CEA Pushes for Localization of Power Transmission and Distribution Components

Sixteen critical items being imported have been identified for immediate action

December 15, 2025

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The Central Electricity Authority (CEA) has identified 73 items used in the power transmission and distribution sector to formulate a comprehensive localization strategy based on criticality, feasibility, and industry readiness.

India has been importing these critical items due to technology gaps, limited domestic manufacturing capabilities, or economies-of-scale challenges.

Among these, 16 items, including subsea cables, HVDC valve assemblies, voltage transformers, porcelain and polymer insulators, high conductivity copper rods, permanent magnet actuators, and encapsulation components for bushings and insulators, have been prioritized for immediate action due to their high import dependence and criticality to the power sector.

The CEA has drawn up the list of these components after consultations with IEEMA and stakeholders such as ABB, Aditya Birla, Hyosung, Polycab, Dong-Woo Quantum India, Sterlite, Schneider, Toshiba, KEC, Mehru, Destak, Jindal Aluminium, and Yash High Voltage.

The remaining 57 items, although recognized as critical, require more detailed, quantified inputs from domestic or international manufacturers interested in exploring manufacturing opportunities in India. The CEA has said the information is essential for accurately assessing the total financial implications and for formulating a comprehensive item-wise localization strategy.

The stakeholders have been asked to furnish details on the cost of the items, the annual domestic volume requirement over the next 10 years, the item’s percentage contribution to the total cost of the final product, current import levels, and the financial support required from the government.

The CEA also wants details of the technology transfer/machinery required to promote local manufacturing so that it can share a proposal to the Ministry of Power.

“This initiative has become essential in the current scenario, as the power sector remains relies heavily on imported advanced components, making it vulnerable to global supply-chain risks and price volatility,” the CEA said.

The stakeholders have been asked to provide their inputs to the CEA by December 29, 2025.

Localizing these items supports the government’s ‘Atmanirbhar Bharat’ vision by boosting domestic manufacturing, reducing forex outflow, and strengthening grid resilience and energy security.

India’s transmission and distribution sector has relied heavily on imports for critical equipment, such as transformers and tower parts. Stakeholders have highlighted a growing stress in the power system supply chain, with supply falling short of meeting demand for components such as transformers, control relay panels, tower parts, insulators, and gas-insulated switchgear. Longer lead times in procuring these components are causing delays in transmission and power generation projects.

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