Empowering MSMEs with News & Insights

ITMA seeks Piyush Goyal's intervention to ban cheap CRGO imports

Updated: Oct 05, 2015 04:14:08pm
image
New Delhi, Oct 5 (KNN) Unscrupulous vendors lobby seems to have hijacked the agenda for change in specifications of distribution transformers, an exercise that is aimed at improving energy efficiency, reliability and durability of the equipment supplied to utilities under flagship schemes like DDUGJY, IPDS and strengthening of Power Distribution Network against overloading and protection of distribution transformers leaving the industry totally disenchanted and perplexed.
 
Worried over the way agenda is being sabotaged by vested interests, Indian Transformers’ Manufactures Association (ITMA) has shot a letter seeking Power Minister Piyush Goyal’s intervention to ensure that positive changes are brought about for infusing system improvement. 
 
Reminding Goyal about his aspirations expressed in an ITMA conference, where he had called for radical changes in specifications to eliminate or minimize heap of discarded transformers, the trade body has said, “We are immensely dismayed the way the whole exercise is being carried out.”
 
Significantly, substandard CRGO steel is being widely used by unscrupulous vendors in transformers, supplied to utilities with a view to making big profits at the cost of quality of equipment for providing interruption free supply to consumers. This is happening thanks to complicity of procurement officials responsible for ensuring quality of purchased material and equipment.  This lobby is now strongly resisting changes that could queer the pitch for it.
 
It turns out that changes proposed have been ignored by the panel, which is tasked by MoP for finalization of technical specifications and qualifying requirements for empanelment of vendors to supply distribution and power transformers, cables and other necessary materials at competitive prices through transparent bidding process.      
 
It appears that the concerned authorities are not doing the needful for stopping the import of spurious material, where the main defaulters/offenders are Customs and Bureau of Indian Standard.
 
In order to check import of second hand CRGO steel, ITMA’s suggested that it should be ensured that material procured is duly BIS certified. 
 
This has not been considered by the panel, which  has also ignored the trade body’s suggestion that distribution transformers be  manufactured  as per the revised  Indian Standard IS:1180 Part 1/2014  with  minimum  Energy Efficiency level 3 instead of level 1 for  all government projects which will entail avoidable generation and carbon foot prints.
 
Moreover, several discrepancies including those related to vendor qualification requirements in respect of financial position, trade body suggested minimum net worth of Rs 50 crores,  against positive Net Worth for 3 consecutive financial years.
 
Besides being drained utilities’ resources, low-quality transformers pose serious risks to human life and property as evidenced by a series of tragic incidents in Meerut.
 
In a recent incident, two transformers turned into fire balls in Meerut recently causing panic and public disorder in the area. In another incident, an UPPCL lineman died after falling from an electric pole while working atop a pole when bad quality electric wire snapped. In yet another mishap, again in the same district, children in a neighbouring house were severely scalded from sprays of steaming oil which erupted out when a transformer exploded. (KNN/ NM)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *

SUBSCRIBE TO OUR MAILING LIST

Get the latest updates from KNN

Your e-mail will be secure with us. We will not share your information with anyone !