Local electrical units being excluded from power sector projects: FCIK

Srinagar, Nov 1: The Federation of Chambers of Industries Kashmir (FCIK) has pushed for Chief Minister Omar Abdullah’s support to address the ongoing exclusion of local electrical equipment manufacturers from key power sector projects in Jammu and Kashmir.

A statement said that in a recent meeting with the Chief Minister, former FCIK President Mukhtar Yousuf highlighting the issue revealed that over 150 local electrical equipment manufacturing units have faced severe operational challenges following procurement policy changes by the Power Development Department (PDD). He stated that these changes have left local manufacturers largely without work, posing a serious threat to their very survival.

The Chamber informed the Chief Minister that the Union Power Ministry has allocated Rs 5,200 crore to Jammu and Kashmir under the Revamped Distribution Sector Scheme (RDSS), nearly evenly distributed between the two regions. The funds aim to enhance the power infrastructure, including 33KV and 11KV stations and other necessary equipment, to reduce power losses and ensure uninterrupted supply.

FCIK emphasized that the PDD’s transition from a central store procurement process to a turn-key project model has introduced significant challenges for local units, reducing their access to power sector development schemes.

Secretary Finance FCIK Mohammad Altaf explained that under the previous system, equipment was procured for central stores only after undergoing rigorous third-party testing. However, the new turn-key approach combines supply and installation, which not only debars manufacturers but also manipulated quality standards.

He said that the department has been clubbing project requirements across vast areas, creating cost estimates that exceed the financial and turnover capacities of individual manufacturers.

During the meeting, Mukhtar Yousuf also presented the Chief Minister copies of three recent high-value tender notices floated by the Project Wing of the Kashmir Power Development Corporation Limited (KPDCL), totalling Rs 64.89 crore. These include Rs 20.29 crore for electrifying unconnected households in Tulail and Kanzalwan, Rs 29.86 crore for a new 33/11 substation in Tulail, and Rs 14.74 crore for electrifying unconnected households in Kupwara.

“The stringent financial and turnover requirements make it impossible for local manufacturers to participate in these tenders” he told the Chief Minister.

President FCIK Shahid Kamili requested the Chief Minister’s intervention to either segregate these large tenders into smaller portions or relax the qualification criteria, allowing local manufacturers a fair chance to participate. Alternatively, he suggested that the Small Scale Industries Development Corporation (SICOP) be authorized to bid on these tenders on behalf of local units, ensuring equitable distribution upon winning any contract.

He said that a trend to exclude local enterprises from developmental projects and schemes over the past few years has shaken the confidence of local entrepreneurs who feel their manufacturing units are being sidelined in favour of outside suppliers.

Recognizing the issue, the Chief Minister has assured the Chamber that local industrial units will receive their fair share of public procurement opportunities.

Encouraged by the Chief Minister’s positive response, FCIK expressed optimism that the local electrical equipment manufacturing sector will no longer face setbacks due to discriminatory policies and will secure its rightful share in all ongoing and upcoming power schemes.