Genset Prices To Jump Over 50% With New Emission Norms, Says Cummins India Head
Ashwath Ram sees an impact on the prices as the norms would affect the core technology itself.
Prices of generators in India will at least rise by half as the new emission norms kicking in later this year will affect the core technology, according to the head of Cummins India Ltd.
The products are going from pure mechanical to complete full-scope electronic ones with the new norms, which are going to be the tightest in the world for these, Ashwath Ram, managing director at the company, told BQ Prime on the sidelines of AutoExpo 2023.
The Environment Ministry had notified the new norms last year for the power generator sets assembled, manufactured and imported to India. The standards will be applicable from July 1.
"There's likely to be a significant impact on cost, greater than 50%," Ram said.
The transition to the Central Pollution Control Board IV-plus norms from CPCB II is expected to bring structural transformation in the gensets industry through technological changes and price revision.
Ram sees an impact on the prices for customers as new emission standards would affect the core technology itself.
This could mean significantly higher-priced generator sets for Indian industries, which fought frequent power outages last summer due to coal shortages across the country.
Coal India Ltd., the world's largest government-owned coal producer, had to import the fossil fuel for the first time in many years to fulfill the shortfall in domestic supply.
However, the company's commercial vehicle segment will see limited impact due to new emission norms.
The standards are going to change from OBD (on-board diagnostics) A to OBD C in April and that will not have a very significant impact on the cost, Ram said.
"The big changes in cost already happened when we moved from BS-IV to BS-VI."