‘Over 150 local units struggle amid policy changes by Power Development Department’
SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) is seeking the support of Chief Minister Omar Abdullah to address the exclusion of local electrical equipment manufacturers from key power sector projects in Jammu and Kashmir.
In a recent meeting, former FCIK President Mukhtar Yousuf highlighted the challenges faced by over 150 local manufacturing units, which are struggling for survival following procurement policy changes by the Power Development Department (PDD). He emphasized that these changes have effectively sidelined local manufacturers, leaving them without work.
The Union Power Ministry has allocated Rs 5,200 crore to Jammu and Kashmir under the Revamped Distribution Sector Scheme (RDSS), aimed at enhancing power infrastructure, including new substations to reduce power losses. However, FCIK contends that the PDD’s shift from a centralized procurement process to a turn-key project model has hindered local units’ access to these projects.
Secretary Finance FCIK Mohammad Altaf explained that under the previous system, equipment was procured only after passing rigorous third-party testing. The new model, however, combines supply and installation, which not only excludes local manufacturers but also compromises quality standards. Additionally, the PDD has grouped project requirements into larger packages, creating financial barriers that exceed the capacity of many local manufacturers.
During the meeting, Yousuf presented the Chief Minister with three recent high-value tender notices from the Kashmir Power Development Corporation Limited (KPDCL), totaling Rs 64.89 crore. These tenders include electrifying unconnected households and establishing new substations, but stringent financial requirements have made it difficult for local manufacturers to compete.
FCIK President Shahid Kamili urged the Chief Minister to either break down these large tenders into smaller portions or relax the qualification criteria, allowing local manufacturers to participate. He also suggested that the Small Scale Industries Development Corporation (SICOP) be authorized to bid on these tenders on behalf of local units to ensure equitable opportunities.
Recognizing the growing concern, the Chief Minister assured the Chamber that local industrial units would be given fair access to public procurement opportunities. FCIK expressed optimism that local electrical equipment manufacturers would soon receive a more equitable share of ongoing and upcoming power projects, alleviating the setbacks caused by discriminatory policies.