Contracts from Chinese Companies cancelled for Electrical Equipment
Indian electrical equipment and electronics industry has begun mass cancellation of orders on Chinese companies in the last few days and are scouting for newer destinations for raw material sourcing. Last few days saw a trend of cancellation of orders mainly for power distribution and transmission gears and turning to other countries despite higher costs.
This month saw an intensification of the boycott, but the industry wants to make sure that this does not create disruptions. It also says the country needs to pools its testing facilities across sectors as there are few in the power sector. Indian Electrical & Electronics Manufacturers’ Association R K Chugh said the industry was till now importing raw material, sub-assemblies and in some cases finished goods too from China. The association’s director-general Sunil Misra said the industry is responding to its call of shifting to alternative sources as it is in their own interest to move out of Chinese supply sooner.
In the wake of PM’s atmanirbhar campaign, companies are sorting out ways of procuring items locally, which is indeed a positive step towards local upliftment.