India power equipment prodn falls 1.76 pct in Oct-Dec
Wed Feb 18, 2009 3:10pm IST

MUMBAI, Feb 18 (Reuters) - Indian power equipment industry production fell Oct-Dec quarter from a year ago for the first time in five years, an industry body said on Wednesday.

Production fell 1.76 percent in the quarter compared with a 11.8 percent growth in the year-ago quarter, Indian Electrical & Electronics Manufacturer's Association (IEEMA) said in a statement.

A slowdown in industrial investments as well as in the real estate sector could account for the decline, S P More, director general of IEEMA told Reuters over the telephone.

"The hit is taken by the low voltage products," with investments either on hold or slowing down in the industry, along with the slowdown in real estate and construction, he said.

But, the high voltage products are showing some growth as state-run companies are continuing their investments in the sector, More added.

During Oct-Dec quarter, transformers - which are high voltage products - have shown growth of 8.71 percent, while low voltage products like energy meters have declined 21.14 percent, IEEMA data showed.

Power companies owned by state governments are also delaying their orders which is causing a pile-up of inventory in factories, More said.