Author: PPD Team Date: 12/06/2025

The Central Electricity Authority (CEA) has identified 29 high-priority power sector components currently imported from countries such as China, Germany, and South Korea. The CEA is now inviting public feedback to develop a roadmap for domestic manufacturing of these items.

This move is part of efforts to reduce India’s dependency on foreign suppliers and build local capacity in core energy infrastructure technologies.

What is being imported and why

The list includes complex components like Gas Insulated Bus Ducts, Hollow Core Insulators (245 kV+), and Voltage Transformers. Also on the list are electronic devices such as Insulated Gate Bipolar Transistors (IGBTs), Metal–Oxide–Semiconductor Field-Effect Transistors (MOSFETs), and Super Capacitors.

Imports are driven by several factors:

Lack of local manufacturing capacity, such as for SF6 gas and neodymium magnets (NdFeB).
Technology gaps in shielded switchgear and advanced semiconductors.
High costs in producing inputs like oxygen-free copper rods and aluminum-zinc sheets.
Limited testing infrastructure for items like epoxy resin insulation.

CEA’s proposed support mechanisms

The CEA has outlined three key types of support to promote domestic manufacturing.

  1. Financial incentives and subsidies

Subsidies are being considered for producers of insulating spacers, ELCAP capacitors, and PCB assemblies.
Production-linked incentives (PLI) may be offered to attract global OEMs, especially for materials like epoxy resins.
Testing labs will be upgraded to meet international IEC and ISO standards within a year.

  1. Technology transfer and partnerships

India could collaborate with global players to adopt advanced technologies, such as triple-layer extruder lines for high-voltage cables.
Joint ventures are proposed to fill gaps in semiconductors, relay automation, and precision fabrication.
Patented technologies—like AgSnO₂ contacts and ferrite cores—may be accessed through licensing deals.

  1. Policy and regulatory changes

Anti-dumping measures will be explored to counter low-cost imports, particularly from China.
Approvals for new manufacturing units will be fast-tracked.
R&D funding will support the development of local alternatives to imported materials like XLPE insulation and SF6 gas.

Top countries supplying these components

China supplies 18 of the 29 items, dominating categories such as relays and magnets.
Germany follows, especially in automation and copper precision parts.
South Korea is a key supplier of aluminum-zinc sheets and supercapacitors.
The U.S., Japan, and EU countries contribute to niche segments like XLPE cables and electrolytic capacitors.

Next steps and stakeholder involvement

The CEA has opened consultations for manufacturers, researchers, and industry experts. Suggestions are being invited to shape implementation strategies.

Focus areas include import reduction by 2030, skill development, and achieving global cost competitiveness. This effort supports India’s broader “Make in India” and “Atmanirbhar Bharat” goals for self-reliance in the power sector.

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