Industry News

Central Government to Provide Financial Support to States for Free Power Scheme

India: The Centre would extend its financial support to states in line with the government’s aim to achieve 24*7 power to all by March 2019 by offering new electricity connections to everyone. Rural Electrification Corporation (REC) is working on a scheme that would provide long-term loans to power distribution companies for the same. The government is also encouraging some states to offer electricity connections on monthly instalments of USD1.52 per month for 4-5 years to remote areas which are not connected to electricity grid.

TechSci Research depicts that government is taking various initiatives including Deen Dayal Upadhyaya Gram Jyoti Yojna for electrification of rural pockets of India as well as providing financial support to states, which has spurred significant investments in the country’s power sector, thereby creating the demand for power & distribution transformer in the country. India is also focusing on use of alternative energy resources like nuclear and solar energy for power generation, which is expected to further boost transformer deployments in the country in the coming years.               

According to TechSci Research report, “India Power & Distribution Transformers Market Forecast & Opportunities, 2020”, the power and distribution transformers market in India is projected to grow at a CAGR of over 10% till 2020. Under the 12th five-year plan (2012-2017), Indian government allocated USD200 billion for strengthening the country’s power generation, transmission and distribution sector. Notable technological upgrades are underway to reinforce the country’s transmission and distribution network, which would continue to drive the demand for power and distribution transformers in India. 

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