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The Power Ministry has increased the minimum local content (MLC) requirement for electrical equipment used in the distribution sector by 5 per cent for 2021 across most categories, but left it unchanged in some.
These requirements have being tweaked to boost domestic manufacturing and production of goods and services while enhancing income and employment, it said in an order.
The MLC in 33/11 kV power transformers has been hiked from 50 per cent in 2020 to 55 per cent in 2021. For 2022 and 2023, the minimum requirement has been fixed at 80-90 per cent if the core of the transformer is available in India.
For distribution transformers, there has been a similar 5 per cent hike in local content requirement for 2021. The requirement in oil filled transformers has been hiked from 50 per cent in 2020 to 55 per cent in 2021. The requirement in dry transformers is also up from 40 per cent to 45 per cent. In both these categories, the minimum requirement has been fixed at 80-90 per cent if the core of the transformer is available in India during 2022 and 2023.
For instrument transformers, the MLC requirement is kept unchanged from 2020 to 2021, but hiked to 90 per cent during 2022 and 2023 if the core of the transformer is available in India.
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