New Delhi: India has begun work on the construction of a factory for hydraulic pumps to supply power plants, but the state-run power firm, Taha, is reluctant to open it until a final agreement on tariffs has been reached.
India’s state-owned utility, Power Grid Ltd, said on Tuesday that the company would supply the first hydraulic pumps at its new factory in the western state of Tamil Nadu.
Taha, which has a global contract for 1.5 million units a year, said it will have to import 20,000 of the new pumps for domestic customers.
It would be up to the power provider to decide on the import rate.
India’s power market is one of the world’s biggest, with more than 30,000 hydro-electric plants supplying electricity to nearly two-thirds of the country’s population.
But Taha said the government has not given it any specific timeframe for when it expects to have production capacity of the hydraulic pumps.
The government has made it clear that the supply of such a huge quantity of these pumps will be challenging and will take a while.
Power Grid said the pumps would be manufactured by Indian companies in India.