China’s monopoly over power infra in Indian states
Even as the Centre is banning power equipment imports from China citing potential cyberattacks, 25 cities across 12 states have awarded contracts of realtime power supply and data management, communication infrastructure to Chinese companies.
Most of these projects are funded under the central scheme for urban power reforms — Integrated Power Development Scheme (IPDS), the erstwhile R-APDRP.
Under t hese projects, Chinese companies have access to all power supply feeders, demand-supply information, and critical power infrastructure in the respective area, which can be controlled remotely. The contracts awarded are for supervisory control and data acquisition (SCADA) system, real-time data acquisition system (RTDAS), and power communication infrastructure over the past five-seven years.
SCADA is an industrial control system which monitors and controls industrial processes, mostly through remote technology. It is installed in the power grid of an area to improve power distribution. Cities in Tamil Nadu, Rajasthan, Madhya Pradesh (MP), Odisha, Jharkhand, and Puducherry have awarded the contract to Chinese company Dongfang Electric Corporation (DEC), according to the data accessed by Business Standard.
The website of DEC mentions it is “directly supervised by the Chinese central government”. DEC specialises in manufacturing of power equipment,
research and development of cutting-edge technology, contracting international engineering projects, exporting complete plants and equipment, and conducting international economic and technical cooperation, states the website.
Additionally, power departments of Andhra Pradesh, Uttarakhand, Odisha, Bihar, Himachal Pradesh, MP, and Chhattisgarh have awarded RTDAS contracts to Dongfang.
RTDAS is installed for real-time power supply management, monitoring of systems and data collection. According to the IPDS portal, the total project grant approved by the Government of India for RTDAS projects to these states is ~208 crore, of which it will grant ~131 crore.
There are also seven states and central public sector undertakings which have awarded contracts for power communication infrastructure to various Chinese companies. This pertains to optical fibre network alongside power transmission network for receiving and transmitting data on the power network.
The Indian electric equipment industry is now asking the government to cancel these contracts, citing threat of malware, data breach, remote cyberattacks, and privacy concerns.
R K Chugh, president, Indian Electrical and Electronics Manufacturers’ Association (IEEMA), said SCADA and RTDAS contracts given to Chinese companies and their subsidiaries in India are a serious security risk. Chugh is also the business head for digital grid for South Asia in energy management division of Siemens.
“This exposes the national grid and power system to serious risk from malware, spyware, and remote cyberattacks, which can compromise electricity supply. SCADA and RTDAS also give access to sensitive data to Chinese companies operating them. IEEMA demands scrapping of all such contracts given to Chinese companies and their subsidiaries in India,” says Chugh, adding Chinese companies should not be allowed to participate in power tenders in future.
In 2016, Russian hackers planted malware in Ukrainian power systems, launching a cyberwar on the power systems.
The Philippines has recently launched a probe against the concerns of China shutting off the country’s electricity supply, following close to 100 unknown cyberattacks. The State Grid Corporation of China has 40 per cent stake in the Philippines’ national grid.
Indian recently banned all power equipment imports from China, following the stand-off at the Indo-china border in Galwan Valley. The Indian industry has urged the Centre to cancel past contracts, saying there is sufficient domestic manufacturing capacity.
In the electrical equipment segment, imports from China constitute close to 30 per cent of the total imports worth ~71,570 crore. This includes power
and distribution transformers, conductors, cables, meters, motors, switchgears, etc. This equipment is mostly used in power transmission and distribution sectors. The size of the Indian electrical equipment market is ~2.08 trillion. The domestic production accounts for ~1.9 trillion.
According to the data collated by IEEMA, of the 58 identified equipment used in power supply infrastructure, there are only four products for which there is no domestic capacity and two products for which there is alternative technology available in India.