There is a need to replace outdated transformers and switchgear with advanced and environment friendly products. Thus, huge investments from the government are required for the power generation and distribution sectors.

With the development in urbanisation, the demand for electricity is increasing rapidly. The Indian government needs to focus on the power segment in a bigger way. A lot of investment is required, since most of the small towns and cities are facing power cuts. There is a need for uninterrupted power supply. India's installed power generation capacity as of 2013 was 233.9 GW, but around one fourth of the total power generated fails to reach the end consumer. It is lost in transit. Most of the transformers today get burnt due to overloading and poor quality of construction, often with substandard materials. The average operational life of a transformer is between 25 to 30 years; however, transformers in India are known to be recalled for repair in as early as three years. The entry of unorganised players and the price factor are the additional reasons.

According to Suresh Srivastava, Senior Vice President, Archon Engicon Ltd, "SEBs historically follow L1 vendor selection criteria, which has led to proliferation of many small players that compromise on the quality of transformers manufactured." The scenario is discouraging even in the switchgear segment. The Indian switchgear market is segregated into low, medium and high voltage classification. Most of the high and medium voltage switchgear installed in substations today is old or becoming outdated, leading to low grade performance. Thus, there is an urgent need for upgradation and timely maintenance to meet the increasing demand. The replacement of old and outdated equipment is also a better option, which will further avoid mishaps and accidents, besides increasing efficiency. Initiatives from the government are a must here. "In the past two years, we have seen an average decline of 5-7 per cent in the Indian market. But now with the new government, we hope for more power and infrastructure projects to be back on track. This will boost the demand for transformers and switchgear," avers Amit Sharma, Director Marketing & Strategy, Schneider Electric.

To resolve various issues, transformers and switchgear manufacturers in India have shown keen interest in introducing advanced, innovative, safe and qualitative products. The demand is also high. The replacement market will propel the growth of switchgear in the coming years. The market of LV, MV and HV circuit breakers is expected to grow at a compounded annual growth rate (CAGR) of 13.7 per cent from FY'2013-FY'2017. Whereas, the transformers market is expected to grow at a CAGR of 12.68 per cent by 2014-2018.

Recently, Schneider Electric has launched solid shield switchgear called Premset. It is compact modular vacuum switchgear with 15 kV capacity. Along with this, the company has also introduced self-fire extinguishing transformers. Transformers and switchgear with environment friendly features are their latest addition. "We have tied up with a few utilities to launch green transformers. The green transformers will utilise bio-degradable oil rather than normal mineral oil," said Sharma.

Alstom T&D India plans to upgrade its existing 400/220 kV substations by installing new equipment such as circuit breakers, instrument transformers, protection and control panels. Alstom will supply seven units of 400/220 kV, 500 MVA transformers and three units of 220/132/33 kV, 160 MVA transformers. It will also upgrade two units of 400/220 kV 315 MVA transformers at the Jamshedpur and NTPC's Farakka substations. Even, TBEA Energy (India) Pvt Ltd recently flagged off units of 765 kV transformers to various Power Grid Corporation construction sites in India. Even, Toshiba's acquisition for T&D business with Vijai Electricals has created avenues for India to establish itself as the core transmission and distribution technology supplier in the world.

As part of further expansion, CG Lucy inaugurated its new Ring Main Unit (RMU) production facility at Nashik. The RMUs will enhance the efficiency of power distribution networks, preventing transformer burnouts. ABB has also set up a plant in Gujarat to produce gas-insulated switchgear (GIS) and PASS (plug and switch system) hybrid switchgear. Besides, dry-type and oil immersed distribution transformers are also manufactured. Raychem RPG, has set up a plant in Pune, with capacity to develop transformers up to 25 MVA.

"Domestic transformer manufacturers have developed capabilities to manufacture all types of equipment to meet the country's demand for transformers up to 800 kV and going up to 1,200 kV," adds Srivastava.

Apart from catering to domestic demand, the Indian transformers and switchgear industry is also expanding its footprint globally. India exports transformers to countries like US, Europe, Malaysia, Singapore, Bangladesh, African and the Gulf countries, among others. The Southeast Asia and Pacific Region stands out to be a key market for Avantha Group Company CG. The company recently signed a contract with the State Utility of Paraguay - Administracion Nacional de Electricidad (ANDE) - for supply of 19 single and three phase transformers amounting to a total of 683.3 MVA, for expansion of the country's 220 kV Electricity Network. ABB will also play an active role into the export of transformers and switchgear from the Gujarat plant.

Thus, there is a huge scope for transformers and switchgear industry in India, but the doors still need to be opened mainly by government efforts. Huge investments and an effective, progressive policy is the need of the hour. The government now has plans to strengthen transmission lines and create a National Grid interconnecting the five regions (northern, southern, eastern, western and northeastern) through the creation of 'Transmission Super Highways'. This project is expected to drive the demand for higher-rated power transformers. A lot of construction and infrastructure projects are also expected in the coming years. This will provide a boost to the switchgear industry. So, as the new government steps on the much needed reforms pedal, the industry is waiting for surge forward at an accelerated pace.