MoP issues minimum local content requirement for power projects

The Ministry of Power (MoP) has issued guidelines for the minimum local content requirement in equipment for new thermal, hydro and transmission projects. The guidelines have been issued 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 should be more than 70 per cent in turnkey projects and more than 90 per cent in works and service contracts. The local content requirement for transmission equipment such as transformers, reactors, insulators, and high-voltage direct current (HVDC) systems is 60-100 per cent.


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