power equipment in India in collaboration with or through technology transfer from foreign Companies.

The tone and tenor of the advisory was set in the first line itself, where it rues for idle capacities in the Indian manufacturing units set ups by the ‘Principal’s.

While it has been mentioned that the power utilities should procure only through local bidding, to encourage domestic manufacturers’, it has not been left much to the imagination, who they are?

MSMEs cannot access technology from foreign power equipment manufacturers who have a global footprint, but go for Companies who have a good reputation in their own market and ready to collaborate with MSMEs.

However, the advisory directs that collaborations could be allowed only with those foreign technology suppliers who can provide satisfactory performance report from a ‘third country’, which means the partner should have a global footprint!

In fact, the approach of the advisory goes against the letter and spirit of the ‘ make in India’ initiative of our Prime Minister and the recently announced national ‘Capital Goods policy’ both of which identified MSME sector as the prime mover for enhancing manufacturing in India.

Now, MSME bodies have approached the Power Minister, Piyush Goyal to allow MSMEs, manufacturing power equipment, in collaboration / technology transfer from the foreign manufacturers, eligible for participation in the tenders of the Central /State power utilities. (KNN/ DB)


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