As Chinese might grows, security concerns hound growing Indian smart grid

IEEMA wants complete ban on Chinese equipment in Indian power sector

As Indian power grid witnesses technological upgrades with two way communication, remote monitoring and real time updates on demand supply, the threat of hacking and security breach also increases. The problem intensifies more as Chinese companies bag projects in states to build smart gid.

In order to improve the power distribution, state grids have installed Supervisory Control and Data Acquisition systems (SCADA). SCADA is an industrial control system which monitors and controls industrial processes, mostly through remote technology. As many as 18 cities across five states in India have awarded the contract to Chinese firms.

Indian Electronics & Electricals Manufacturers' Association (IEEMA), the representative body of power equipment makers, had last year written to the National Security Advisor Ajit Doval and power minister Piyush Goyal for complete ban on Chinese equipments in Indian power sector.

“Awarding projects related to power generation, transmission and distribution network to Chinese companies will be serious threats to national security as electric distribution system carry power to pipelines, water systems, telecommunications and other critical infrastructure, while also serving critical government or military facilities,” said letter by IEEMA to National Security Advisor, reviewed by Business Standard.

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Citing that over the past few years, IEEMA said China has reportedly mounted repeated attacks on Indian computer networks, the information flowing in Indian grid is more vulnerable than ever to hacking.

Last year, Philippines government disallowed the Chinese technicians to take part in country's electricity transmission projects, out of concern for national security.

Taking cue from these incidents, the central is learnt to be in discussion to bar Chinese companies from participating in grid expansion and building. The move is aimed at all those countries which do not allow India to participate in their power transmission sector, of which China is one.

According to IEEMA’s database, during the last eight years, 2005-06 to 2013-14, India’s imports of electrical equipment have increased at a compound annual growth rate (CAGR) of 19.73 per cent in rupee terms and were at Rs 58,354 crore in 2013-14. Out of this, imports from China touched Rs 22,680 crore in 2013-14, growing at a CAGR of 34.57 per cent in the last eight years.