Power ministry orders testing of all imported power system equipment; Chinese gears need permission

New Delhi: India will test all imported equipment used in power supply system and network for malware trojans and cyber attacks while putting a virtual ban on imports from ‘prior-reference’ countries such as China and Pakistan, an order issued by the power ministry said.
The order dated July 2 (Thursday) was posted on the website of the power ministry on Friday, soon after the Union power and renewable energy minister R K Singh told a gathering of state ministers that local equipment companies should be promoted.

“Today we manufacture everything that is required for power generation, transmission and distribution. In 2018-19, we imported Rs 71,000 power equipment of which Rs 21,000 crore are Chinese. We cannot tolerate this that you have a country which transgresses into our country and yet we create jobs in that country, when we have the ability to manufacture it (equipment) ourselves. We have decided not to buy from prior-reference countries. Any equipment imported will need permission. And we will not give permissions for equipment from China and Pakistan,” he said in the inaugural session of the state power ministers’ conference via video calling.

“All equipment, components, and parts imported for use in the power Supply System and network shall be tested in the country to check for any kind of embedded malware/trojans/cyber threat and for adherence to Indian Standards. All such testings shall be done in certified laboratories that will be designated by the Ministry of Power (MoP),” the order said.

“Any import of equipment components/parts from "prior reference" countries as specified or by persons owned by, controlled by, or subject to the jurisdiction or the directions of these "prior reference" countries will require prior permission of the Government of lndia. Where the equipment components/parts are imported from "prior reference" countries, with special permission, the protocol for testing in certified and designated laboratories shall be approved by the Ministry of Power (MoP),” it said.

The order shall apply to any item imported for end use or to be used as a component, or as raw material in equipment be used in power supply system or any activity directly or indirectly related to power supply system, it said.

The Indian order follows an executive order moved by the White House in May that blocked and mitigated transactions involving bulk-power system electric equipment manufactured or supplied by a “foreign adversary”.

Singh sought support from state governments in stopping imports of tower elements, conductors, transformers and meter parts which are available indigenously.

He said high imports, particularly from China, was concern in renewable energy sector too. He said China sells equipment at artificially low rates for dumping and hurting Indian manufacturing. He said the government plan to impose duty of 25% on solar equipment imports from August 1, which is proposed to be raised to 40% from next year.

ET reported on Thursday that in his meet with various state power ministers on Friday, Union power minister R K Singh is likely to ask states to comply with the Central public procurement norms in placing orders.

The government is keeping a close watch on the tendering of the Rs 55,000-crore emission control equipment by the thermal power sector that has placed large orders on Chinese companies in the past.

Most private and various state power companies are in discussions with Chinese companies for the emission control gear. Power utilities of states like Uttar Pradesh, Punjab, Haryana, Tamil Nadu, Karnataka and Maharashtra have sought global bidders for procurement against the Centre’s public procurement norms. While Gujarat has placed order with a Chinese firm, Haryana recently cancelled its Chinese order.