In a bid to achieve 60 percent Minimum Local Content (MLC) in HVDC (LCC type) in a phased manner, the government has revised its ‘Make in India’ norms for the power sector. As per an official order of April 30, the government has reportedly said that it has decided to revise MLC in continuation to Ministry of Power's order.
The government, under the revised norms, has replaced the earlier uniform 60 percent requirement of local content by introducing a gradual increase over time for Engineering, Procurement and Construction (EPC) or turnkey projects.
As per the order, the MLC for HVDC substations (LCC type) will be 30 percent up to March 31, 2028 followed by 40 percent from April 1, 2028 till March 31, 2030. This will eventually be increased to 50 percent from April 1, 2030 till March 31, 2032 and subsequently and 60 percent from April 1, 2032 till March 31, 2035.
This phased approach is seen to be aimed to boost domestic manufacturing capabilities while providing the industry with time to scale up supply chain and technology. The government’s decision comes in the light of significance of HDVC’s crucial role in long distance power transmission and renewable energy integration into the grid
