ANNOUNCEMENT 20 Jan 2010

In January 2010, the government of India announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

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-power-cos_1343444

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.


Inception date: 20 Jan 2010 | Removal date: open ended
Still in force

Local sourcing

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.

AFFECTED SECTORS