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India must begin local production of CRGO electrical steel

Em News Bureau ,  Wednesday, November 21, 2012, 17:27 Hrs  [IST]

B.Lal— B. Lal, Director-General, ITMA

Indian Transformer Manufacturers Association (ITMA), a national association, was formed in 1979 with the objective of promoting the interest of manufacturers of transformers. ITMA caters not only to power and distribution transformers but also specialized transformers. In an exclusive interaction B. Lal discusses how ITMA has been taking up critical issues affecting the Indian transformer industry with the authorities concerned. Lal explains that ensuring availability of CRGO and domestic testing facilities are high-priority items in ITMA's agenda.

At the outset, tell us about how ITMA membership has grown over the recent years?
There are currently about 300 members in the ITMA fraternity comprising of large, medium and SSI players in the transformer industry in the country. With the immense recognition of ITMA's effort to highlight the problems of the transformer industry with Bureau of Energy Efficiency, Central Electricity Authority, Ministry of Power, Ministry of Steel, Rural Electrification Corporation, Power Finance Corporation, Central Power Research Institute, Electrical Research & Development Association, distribution companies, power utilities, etc, there has been steady increase in the membership of ITMA.

Although the cross-section of ITMA membership has companies like BHEL, Crompton, ABB, Bharat Bijlee, Emco, Alstom, Prolec GE India, Vijai Electricals, Prime Electric Ltd, Technical Associates, PME Power Solutions, Kotsons, PS Electricals, Transformers & Rectifiers, Accurate Transformers, Nucon Power Controls, Skipper Electricals India Ltd, High-Volt Electricals, Eastern Transformers, Sai Electricals, Indian Transformers & Electricals, Transformers & Electricals Kerala Ltd, Kerala Electrical & Allied Engg Co Ltd, Rajasthan Transformers & Switchgears, Southern Power Equipment Company, Standard Transformers and Vishal Transformers & & Switchgears Pvt Ltd etc, to name a few.

I would like to mention that ITMA has illustrious companies in its fold. Prime Electric Ltd has come up with a world-class manufacturing unit with excellent testing facilities at Nellorin Andhra Pradesh for EHV and UVHV power transformers. It is a treat to visit this unit! Besides, it is heartening to note that Mr. Anil Aggarwal, CMD, PME Power Solutions India Ltd, has been conferred with ‘Niryat Shree’ Gold Trophy Award by the Hon’ble President of India for his achievement for excellent export performance during 2009-10 by Federation of Indian Export Organisations (FIEO), set up by Ministry of Commerce, Government of India.

We understand that India has several distribution transformer manufacturers in the unorganized sector. What has been ITMA"s attempt to bring them into the formal fold of the association?
Mostly distribution transformers are being manufactured in unorganized sector. There could be more than 800 to 900 manufacturers in India but hardly 10 per cent could produce transformer of good quality in organized sector. As per the BEE's Gazette Notification dated January 5, 2010 and CEA's Notification dated August 20, 2010, it has been mandated that only at least 3-star rated energy efficient distribution transformers can be manufactured and purchased in India. Such a stipulation when implemented in full would result in boosting the percentage to about 15 per cent in organized sector.

BEE and CEA being statutory bodies under Union power ministry has evolved standard and labeling programme for distribution transformers and these authorities are enforcing the programme as only energy efficient transformers are produced so that energy is conserved in bid to bridge the gap between supply and demand of power in the country.

Barring few manufacturers (not more than 50 or so), the rest falls under SSI category and are doing well. Power is one of the prime movers of economic development where the transformer is a major and indispensable machine/equipment for generation, transmission and distribution of electricity in the country.

ITMAThe Steel Quality Control order requiring use of only BIScertified electrical steel has been extended up to March 31, 2013. Can you elaborate?
In order to apprise you of the background of the subject matter, original Gazette Notification No. S.O.2173 (E) dated 9th September 2008 was issued by Ministry of Steel to be effective from 12th February 2009, for mandating certification of electrical steel (CRGO) as per IS3024 for import of material used in the manufacture of distribution and power transformers. This order was extended up to 12th February 2010 vide S.O. 438 (E) but later on vide order S.O. 308 (E) dated 9th February 2010, the item of CRGO was omitted.

Ministry of Steel issued another Quality Control Order on 24th June 2011, which was Gazette Notified on 12th March 2012. This mandates registration of foreign mills with BIS for certification for supply of prime CRGO to the indian transformer industry which was to come into force with effect from 12th September 2012, but has subsequently been extended up to 31st March 2013 vide notification dated 11th September 2012 due to all round pressure of various stakeholders.

What are the practical difficulties in implementation of the order?
The major practical difficulty in implementation of the Quality Control Order is the mandatory registration of the foreign mills and suppliers of CRGO with BIS. This is a cumbersome process as the registration/certification entails several steps starting from application for CRGO on BIS-prescribed form right down to the foreign supplier opening an office in India.

ITMA is vigorously pursuing with BIS and the other authorities for expediting the certification of the mills who have already submitted their application for registration with BIS.

So far, how many foreign steel mills have got their electrical steel BIS-certified?
So far only four foreign mills have got their electrical steel certified as per IS3024 with BIS. These are JEF Steel, Japan; Thyssen Krupp-Indian unit at Nasik; and two units of Nippon Steel, both in Japan.

Out of the above four mills , both the units of Nippon Steel are not fully certified for all the grades of electrical steel due to variance in testing facilities available at their works as provided in the IS3024 for domain refined grades material.

What role is ITMA playing to ensure that the order is implemented?
ITMA has proactively initiated the process by calling meetings of foreign mills and CRGO suppliers of CRGO with BIS, MOS, MOP, CEA and other departments concerned, since the date of issue of the quality control order on 24th June 2011. The suppliers have been continuously pursued to submit their applications for registration/certification with BIS as per IS3024 which is mandatory for supply of CRGO.

Do you think that the mandatory BEE star-labeling of distribution transformers has improved the quality of transformers in the country?
Bureau of Energy Efficiency has issued standard & labeling (S&L) programme vide Gazette Notification dated 12th January 2009, 6th July 2009 & 5th January 2010, wherein it has become mandatory for buyers & manufacturers to procure/manufacture only star-rated distribution transformers. Besides, Central Electricity Authority (CEA) vide its Gazette Notification dated 20th August 2010 has also made it mandatory to use distribution transformers with maximum losses not exceeding the losses of at least 3-star rated transformers as specified by BEE. The matter of manufacture and procurement of non star rated distribution transformers has become a serious issue both with utilities and transformer manufacturers, due to total nonadherence of implementation of S&L of BEE's notification for 16KVA to 200KVA distribution transformers.

ITMA in association with BEE has conducted the regional workshops at Hyderabad, Lucknow, New Delhi and Mumbai last year, in order to spread the awareness amongst the transformer manufacturers, utilities and EPC contractors about the BEE's S&L programme of using only star rated distribution transformers.

ITMAWe hear of some Chinese power transformer manufacturers trying to set up shop in India. What is your view of the impending competition?
Yes, it is in our knowledge that some Chinese power transformer manufacturers are setting up their units in India which will definitely give impetus to the Indian manufacturers to enhance their production capacity with latest technologies, so as to give competition to the Chinese and other manufacturers in the world due to open economy at global level.

What are the major issues in the transformer industry on which ITMA would be focusing in the coming years?
The major issues on which ITMA would focus in coming years for the transformer industry would be:

Electrical Silicon Steel (CRGO): CRGO is not manufactured in India and the local transformer industry is totally dependent on the import of this main raw material from the 15 foreign mills. Indian steel producers such as SAIL, JSW, Tata, Mittal group etc should be forced to set up CRGO plant as the demand is about 3 lakh tonnes per year, with lot of scope for export market. In the ongoing XII Plan period, the annual demand for CRGO is likely to increase to 4-5 lakh tonnes.

Rationalization distribution transformer losses: ITMA has already finalized the losses of various ratings and voltage class of distribution transformers in association with BEE and CEA. In this connection Gazette Notification of rationalized losses for distribution transformers of rating 6.3 KVA to 2500 KVA (including revision of losses for 16 to 200 KVA, 11/0.4KV at 100 per cent loading) 3-phase at 11kV level together with losses of distribution transformers ranging from 5 KVA to 25 KVA at 11kV single phase, as recommended by a BEE's Technical Committee on 6th September 2010 is pending with BEE/MOP for the last two years. ITMA is vigorously pursuing this matter with the authorities concerned but our efforts are meeting hard rock and ITMA cannot offer further comments for obvious reasons.

Rationalization of technical specification: The transformer industry caters to the requirements of almost all the power utilities in India. It had come to our notice that each utility had its own set of technical specification and is quite different than that of others. As a result transformer manufacturers were required to handle various designs for various customers even though the KVA/MVA rating and voltage ratio were same, thereby creating lot of scope for confusion both for suppliers and users. The matter was discussed at length in various forums and seminars with a view to standardize the specifications at the national level.

Four meetings of the Task Force has taken place and lot of work in respect of Guaranteed Technical Particulars [GTP], losses, Outline General Arrangement [OGA] drawing, painting work, location of fittings and accessories, control schemes, fire fighting & oil sump arrangements has been carried out. Complete study shall be accomplished in next 2 to 3 meetings when the report shall be submitted to CEA for examination of its Technical Committee so as to finalize the study to be adopted at the national level.

Testing of Transformers: The existing domestic short-circuit test facilities are inadequate and large power transformers, especially with capacity 100MVA and above, are being sent to overseas testing labs such as KEMA Netherlands and CESI, Italy. This is a very costly proposition and even causes delay in commissioning of projects.

It is however learnt that MOP is going to establish national High Power Test Lab (P) Ltd in Bina, Madhya Pradesh as a joint venture between NTPC, NHPC, Power Grid Corporation of India and Damodar Valley Corporation. Such a lab shall prove a boon to all countries of ASEAN, SAARC, Middle East and Africa.
 
                 
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