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India's power distribution sector needs serious revamp

Venugopal Pillai ,  Friday, November 23, 2012, 11:57 Hrs  [IST]

Dr. Sadananda B.— Dr. Sadananda B., Managing Director, Standard Transformers Pvt Ltd

Karnataka-based Standard Transformers is engaged in manufacture of power and distribution transformers. It has also diversified into the EPC contracting space.  discusses his company's activities in detail and also gives keen insights into several pressing issues in the transformer industry. While regarding the mandatory star-labeling for distribution transformers as a good move, he feels that procurement policies of state power utilities still need fine-tuning. An interview by Venugopal Pillai.

At the outset, tell us about your Manipal transformer manufacturing plant and the various types of transformers produced by your company.
Established in 1988 and ISO-certified in 2003, Standard Transformers is a private limited company engaged in manufacture and testing of transformers in the voltage class from 11kV to 132kV and rating from 10KVA to 40MVA. Our Manipal unit commenced production in 1988. Till 2001, we were manufacturing oil cooled and dry type distribution transformers in voltage class of 11kV and 22kV, voltage regulators and rectifiers for electroplating, anodizing, hydrogenation and zinc extraction.

Given the major investment outlay in the country's power T&D sector, are you planning any capacity expansion?
In 2001, we upgraded our facilities at Manipal for manufacturing and testing transformers up to 132kV/40MVA and set up additional unit at Canacona, Goa for manufacturing distribution transformers. Around a decade of experience in the distribution transformer field gave us the confidence to enter the intermediate voltage class of up to 132kV.

The first 110kV delta-connected 10MVA power transformer was supplied to KPTCL through turnkey contractor Crompton Greaves Ltd, Nasik. Though we have so far supplied only few 33kV, 66kV and 110kV class power transformers to utilities over the past ten years, all of them are performing well till date with zero per cent failure rate. However, given that the life expectancy of 20-30 years for power transformers, this may be a premature evaluation!

Speaking of capacity expansion, we currently have no plans.

What is your view on the mandatory BEE certification for distribution transformers that has come into effect from January 2010? Do you think the overall efficiency of distribution transformers has improved?
We appreciate and fully support the BEE Certification that has come effect from January 2010. Though India's power generation and transmission infrastructure has seen phenomenal growth, the distribution sector has been badly neglected. India's T&D losses are 30-40 per cent compared to the world average of 8 per cent. As much as 70 per cent of the country's T&D losses are contributed by distribution transformers.

Strict enforcement on use of star-rated transformers by discoms and other utilities can reduce transformer losses. Use of more distribution transformers, especially at load centres to maintain uniform voltage, feeder separation in rural distribution system, use of auto-reclosers, avoiding use of under-sized conductors, minimizing radially-laid 11kV and 0.4kV distribution lines, etc, can drastically reduce distribution losses apart from transformer losses.

I must add here that AT&C loss measurement at feeder is better measure of the overall efficiency of the distribution losses. Here, we take into account power theft, un-metered agricultural load, etc. MESCOM, our local power distribution utility, has effectively implemented many of these measures and losses of their system are much below the national average.

The steel ministry is in the process of making it mandatory to use only BIS-certified electrical steel (CRGO). What is your opinion?
Electrical grade CRGO is not manufactured in India. Lot of second grade electrical steel was being used in distribution transformers in the past contributing to higher losses. The steel ministry's move in this direction is highly appreciated. Though electrical prime steel is imported, the current CRGO requirement from developed countries is minimal. Thus there might not be shortage in the international market.

Standard TransformersState government power utilities are your major clients. What is your view on the L1 procurement policy?
State governments depend on e-tendering for procurement of materials like transformers. Usually it is a two part tender. In Part- 1, the technical bid is opened and evaluation is done about tenderer. Proper evaluation of vendors like infrastructure availability, quality of the technical team, feedback on performance and service can be done at this stage. After this, eligible suppliers are selected. If strictly adhered to norms, the L1 procurement system is a good system but utilities accepting L1 bidders that quote lower than "Schedule of Rates" of utilities is paradoxical!

Perhaps due to this, there is a very unhealthy competition in the Indian market and lot of compromise done on the quality.

Still, do you find any change in the procurement policies of state government utilities after the trifurcation of erstwhile state electricity boards?
Yes, there has been a gradual change in procurement policies and it is in the positive direction.

Tell us about the projects division of Standard Transformers. What type of services to you offer?
The Project Division of our company was established in 2003 for execution of substation projects in the 33kV to 132kV class. The first 66/11KV station incorporating two Standard Transformer-make power transformers was established for KPTCL at Kanakapura, Bangalore, in the same year.

Please summarize your business strategy over the next 4-5 years.
Presently we are manufacturing distribution transformers mainly for discoms and private utilities. We would also continue making power transformers of up to 132kV class but for a select customer base. We would also like to concentrate on redesign and retrofitting of power transformers.

Given that India's transformer base will substantially expand in the coming years, how do you see the prospects of transformer repairs emerging as a specialized service?
More than half of the power transformers in India have been in operation for over 25 years. Considering the average life of a transformer to be around 25 years, in normal operation, it is essential to carry out repair and retrofit on transformers whilst they are in service condition rather than when they fail. This can extend the life of a transformer—technically and economically.

Viable repair and retrofit solution can be attained after recording all parameters of transformers under service. All original parameters of a transformer can be maintained as there is only replacement of winding as per the existing design, and new transformer oil. If there is a redesign or change in parameters, it is for better performance.

Repaired and fully retrofitted transformers are economical than new transformers with both having same life expectancy.
 
                 
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