ITMA criticizes leading industry body for opposing quality control of electrical equipment
Updated: Oct 29, 2015 02:26:39pm
New Delhi, Oct 29 (KNN) Training guns towards industry bodies which object the demand of quality control by the electrical equipment manufacturers, Indian Transformer Manufacturers Association (ITMA) has alleged that by saying so, the industry bodies miss the point that the transformer quality order is applicable to small transformers only while the large-sized transformers remain outside its purview.
“Confederation of Indian Industry (CII) claims that “creating awareness, supporting industry efforts on quality, environment and consumer protection” is one of its key organisational objectives but it turns out that India’s largest trade body does not always live up to this credo,” said an ITMA member.
For example, the CII has used a specious argument to build a case for withdrawal of quality control order on electrical steel, or CRGO, while providing its recommendations for inclusion in the proposed national policy on capital goods, sending scrupulous transformer manufacturers into a tizzy, he said.
“Unfortunately, CII’s controversial recommendation has somehow found its way into the draft national policy on capital goods put out by the Ministry of Heavy Industries (MHI) for public comments. The MHI is tasked to finalise a policy on capital goods sector in consultation with key stakeholders including industry and trade associations,” said the association member.
The CII has essentially argued that there is no need for a separate quality control on input (CRGO) when the finished product, transformer, itself is subject to quality regulations. But in saying so, it misses the point that the transformer quality order is applicable to small transformers only and that large-sized transformers remain outside its purview, he said.
CII’s view point is at variance with the position taken by Indian Transformers Manufactures’ Association (ITMA) and Indian Electrical and Electronics Manufacturers Association of India (IEEMA), both of which directly represent transformer manufacturers.
Both ITMA and IEEMA favour continuation of the quality order to check import of non-prime steel.
“CII’s recommendation also runs contrary to the Modi government’s philosophy of “No defect, No effect” to bring qualitative and quantitative changes in the Indian manufacturing sector, which is seen as critical for creating millions of jobs needed to absorb the country’s growing working-age population,” said ITMA.
So, the question arises as to whose interests CII is trying to protect, the member argued.
Meanwhile, the transformer industry is worried that if the view point articulated by the CII, which has already sneaked into the draft document, is incorporated into the policy, it would clear the legal hurdle to the use of second-hand CRGO in large transformers, imparting a new impetus to the illegal import of the material.
Not surprisingly, the ITMA has trashed the CII’s suggestion to revoke the steel quality control order issued by the Steel Ministry.
Significantly, India does not have any manufacturing facility for CRGO and the transformer industry, the sole user of the electrical steel, entirely depends on imports to meet its raw material requirement.
“In case CRGO, which is already under the mandatory list of products of BIS, is deleted, it would result in import of non-prime, defective/second/sub-standard/used material from dismantled transformers which had been the order of the day for many years, and again find its way in the manufacture of poor quality of transformers,” ITMA has said in a letter sent to MHI Secretary Rajan S Katoch recently.
“Individual component/raw material needs the Quality Control Order as per the Indian Standards for ensuring the quality of the ultimate product. Further Quality Control Order on electrical transformers is only upto 2500KVA rating at 33KV voltage class whereas the Quality Control Order on CRGO is applicable for entire range of transformers covering 500MVA upto 765 KV voltage class,” ITMA has argued to buttress its case, reminding that, “large power transformer manufacturers have been advocating deletion of CRGO from the quality control order on steel and steel products.”
Pointing out that the use of non-prime CRGO compromises performance of transformers, leading to high Transmission &Distribution (T&D) losses, massive carbon emission, failure of transformers, loss of industrial production besides inconvenience to general public, the letter further says: “ITMA has been insisting for applicability of Quality Control Order on all ratings and voltage class of transformers which was agreed by DHI but it is yet to issue the orders.”
The letter states at present about 100 products are under mandatory certification of BIS and more are being added for the improvement of quality of equipment’s/products. In this respect, Government of India is considering massive amendments in the BIS- Act, so that the quality products reach the domestic consumers and for export, which will necessitate addition of more products under the mandatory certification of BIS.
“Thus it would be observed that CRGO has already become a mandatory product for use and would not require any reverse recommendation for deleting from the Quality Control Order,” the letter added.
“In view of the foregoing, the Quality Control Order on CRGO cannot be withdrawn, and the Ministry of Steel has already taken a firm stand which is amply conspicuous from the letter issued to ITMA,” the missive emphatically adds. (KNN/ NM)
“Confederation of Indian Industry (CII) claims that “creating awareness, supporting industry efforts on quality, environment and consumer protection” is one of its key organisational objectives but it turns out that India’s largest trade body does not always live up to this credo,” said an ITMA member.
For example, the CII has used a specious argument to build a case for withdrawal of quality control order on electrical steel, or CRGO, while providing its recommendations for inclusion in the proposed national policy on capital goods, sending scrupulous transformer manufacturers into a tizzy, he said.
“Unfortunately, CII’s controversial recommendation has somehow found its way into the draft national policy on capital goods put out by the Ministry of Heavy Industries (MHI) for public comments. The MHI is tasked to finalise a policy on capital goods sector in consultation with key stakeholders including industry and trade associations,” said the association member.
The CII has essentially argued that there is no need for a separate quality control on input (CRGO) when the finished product, transformer, itself is subject to quality regulations. But in saying so, it misses the point that the transformer quality order is applicable to small transformers only and that large-sized transformers remain outside its purview, he said.
CII’s view point is at variance with the position taken by Indian Transformers Manufactures’ Association (ITMA) and Indian Electrical and Electronics Manufacturers Association of India (IEEMA), both of which directly represent transformer manufacturers.
Both ITMA and IEEMA favour continuation of the quality order to check import of non-prime steel.
“CII’s recommendation also runs contrary to the Modi government’s philosophy of “No defect, No effect” to bring qualitative and quantitative changes in the Indian manufacturing sector, which is seen as critical for creating millions of jobs needed to absorb the country’s growing working-age population,” said ITMA.
So, the question arises as to whose interests CII is trying to protect, the member argued.
Meanwhile, the transformer industry is worried that if the view point articulated by the CII, which has already sneaked into the draft document, is incorporated into the policy, it would clear the legal hurdle to the use of second-hand CRGO in large transformers, imparting a new impetus to the illegal import of the material.
Not surprisingly, the ITMA has trashed the CII’s suggestion to revoke the steel quality control order issued by the Steel Ministry.
Significantly, India does not have any manufacturing facility for CRGO and the transformer industry, the sole user of the electrical steel, entirely depends on imports to meet its raw material requirement.
“In case CRGO, which is already under the mandatory list of products of BIS, is deleted, it would result in import of non-prime, defective/second/sub-standard/used material from dismantled transformers which had been the order of the day for many years, and again find its way in the manufacture of poor quality of transformers,” ITMA has said in a letter sent to MHI Secretary Rajan S Katoch recently.
“Individual component/raw material needs the Quality Control Order as per the Indian Standards for ensuring the quality of the ultimate product. Further Quality Control Order on electrical transformers is only upto 2500KVA rating at 33KV voltage class whereas the Quality Control Order on CRGO is applicable for entire range of transformers covering 500MVA upto 765 KV voltage class,” ITMA has argued to buttress its case, reminding that, “large power transformer manufacturers have been advocating deletion of CRGO from the quality control order on steel and steel products.”
Pointing out that the use of non-prime CRGO compromises performance of transformers, leading to high Transmission &Distribution (T&D) losses, massive carbon emission, failure of transformers, loss of industrial production besides inconvenience to general public, the letter further says: “ITMA has been insisting for applicability of Quality Control Order on all ratings and voltage class of transformers which was agreed by DHI but it is yet to issue the orders.”
The letter states at present about 100 products are under mandatory certification of BIS and more are being added for the improvement of quality of equipment’s/products. In this respect, Government of India is considering massive amendments in the BIS- Act, so that the quality products reach the domestic consumers and for export, which will necessitate addition of more products under the mandatory certification of BIS.
“Thus it would be observed that CRGO has already become a mandatory product for use and would not require any reverse recommendation for deleting from the Quality Control Order,” the letter added.
“In view of the foregoing, the Quality Control Order on CRGO cannot be withdrawn, and the Ministry of Steel has already taken a firm stand which is amply conspicuous from the letter issued to ITMA,” the missive emphatically adds. (KNN/ NM)
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