Demand for power gear to grow 2.5 times in 5 years
The demand for T&D equipment is expected to grow over 2.5 times in number of units in the next five years, reports BS Srinivasalu Reddy.business Updated: Dec 16, 2007 22:26 IST
The demand for power transmission and distribution (T&D) equipment is expected to grow over 2.5 times in number of units in the next five years, amounting to a 4.5 times growth in revenues for the industry at Rs 1.62 lakh crore by 2012. The estimated market size for T&D equipment in 2006-07 was estimated at 36,105 crore.
However, growth in unit terms is expected to moderate to an overall growth of 13 per cent during the Twelfth Plan period (2012-17). That is, in the next 10 years, the industry will see a 2.87 times growth in T&D equipment against 2.53 times in the first five years, taking the per capita consumption of power in the country above 1,000 MW.
The 18 major types of electrical equipment used in transmission and distribution are expected to see a demand growth of over 20.44 per cent on an average in the number of units (not in value) till 2011-12, a study conducted by the Indian Electrical Equipment Manufacturers Association along with PricewaterhouseCoopers has said.
"The growth rate will rise in the next five years, thereby taking the base higher. That may lead to heavy moderation in growth per annum from 2012. The Eleventh Plan (2007-12) will mostly focus on thermal, followed by hydel generation," Avinash Barve, Advisor to the Indian Electrical Equipment Manufacturers Association told Hindustan Times. Nuclear power generation is expected to gain momentum only after 2012.