Transmission system components (cost share of different components)

Transmission line Substaton component
(50-55%) (45-50%)
‘Transmission Line
Omers
towers (TLT)- 33%) 3%)

Note: The percentage share of components is only indicative; actual investment incurred may differ from project to project.
Source: CRISIL Research

Transformers

Transformer helps in changing the voltage level, while transmitting electrical energy over long distances, to avoid
energy loss during transmission and make the required power available to consumers. Step-up transformers are
used to increase the voltage, while decreasing the current during transmission, and step-down transformers are
used to decrease the voltage while increasing the current, whereas distribution transformers are used to transmit
power to the end consumer.

Production of transformers

187
i | J. [J

FY16 FY20
7 Distribution transformers am Power tfanstormers

Million KVA

Source: Indian Electrical & Electronics Manufacturers Association (IEEMA), CRISIL Research

In fiscal 2018, transformers witnessed a sharp growth of ~16% on-year, supported by PGCIL ordering, as
expansion in rural electrification and transmission system received a boost through centrally funded schemes,
such as DDUGJY and IPDS, coupled with steady exports, particularly to Europe, Africa, and South America.
PGCIL ordering has been on a downward trend since fiscal 2018, impacting transformer production, especially in
fiscal 2020.

Switchgear
Switchgear refers to the combination of electrical equipment such as fuses, low- and high-tension circuit breakers,

miniature circuit breakers, control panels, and switchboards. However, the main equipment includes fuse switch
units and low- and high-tension circuit breakers.

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