In the third quarter of 2012-13, the power sector has deepened into gloom further as electrical equipment industry shrank 10.5 per cent. Turnover contracted 10 per cent, declining for the third consecutive quarter, and falling in double digits for the first time. The Indian Electrical and Electronics Manufacturers' Association (IEEMA) said almost all sectors declined, particularly power cables and energy meters business.
It blamed growing import of equipment ? mostly from China and South Korea ? that grew by 16 per cent.Orders for transformers and capacitors brought some relief for the industry. Certain projects enabled transformer industry to limit the decline to 9.6 per cent in third quarter, which was better than the fall of 16 per cent in the second quarter of this fiscal.
The switchgear industry, which fell 3.9 per cent in second quarter, dropped 3.6 per cent. Some segments such as conductors improved due to development in the realty sector. According to electrical equipment makers, the delays in projects due to precarious financial health of state distribution utilities, coupled with uncertainty and credit crunch and high borrowing costs for private sector buyers, has led to this situation.