Power distribution arm of REC, REC Power Distribution Company (RECPDCL), has directed cancellation of an order to Dongfang Electric India, the Indian unit of the Chinese power equipment maker, to avoid delays due to testing of gears as mandated by a government order.
In September 2019, RECPDCL had awarded a project for installation of 1.155 lakh smart meters in Jammu and Kashmir to Techno Electric & Engineering Company. Smart metering project has mainly four components -- Meter, RF communication, MDM and System Integrator.
Techno Electric and all its sub-contractors for different components are companies registered in India.
The move has been taken in view of the Power Ministry’s 2 July 2020 order regarding vulnerabilities in the power supply system and network which may arise due to possible cyber-attacks through malware/Trojans, etc embedded in imported equipment.
The order mandates prior permission of the government for any import of equipment from prior reference countries along with testing of the same in certified and designated laboratories.
Following the order, all new and ongoing contracts are being reviewed and as part of that review one of the sub-contractors of the above project, which though a company registered in India and having manufacturing facilities in India, was found to be a subsidiary of a Chinese company.
The sub-contractor has been directed to be withdrawn from the project since the continuation of the sub-contractor would have led to the requirements of taking prior permission and testing of every equipment supplied, thus leading to delays in execution.
The principal contractor has informed RECPDCL that they have removed the sub-contractor.