The Indian government will introduce a Production-Linked Incentive (PLI) scheme by the end of the current financial year to boost the domestic manufacturing of power transmission equipment. This move, directed by Prime Minister Modi, aims to address rising demand and reduce reliance on imports, particularly from China.

BulletsIn

• PLI scheme to encourage local manufacturing of power transmission equipment.
• India imported $338M worth of transmission items in 2023; $124M from China.
• Prices surged globally due to supply-demand mismatch.
• PM Modi directed the Ministry of Power to develop PLI scheme on Nov 1.
• Scheme rollout targeted by FY25 end, per ministry officials.
• Focus: transformers, circuit breakers, switchgears, and related equipment.
• Goal: reduce dependency on imports, strengthen domestic supply chain.
• Local production to meet renewable energy sector’s growing needs.
• Ministry considered other localisation strategies before finalising PLI scheme.