Mumbai: Indian power equipment industry has come out of negative growth in the June quarter, clocking a 1.24% growth, but bad monsoon could derail it going forward, a senior industry body official said on Friday.
“Downward trend is somewhat arrested,” after a decline in the last two quarters, S.P. More, director general of Indian Electrical and Electronics Manufacturers’ Association (IEEMA) said, adding the bad monsoons is a worry.
Rains for the period 1 June to 19 Aug were 26% below normal, the meteorological department said on Thursday.
Finance minister Pranab Mukherjee on Friday said the monsoon situation is difficult, which may impact hydro power generation.
The highest on-year segmental growth in the equipment industry was reported in the transmission lines segment at 18.44%, while capacitor segment grew at 12.39% in April-June, data from IEEMA showed.
The growth in transmission sector is largely attributed to orders to conductor and tower makers by state-run Power Grid Corp, IEEMA statement said.
However, the motors and alternators segment did not come out of the red, showing a slump of 14.38%, the statement said.
Comparatively high-voltage equipments showed higher growth than low-voltage equipment, More said.
“So long as high voltage (growth) is there, it may trickle down to low voltage in the future.”