Electrical Industry covers power generation, transmission, distribution and utilization

equipments. These include turbo generators, boilers, various types of turbines,

transformers, switchgears and other allied items. Majority of the products manufactured by
heavy electrical industry in the country, which includes items like transformers, switchgears
etc. are used by all sectors of the Indian economy. Some major areas where these are used
are the multi core projects for power generation including nuclear power stations,
petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units,
etc.

India is the only other developing country besides China,which produces a full range of
electric power generation and transmission equipment. In fact,the history and growth of
(Bharat Heavy Electricals Ltd.), a public sector enterprise under in the country, symbolizes
the overall growth pattern of heavy electrical industry in the country.BHEL has the unique
distinction of being one of the very few companies in the world, manufacturing all major
power generating equipment under one roof.

The industry has been upgrading the existing technology and is now capable of taking up
turnkey contracts also for export markets. The industry has been delicensed. Foreign
collaborations are allowed with 100 percent FDI.The country is planning to add 150,000 MW
power generation capacity in the the next 10 years.This will generate substantial demand
for heavy electrical equipments.

The heavy electrical industry is capable of manufacturing transmission and distribution

equipment upto 400 KV AC and high voltage DC. The industry has taken up the work of
upgradation and transmission to the next higher voltage system of 765 KV and have
upgraded their manufacturing facilities to supply 765 KV class transformers, reactors, CTS,
CVT, bushing and insulators, etc.

The investments in R & D by the electrical industry are amongst the largest in the corporate
sector in India.Large electrical equipment used in steel plants, petrochemical complexes and
other such heavy industries are also being manufactured in the country. The domestic
heavy electrical equipment manufacturers are making use of the developments of the global
market with respect to product designs and upgrading of manufacturing and testing
facilities.The heavy electrical industry has established its reference in the global arena
also.These encompass thermal, hydro and gas based power plants, substation projects,
rehabilitation projects, besides a wide variety of products like transformers, photo voltaic
equipments, insulators,switchgears, motors,etc.

Turbines and Generator Sets

The capacity established for manufacture of various kinds of turbines such as steam & hydro
turbines including Industrial turbines is more than 7000 MW per annum in the country.
Apart from BHEL, the public sector unit that has the largest installed capacity, there are
units in the private sector also manufacturing steam & hydro turbines for power generation
and industrial use. The manufacturing range of BHEL includes steam turbines upto 660 MW
unit rating and the facilities are available for 1000 MW unit size. They have the capability to
manufacture gas turbines upto 260 MW (ISO) rating and gas turbine based Co-generation
and Combined Cycle Systems for the industry and utility applications. Custom built
conventional hydro turbines of Kaplan, Francis and Pelton types with matching generators
are also available indigenously.

AC Generators manufactured in India are on par with international AC Generators and

consistently deliver high quality power with high performance. Domestic manufacturers are
capable of manufacturing AC Generator right from 0.5 KVA to 25,000 KVA and above with
specified voltage rating.The imports and exports of turbines and generators during 2005-06
were Rs. 2420 crore and Rs. 565 crore respectively.

Boilers
Bharat Heavy Electrical Ltd.(BHEL) is the largest manufacturer of boilers in the country
(with more than 60% share) and has the capacity to manufacture boilers for Super Thermal
Power Plants apart from utility boilers and industrial boilers. The industry has the capability
to manufacture boilers with super critical parameters upto 1,000 MW unit size. The domestic
industry has the capacity to meet the indigenous requirement / demand for boilers.The
imports and exports of boilers during 2005-06 were Rs.160 crore and Rs.242 crore
respectively.

Transformers
The domestic transformer industry is well established with capability to provide state of-
the-art equipments. The industry has the capacity to manufacture whole range of power and
distribution transformers including the REC rating of 25,53,100 KVA and also the extra High
voltage ranges of 400 kV, 600 MVA. Special types of transformers required for furnaces,
rectifiers electric tract etc. and series and shunt reactors as well as HVDC transmission upto
500 kV are also being manufactured in the country.The imports and exports of transformers
during 2005-06 were Rs.1800 crore and Rs.1640 crore respectively.

Switchgear and Control Gear

In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to
SF6 are manufactured to standard specification for the benefit of customers. The ranges of
products produced cover the entire voltage range for 240V to 800KV, switchgear and control
gear, MCBs, air circuit breakers, switches, rewireable fuses and HRC fuses with their
respective fuse bases, holders and starters. The industry is competitive in the field of design
and engineering as the skill sets available in the country are relatively less expensive.The
imports and exports of the above equipments during 2005-06 were around Rs.1690 crore
and Rs. 1108 crore respectively.

Electrical Furnaces
Electrical Furnaces are used in Metallurgical and Engineering industries like forging and
foundry, machine tools, automobiles etc. Adequate capacity for production of these products
has been established.The imports and exports of electrical furnances during 2005-06 were
aound Rs.186 crore and Rs. 108 crore respectively.

Shunting Locomotives
Shunting Locomotives for localized/ internal transport facilities are used in railways, steel,
plants, thermal power plants, etc. BHEL’s Jhansi unit among others is manufacturing such
locomotives. The installed capacity is adequate to meet the domestic demand.

Future Prospects
The domestic market in India is itself large, and one must firstly satisfy this market with products that meet
international quality standards. With increasing globalisation, every international player is now operating in India,
providing goods and services complying with international quality. Once we deliver high quality products and services
within the domestic market, accessing the international market for exports should not pose a serious challenge. The
Electrical/Electronics Industry in India is growing to its full potential in the coming years and no doubt that India will
soon come to be recognized for quality products and services which in turn, will bring this industry to a position of true
leadership. 

Indian electrical industry has grown because of government's thrust on it and also due to overall economic growth. It
has also reached a stage where the industry has demonstrated its capabilities. The industry has seen a growth of
20% and should continue at the same level for the next few years. 

Factors Governing the Growth of this Industry

Every industry thrives on some supporting factors. In this connection, there are few factors governing the growth of
electrical and electronics industry:

 Research & development played an important role to the increased productivity and higher-value added
electrical and electronics products.
 Foreign investments accelerated growth in production and export as well. To expand their business, foreign
companies have done huge investment which lead developing countries in establishing production units.
 Global industries like Medical, Telecommunications, Industrial & Automotive industries have been cordially
supported by electrical & electronics industry.
 Increase in income changed living standards of the common mass. As a result, it increased the demand of
electronics especially consumer electronics products globally.
 Electric & Electrical industry is highly fragmented which comprises of many small and medium size
enterprises resulting into a huge industry.
 Asia Pacific region is emerging as the most spinning place for the consumer electronics industry, as the
markets remain still unbroached.
 Innovation has played importantly in this industry. It led to a consistent demand for newer and faster
products and applications.