The Central Government has banned the import of power equipment from China citing the possibility of the cyber attack, but in 25 cities of 12 states, contracts for real-time power supply and data management and communication infrastructure are with Chinese companies. Funds for most of these projects have been funded through the Integrated Power Development Scheme (IPDS), the central scheme for urban power reform.
Under these projects, Chinese companies interfere in all power supply feeders, demand and supply data, and critical power structures and companies can control them even remotely. These contracts have been awarded in the last five-seven years for SCADA systems, RTDAS, and power communication infrastructure.
SCADA or Supervisory Control and Data Acquisition is an industrial control system, which typically monitors and controls industrial processes through remote technology. It is installed in the power grid of an area to improve power distribution. According to information gathered by Business Standard, these contracts have been awarded to Chinese company Dongfang Electric Corporation in the cities of Tamil Nadu, Rajasthan, Madhya Pradesh, Odisha, Jharkhand, and Puducherry.
The Dongfang Electric Corporation (DEC) website states that China's central government directly monitors it. According to the DEC website, the company has expertise in manufacturing power equipment, research and development of state-of-the-art technology, contracts for international engineering projects, export of complete plant and equipment, and international economic and technical cooperation.
Apart from this, the Government of Andhra Pradesh, Uttarakhand, Odisha, Bihar, Himachal Pradesh, Madhya Pradesh and Chhattisgarh have also awarded real-time data acquisition (RTDAS) contracts to Dongfang. RTDS has been established for power supply management, monitoring of systems, and data collection at any particular time. According to the IPDS portal, these states have been sanctioned a grant of Rs 208 crore from the Center for ITDAS projects, out of which Rs 131 crore will be provided.
Apart from this, seven other states and central public sector undertakings (PSUs) have also awarded contracts for power communication infrastructure to various companies in China. This includes laying the power transmission network as well as the optical fiber network so that transmission information can be sent over the power network. The home appliance manufacturing industry is now demanding the government to cancel these contracts as there is a risk of malware, data theft, remote cyber-attacks, and privacy violations. RK Chugh, president of the Indian Electrical and Electronics Manufacturers Association, said that there was a serious threat to security from SCADA and RTDAS contracts awarded to Chinese companies and their Indian units. The digital grid business of South Asia is also the head of the energy management unit of Chugh Siemens Limited. He said that Chinese companies should not be allowed to participate in the tenders of the power sector even in the future.
"This puts the national grid and power system at serious risk of malware, spyware, and remote cyberattacks, which can also affect the power supply," Chugh said. China companies have sensitive information due to SCADA and RTDAS. The organization demands cancellation of all such contracts awarded to Chinese companies and their Indian units. '
In 2016, Russian hackers put malware in Ukraine's electricity system and launched cyber warfare on the power system. The Philippines has recently launched an investigation. It says that China can shut down the electricity supply of the entire country through 100 unknown cyber-attacks. The State Grid Corporation of China has a 40 percent stake in the national grid of the Philippines.
The Government of India has recently banned the import of all power equipment from China due to the tussle on the Indo-China border in the Galvan Valley. Indian industry has also appealed to the government to end the old contracts. He says that the country has sufficient manufacturing capacity for this. A total of Rs 71,570 crore worth of power equipment is imported into the country, of which about 30 percent of the equipment comes from China. These include power and distribution transformers, conductors, cables, meters, motors, switchgear, etc.
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