The Hindu Business Line : Electrical industry sure of posting 15 pc growth

BUOYED by the projects in the pipeline for the power sector and the revival of the steel sector, the electrical industry is confident of registering a growth of around 15 per cent in the years ahead. In 2003-04, the industry registered a 14 per cent growth, after a recession for nearly five years.

At a news conference on Saturday, the President of the Indian Electrical & Electronics Manufacturers' Association (IEEMA), Mr P. Krishnakumar, said the domestic electrical industry caters to about 85 per cent of the electrical products. This includes equipment for generation, transmission, distribution and use of power required by steel and power units. He was especially bullish about the power projects coming up in States including West Bengal, Chhattisgarh and Jharkhand.

Mr Krishnakumar said that, in West Bengal alone, there were 300 sponge iron units in and around Durgapur.

"All these units have the potential to generate power in small quantities," he said, and welcomed the Budget proposal to reduce customs duty on alloy steel, copper, zinc and other base metals to 15 per cent and that on non-alloy steel to 10 per cent.

Mr Krishnakumar said the extension of income-tax benefits under Section 80 IA for renovation and modernisation of power generation, distribution and power projects would attract private sector investment and facilitate speedier reforms in the power sector.

Mr Sunil More, Secretary General of IEEMA, said the domestic electrical industry was confident of growth. However, it was not looking forward to protection from the Government.

"All we are looking for is a level-playing field. The import duty on raw materials should not be higher than the duty on finished goods. Only then can we restore the vitality of the power sector, encourage investment and create jobs," he said.