Power Ministry hikes local content requirement in distribution equipment for 2021

The Power Ministry has increased the minimum local content (MLC) requirement for electrical equipment used in the distribution sector by 5 per cent for 2021 across most categories, but left it unchanged in some.

These requirements have being tweaked to boost domestic manufacturing and production of goods and services while enhancing income and employment, it said in an order.

The MLC in 33/11 kV power transformers has been hiked from 50 per cent in 2020 to 55 per cent in 2021. For 2022 and 2023, the minimum requirement has been fixed at 80-90 per cent if the core of the transformer is available in India.

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