The Engineering Development Board (EDB) of the Ministry of Industries & Production has been assigned the responsibility of preparing, in collaboration with the Ministry of Energy - Power Division, a comprehensive Power Sector Indigenization Plan (PSIP) under the National Electricity Policy 2021 and the National Electricity Plan 2023-2027.

The latest Integrated Generation Capacity Expansion Plan (IGCEP) 2024-2034 is an integral component of this broader initiative. The timeline for the development of the PSIP, a ten-year prospective plan, was set for June 30, 2024, to be approved by the government.

However, the preparation of the draft plan remains in its initial stages, raising concerns about the timely execution of this crucial initiative.

A key guiding principle of the National Electricity Policy 2021 is the adoption of a “multi-pronged approach for indigenization,” which encompasses promoting local content, technology transfer, and research & development (R&D) across the power sector value chain.

The government, under this policy framework, pledged to facilitate the creation of development funds to support domestic R&D and allocate resources for augmenting indigenous capacity. However, despite four years since the policy’s announcement, no substantial progress has been made in this regard by the Ministry of Energy.

Similarly, the National Electricity Plan 2023-2027 has set the ambitious goal of enhancing the “indigenization of the technological hemisphere,” which is deemed a critical component for ensuring self-sufficiency. According to the plan, the EDB, with assistance from designated entities and relevant stakeholders, was to develop the PSIP by June 2024.

The PSIP was envisioned to progressively increase the share of indigenous equipment and components in the power sector by setting high-level targets for local content and identifying requisite actions, including legislative support, standardization, certification, technological upgrades, and incentive structures.

Under this plan, the government aims to achieve substantial import........

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