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FEBRUARY 2016INDIAN TRANSFORMER MANUFACTURERS ASSOCIATION

NEWSISSUE 49

Dear Readers,

Colleagues and Friends...

We are thankful for your support in the

activities of ITMA and hope your

patronage will continue for further growth

in the Business of Transformer and Allied

Industries. Besides, Readers, Colleagues

and Friends are requested to share with us

any News/Report or suggestions they may

consider appropriate for printing in the

News Letter.

(B. LAL)

Director General

and finalize rate contracts to be followed by the discoms/utilities at National level.

Accordingly Committee A during its deliberations finalized the technical specifications of major high value items viz. Power Transformer, Distribution Transformer, Conductor, HT/LT Cables and Energy meters based on the comments received from the stakeholders and industry association (ITMA & IEEMA). Committee A circulated the draft report to all the participants particularly ITMA & IEEMA for comments in which all the amendments suggested in the TS for power& distribution transformers viz. in respect of core material, loss level 2 as per IS:1180 Part 1/2014 and external/ internal CB under protection system was incorporated. Even the losses as proposed by ITMA for power transformers were agreed and provided in the technical specifications of power transformers.

However in the final report of the technical specifications of DTs the protection system was deleted. Which was contested by ITMA in a meeting with REC & MOP but was not agreed to, since it did not find mention in the IS:1180 Part1/ 2014. Ultimately MOP advised that since the technical specification has been finalized by Chairperson of CEA, he may be approached for inclusion of ICB in technical specification of DTs. Accordingly Chairperson CEA, has been requested to include this transformer protection accessory being important for reducing the failure rate of distribution transformer including theft of electricity by the unscrupulous elements.

Further you are aware that number of meetings between PGCIL,REC & CEA and Transformer Manufacturers were convened in the month of December 2015 and January 2016 and as a result Committee - A finalized the tentative quantity of Distribution Transformers and Power Transformers while committee the 'B' finalized the list of venders who had fulfilled the requirement for E-bidding. Power Grid called a meeting of all the empaneled venders on 3rd February 2016 in order to educate the venders to make them understand the modalities for e-procurement & auction process. Some of the members cleared their doubts for making the offers/bids. But still there were ambiguities when ITMA arranged a meeting with PGCIL on 9th February 2016 where it was revealed that PGCIL at the instance of REC has uploaded the BoQ of distribution transformers of all the states with CRGO as only core material without mention of Amorphous Metal. This matter was again taken up with REC & CEA and the outcome was negative.

A seminar was arranged by PGCIL/REC/CEA MSTC of Government of India on 18th February 2016 for educating all the committee members of the Utilities/Discoms so that there is no difficulty in adhering to the process of e-procurement for the balance of material other than Distribution Transformers etc.

Now I would like to extend my heartfelt gratitude to all ITMA members, Council members, Office bearers, especially Past President, Zonal Vice-Presidents, our Secretariat staff for putting their faith in me to lead the organization, and also their full support and participation to bring to fruition our various initiatives and activities.

Finally he thanked all members for their co-operation extended to him during his tenure of 2014-2015 and also praised ITMA's Secretarial Staff and wished ITMA a bright future. After his address President ITMA informed the house that he has to make special announcement and stunned the house by tendering his resignation from the post of President ITMA on personal grounds and suggested the name of Shri U.C. Misra, Sr. Vice President and Director of PCI Ltd to the post of President ITMA for remaining period, which was approved by the house.

REVIEW OF ITMA's 34th ANNUAL GENERAL MEETING HELD ON 25TH FEBRUARY 2016 AT ITMA'S OFFICE, VAISHALI, GHAZIABAD, UP.

President ITMA Mr. Anil Aggarwal welcomed the members of the Executive Council and members with season's greetings. Mr. Anil Aggarwal, President, gave a brief of the works/issues dealt with in his one year tenure of ITMA. He thanked all the members for their co-operation extended to him during the period for conducting the business of ITMA in a Cordial manner by involving the manufacturers and suppliers

of material in order to solve their problems. The various issues of interest of the transformer industry deliberated during the year as President ITMA were briefly addressed as Under:-

“You are all aware that the Indian Transformer Manufacturers Association (ITMA) during the year (2014-2015) is engaged in actively with the Government and other authorities / departments was stepped up and regular interactions were established with the Ministry of Power, Ministry of Steel, Ministry of Urban Development and Ministry for Commerce and Industry and the Department of Heavy Industry, besides, CEA, REC, PFC, Chairman & Managing Directors/ Managing Directors/ Chairmen/ Chairpersons/ Director Generals and Autonomous bodies/ Public Sector Undertakings etc., so as to give impetus to Transformer Industry for Quality Product for energy efficiency, conservation and environmental climate change etc. etc working towards to the Government of India's initiatives of bringing in more investment opportunities in the power sector. The current years activities briefly have been brought out in the report.

There is Government of India's campaign on 'Make in India' and related programs. This is a sense of heightened expectations from industry and other stakeholders. Within the power sector the ambitious schemes of 'Deen Dayal Upadhyaya Grameen Jyoti Yojana' and 'Integrated Power Development Scheme' coupled with emphasis on renewables, the emerging business opportunities seem to be very promising. Government has also been on the right direction by making efforts towards 'Ease of Doing Business”. Besides UDAY (Ujwal DISCOM Assurance Yojana) gives much needed jumpstart to the Electrical Industry as it has been designed to incentivize the distribution companies to capital investment in renovation and modernization which will improve for losses so as to make them financially healthily. This a move will be alternatively benefit the industry. Such like approach would surely benefit the country's economic growth and positively meet the goal of Government of India to provide 24x7 electricity to all by 2019.

In order to achieve the objectives, Ministry of Power (MOP) vide their OM No. 44/30/2015-RE dated 14.08.2015 constituted two committees to work out major material/equipment requirement for the stakeholders with Standard Technical Specification (TS) through a transparent bidding process at competitive prices under DDUGJY& IPDS schemes. Committee-A, headed by the Chairperson, CEA, was entrusted with the responsibility to list out major equipment/material, finalize technical specifications, aggregate requirement of various states and undertake vendor empanelment. Committee B, headed by Director (Projects) PGCIL, would formulate bidding documents and carry out bid processing through e-tendering under reverse bidding mode, evaluate bids

Accordingly AGM passed a resolution for appointing Shri U.C. Misra, Sr. Vice President ITMA as President ITMA .Immediately after accepting the responsibilities as ITMA President Shri U. C. Misra addressed the house by thanking and expressing his gratitude to all the members for supporting and having reposed confidence in him. He paid tribute to outgoing President, Shri Anil Aggarwal for his outstanding leadership provided to ITMA and his ability to resolve and address successfully the most difficult issues being faced by the Transformer Industry, one of which being Qulity Control orders released by Steel Ministry on CRGO.

Shri Misra also expressed that Mr. Anil Aggarwal was instrumental in successful in conducting of various conferences, seminars and workshops for the benefit of members and utilities in addition to important interactions/meetings with Govt. authorities for resolution of problems being faced by transformer manufacturers. He also requested Mr. Aggarwal to be associated with ITMA activities in future and continue to guide/support for resolution of pressing issues to be faced from time to time.

SHRI U. C. MISRA, DIRECTOR OF PCI LTD.,AS PRESIDENT OF ITMA

Shri U. C. Misra, an Electrical Engineering Graduate having more than 44 years of experience in power sector and presently holding the position of Director in PCI Ltd. has taken over as President of Indian Transformer Manufactures Association (ITMA) in the Annual General Meeting held on 25th February 2016.

Shri Misra is also the Chairman of Prime SD Engg. Consultants Ltd. (an other Prime Group Company).

Before joining Prime Group six year ago, he had also served as Chairman, Bhakra Beas Management Board (BBMB) and as Director, Power Grid Corporation of India Ltd. under Govt of India. He has to his credit the experience of managing large projects related to construction, operation & maintenance in power sector.

Shri Misra is a Senior Member of Institute of Electrical and Electronics Engineers (IEEE) USA and has attended a number of International Seminars and Workshops including the Advanced Management Programme conducted by of Kellogge Business School (USA).

NEW MEMBERS

The following new companies/manufacturers have applied for the enrollment of ITMA Membership along with necessary payment towards admission & subscription fees. The council agreed to admit them into ITMA's fold.

• M/s Ornet Transformers LLP, Gujarat

• M/s Vijaya Mercantile Pvt. Ltd., New Delhi

• M/s Vikrant Transformers, Gujarat

• M/s Dausa Transformer Udyog Pvt. Ltd., Jaipur

• M/s Supreme Power Equipment Pvt. Ltd., Chennai

• M/s Emmess Control Pvt. Ltd., Chennai

• M/s Wilson Power and Distribution Technologies P. Ltd., Chennai

QUALITY CONTROL ORDER ON ELECTRICAL TRANSFORMERS ISSUED BY DHI ON 7TH MAY 2015 WHICH SHALL BE EFFECTIVE FROM 1ST FEBRUARY 2016 – STATUS OF BIS REGISTRATION - EXECUTION OF THE RUNNING/ CONFIRMED CONTRACTS / PURCHASE ORDERS OF DTS ISSUED PRIOR TO DATE OF IMPLEMENTATION I.E. 1ST FEBRUARY 2016 AND HAVING DELIVERY PERIOD BEYOND THE EFFECTIVE DATE.

The matter is constantly being pursued with Department of Heavy Industries (DHI) for amendment of the quality control order for allowing the acceptance of the running/confirmed contracts /purchase orders of DTs issued prior to date of implementation i.e. 1st February 2016 as per the technical specifications given thereof. Members informed that the utilities in Rajasthan have stopped taking delivery of the transformer against the pending orders and in Uttar Pradesh also the third party inspection for DTs against pending orders has also been stopped whereas in South Karnataka and Andhra Pradesh the discoms are insisting for supply against the pending orders but the manufacturers are reluctant in view of the quality control order in vogue. ITMA have written letter recently to Jt. Secretary, Shri R. K. Singh dated 19th February 2016 on the issue, copy of which has sent to the members for information.

MEETING HELD BY DG, BIS WITH ITMA DELEGATION ON 21ST DECEMBER 2015 AND 3RD FEBRUARY 2016- ON THE VARIOUS ISSUES CROP UP DUE TO CERTIFICATION OF DT MANUFACTURERS AS PER REVISED GUIDELINES OF BIS DATE 30TH NOVEMBER 2015.

ITMA delegation had a meeting with DG, BIS on 21st December 2015 & 3rd February 2016 on various issues which crop up due to registration of manufacturers for certification as per the quality control order on electrical transformers. Due to revised guidelines issued by BIS for certification on 30th November 2015 the testing has been mandated for all types and ratings of DTs (whereas in the earlier guidelines it was in grouping system), resulting in huge investment and time for compliance

BIS has not agreed to any of the issues made by industry during the meeting held on 3rd February 2016 and has forwarded the record discussions held during the meeting vide their letter dated 12th February 2016 requesting for suggestions from the associations for proposal for grouping criteria for sampling . According ITMA has forwarded the views of the members to Shri Varghese Joy, Scientist-F & Head (CMD-lll), Bureau of Indian Standards and copy to Smt. Alka Panda, IAS, DG, BIS, Shri C. K. Maheshwari, SC-G & DDG (Certification), BIS, clarification thereof relating to certification vide its letter dated 22nd February 2016.

MEETING WITH SHRI SUNIL BARTHWAL, IAS, JT. SECRETARY, MINISTRY OF STEEL AND ITMA DELEGATION ON 22ND DECEMBER 2015 ON THE INDUSTRIES PLIGHT

Due to seizure of BIS marked CRGO material from the works of our members during the raid by DRI, Secretary MOS was requested for the meeting on the issue.

During the meeting with Secretary, MOS on 22nd December 2015 she was apprised of the plight of industry due to seizure of BIS marked CRGO material from the works of our members during the raid by DRI, on the plea that the material has been procured from the authorized dealer/distributor of the CRGO manufacturing mill who has not the BIS licence as per IS:3024. She was further informed that the manufacturers of CRGO who are having the BIS licence are supplying their products through authorized dealers

DUPLICATE TESTING OF DTS SEPARATELY BY BIS AND BEE FOR THE RESPECTIVE CONFORMITY /MARKING SCHEMES OF THE SAME PRODUCT AND DISCUSSION FOR SINGLE AGENCY.

Director General informed the house that the matter is still under consideration with BEE and BIS. Since both the Government agencies are having their respective notifications for star labeling under BEE's S&L programme and BIS certification/marking under IS:1180 Part1/2014 and as such neither of any one ready to withdraw. The members were of the view that BEE who is the undertaking of MOP should be advised by MOP that the DTs may be taken out from its S&L programme of star labeling programme President ITMA requested the secretariat to send the letter to MOP accordingly.

ITMA's NEWS LETTER

To keep abreast with the activities, having been taken up by the ITMA for the benefit of its members, a communication is the only way to keep them updated. President ITMA took the initiative to issue 1st such letter in January 2011 and till date, which was well appreciated by all.

In order to keep ITMA Secretariat up-to-date with the latest information of the utilities and Transformer Manufacturers in the State, all the office bearers/members of the association as well as the SEBs/Utilities and PSUs may forward the following information to ITMA secretariat, which shall be printed in the forthcoming News Letter for the information of all.

1) Any important event in respective areas along with transfer/posting of senior officers of the utilities in the state.

2) Any achievement of the ITMA members.

3) Invitation of tenders for transformers etc. by the Utilities.

4) Any other important news/Notifications/Circulars for the benefit of the transformer industry.

Kindly do the needful and hope to receive favorable response immediately so that we may publish the same in our forthcoming Newsletters.

ADVERTISEMENT

ITMA is already printing advertisements in the strip form at the bottom of the each page. Interested firms /companies to give an advertisement in our forthcoming newsletter, please send the advertisement material in the form of CD (PDF Format) together with DD/Cheque in favour of “Indian Transformer Manufacturers Association” payable at Ghaziabad as early as possible. Our next Newsletter issue is likely to appear shortly and as such would like your consent for insertion of advertisement for one year i.e. for 12 issues. The advertisement tariff are given below: -

Advertisement Particular Tariff

Single Issue 12 Issue (one Year)

FRONT PAGE Bottom Strip ` 4,000 ` 36,000/-

BACK PAGE Bottom Strip ` 3,000 ` 30,000/-

TWO INNER PAGES Bottom Strip ` 2,500 Each ` 24,000/-

• ADVERTISEMENT SIZE FOR BOTTOM STRIP : 3 CM X 18 CM • MATERIAL CDR/PDF FORMAT WITH FINAL COLOUR PRINTOUT

For further information, please approach ITMA secretariat well in advance and seek information:-

itma_2006@airtelmail.in/itma_2006@itma.org.in0120-4566119/4116651 [09810616471]

network and not directly to the transformer manufacturers. The dealers/distributors authorized by the manufacturers having valid licence to supply the material on their behalf need not own a licence of certification as he is authorized by the manufacturer to supply their BIS certified product in the market on their behalf . Accordingly Secretary MOS was requested to get the authorized dealer/distributors names included in the licence of manufacturers of CRGO to avoid harassment to our members. She was also informed about the unabated import of seconds/used CRGO material even after implementation of the quality control order.

Since Secretary MOS was to attend the meeting with Finance Minister, She requested ITMA delegation to meet Shri Sunil Barthwal, IAS, Jt. Secretary. Accordingly ITMA delegation met Shri Barthwal, who patientially listen to the industries plight and assured to look into the matter so that the import of non prime/seconds CRGO material is not allowed and the BIS certified material is not seized by the authorities or harass the transformer manufacturers.

ITMA has received the letter from BIS that there is no provision in the BIS Act to include authorized subsidiary/company/dealers in the body of the licence, the copy of the letter dated 4th February 2016 of BIS was circulated to all members.

The house was of the opinion that ITMA should again take up with the Jt. Secretary, MOS on the basis of the BIS letter for necessary action. In the meanwhile Jt. Secretary MOS has vide Letter No. D.O.1(1) dated 1st Mar. 2016 written to Joint Secretary (Customs) that the authorized dealer/agent/subsidiary is not required to obtain separate BIS licence but they are required to sell, distribute only BIS certified/marked material procured from the BIS registered manufacturer. The same has been circulated to all.

TO FACILITATE STATES IN MOBILIZATION OF QUALITY EQUIPMENTS/ MATERIAL AT COMPETITIVE PRICE UNDER DDUGJY/IPDS, IN REGARD TWO COMMITTEES HAVING BEEN CONSTITUTED BY MOP ON 14-08-15, TO FINALIZE THE AGGREGATE REQUIREMENT OF THE MAJOR EQUIPMENTS /MATERIAL AND FINALIZE THE TECHNICAL SPECIFICATIONS THEREOF BY COMMITTEE - A AND TO PREPARE BIDDING DOCUMENTS FOR CARRYING OUT E-TENDERING AND EVALUATING BIDS AND TO FINALIZE THE RATE CONTRACTS BY COMMITTEE - B STATUS THERE OF, BESIDES AMENDMENT/ CLARIFICATIONS IN THE TECHNICAL SPECIFICATIONS IN ONE OF THE MAJOR HIGH VALUE MATERIALS I.E DISTRIBUTION TRANSFORMERS, AS FINALIZE BY COMMITTEE - A .

The technical specifications and the quantities for DDUGJY and IPDS projects has been finalized by the Committee-A and the empanelment of the vendors has also been carried out/finalized by Committee B. In this connection PGCIL had convened the meeting of empanelled vendors of power transformers, distribution transformers, conductors and AB cables on 3rd February in their Gurgaon office to acquaint them with the software prepared by the Govt. of India undertaking M/s MSTC for e-procurement and e-reverse auction of the material.

The tender for procurement of power and distribution transformers is due for opening on 25th February 2016 for which PGCIL was requested for extension of the due date for submission of the bid security, power of attorney due to JAT agitation in Haryana causing blockage of NH 1 and other connecting roads. But PGCIL has not extended the date of opening of the bids for power and distributiontransformers.