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is gearing up for the future

The exponential increase in power consumption will lead to a substantial increase in demand for energy efficient electrical equipment.

By 2021, India's power consumption is estimated to increase to approximately 1300 TWh from the 2011 estimate of approximately 700 TWh. The 12th Five-Year Plan forecasts the energy demand to grow at 6% per annum and electricity capacity to expand by 100 GW. The Government of India in its FY2012-13 budget announced its focus on giving incentives and measures to help the power sector to grow and meet the estimated future demand. It is also expected that the power industry will usher in huge investments in the areas of generation, transmission and distribution. India's power deficit presents a huge challenge and a huge opportunity not just for traditional energy providers, but also for alternative and sustainable energy sources.

Increasing domestic demand for electrical equipment

The demand for electrical equipment in India is expected to witness significant expansion on the back of the growth of the power sector. The government is likely to add around 78 GW and 100 GW, respectively, under its twelfth and Thirteenth Five Year Plans. Investment required for the twelfth Year Plan period in the generation and T&D segment is expected to be US$ 85 bn in generation, US$ 45 bn in transmission and US$ 70 bn in distribution. Based on the investment estimates and capacity addition targets, it is expected that the domestic demand for generation equipment (BTG) will be in the range of US$ 25-30 bn by 2022, while that of the T&D equipment industry will be US$ 7075 bn.

It's time for
Efficient Energy Systems to step in

Despite the aggressive plans for generation and transmission capacity augmentation, the current energy infrastructure is insufficient to achieve the desired demand. In fact, India faces an average energy and peak shortages to the extent of 12% and 11% respectively. The country's deficit in power is the biggest infrastructure constraint to the economy. The way forward is going to be an uphill task, requiring significant commitments from the government and the industry to provide alternative and efficient energy at an unprecedented scale, and consumers to take up energy efficient measures in their buying and usage behaviors.

Thrust to reduce energy intensity and
increase energy conservation

To optimize awareness about the usage of Energy efficient products, The Government of India set up Bureau of Energy efficiency with a mandate to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001. The primary objective of Bureau of Energy efficiency is to reduce energy intensity of the Indian economy which can be achieved with active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors.

Government of India has taken few important initiatives towards energy conservation which includes depreciation allowance at 100% in the first year on certain energy saving devices and systems and reduction of custom duty is applicable on specified equipment / devices used in the industry and so loans from financial institutions are also available for technology upgradation and introduction of energy conservation measures.

As the energy efficiency is the need of the hour, there is a tremendous scope for the alternative energy like solar, wind and biomass in some of the important sectors like home, office, transportation and industrial.