India: Local content requirement for equipment used in certain power projects
Description
According to consistent press report, the Indian government decided to bar imports of certain equipment used in electricity generation on 20 January 2010. Due to a decision by the empowered group of ministers, ultra mega power projects (UMPP) are no longer allowed to source equipment from abroad, but are required to tender domestically.
In a related move, the Central Electrical Authority has asked all state and central utilities to include an "indigenous manufacturing clause" into its equipment contracts. Consistent with the decision of the empowered group of ministers, public utilities are asked to source their equipment from domestic providers.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 20 Jan 2010
GTA Evaluation: Red
Source:
Daily News & Analysis. (5 February 2010). Only local equipment for state power cos. Available at http://www.dnaindia.com/money/report_only-local-equipment-for-state-powe...
Financial Express. (20 January 2010). Centre to curb UMPP imports. Available at http://www.financialexpress.com/news/centre-to-curb-umpp-imports/569369/
Indian Business Insight. (6 February 2010). CURBS ON UMPP IMPORTS.
Government Response:
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