MoP issues guidelines for minimum local content requirement in equipment

The Ministry of Power (MoP) has issued guidelines for minimum local content in equipment for new thermal, hydro and transmission projects in line with the Public Procurement (Preference to Make in India) Order, 2017, issued by the Department of Industrial Policy and Promotion. For hydro projects, half the equipment has to be procured locally and the requirement is targeted to be raised to 75 per cent in the next five years. For thermal projects, the minimum local content is required to be over 70 per cent in turnkey projects and over 90 per cent in works and service contracts. The local content for transmission equipment such as transformers, reactors, insulators, high voltage direct current systems and others varies between 60 per cent and 100 per cent.