Electric equipment sector seeks govt's intervention for relief against dues

In a letter to the power ministry, the Indian Electrical & Electronics Manufacturers Association (IEEMA) requested the Centre to expedite early payment of legitimate bills of equipment suppliers | File photo
The electric equipment industry has sought the government’s intervention for relief against pending dues and imminent slowdown. The industry claims it has pending dues of Rs 15,000 crore, mostly from state government departments and is apprehensive that it will increase as economic activity slows because of COVID-19.

In a letter to the power ministry, the Indian Electrical & Electronics Manufacturers Association (IEEMA) requested the Centre to expedite early payment of legitimate bills of equipment suppliers. IEEMA is the representative body for the industry. Business Standard has reviewed the letter. It said the electrical industry is heading towards a slowdown. IEEMA represents makers of transformers, transmission towers, meters, cables, wires and several industry scale and consumer electric and electronic products. Most of the projects relating to strengthening of power distribution systems, installing of meters, new transmission projects would now be on hold.




Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel