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CLEANTECH HANDBOOK INDIA

CLEANTECH FINLAND

Content
1 2 3 INTRODUCTION 1.1 Preface 1.2 Executive summary 1.3 Purpose of the report 1.4 Background 1.5 Emerging trends and growth drivers ILLUSTRATION OF THE ADMINISTRATIVE SET UP 2.1 Institutional set up 2.2 Cleantech Key Ministries in India 2.3 Cleantech Governmental programmes in India EMERGING CLEANTECH SECTORS AND OPPORTUNITIES FOR FINNISH COMPANIES 3.1 RENEWABLE ENERGY 3.1.1 Solar 3.1.2 Wind 3.1.3 Bioenergy 3.1.4 Waste to energy 3.1.5 Small hydro 4 5 5 5 6 6 8 9 10 12 14 15 20 23 27 30 33 36 42 48 52 56 60 61 64 69 84 85 85 85 85 86 90 91 92 94 98 100 104

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CLEANTECH HANDBOOK INDIA

3.2 ENERGY EFFICIENCY 3.3 WATER AND WASTE WATER 3.4 URBAN DESIGN AND SMART CITIES 3.5 WASTE MANAGEMENT 3.6 GREEN BUILDINGS FINANCIAL POSSIBILITIES 4.1 International funding 4.2 India 4.3 Finland MAPPING THE CHANNEL OF SETTING UP BUSINESS IN INDIA 5.1 Cultural, social and geographical trends apart from market trends 5.2 Doing business in India 5.3 Things to keep in mind 5.4 Different avenues for market entry ROLE OF COMMUNICATION FOR CLEANTECH IN INDIA TEAM FINLAND IN INDIA 7.1 Introduction 7.2 Indo-Finnish Joint Working Group on Clean Technologies and Waste Management under the Bilateral Joint Commission KEY CLEANTECH INDUSTRY CONSORTIUMS AND ORGANISATIONS OTHER CLEANTECH ORGANISATIONS IN INDIA

REFERENCES ABBREVIATIONS
All gure are in Euros (1 USD = 0.73 Euro)

CLEANTECH HANDBOOK INDIA

Introduction

1.1 Preface
Climate change has become a formidable challenge that needs to be addressed immediately and effectively. The responsibility lies heavily on the shoulders of the governments, making every policy in this area necessary and crucial. Many governments however dither to take signicant actions due to the huge costs and complexity related to solving these issues. Finland has been a frontrunner in developing technologies within the cleantech sector for over a decade now. Finlands positive image on environmental issues and as a high-tech hotspot helps in promoting exports of environmental expertise and the growth of the sector. Finnish cleantech expertise is in high demand internationally, and Finnish companies have been quick to utilise the market potential. There has also been strong governmental support to boost cleantech growth, says Mari Pantsar-Kallio, Strategy Director for the Cleantech strategy programme at the Finnish Ministry of Employment and the Economy. In recent years, cleantech has been one of the fastest-growing business sectors in Finland with an annual growth of 15 per cent in 2012. Combined turnover for cleantech business was EUR 24.6 billion and annual growth 15 per cent, according to a survey by Cleantech Finland. Ministry of Employment and the Economy, Government of Finland has devised a strategic programme to increase turnover in the cleantech sector to EUR 50 billion and to create 50,000 new jobs by 2020. Finland is home to some of the worlds leading companies and research institutions within the area of onshore and offshore wind, green buildings, water sector, bio-energy and maritime cleantech. Finland also has strong competencies in some niche areas of the smart grid and waste management industries. Consequently, Finland has actually managed to decouple the otherwise strong linkage between growth and energy consumption. The latest targets from the Finnish Government build on the long history of green ambitions in Finland. The Government adopted the Foresight Report on Long-term Climate and Energy Policy in October 2009. Setting a target to

reduce Finlands greenhouse gas emissions by at least 80 per cent from the 1990 level by 2050 as a part of an international effort, the report marks out the road to a low-carbon Finland in 2050. For these reasons it is not very surprising that Finland has initiated the rst market analysis of the cleantech sector in emerging India. By making this report, the ambition is to help communicate concrete opportunities to companies of all sizes, which can benet their plans of expansion and further strengthen their business strategies in the Indian market. Additionally, this report shows that if Finnish organisations are to take full advantage of the potentials in the cleantech sector in India, they not only require knowledge on these opportunities but also require greater collaboration with Indian counterparts.

1.2 Executive summary


The future of cleantech is changing in India. Macro developments such as urbanisation, rapid growth, climate change, and depletion of resources continues to drive the need for investments in clean technologies. At the same time, promising industries are suddenly diminishing and new clean industries are coming onboard to drive the future growth for clean technologies. This report will endeavour to uncover the areas for cleantech growth in the near future in India. It will explain how the key cleantech industries will develop over the coming years. This would help not only to understand where companies should focus and how they should react in order to maximise the value from the industries, but also guide decisions related to new technology deployment.

INTRODUCTION

1.3 Purpose of the report


The report endeavours to capture the Indian cleantech market as a whole. The focus is to understand developments in the market, where companies should concentrate their efforts, key underlying drivers in the industries and mapping nancial tools available to boost businesses. Additionally, gathering of knowledge in each industry and market has enabled the creation

Cleantech Handbook India

Cleantech Handbook India

CLEANTECH HANDBOOK INDIA

Introduction

of several growth opportunities. The analysis across growth sectors, combined with macro developments, has given unique insights into how the dynamics of the markets evolve and what mechanisms and traits are necessary from a general perspective to capture the future growth.

adopting a pro-environment stance in all its development strategies. Depletion of Natural Resources: With coal reserves depleting or more available in dense forest locations where current environmental laws forbid mining, and with the depleting availability of water for mans use, there is immense pressure on natural resources as the human population and urbanisation increases. There is an urgent need to protect the available resources. Adopting Newer & Cleaner Technologies: The adoption of newer and cleaner technologies will help India in leapfrogging into the sustainable growth pathway as the Indian economy grows at an unprecedented rate. Man-Environment Conict: There is an increasing importance given to the voice of the local communities that reside on or near the natural resources. The development of industry in these regions has led to conict between the need for development to meet the power, water and other needs of a growing urban population, versus the need to protect the environmental resources that rightfully belong to these local communities. Strong Economic Growth: The Indian economy is growing strongly at 4-5 per cent plus annually and is one of the fastest growing economies in the developing world today. Global Climate Negotiations: The current global negotiations on climate change have put pressure on rapidly developing economies like India to adopt green technologies and not repeat the unsustainable mistakes of the past.

Strong fundamentals driving Indias economy


Fourth largest economy in the world when adjusted for purchasing power parity Projected GDP growth (2013-2014): 5.5 per cent (RBI) Euro 0.72 trillion projected infrastructure investment in next ve years Large domestic market: 560 million consumers in 20-49 age group expected by 2015 Fifth largest consumer market by 2025 Increased disposable incomes & changing lifestyles Human capital: Third largest pool of scientic & technical manpower 2,00,000 engineering graduates annually Huge manpower base (1.2 billion people) Over 500 universities (20,000 colleges) Large English speaking population

1.4 Background
India represents a key market for clean technology companies as it is investing billions in this sector. The objective of the Indian Government is to foster a second Green Revolution. The Indian environment market is estimated to be growing at 9 per cent per annum. The US and Western European countries are the leading source of imports of environmental technologies into India. Foreign Direct Investment (FDI) in environment equipment and services is allowed under the automatic route with up to 100 per cent foreign equity holding. Thus, the Indian market offers strong business prospects for foreign investors. Indias growing economy and surging demand for clean power to strengthen energy security and reduce pollution, as well as ongoing sector reforms, is making India one of the most attractive destinations in the world for environmentallyfriendly investments, as per an ADB report.

1.5 Emerging trends and growth drivers


Governmental Regulations: India is becoming more active today with an emphasis on implementation of regulations. With a more active media and awareness of people towards environment, India is driven towards

Cleantech Handbook India

Cleantech Handbook India

CLEANTECH HANDBOOK INDIA

Illustration of the Administrative Set Up

India is highly fragmented and complex. Home to many distinct cultures and 22 languages recognised by the countrys constitution, it is made up of 28 states and seven union territories marked by economic diversity. Regulatory environments and governance standards differ across states

and territories, and power is increasingly being devolved to the state level. The following section will briey introduce the administrative set up of the Indian Government and the roles of different ministries to develop the cleantech sector.

Institutional set up

ILLUSTRATION OF THE ADMINISTRATIVE SET UP

Cleantech Handbook India

Cleantech Handbook India

CLEANTECH HANDBOOK INDIA

Illustration of the Administrative Set Up

Cleantech Key ministries in India


Ministry New and Renewable Energy Industry Sector Renewable energy About Develops and spreads out new and renewable energy solutions to supplement the energy requirements of the country Responsibilities Facilitate research, design, development, manufacture and deployment of new and renewable energy systems/ devices for transportation, portable and stationary applications in rural, urban, industrial and commercial sectors Responsible for development, conservation and management of water as a national resource and overall national perspective of water planning and coordination Promoting and supporting new areas of technology integration including cleantech Programmes 1.Gridinteractive renewable power projects 2. Programme on Battery Operated Vehicles, MNRE Web Address www.mnre. gov.in/

Ministry Environment and Forests

Industry Sector Environment, climate change and forestry

About Planning, promotion, coordination and overseeing the implementation of Indias environmental and forestry policies and programmes Exploration and production of oil and natural gas, their rening, distribution and marketing, import, export, and conservation of petroleum products and Liquied Natural Gas Perspective planning, policy formulation in regards to thermal, hydro power generation, transmission and distribution

Responsibilities Implementation of policies and programmes relating to conservation of the countrys natural resources

Programmes The Sustainable Land and Ecosystem Management (SLEM) Programme; Climate Change Programme Fund

Web Address envfor.nic. in/

Petroleum & Natural Gas

Petroleum industry

Water Resources

Water management

All matters both general and technical relating to the development and management of water resources in the country including water use efciency, com Plays a role in organising, coordinating and promoting S&T activities in the country

National Water Framework Law National Water Policy

wrmin.nic. in/

Oil reneries, including Lube plants, exploration and exploitation of petroleum resources, including natural gas

Strategic Crude Oil Storage; Ethanol Blended Petrol Programme

petroleum. nic.in/

Power

Energy efciency

Science and Technology

Science and Technology (S&T)

Climate Change Programme, Water Technology and Solar Energy Research Initiative Programme JNNURM, National Mission of Sustainable Habitat

www.dst. gov.in/

Administration of the Electricity Act, 2003, the Energy Conservation Act, 2001

1. National Mission for Enhanced Energy Efciency NMEEE 2. Energy Savings Certicate Trading 3. Carbon Finance Energy Efciency

www. powermin. nic.in/

Urban Development

Urban design, sustainable urban frastructure

Formulation and administration of the rules and regulations and laws relating to the housing and urban development

Formulating policies, supporting programmes, monitoring programmes so far as they relate to urban development concerning all the issues in the country

moud.gov. in/

Earth Sciences

Environmental protection and climate change

Provide services in forecasting the monsoons and other climate parameters, ocean state, earthquakes, tsunamis and other phenomena related to earth systems

The main responsibility is to look after Atmospheric Sciences, Ocean Science and Technology and Seismology in an integrated manner

1. Marine Living Resource 2. Coastal Zone and Island 3. Ocean Observation and Infromation Services

dod.nic.in/

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Illustration of the Administrative Set Up

Cleantech Governmental programmes in India


Programmes National Action Plan on Climate Change (NAPCC) Key Stakeholder/s Prime Ministers Council on Climate Change Ministry of Environment and Forests Key Objectives National Solar Mission National Mission for Enhanced Energy Efciency National Mission on Sustainable Habitat National Water Mission National Mission for Sustaining the Himalayan Ecosystem National Mission for a Green India National Mission for Sustainable Agriculture National Mission on Strategic Knowledge for Climate Change National Bio-energy Mission Rural Electrication Policy (Renewable Energy) Prime Ministers Council on Climate Change Ministry of Environment and Forests Promote renewable sources of energy with a high focus on solar energy Promote energy efciency and efcient use of natural resources including water Afforestation across Himalayan region and other parts of India Access to funds for private sector for developing environmentalfriendly technologies Energy Conservation Act Bureau of Energy Efciency, Ministry of Power Reduce energy consumption in different sectors of the economy Promote energy efcient equipment Increase energy awareness Renewable Energy Policy Ministry of New and Renewable Energy Increase share of new and renewable energy in the fuel mix Increase per capita energy consumption to global average Provide electricity to rural and remote areas through renewable sources Reduce dependence on energy imports and promote energy security through a diverse and sustainable fuel mix Creating affordable solar power systems Producing power from waste Geospatial technology for precision agriculture Improve automotive fuel economy Technology Focus Renewable energy technology development Energy efciency technology integration in industries, buildings, urban planning Waste and water management and recycling Pollution control Electric vehicles

Programmes Biodiesel Purchase Policy

Key Stakeholder/s Ministry of Rural Development

Key Objectives Reduce environmental impact of the transportation sector Reduce oil imports and promote energy security Encourage production of Jatropha

Technology Focus Biodiesel technology

Ethanol Blending of Gasoline

Ministry of Petroleum and Natural Gas

Reduce environmental impact of the transportation sector Reduce oil imports and promote energy security Encourage indigenous energy sources

Automotive fuel economy

Energy Conservation Building Code Bachat Lamp Yojana

Bureau of Energy Efciency

Reduce energy consumption in buildings sector Promote energy efciency in building construction and management

Green construction technologies

Ministry of Power

Direct reduction of Co2 emissions through efcient equipment Reduction in energy demand

Energy efcient CFLs and lighting devices

Energy saving technologies in appliances, household electricals and other industrial machinery Energy efcient building construction Indigenous design, development and manufacture of renewable energy systems Focus on solar, wind, hydel, biomass, waste, fuel cells, hydrogen, fuel cells, geothermal and tidal

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CLEANTECH HANDBOOK INDIA

Emerging Cleantech Sectors and Opportunities for Finnish Companies

3.1 Renewable energy


Renewable energy has enormous potential and is becoming an increasingly signicant part of Indias energy mix. With vast potential, renewable energy is no longer seen merely as an alternate energy source to conventional energy, but as a critical element in the pursuit of key policy objectives. It enhances Indias energy security by diversifying the countrys energy mix and reducing dependence on imported fossil fuels. Renewable power represents about 12 per cent of the total installed electricity generation capacity in India. Investment in renewable energy was Euro 4.96 billion in 2012.

duty concessions on soft loans for the import of material, components, and equipment used in renewable energy projects Establishment of the National Solar Mission (NSM) which aims to deploy 20 GW of solar energy by 2020 Soft loans for setting up renewable energy enterprises Tax holiday for 10 years for biomass power projects

Investments
The recent announcement of the Prime Minister of India during the Clean Energy Ministerial meeting in April 2013 in New Delhi to double the renewable energy in the next ve years would attract an investment of over 4,000 MW per annum.

EMERGING CLEANTECH SECTORS AND OPPORTUNITIES FOR FINNISH COMPANIES

Government incentives
Some of the other key incentives provided by the Government of India for the renewable energy industry are: Feed-in-tariffs for both wind and solar energy Up to 80 per cent accelerated depreciation for renewable energy investments Preferential tax rate of 15 per cent, instead of the standard 30 per cent Exemption from central sales tax and customs

Foreign Direct Investment (FDI)


The Indian Government allows 100 per cent FDI in the renewable energy sector and has put in place favourable policies to attract foreign companies into the sector.

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Solar PV Energy storage Improvements in module technology, including higher density and lighter weight modules

Solar Thermal Increased R&D Hybrid power systems Non-grid solar thermal applications Solar building technology applications Solar cooling and solar steam generation systems for industrial process steam applications are emerging opportunities where Finnish technologies can play an important role

Outlook
Developing renewable energy can help India increase its energy security, reduce adverse

impacts on the local environment, lower its carbon intensity, contribute to a more balanced regional development, and realise its aspirations for leadership in high-technology industries.

High temperature solar thermal applications

Wind Importing the latest technologies with higher capacities (over 1-2 MW systems) Wind machines for low wind regimes Better designed rotor blades, gear boxes, and control systems Small wind machines for decentralised power generation, wind PV hybrid systems, and wind mills for water-pumping applications are also largely untapped markets

Small Hydro Power Low head power generation systems High efciency systems Portable micro-hydro systems

Bioenergy R&D

Table 1: List of Opportunities for Finnish Companies in RE


Solar PV Thin lm technologies Improvements in conversion efciencies Grid interactive projects Joint ventures with global PV manufacturers

High pressure boilers High power gas turbines Combined cycle, process systems and equipment Advanced biomass gasication and combustion technologies High pressure cogeneration systems, coring and blending technologies, and cost-effective handling Storage and drying of biomass There is a need for small biomass (1-3 MW) in rural areas and larger capacities in cogeneration in sugar mills (bagasse) and pulp and paper factories

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Waste to Energy High rate biomethanation systems Incineration and sanitary landlls Waste collection and segregation Financing build own transfer and build own operate systems

Groups and Individuals Indian Renewable Energy Development Agency (IREDA) and other nancial institutions/ partner bank International Financial Institutions

How can they help us? Concessional nancing for RE projects

How can they block us? By not nancing the RE projects due to high cost

What would they want from us? Financial support through for instance guarantees

What do we want from them? Large scale nancing RE projects through concessional funds Supporting particularly offgrid initiatives, and rural electrication efforts by providing debt funds at low-cost

Table 2: Renewable Energy Stakeholder Matrix


Groups and Individuals Research and Development (R&D)/Technical institutions Equipment manufacturers and technology providers How can they help us? Engage in technology development/ indigenisation efforts Manpower development Product marketing partners Technology innovation Awareness creation among users Promotion of renewable energy programme at the state level through conclusive policies Lack of adequate support for RETs Lack of appropriate fund allocation Inefciency in delivery Through regulations that have inadequate enforcement measures Lack of adequate support for RETs Sectoral interest can block/hamper growth Financial support Timely release Skill development Cooperation Facilitating effective implementation of RE projects and initiatives How can they block us? Misuse of assistance/subsidy What would they want from us? Skill development Financial support Financial support What do we want from them? Incubating new technologies

Source of low-cost funds

Lack of support

Misuse of assistance/subsidy

Providing high quality products

Developers/ investors (Including foreign)

Implementing RE projects and Programmes Innovation in business model for inclusive growth

Availing nancial support from the ministry but not implementing projects Unfair practices Sub-optimal monitoring of project

Financial support Conducive policy & regulatory framework

Implementation of projects Co-creating diligent sustainable business model f

State government

NGOs

Spreading awareness

Factious NGOs spreading of misinformation

Financial support

Awareness generation Lobbying with government agencies

Regulators (CERC, SERC)

Formulating condusive regulation that will support the RE policy initiative by the ministry Promotion of renewable energy programme in complementary programmes

Working together at the time of formulation of policies and regulations Facilitating large scale off-grid applications such as SWH, solar cooking, solar lighting, solar airconditioning, kitchen waste processing, green building and campuses in their establishments

End Users

Large scale use of RETs and services

Non-cooperation towards usage of RE devices on account of: Lack of awareness High-cost Utility factor

Awareness creation Cost of such devices being made available at the same cost or lower cost than conventional system

Increased usage and promotion of RE systems and devices

Different ministries of Government of India

Convergence of inclusive growth

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Table 3: Institutional Framework for Renewable Energy


Level Centre Central Government Develop national electricity tariff policies which also covers renewable energy Provide scal incentives for promoting renewable energy MNRE Develops national renewable energy laws Sets technical standards for renewable energy Conducts resource assessment and support R&D for renewable energy Promotes effective use of information technology for renewable energy, manages database Reviews the programmes to understand their effectiveness and efciency Level State State Government Develop state level renewable energy policies State Nodal Agency Conducts resource assessment for various renewable energy sources Allocates renewable energy projects and progress monitors Provides facilitation service to project developers Facilitates clearances and land acquisitions Creates awareness and promotes renewable energy adoption SERC Develops feed-in-tariff methodologies Determines Renewable Purchase Obligation (RPOs) and enforcement mechanisms Sets regulations on interstate wheeling, open access and third-party sale CERC Sets guidelines for feed-in-tariff design for different renewable energy technologies Regulates the regional electricity cooperation mechanism Regulates interstate open access and third party sales

Table 4: JNNSM-Phase-wise Targets and Objectives


(Source: Ministry of New and Renewable Energy, RRECL, GEDA)

Parameters

Phase 1 ( 2010-13) Solar deployment

Phase 2 ( 2013-17) Scaling up Scaling up various Validated application Rolling out business models 4,000-10,000 1,000 15

Phase 3 (2017-22) Rapid scaling up Reducing solar power cost to achieve grid tariff parity by 2022 20,000 2,000 20

Level

Driving down cost Promoting off-grid application Validating social and economic viability

T A R G E T

Utility, grid power, including roof top (MW) Off-grid installation (MW) Solar collections (million sq mt.)

1,100 200 7

Drivers and challenges


Drivers Demand side growth Rising energy needs Falling costs Persistent energy decit Supply side growth Over dependence on coal Over dependence on oil imports Heavy subsidies for companies Huge rural demand Abundant sun rays Challenges Lowering the cost of manufacture Non-uniform supply across states Closer industry government cooperation Collaborative goal-driven R&D Complicated nancing infrastructure Sporadic consumer awareness Lack of standards

3.1.1

Solar

Government initiatives to develop the sector


A major initiative of the Government of India and state governments, the Jawaharlal Nehru National Solar Mission (JNNSM) was launched in January 2010 with the objective of leveraging on the countrys vast solar energy potential by creating a policy and regulatory environment that enables rapid and large-scale capital investment in solar energy. Solar mission incentivises developers by offering them preferential tariffs and making it mandatory for utilities to meet Renewable Purchase Obligations (RPOs).

Heavy government subsidies Inclination for clean technology

Background
India is a country that has tremendous solar energy potential. The country has close to 300 sunny days per year and receives an average hourly radiation of 200 MW/sq.km. This translates to a potential of more than 100 GW of solar energy. Indias current installed capacity of 1,044 MW accounts for only 0.5 per cent of its total power generation capacity.

Indias unique proposition


Economic Value: The generation of solar electricity mitigates peak energy costs and brings total energy bills down Geographical Location: India being a tropical country receives adequate solar radiation for 300 days, amounting to

3,000 hours of sunshine equivalent to over 5,000 trillion kWh Power Shortage: Due to shortage of electricity, power cuts are common throughout India and this has adversely affected the countrys economic growth. Solar energy can full the energy demand with nesse

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Table 5: Opportunity Snapshot for Finnish Companies


Solar Thermal Description The most common solar thermal applications in India are off-grid and include solar water heating, air heating and cooling, solar cookers, and passive architecture to heat and cool buildings Solar PV The main types of solar PV applications types for India are community lighting systems, lanterns, street lights, xed home lighting systems and water pumps Some Key Facts

Solar Thermal

Solar PV

India averages 300 days of sunlight per year, which translates to 100 GW of solar energy Solar PV conversion efciency currently remains at 15 per cent In the last decade, the cost of PV has decreased by a factor of 10 in relation to production of components; however, there are still cost barriers throughout the supply chain The average hourly solar radiation is about 200 MW/sq. km. Indias current solar capacity of 1,044 MW, accounts to only 0.5 per cent of its total power generation capacity By coupling countrys national policies with those at the states, Jawaharlal Nehru National Solar Mission aims to install 20 GW of solar power by 2020

Growth Forecast

For solar CSP and PV together, National Solar Mission attempts to reach an installed capacity of: By 2013: 1-2 GW By 2017: 4-10 GW By 2020: 20 GW

Large areas of the Thar Desert have been set aside for solar power projects, sufcient to generate 700 to 2100 GW Government is expected to spend Euro 13.76 billion until 2022 Cost of power generation - and trends in the same over years C  urrent cost of production (after bidding) Euro 0.14/kWh. This includes O&M, amortised/depreciated capital costs, loan repayment costs, and other expenses such as insurance Costs of production expected of solar PV power plants in the near future: Policy Measures By 2012 Euro 0.14/kWh By 2015 Euro 0.11/kWh 2020 Euro 0.07/KWh 80 per cent accelerated depreciation, exemption from excise duties, low import tariffs on raw materials and components, soft loans from IREDA and other nationalised banks, capital subsidies and training programmes

Table 6: List of Key Organisations in India


Research Institute/NGO Solar Energy Centre (SEC) Solar Energy Society of India (SESI) Solar Energy Corporation of India (SECI) Mainline of Activity Solar energy technologies Renewable energy Solar energy technology Website www.mnre.gov.in/sec/sec-objective.htm www.sesi.in/ www.mnre.gov.in/centers/seci/

Several support schemes are available in the form of generation based incentives capital subsidies, nancial support for detailed project report, subsidies for solar thermal technology adoption to increase energy efciency in buildings. Some states offer rebates on electricity rates for households with solar water heating systems

Conclusion
Solar energy possesses tremendous potential in bridging Indias energy demand-supply gap in the future. Some of the immediate actions to enable growth are efcient implementation of renewable energy certicates, usage of carbon trading as a source of revenue, development of off-grid usage in various applications such as cellular towers and encouraging localised mini grids in areas that lack connectivity today.

Financing

The three main nancing options for implementing solar PV captive power plants are debt nancing, asset nancing and corporate nancing IREDA, PFC, commercial banks and nancial institutions also offer soft loans, loans with interest rates lower than market interest rates

Euro 11.95 billion annual investment according to Indias Wind Energy Outlook 2012. According to ofcial estimates made by the Ministry of New and Renewable Energy (MNRE), Indias wind power capacity stands at 102,000 MW. Indias total installed capacity today is close to 18,000 MW which is the fth largest in the world.

Opportunities

Increased R&D Hybrid power systems Off-grid solar thermal applications Solar building technologies Solar cooling and steam generation systems for industrial processes High temperature solar thermal applications

Thin lm technologies, including process technologies, low-cost substrates, large size cell/modules Technologies to improve conversion efciency Grid-interactive technologies Improved solar PV technologies Energy storage Improved module technologies including light weight and higher density modules

Government initiatives to promote the sector


The growth in the renewable energy market is very crucial for the Indian economic growth. In its 12th Five Year Plan (2012-17), the Indian Government has set a target of adding 18.5GW of renewable energy sources to the generation mix out of which 11GW is the wind estimation and rest from renewable sources like solar 4GW and others 3.5GW. Due to all these considerations, the government has come up with many incentives and subsidy

3.1.2

Wind

Background
India has long started its journey to become one of the largest wind power producers in the world. India is expected to have 89 gigawatts (GW) of installed wind power capacity by 2020 and attract

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structures to encourage the growth of wind energy sector in India. 100 per cent FDI investment is allowed in the eld of renewable energy sector From April 1, 2012, the accelerated depreciation of 35 per cent in the rst year has been allowed. Here the allowed normal depreciation is 15 per cent, and additional 20 per cent deposition is allowed for projects in the power sector nder the Income Tax Act, Section 80IA, U companies are exempted of income tax for the sale of power during the rst 10 years orest lands are allotted or leased out for F developing wind power projects Discounted customs duty of only 5 per cent is given on some of the wind power machinery components ndian renewable energy development I agency is actively working towards institutionalising the nancing in this sector Heavy reduction of VAT or value-added tax is being offered by many states, i.e. From 12.5 per cent, it has been reduced to 5.5 per cent

Excise duty is exempted in the wind sector entre of Wind Energy Technology has been C established for institutionalising training, R&D, resources assessment and testing, and also for awarding certication to various wind energy products xemptions are being offered by the state E governments on duty for electricity 3 states allow privileged feed-in tariff on 1 wind energy production rovisions have been made for favourable P banking, wheeling, and for sales of wind power by the third parties PS or the Renewable Purchase Specication R have already been implemented in six states, which is in accordance to the Electricity Act of 2003 EC or the renewable energy certicate R has been set up for the purpose of interstate trading Concessional surcharges on cross subsidy are levied for the wind power sales by the third parties

Drivers and challenges


Drivers Aggressive wind energy capacity addition plans for the 12th Five Year Plan (2012-17) Re-powering wind farms Offshore wind installation opportunity Collaborative goal-driven R&D Rising energy needs Inclination for clean technology Over dependence on oil imports Challenges Variable output of aggregated wind capacity The challenge of integration The challenge of new grid infrastructure Withdrawal of the AD and GBI schemes Non-payment to wind energy developers/ generators Non-remunerative increase in tariff Increase in cross-subsidy charges

Indias unique proposition


Geographic Location and Wind Potential: India is blessed with 7,517km of coastline and its territorial waters extend up to 12 nautical miles into the sea. It is estimated that with the current level of technology, the onshore potential for utilisation of wind energy for electricity generation is of the order of 65,000 MW World Market Share: In 2012, India was the fourth largest wind market in the world, with around 1,700 MW new capacity addition

Government Support and Policies: Several states such as Karnataka, Tamil Nadu and Andhra Pradesh have come up with renewable energy policies Installed Capacity: Wind Energy holds the major portion of 70 per cent among renewable and continued as the largest supplier of clean energy. Share of wind is 19GW (March 2013) of 27.5GW of Indias RE installed capacity Wind Energy as Job Generator: Wind energy utilisation creates many more jobs than centralised, non-renewable energy sources

Table 7: Opportunity Snapshot for Finnish Companies


Wind Energy Description Wind power can be used both on and off-grid to produce electricity, though the intermittent nature of wind could cause difculty in grid stability. Wind power is one of the most RE technologies with over 74,000 MW installed capacity globally According to India wind energy Outlook 2012, wind energy generation capacity in India could more than quadruple to 89GW by 2020 This will attract investments of over Euro 11.95 billion, create over 179K jobs and offset 131 approximately million tonnes of carbon dioxide emissions Technology and innovation are swiftly moving wind energy towards grid parity and it wont be long before it can directly compete with even coal-based power; perhaps even as early as 2015

Growth Forecast

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Wind Energy Financing Government incentives include a feed-in-tariff, exemptions from excise duties, and tax exemptions for infrastructure-related projects. Additionally, the states that have created RE portfolio standards have helped accelerate the wind sector. There is a burgeoning interest by investors like Goldman Sachs, Black Stone, IDFC in the private sector IREDA, PFC, REC commercial banks and nancial institutions also offer soft loans, loans with interest rates lower than market interest rates Opportunities Importing the latest technologies with higher capacities (over 1-2 MW systems) Wind machines for low wind regimes Better designed rotor blades, gear boxes, and control systems Small wind machines for decentralised power generation, wind PV hybrid systems, and wind mills for water-pumping applications are also largely untapped markets R&D for new research into wind energy Some Key Facts Indias wind energy potential is now considered to be at least double the original estimate of 48.5GW Wind is expected to continue to be the mainstay of renewable energy in India in the short-term Capital cost in India is the lowest in the world and India is emerging as the fastest growing supply chain hub with many industries choosing for in-house manufacture of towers, blades, generators, convertors, etc. GBI scheme has been reintroduced in the Union Budget 2013-14 With increasing participation of Independent Power Producers (IPPs), the project development model is likely to shift from turnkey to a self-developed one Delayed payment from distribution companies is impacting long-term planning and nancial closure of projects Lack of enforcement of RPOs might impact long-term growth

Conclusions
Indias present generation capacity is about 200,000 MW and wind energy could amount to 100,000 MW by 2030 if the right resources (and more importantly, energy policies) are developed. India can develop massive commercial wind farms to harness the strong onshore coastal area and offshore wind to boost the countrys supply of clean renewable energy. But, to tap this vast resource, India must develop and implement smart business models and favourable policies as quickly as possible.

3.1.3

Bioenergy

Background
Bioenergy is one of the most promising alternatives that can help meet all the above needs. It also holds a great potential to meet the rural energy needs of the country. India has formulated and implemented a number of innovative policies and programmes to promote bioenergy technologies. However, according to some preliminary studies, the success rate is marginal compared to the potential available. This limited success is a clear indicator of the need for a serious deployment of bioenergy technologies and expertise on a large scale.

Table 8: List of Key Organisations in India


Research Institute/NGO Indian Wind Power Association Indian Wind Turbine Manufacturers Association Indian Wind Energy Association Centre for Wind Energy Technology (C-WET) Winrock International India World Institute of Sustainable Energy Main-line of Activity Wind power development Research and development Wind energy outreach Wind energy research Research on energy and climate change Knowledge management and consultancy Website www.windpro.org www.indianwindpower.com www.inwea.org www.cwet.tn.nic.in www.winrockindia.org www.wisein.org

Government initiatives to develop the sector:


1. The Ministry of New and Renewable Energy (MNRE) provides Central Financial Assistance (CFA) in the form of capital subsidy, exempted from custom and excise duty on machinery and nancial incentives to the biomass energy projects in India. The government has introduced new programmes and policies to strengthen the growth of this sector like: National Policy on Biofuels: Introduced in 2010, the policy encourages the use of alternative fuel

to supplement conventional transport fuels (gasoline and diesel for vehicles), and proposes a target of 20 per cent of bioethanol and biodiesel blending by 2017. The government has mandated a 5 per cent ethanol blending rate for domestic oil marketing companies. National Bioenergy Mission: Initiated by the Ministry of New and Renewable Energy in association with state governments, public & private sectors and other stakeholders to promote ecologically sustainable growth while addressing Indias energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change.

2.

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Drivers and challenges


Drivers Improved technologies inclusion New innovative policies and programmes by the government Avoids food versus fuel debate Rising energy needs GHG mitigation Over dependence on oil imports Challenges Limited capacity to assess, adopt, adapt and absorb technological options Perennial availability of biomass Fragile supply chain Lack of biomass storage and transportation facility Lack of mechanisation in Indian agriculture sector Some Key Facts Opportunities

Bioenergy For development and import of high pressure boilers, high power gas turbines, combined cycle, process systems and equipment Advanced biomass gasication and combustion technologies High pressure cogeneration system Co-ring and blending technologies Cost-effective handling, storage and drying of biomass Technology for production of ethanol like azeotropic distillation technology, molecular sieve technology, membrane technology Biomass-based power can be generated on a distributed basis and short lead times can enable rapid capacity addition Growth in the sector is likely to be driven by captive biomass and CHP application Competitive use of biomass is a constraint in maintaining its assured availability with reasonable cost structure Feedstock chain management is difcult due to the unorganised nature of the market sale of surplus biomass which is otherwise wasted and direct generation of employment in the biomass logistics management system and power plant Utility Benets: The key strength of the utility in the development of rural energy access is the presence of resources (manpower and infrastructure) in the rural areas More than 70 per cent of the countrys population depends upon biomass for its energy needs

Indias unique proposition


A biomass energy system has some unique characteristics making it the most attractive renewable option especially for rural areas: Generating Additional Rural Income: Farmers can derive huge benets from biomass-based distributed power generation systems. Direct benets would result from

Table 10: List of Key Organisations in India


Research Institute/NGO Petroleum Conservation Research Association National Biofuel Centre International Crops Research Institute for the Semi-Arid Tropics (ICRIT-SAT) Centre for Indian Bamboo Resource & Technology (CIBART) Mainline of Activity Bioenergy research and development Conducts research into dryland crops, including those that can serve as feedstocks for biofuels Feedstock project development and implementation, technical consultancy and turnkey services on all aspects of bamboo Industry association for the biodiesel industry Bioenergy research Association for the Indian biogas industry Website www.pcra-biofuels.org/ utt.htm www.icrisat.org/

Table 9: Opportunity Snapshot for Finnish Companies


Bioenergy Description Biomass-based energy generation has signicant potential to contribute to Indias growing energy needs. Technology has also signicantly advanced and is being made available locally along with a host of nancial incentives and policy measures being put into place to accelerate the investment in this sector. More than 540 million tonnes of crop and plantation residues are produced every year in India which has potential to generate 16,000 MW of grid quality power In addition, about 5,000 MW of power can be produced, if all 550 sugar mills in the country switch over to modern techniques of cogeneration The estimated biomass power potential is about 21,000 MW Financing Government subsidies exemptions from customs and excise duties, income tax holiday up to 10 years, general sales tax: exemption is available in certain states Bioenergy technologies and projects would be allowed 100 per cent FDI IREDA, NABARD, SIDBI, REC commercial banks and nancial institutions also offer soft loans, loans with interest rates lower than market interest rates Increased investment owing from private sector

www.cibart.org/

Biodiesel Association of India The Energy and Resources Institute Indian Biogas Association

www.bdai.org.in www.teriin.org www.biogas-india.org/

Growth Forecast

Conclusion
India has formulated and implemented a number of innovative policies and programmes to promote bioenergy technologies. Despite the operational issues involved, biomass-based plants provide higher returns compared to wind energy. This potential is also reected in many Independent Power Producers strategy

to diversify their renewable energy portfolio amongst wind and bioenergy. Going forward, it is expected that modern risk management techniques like forward contracts, better assessment of biomass resources and regulatory support of SERCs by providing competitive and stable preferential tariff will help in better harnessing the bioenergy potential of the country.

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3.1.4

Waste to energy

Background
Indias growing energy decit is making the central and state governments keen on alternative and renewable energy sources. Waste to energy is one of these, and it is garnering increasing attention from both the central and state governments. The problems caused by solid and liquid wastes can be signicantly mitigated through the adoption of environmentfriendly waste to energy technologies that will allow treatment and processing of wastes before their disposal. These measures would reduce the quantity of wastes, generate a substantial quantity of energy from them, and greatly reduce environmental pollution. Urban waste includes municipal solid waste, sewage and fecal sludge, whereas industrial waste could be classied as hazardous industrial waste and nonhazardous industrial waste.

nancial incentives and other eligibility criteria have been proposed by the MNRE to encourage the participation in waste to energy projects. They are listed herewith: Financial assistance is provided by way of interest subsidy for commercial projects Financial assistance is provided on the capital cost for demonstration projects that are innovative in terms of generation of power from municipal/industrial wastes Financial assistance is provided for power generation in STPs Financial incentives are given to municipal corporations for supplying garbage free of cost at the project site and for providing land Incentives are given to the state nodal agencies for promotion, coordination and monitoring of such projects Financial assistance is given for carrying out studies on waste to energy projects, covering full costs of such studies. Assistance is given in terms of training courses, workshops and seminars and awareness generation Waste to energy taskforce has been constituted by the Planning Commission to examine the technological aspects of Waste to Energy (WTE) projects started by civic bodies. The aim is to develop a PPP framework model for waste to energy projects

Indias unique proposition


Protability: If the right technology is employed with optimal processes and all components of waste are used to derive value coupled with government incentives, waste to energy could be a protable business. Government Incentives: The Government of India already provides signicant incentives for waste to energy projects, in the form of capital subsidies and feed-in tariffs. Related Opportunities: Success in municipal solid waste management could lead to opportunities

in other waste such as sewage waste, industrial waste and hazardous waste. Depending on the technology/route used for energy recovery, products such as charcoal, compost, nutrient rich digestate (a fertilizer) or bio-oil can be obtained. These co-product opportunities will enable the enterprise to expand into these related products, demand for which are increasing all the time. Emerging Opportunities: With distributed waste management and waste to energy becoming important priorities, opportunities exist for companies to provide support services such as turnkey solutions.

Government initiatives to promote the sector


MNRE has promoted the national programme for the recovery of energy from industrial and urban wastes. Since this programme seeks to promote setting up of waste to energy plants, various

Table 11: Opportunity Snapshot for Finnish Companies


Waste to Energy Description The Indian Government considers WTE to be a renewable technology, and the MNRE has developed the National Master Plan for Development of WTE in India. The MNRE lists a number of technologies for energy recovery from urban and industrial wastes that not only reduce the quantity but also improve the quality of waste to meet the required pollution control standards, besides generating a substantial quantity of energy Potential of generating energy from waste by 2030 as per MNRE Government of India 1500 MW from MSW 225 MW from sewage/sludge 1300 MW from industrial waste

Drivers and Challenges


Drivers Waste output per capita is growing as much as 1.33 per cent per year 55 million tonnes of municipal solid waste and 38 billion litres of sewage every year in urban India Lucrative incentives offered by the government Rising energy needs GHG mitigation Over dependence on oil imports Challenges Waste to energy is a new concept in India Lack of proven indigenous technology Cost are high as technologies are still imported Lack of availability of segregated MSW near the plant site Lack of nancial resources Lack of government support for land allocation supply of garbage, and evaluation facilities Growth Forecast

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Waste to Energy Financing Government support towards concessional loans from IREDA through NCEF and Grants for waste to energy projects to municipalities Financial incentives such as subsidies on interest rates and capital costs for demonstration projects 100 per cent accelerated depreciation and exemption from sales and excise taxes are offered Financial assistance to waste to energy projects are provided by MNRE, MoEF and nancial institutions like IREDA, NABARD, state nancial corporations and commercial banks International agencies supporting funding of waste to energy projects include USAID, kfW, JBIC, GEF, IFC, ADB and the US EXIM Bank Opportunities Separation of wet organic wastes Secondary collection and storage Recycling of wastes Transportation and logistics Biogas-based power generation from sludge Production of machineries and equipment for energy recovery technologies Incineration and sanitary landlls Decentralised technology installations Power generation and sale of power Some Key Facts An estimated 55 million tonnes of municipal solid waste and 4,400 million cubic metres of liquid waste are generated in urban areas of India annually with a potential of 2,600 MW of power production The moisture content of urban MSW is 47 per cent and the average caloric value is 7.3 MJ/kg (1745 kcal/kg) Indian Government has proposed incentives for waste to energy projects that would come up through public-private partnership mode with city municipalities in the 12th ve year plan

Conclusion
While the Indian Governments own gures would suggest that the cost of waste to energy is somewhat higher than other renewable sources, it should be kept in mind that waste to energy facilities serve a dual role of waste disposal and energy production. Although the cost per MW of capacity may be greater than other renewable sources, the benets of waste management, energy and metals recovery, and reduction of GHG emissions need to be considered.

of Power (MoP) and the Central Electrical Authority (CEA), while the responsibility for execution and maintenance was with the State Electricity Boards (SEB). Today MoP is involved only in hydropower projects larger than 25 MW, while the MNRE is responsible for projects with station capacities of 25 MW or less. There are several incentives offered by the government, such as: Financial assistance is provided by way of interest subsidy for commercial projects In several states, various additional supporting policies are available for private small hydro projects, including wheeling and banking, buy-back of power, and allowances for third-party sale Incentives are given to the state nodal agencies for promotion, coordination and monitoring of such projects Direct subsidies for different project costs are available Capital subsidies are available for New plants between 100 kW and 25 MW implemented by the state New plants implemented by the private sector or Non-Governmental Organisations (NGOs) Renovation and existing plants maintenance of

3.1.5

Small hydro

Background
In India, small and minimal hydro potential can provide a solution for the energy problems in remote and hilly areas where extension of grid systems is comparatively uneconomical. It is one of the least expensive and most attractive forms of renewable energy. As on today, small and mini hydro (hydroelectricity) capacity aggregation to about 340 MW is in operation. With an estimated potential of about 15,000 MW in India, the government is determined to develop this sector at a faster pace.

Government initiatives to promote the sector


Until 1989, all hydropower projects were under the administrative control of the Ministry

Watermills and micro hydro projects up to 100 kW In all cases, special category and northeastern states have a higher subsidy.

Table 12: List of Key Organisations in India


Research Institute/NGO National Environmental Engineering Research Institute (NEERI) Department of Science and Technology (DST) Waste to Energy Research and Technology Council Centre for Ecological Sciences (CES), Indian Institute of Science The Energy and Resources Institute Mainline of Activity Energy research Science & technology Website www.neeri.res.in

Drivers and challenges


Drivers Challenges Geographical surprises Land acquisition Rehabilitation and resettlement Forest and environmental clearances Poor road infrastructure Source of revenue for states Lack of access to hydrological data

www.dst.gov.in/ scienticprogramme/ t-d-solar-energy.htm wtert.in/ wgbis.ces.iisc.ernet.in/ energy/ www.teriin.org

Renewable, energy security and fuel shortage GHG mitigation Peaking support (as against other RE) making it cheap in the long run Development of remote areas

Waste to energy project research Energy research Energy research

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Indias unique proposition


Need and Exclusivity: Realising the fact that mini hydropower projects can provide a solution for the energy problem in rural, remote and hilly areas where extension of grid system is comparatively uneconomical, promoting mini hydro projects is one of the objectives of the small hydropower programme in India Government Incentives: The Government of India already provides signicant incentives

for small hydro projects, in the form of capital subsidies. Community Ownership: While small hydro projects are developed by various state agencies responsible for renewable energy, the projects are normally maintained with local community participation. Private Sector Ownership: A number of tea garden owners and other private factory owners have also set up such micro hydro projects to meet their captive requirement of power.

Table 13: List of Key Organisations in India


Research Institute/NGO International Association from Small Hydro (IASH) Indian National Hydro-power Association Alternate Hydro Energy Centre National Hydroelectric Power Corporation (NHPC) Main line of activity R&D, planning, consulting on construction and operation Promotion and development of projects Waste to energy project research Public sector enterprise which promote and organise an integrated and efcient development of hydro projects Website cbip.org/iash/iash.html hpaindia.org/ ahec.org.in/index.html www.nhpcindia.com/

Table 14: Opportunity Snapshot for Finnish Companies


Small Hydro Description Some 967 small hydro projects with an aggregate capacity of 3,632 MW have been installed in India to the end of April 2013, with 24 states announcing a policy to invite private sector bodies to set up projects. In addition, 281 small hydro projects with an aggregate capacity of 1,061 MW are also under construction in various states. Recognising that small hydropower projects can play a critical role in improving the overall energy scenario of the country and in particular for remote and inaccessible areas, the ministry aims to harness at least half of the potential in the country over the next decade to bring the installed capacity of small hydro to about 7 GW by the end of 12th plan in 2017. MNRE is providing Central Financial Assistance to set up small/micro hydro projects both in the public and private sectors Government is also providing nancial support to the state governments for the identication of new potential sites, including surveys and the preparation of detailed project reports, and renovation and modernisation of old projects Financial assistance also provided by nancial institutions like IREDA, state nancial corporations and commercial banks International agencies supporting funding including USAID, kfW, JBIC, and IFC Opportunities Low head power generation systems High efciency systems Portable micro-hydro systems Some Key Facts Private sector participation has increased in small hydro projects because of affordable investment and strong government support There are a number of structural issues that impact on the countrys ability to develop large capital-intensive projects like large-scale hydropower and as a result a good deal of attention has been focused on the development of small hydropower capacity (output of>= 25MW)

Conclusion
The Indian market for small hydropower offers good business opportunities to international companies. The market development has been very positive and constant, and the applicability and economic viability of small hydro technology

in India has been proven adequately. In order to develop hydropower projects, foreign companies prefer to work with an Indian partner who has a good local network in the relevant region and can take the lead on the purchase of land and the approval processes.

Growth Forecast

Financing

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Energy Efficiency

3.2

Background

The gap between supply and demand of energy is continuously increasing despite huge outlay for energy sectors since independence. Further, the burning of fossil fuel is resulting in greenhouse gases which are detrimental to the environment. The gap between supply and demand of energy can be bridged with the help of energy conservation which may be considered as a new source of energy which is environment-friendly. The energy conservation is cost-effective with a short payback period and modest investment. There is a good scope of energy conservation in various sectors, viz industry, agriculture, transport and domestic.

Mandating all large government buildings to undertake energy efciency in 2013 about 8,000 large buildings with investment potential of 1.47 billion Setting appliance standards and making them mandatory Setting up norms for large energyintensive industries like thermal power, fertilizer, cement, pulp & paper, chlor alkali, steel, textiles, railways and aluminum. An investment in new technologies of 4.4 billion is expected Massive mass media campaign to enhance awareness amongst stakeholders National Energy Conservation Awards for best performing industries in energy efciency Establishment of the (autonomous) Energy Management Centre under the Ministry of Power for implementing and monitoring energy conservation programmes and to provide policy guidance and advice on energy efciency Removal of price and output controls to promote industrial competitiveness Energy price reforms to guide energy efciency initiatives and encourage international competitiveness Formation of state energy conservation funds that enable states to encourage energy efciency in several industries Grant funds to encourage preparation of Detailed Project Reports (DPRs) for energy efciency projects Enabling trading of energy efciency certications that encourages productivity and competition among businesses

Government initiatives to promote the sector

ENERGY EFFICIENCY

The government launched the National Mission on Enhanced Energy Efciency (NMEEE), with an outlay of Euro 0.03 billion in June 2010. This is one of the eight missions under the NAPCC. By 2015, the mission is expected to result in savings of nearly 23 million tonnesoil equivalent of fuel in coal, gas, and petroleum product. The following steps were taken by the Government of India in order to create the market demand for energy efciency in India: Establishment of Bureau of Energy Efciency as a statutory body under the Ministry of Power, which mandates energy efciency standards, manages, nances, and monitors energy efcient efforts throughout the economy, including the industrial sector, through energy audits Preparation of bankable projects in various sectors like government buildings, municipalities, agriculture, SMEs

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Energy Efficiency

Indias unique proposition


Government Incentives: The Government of India already provides signicant incentives for energy efciency projects, under the NMEEE scheme Demand Management: Demand-side management has emerged as a major business area as consumers are more and more inclined towards energy saving solutions. This is creating a lucrative market for energy efciency in India

Customised Products and Pricing: Tailor made products (such as time-of-day services) is catering to customers with varying consumption patterns. At the same time, the breadth of products offered on power exchanges is rising signicantly New Value Proposals: Retail players will strive to standout through well-crafted value propositions that attract customers. These include green power, improved quality of service, and better costs advances already made in some developed markets

Drivers and challenges


Drivers Increasing energy requirements Climate change and environmental considerations Energy security Lack of adequate supply options Large scope for energy efciency measures` Favourable legislation and policy initiatives Lack of appropriate technologies Potential for increased role of ESCOs Challenges Lack of enforcement of standards, codes and labelling Information asymmetry about investments and technologies Increasing mistrust due to weak contracts Difculties in measuring energy savings Lack of nancial resources and planning

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Energy Efficiency

Table 1: Opportunity Snapshot for Finnish Companies


Description Indias energy intensity per unit of GDP is higher as compared to Japan, USA and Asia by 3.7 times, 1.55 times and 1.47 times respectively. This indicates inefcient use of energy but also substantial scope for energy savings. The increasing global trade liberalisation and growing global competition have made productivity improvement, including energy cost reduction, an important benchmark for economic success. The Bureau of Energy Efciency forecasts expenditure of Euro 107.21 billion throughout the next decade in Energy Efciency. SIDBI and BEE are working as co-implementing agencies for preparing a World Bank funded project titled Financing energy efciency at MSMEs SIDBI Financial Scheme for energy saving projects in MSME sector under JICA (Japan International Corporation Agency) Line of Credit Scheme for energy savings projects, energy audit subsidy, upgrading energy auditing facilities by PCRA, nationalised banks and funding agencies like UNIDO, GEF, GIZ, IFC, etc. Credit Linked Capital Subsidy Scheme (CLCSS), incentives offered by state/central governments 80 per cent depreciation in the rst year on the specied energy efciency equipment and concessional excise and customs duty on notied energy conservation equipment to promote energy efciency Concessions/rebates and special provisions from IREDA Opportunities Operations and maintenance systems Technologies and best practices Waste heat recovery and steam utilisation Use of improved materials Use of efcient lightings, heating and cooling Use of efcient cooking Use of improved fuels Some Key Facts The state has made provisions for a partial risk guarantee fund to comfort private lenders, and the venture capital fund to provide the initial seed capital. They are also engaging in capacity-building of banks and nancial institutions Indias current initiatives for the promotion of energy efciency rely heavily on market and market players for effective implementation Though the goal is to make energy efciency an automatic outcome of market transactions - something that will eventually be self-sustaining there is less trust in the capacity of market institutions

Table 2: List of Key Organisations in India


Research Institute/NGO Bureau of Energy Efciency (BEE) Renewable Energy and Energy Efciency Partnership (REEEP) UNIDO Mainline of Activity Energy research A market catalyst for clean energy in developing countries and emerging markets An UN body promoting sustainable initiatives in Industries with a focus on developing economies Energy research Energy research Website www.bee-india.nic.in/ www.reeep.org

Growth Forecast Financing

www.unido.org

PCRA The Energy and Resources Institute

www.pcra.org www.teriin.org

Conclusion
India has limited sources of conventional energy and is highly dependent on the imports for coal and oil. A lot of the nations wealth goes into the import of coal and oil for energy. According to the reports of World Resources Institute (WRI) Indias energy demand will more than double

in 2030. The volatile situation in oil exporting area raises concerns of energy security rather than just price volatility. For a nation like India where internal resources are limited and external resources are costly and uncertain, the future lies not just on renewable energies but also on energy efciency.

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Water and Waste Water

3.3

Background

India has about 3 per cent of water resources and 16 per cent of the worlds population. Water in India is a state subject, however, central government plays a pivotal role in policymaking as well as nancing development expenditure in the sector. Today, drinking water investments constitute about 3 per cent of the national budget. About 85 per cent of the urban and 75 per cent of the rural population have access to public water

supplies. But access is not equal to service and service delivery is fairly poor with most cities in India getting only for few hours in a day. The National Water Mission which is one of the eight missions under the National Action Plan on Climate Change, aims for 20 per cent conservation in water use. Although water deciency is widely prevalent, industry experts are optimistic that this shortfall can be met with a strong focus on innovation, demand side management and better policy and regulatory framework.

WATER AND WASTE WATER

Government initiatives to promote the sector


As per the Indian Constitution, water is in the domain of the states with the central government responsible for guiding policy framework as well as nancing programmes like: National Water Policy 2002 Primacy of drinking water; integrated water resource management; private participation Expected to be revised in 2012 Jawaharlal Nehru Renewal Mission National Urban

Reform linked investment programme across 65 cities 56 per cent of the value of approved projects in water and sewerage sector worth Euro 5.29 billion Achieving O&M cost recovery is a key objective Rajiv Gandhi National Mission (RGNDWM) Drinking Water

Decentralised management of water supply by communities leading to convenient availability of potable water at affordable costs Focus on maintenance and incentives for reforms in management

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Water and Waste Water

National Action Plan on Climate Change National Water Mission Ensuring conservation of water; minimise wastage and ensure equitable distribution Promote basin level integrated water management

4. Viability Gap Funding of up to 40 per cent under the Government of Indias initiative to promote PPP in infrastructure, including water supply 5. The JNNURM has supported water supply and sewerage projects worth Euro 72 million since its inception in 2006. Phase II of the mission may be launched in 2014 with additional funding 6. A proposal to setup a National Bureau of Water Use Efciency, on similar lines of BEE to drive efciency improvements in the sector 7. Many states have mandatory requirements for harvesting rainwater in urban areas 8. Proposed revision of guidelines for development of water supply projects could spur opportunities for higher end technologies 9. Some states, especially those with large coastal regions, have prioritised desalination for meeting drinking water as well as industrial water requirements

Table 1: Opportunity Snapshot for Finnish Companies


Water Description Water companies from across the world have established presence in India to pursue an estimated 70 projects worth several billion Euros in 20 Indian cities across the country. Indias water policies are aimed at encouraging private investment, so that new business models evolve to cater to the needs of the society in an economically efcient way. Budgetary allocation from the government and aid organisations: The Planning Commission has made an outlay of Euro 16.66 billion for Rural Water Supply & Sanitation and Euro 12.31 billion for urban water supply and sanitation. Estimated market size by 2030: Financing Water collection and treatment: Euro 23.18 billion Distribution and supply: Euro 1267.49 billion Water resource management : Euro 33.03 billion

Some of the initiatives being taken at central, state and local for promoting the water sector include: 1. Some states have formed/propose to form water regulatory authority for determining inter sector allocation and regulation of tariffs 2. Service level benchmarks proposed by MOUD are being mainstreamed 3. Increasing use of turnkey contracts (such as DBFOT, DBO), etc. by states and local government ensuring long-term involvement of private sector and larger sized contracts

Growth Forecast

Aids provided by World Bank and ADB Soft loans are provides through nationalised banks and other nancial institutions A 10-year, 100 per cent deduction of prots and gains is available for companies operating in water supply, water treatment, and sanitation projects 100 per cent FDI under automatic route 100 per cent depreciation within rst year of project installation Exemptions/reduction from excise duty, central excise sales tax, customs on import of materials, components and equipment

Drivers and challenges


Opportunities Drivers Demand and supply side create opportuntiies Euro 21.73 billion is the size of Indian water sector Equipment market is worth 220-367 million, and expected to have double-digit growth rates every year Increased awareness about drinking water quality and health High potential for increasing water use efciency across all sectors Reducing availability of water forcing users to go for reuse and recycling of water Trends towards zero discharge and green buildings Potential for increased role of ESCOs Challenges Increasing water demands due to population pressure and urban sprawl Water requirement for industrial growth Increasing irrigational and agricultural demands Some Key Facts

Technology & engineering related: Availability, assessment & extraction, treatment and purication, metering, quality monitoring, operation & maintenance bottled water, borewells and irrigation Management & monitoring: Project management, remote monitoring & leak detection Data collection & information management Developer & operator related: EPC contractor, boot operator with expertise in O&M, control and leak/defect detection technologies like SCADA solutions, ow mapping systems, revenue collection and customer service Estimating baseline data is critical Addressing measurement issues should be high on agenda Focus on costs and estimating improvement options required Appropriate risk assessment before initiating reuse of wastewater Local and municipal participation is essential for selection and promotion of new technology

Water cycle imbalances and stress Over exploitation of water resources Poor water quality necessitating use of advanced technology for treatment Political and regulatory disputes Excessive withdrawal of ground water leading to unsustainability of source

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Water and Waste Water

Table 2: List of Key Organisations in India


Research Institute/NGO Water and Land Management Institute Water and Sanitation Programme NEERI International Water Management Institute (IWMI) Mainline of Activity Research and training Support towards water projects Research on national/societal missions on drinking water Research and programmes on water resources Energy research Centre for Environment Planning and Technology (CEPT) The Energy and Resources Institute (TERI) The Central Public Health and Environmental Engineering Organisation (CPHEEO) National Institute of Hydrology, Rou CII-Triveni Water Institute Research and policy advise and technology development on urban water Research on water, water audits Ministry of Urban Development, Government of India entity which deals with the matters related to urban water supply and sanitation Society under Ministry of Water Resources working in the area of hydrology and water resources Working on sustainable water management practices Website www.walmi.org/ www.wsp.org/ www.neeri.res.in www.iwmi.cgiar.org www.pcra.org www.cept.ac.in

www.teriin.org cpheeo.nic.in

www.nih.ernet.in

www.cii.in/CII_Triveni_ Water_Institute.aspx

Conclusion
Indias fragile and nite water resources are depleting while the multi-sectoral demands for water from sustained economic growth is driving the increased demand for water through coupled dynamics between increased energy

and consumption. Exponentially increasing demand for water due to population growth and agricultural use, coupled with a high degree of variability in the availability of water resources throughout the country, will drive per capita accessibility of water to under 1,000 cubic metres by 2020 if left unchecked.

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Urban Design and Smart Cities

3.4

Background

Enhance public-private partnership in infrastructural development Promote planned integrated development of towns/cities Pilot scheme for funding infrastructure in satellite towns around seven megacities

Indian urban agglomeration needs an efcient infrastructure and smart city planning that will meet the demands of a growing population. India is booming and sustainable development has become increasingly more important. According to a United Nations report, Indias population currently encompasses about 1.2 billion people and is expected to grow by another 300 million within the next couple of decades. With cities generating two-thirds of the countrys economic output, an increasing number of Indians are leaving rural areas to seek employment in cities, relying on an efcient urban infrastructure.

Besides the ongoing JNNURM implementation in 65 Indian cities, Ministry of Urban Development has undertaken the agship Urban Infrastructure Development Scheme for Satellite Towns (UIDSST) around seven megacities and eight satellite Integrated Development of Small and Medium Towns scheme which aims at the development of selected regional growth centres with infrastructure and service facilities so as to enable such towns to emerge as regional centres of economic growth and employment opportunities and arrest migration from rural areas and small towns to large metropolitan cities NERUDP ADB funded North Eastern Region Urban Development Programme (NERUDP) to renew the urban infrastructure the northeastern states of India Rajiv Awas Yojana Ray for the slum dwellers and the urban poor envisages a slum free India through encouraging States/Union Territories to tackle the problem of slums in a denitive manner

Government initiatives to develop the sector

URBAN DESIGN AND SMART CITIES

Launch of JNNURM Jawaharlal Nehru National Urban Renewal Mission to improve urban infrastructure services in the identied cities to make them efcient and effective centres of growth. UIDSSMT scheme The Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), a component of the JNNURM to Improve infrastructural facilities and help create durable public assets and quality oriented services in cities and towns

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Drivers and challenges


Drivers Huge spend on infrastructure Environmental impacts GHG mitigation Government support Financial backing Challenges Challenging business environment Unpredictable regulations Bureaucratic delays in approving projects Delays with acquiring land Lower transparency Some Key Points

Urban Design GDP would have multiplied ve times, 590 million people will live in cities, nearly twice the population of the United States today 270 million people net increase in working age population, 70 per cent of net new employment will be generated in cities 91 million urban households will be urban middle-class, up from 22 million today 68 cities will have population of 1 million plus, up from 42 today, Europe has 35 today, Euro 0.87 trillion capital investment is necessary to meet projected demand in Indian cities 700-900 million square metres of commercial and residential space needs to be built or a new Chicago every year 2.5 billion square metres of roads will have to be paved, 20 times the capacity added in the past decade 7,400 kilometers of metros and subways will need to be constructed 20 times the capacity added in the past decade

Indias unique proposition


The sector is driven by its necessity and other market dynamics, and is a genuine sector of growth in India. High market potential and consistent growth in the past few years have shown a rising trend in urban infrastructure development The Indian economy and growth in this sector is more need-based and real than

speculation. The income status of people and their education level is constantly rising with the urbanisation that is happening in India. A lot of possibilities of growth are found in mega ofces and Special Economic Zones (SEZs); industry parks will happen with the policy framework by Government in India given emphasis to environment and green building initiatives at the same time

Figure 2: List of Key Organisations in India


Research Institute/NGO Association of Metropolitan Development Authority (AMDA) Housing and Urban Development Corporation (HUDCO) National Buildings Construction Corporation (NBCC) Mainline of Activity Research and capacity building in sustainable urban development Building affordable housing and carrying out urban development Project management of sectors such as real estate-both residential and commercial, power, environment, healthcare, transportation, institutions, roads, border fencing, mass housing, ofce complexes Technical advisory on urban and regional planning strategies, research, appraisal, and monitoring of central government schemes and development policies Research and policy advise and technology development on urban water Deals with the matters related to urban water supply and sanitation Developing, operating and maintaining sustainable mass transit infrastructure Website www.niua.org www.hudco.org/ www.nbccindia. gov.in

Table 1: Opportunity Snapshot for Finnish Companies


Urban Design Description Any Indian urban agglomeration needs an efcient infrastructure and smart city planning that will meet the demands of a growing population. Providing access to healthcare and drinking water, a reliable power supply and public transportation are some of the key elements for sustainable urban development By 2030, it is predicted that 68 Indian cities will each have more than one million inhabitants, and six megacities with more than 10 million inhabitants each Government support towards concessional loans from Housing & Urban Development Corporation (HUDCO) through Grants Financial incentives such as subsidies on interest rates and capital costs for demonstration projects Financial assistance from JNNURM, Rajiv Awas Yojana, India Infrastructure Finance Company, Planning Commission, Ministry of Urban Development (MoUD), Ministry of New and Renewable Energy (MNRE), Ministry of Environment & Forest (MOEF) and state nancial corporations and commercial banks International agencies supporting funding projects Opportunities Sustainable housing, transportation, water supply and sanitation, solid waste management, pollution abatement, disaster management, urban design, green architecture, town planning, renewable energy, smart infrastructure

Growth Forecast Financing

Town and Country Planning Organisation (TCPO)

www.urbanindia. nic.in

Centre for Environment Planning and Technology (CEPT) The Central Public Health and Environmental Engineering Organisation (CPHEEO) Urban Mass Transit Company

www.cept.ac.in cpheeo.nic.in

www.umtc.co.in/

Conclusion
The country is set to build 500 new cities over the next 20 years to house 700 million more city

dwellers by 2050, according to a study by consulting rm Booz & Company. This will bring out ample developments in the Indian urban development. It is a high growth priority sector in India.

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Waste Management

3.5

Background

Rapid economic growth is leading to urbanisation and industrialisation generating waste which is adversely affecting the environment. Due to the liberalised policy, the pace of industrialisation has accelerated, which has resulted in increasing amounts of hazardous wastes every year. Waste management has become a matter of great concern to most city corporations, and there have been some instances of management collapse even in metropolitan cities in the year 2012. All this build-up took place within a single decade, which is why many corporations have awakened to the rude shock. There has been an unpredictable increase in both industrial and domestic wastes. The government and corporations have now taken cognizance of things that require immediate attention, and a lot of funds have been diverted to various waste management projects.

nature, it is entrusted to the Urban Local Bodies (ULBs). The management of municipal solid waste is one of the most important obligatory functions of the urban local bodies. Some government initiatives are mentioned herewith: Bio-medical Waste 1998 Notied Handling Rules,

Municipal Solid Waste Management Rules, 2000 Notied Reforms Agenda (Fiscal, Institutional, Legal) Technical Manual on Municipal Solid Waste Management Technology Advisory Group on Municipal Solid Waste Management Inter-Ministerial Task Force on Integrated Plant Nutrient Management from city compost For initiating SWM programmes governments JNNURM programme to fund cities for developing urban infrastructure and services Financial assistance at a at rate of Euro 0.2 million per MW, subject to ceiling of 20 per cent of project cost and Euro 1.2 million per project, whichever is less Tax Free Bonds by ULBs permitted by Government of India Public-Private Partnership in SWM Capacity building Urban Reforms Incentive Fund Guidelines for PSP and setting up of Regulatory Authority Introduction of Commercial Accounting System in ULBs & other Sector Reforms Model Municipal By-Laws framed/circulated for the benet of ULBs for adoption Tax Holiday: A 10 year, 100 per cent deduction of prots and gains is available for companies operating in waste projects. Tax/Duties Relief: Direct taxes: 100 per cent depreciation within rst year of project installation Exemption/reduction in excise duty Exemption from Central Sales Tax, and customs duty concessions on the import of material, components and equipment used in Renewable Energy RE projects

WASTE MANAGEMENT

Municipal solid waste management is quite a complex process, which clearly means a lot of investment has to be facilitated in infrastructure, technology and planning. It means efciently handling Institutional waste Dead animals waste at slaughter houses Demolition and construction wastes Wastes which gets accumulated on the roads Waste derived from horticultural processes Treated bio-medical waste Waste due to drains and outlets Sludge from industries Commercial waste from the market areas

Government initiatives to develop the sector


The Ministry of Environment and Forests (MoEF) and the pollution control boards: Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) together form the regulatory and administrative core of the sector. As Solid Waste Management (SWM) is part of public health and sanitation according to the Indian Constitution it falls under the state list. As this activity is of local

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Waste Management

Duty-free import of renewable energy equipment

Exemptions from electricity taxes Opportunities

Waste Management Joint ventures with Indian rms to offer integrated solutions in waste treatment, including performing feasibility studies, designing, technical consulting and providing operation and online maintenance services Demand for technologies and services for effective waste collection, transportation and disposal, and its treatment and recycling Engineering and consulting services on waste collection and transportation, landll treatment, waste treatment plants, outdoor compositing, anaerobic digestion of waste and sewage sludge, biological-mechanical waste treatment and waste to energy Technologies and solutions for high polluting sectors, such as thermal power stations, chemical and pharmaceutical industries Design, manufacture and installation of various types of waste management systems Some Key Facts Government initiatives, fast industrialisation and urbanisation in the country have benetted the solid waste management market. Estimates of the municipal1 and hazardous2 waste market is above 1.5 billion and around 171 million respectively Urban local bodies and the state governments are actively working towards bringing about urban transformations Most of the reforms are aimed at infusing highest sustainability to infrastructure developments 253.59 million has been approved for 44 projects

Drivers and challenges


Drivers Stricter norms Public interest litigations and rulings of the courts for domestic wastes Scarcer landll space Health and environment Challenges Precarious nancial status of ULBs making it a high risk sector Institutional complexity Few bankable and nancially sustainable projects Improper choice of technology Public apathy towards waste

Indias unique proposition


Wealth from Waste: Organic fraction of municipal solid waste contains biodegradable matter ranging from 30 per cent to 55 per cent which can be protably converted into useful products like compost (organic manure), methane gas (used for cooking, heating, lighting, production of energy), etc.

Recycling of Waste (Plastics, Paper, Glass, Metal, etc.): Recyclable materials like paper, cardboards, plastics, polythene bags, pieces of metals and glass are recycled to recover useful resource Sanitary Landlling: Rejects from compost plants, recycling and other inorganic materials like construction debris in municipal solid waste are sent to scientically engineered landlls

Table 2: List of Key Organisations in India


Research Institute/NGO Mainline of Activity Energy research Science and technology Website www.neeri.res.in www.dst.gov.in/ scienticprogramme/ t-d-solar-energy.htm www.nswai.com/

Table 1: Opportunity Snapshot for Finnish Companies


Waste Management Description India offers excellent opportunities for international or foreign companies specialising in various waste management processes. Even the companies selling products and technology will nd India as a big and lucrative marketplace. With a growing urgency for efcient waste management in many cities across India, there will be more and more projects and employment opportunities in the sector. With the growth trend set to continue urban India will generate 160.5 million by 2041 and over the next decade some 920 million tonnes of solid waste will need to be properly managed The solid waste management industry is likely to grow at a CAGR of approximately 7 per cent during 2011-15, thus positioning India as one of the most preferred destinations for industry investments Financing High Grant Components for Solid Waste Management in Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) Financial assistance by nancial institutions like IREDA, NABARD, state nancial corporations, commercial banks and international agencies

National Environmental Engineering Research Institute (NEERI) Department of Science and Technology (DST) National Solid Waste Association of India (NSWAI) The Energy and Resources Institute Indian Society of Hospital Waste Management

Solid waste management including toxic and hazardous waste and also biomedical waste in India. Research on waste management Facilitate/advocate/undertake research activities on issues of hospital waste management

Growth Forecast

www.teriin.org www.medwasteind.org/

Conclusion
Waste management in India is in the development stage with both urban and industrial waste set to grow dramatically over the next few years. For most of the urban local bodies in India, solid waste is a major concern that has reached alarming

proportions, requiring management initiatives on a war footing. There is an increasing need for new technologies and waste management systems, which makes it the right time for foreign companies to invest in India. To put it simply, waste in India is a big business.

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Green Buildings

3.6

Background

There is a burgeoning need of housing in the urban areas and many cities will be developed bigger in terms of housing and commercial building needs in the next couple of decades. Since India is an energy decient country, it needs to employ energy efcient sustainable solutions. Indias building-occupied area is projected to grow from eight billion square metres (sq.m.) in 2005 to 41 billion square metres in 2030. Incorporating energy efciency measures in these new buildings will help India meet its energy needs and increase its energy security. Indias energy production must grow 6.5 per cent per year from 2012 to 2017. Buildings already account for more than 30 per cent of the countrys electricity consumption, and nearly 70 per cent of the buildings in India that will exist by 2030 are yet to be built. The market potential for green building products in India by 2015 is estimated to about Euro 72.43 billion as per IGBC (Indian Green Building Council).

green building development, and has the highest authority to make decisions on building and construction from environment perspective The other recognised institutions apart from the government are the widely accepted rating agencies. The rst and most widely used ratings system internationally is the American Leadership in Energy and Environmental Design (LEED) system. In India, the Indian Green Building Council (IGBC) has adapted LEED to create LEED India and is responsible for certifying buildings under this system At present, the IGBC offers two certications for ofce buildings. The rst, LEED for New Construction and Major Renovations is for buildings where the design and operation is fully in the scope and control of owner or developer. LEED India for Core and Shell certies buildings where the owners or developers do not control all aspects of design and construction. The Energy and Resources Institute (TERI) has developed its own ratings system, Green Rating for Integrated Habitat Assessment (GRIHA) In 2007, the Bureau of Energy Efciency (BEE) launched the voluntary Energy Conservation Building Code (ECBC) that sets minimum energy standards for new commercial buildings having a connected load of 500 KW or contract demand of 600 KVA or more

GREEN BUILDINGS

Government initiatives and policy frames for green buildings in India


Ministry of Environment and Forest (MoEF) is the main policy frame maker, issuing the building codes and guidelines for the

Drivers and challenges


Drivers Faster clearances for green building projects Small payback time reduces operational costs GHG mitigation Resource efciency Energy and water crunch Greater awareness Challenges Mindset of the investor about higher costs Slow growth High capital cost Lack of clarity on policy directives Limited indigenous knowledge Low nancial commitment Lack of technological know-how

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Indias unique proposition


Unique need-based market is conscious about the environment and is taking policy steps favourable for the growth of sustainable green building sector. Incentive plans are being taken to encourage the green building growth and development by reducing the stamp duty, property tax proposals in the ve year plan (2012-17). Irrespective of political changes if any, the sector is driven by its necessity and other market dynamics, and is a genuine sector of growth in India. High market potential and consistent growth in the

past few years have shown a rising trend in green building development. Indian commercial sectors like retail, hospitality, other commercial ofce buildings, and residential buildings offer huge possibilities of development as these sectors are looking big with government policies favouring their growth. For example, organised retail in India is currently just below 10 per cent compared to 4 per cent ve years ago. It is likely to grow to 20 per cent in this decade as per retail industry estimates. With policies favouring the retail sector, big retail giants like Walmart, Carrefour, Ikea and many others are considering to be in this market. Opportunities

Green Building India Sustainable site management and design services Water efciency: Water use reduction, water efcient landscaping, innovative waste water technology Energy & Atmosphere (EA): Energy efciency, renewable energy Materials & Resources (MR): Sustainable building materials (wood/precast), building reuse, construction waste management, materials reuse, recycled materials, rapidly renewing materials Indoor Environmental Quality (EQ): Ventilation, low-emitting materials, controllable systems: lighting thermal, air conditioning comfort, daylight & views Key Facts 362 certied green buildings, 1.45 billion sq.ft. green building footprint 2,111 registered green building projects, 1.350 detailed energy audits carried out 30 million annual recurring energy saving realised 50 detailed water audits conducted,26.93 million m3/year water savings 16 Green SMEs funded, 450 industrial units subscribe to the CII-Code 27 companies registered for GreenCo Rating, 9 GreenCo Rated companies

Figure 1: Environmental Benets Achieved in Green Buildings in India


Source: IGBC

Green Building India Description From just one registered green building in 2003, India now has over 2,100 projects registered with a total area of 1.65 billion sq. ft. With this, India has the second largest green building footprint in the world after the US. In the last three years, 400 projects were completed and fully certied by the council. These include airports, banks, convention centres, factories, hospitals, hotels, IT parks and commercial buildings. Green building is the next big thing in India owing to the growth trend it has shown in the last decade. As also, the industry, government, investors and stakeholders have shown inclination towards adoption of green technologies and concern for environment due to which the next developments in India shall be more towards environmental friendly structures. Micronance for eco housing for home owners and service providers Financial incentives for green buildings e.g. scal incentives for manufacturers and developers Other nancial mechanisms for green buildings like equipment nance for builders, manufacturers of equipment Concessional funding and grants by Indian public sector banks to support MSME sector which are developing sustainable materials and technology for green buildings International agencies supporting funding of green building projects include USAID, kfW, JBIC, GEF, IFC, WB

Table 2: List of Key Organisations in India


Govt Body/Institution/ Organisation Indian Green Building Council (IGBC) Energy Conservation Building Code Bureau of Energy Efciency (BEE) Green Rating for Integrated Habitat Assessment (TERI) Association for Development and Research of Sustainable Habitats (ADARSH) Leadership in Energy and Environmental Design (LEED) Mainline of Activity Green building products and technologies Develop and monitor performance requirements for all commercial buildings National rating system Scientic and administrative issues related to sustainable habitats Framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance Rating system Website www.igbc.in www.beeindia.in

Growth Forecast

www.teriin.org/index.php www.teriin.org/index.php

Financing/ Incentives

www.usgbc.org/leed

Conclusion
Green buildings offer tremendous potential for growth. There is a growing consensus between the business, consumer and government to have more green building structures owing to the awareness and the importance of the environment and

responsibility towards nature. There is a natural motivation in the long-term, as green buildings provide better return on investment and savings are notable. There is a long way to go and sooner or later most constructions will abide by the green building code due to the need of environment safety and Government policies accordingly.

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Financial Possibilities

4.1 International funding opportunities for Finnish cleantech sector in india


Introduction
Most of the international players are active in India and they should be viewed as a key source of funding, but not to be mistaken as similar sources as Finnish, let alone Indian funding organisations. These funding sources are for the most part focused in fullling their own plans and programmes and in most cases there are no direct funding opportunities from them. Instead their programmes open opportunities for partnering or offering Finnish solutions to their programmes. When the organisations are development banks such as World Bank, they will also have their

own procurement regulations and typically the competition can be very harsh. In many cases, the international funding can be difcult to target as a rst step. However, when targeting new markets the international money ows should be seen as an opportunity to scale up the business when good and sustainable business models have been identied and tested. No matter how large the different international, governmental or other institutional projects are, the monetary ows are very limited in comparison to foreign direct investments and the private sector ows. In targeting markets such as India, the role of the private investments should be kept high on agenda.

FINANCIAL POSSIBILITIES

One of the most visible funding ows has been the traditional development aid which used to be relatively clear being either direct (bilateral aid) or indirect via multilateral organisations such as

development banks. However, today the structure of capital ows has changed and it has become more complex.

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rural services and infrastructure, water resource management, rural development, environmental policies and institutions, infrastructure services for private sector development, pollution management and environmental health as well as land administration and management. The activities are roughly divided in grants, loans and advisory services. Finnish companies can try and benet from all of these, but the typical route is to participate in international competitive bidding. Within the advisory services, development banks may fund testing and piloting new solutions or technologies, but even here the normal route is to have competing tenders before selecting private sector companies.

International Finance Corporation


One key player for World Bank Groups activities in India is its private sector hand IFC International Finance Corporation. Where World Bank funds governments, IFC funds private companies. As of June 30, 2013, IFCs committed portfolio in India stood at Euro 3.26 billion, making India IFCs largest portfolio exposure. Typical project size for IFC is above Euro 3.62 million and therefore for most Finnish companies, it is not too realistic source of funding. However, IFC is always ready to discuss application of new sustainable technologies and can be seen as a source of funding for Finnish companies in India.

Key international organisations


Horizon 2020, the new EU Framework Programme for Research and Innovation (2014) is offering a new dedicated SME instrument aiming at: Filling the gaps in funding for earlystage, high-risk research and innovation by SMEs as well as stimulating breakthrough innovations, targeting all types of innovative SMEs showing a strong ambition to develop, grow and internationalise UN with its several agencies Development banks and multilaterals such as World Bank (WB), Asian Development Bank (ADB) and International Finance Corporation (IFC) Bilateral Aid: Even as India has its own development aid to other countries, there is still aid ows from individual governments Foundations and civil society/NGOs Companies: Corporate social responsibility programmes Partnerships with several different types of organisations formed as individual programmes or funds

Funding from development banksWorld Bank


World Banks strategy for specic countries is negotiated together with the beneciary countrys government. The more developed the country, the more the strategy and it usually relies and builds on top of the countrys own agenda and plans. The World Bank Groups Partnership Strategy for India (2013-17) will help India lay the foundation for achieving faster, sustainable, and more inclusive growth as outlined in the governments 12th ve year plan. The World Bank Group will support India with an integrated package of nancing, advisory services, and knowledge. As of July 2013, the total net commitments in India stood at Euro 16.15 billion across 78 projects. This money is allocated based on programmes and projects which have their own procurements ranging from expertise and services to complete turnkey deliveries of e.g. power plants. In September 2013, there were altogether 65 World Bank funded projects either ongoing or being prepared in India related to Cleantech. The total commitments of the World Bank Group to these projects was about Euro 8.69 billion which would put the total budget of these projects to about Euro 18.11 billion. Themes of the projects were e.g. climate change,

NIB Nordic Investment Bank


www.nib.int NIB nances projects that strengthen competitiveness and enhance the environment. The bank offers long-term loans and guarantees on competitive market terms to its clients in the private and public sectors. NIB is an international nancial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank has lending operations both in its member countries and in emerging markets like: Africa and the Middle East; Asia; Europe and Eurasia; and Latin America. NIBs four business areas are: energy and environment; infrastructure, transportation

and telecom; heavy industry and mechanical engineering; consumer goods and services; nancial institutions and SMEs.

NDF Nordic Development Fund


The objective of the Nordic Development Funds (NDF) operations is to facilitate climate change investments in low-income countries. NDF nances in cooperation with bilateral and multilateral development institutions. NDFs operations mirror the Nordic countries priorities in the areas of climate change and development. The operations are nanced from the development cooperation budgets of the ve Nordic countries.

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NDF provides grant nancing for climate change investments in low-income countries
www.ndf./ NDF provides grants by co-nancing. Projects are normally identied by governments in partner countries according to national priorities. NDF also has a strong working relationship with the World Bank, Asian Development Bank, Inter-American Development Bank, African Development Bank and Nordic bilateral development organisations, and projects are often identied through these partnerships. In addition, NDF aims at obtaining project information and ideas through Nordic rms, organisations and networks. Grant amounts vary from EUR 500,000 to EUR 5 million.

Bank or Asian Development Bank or via funding of IFC. Global Environment Facility (GEF) unites 183 countries in partnership with international institutions, Civil Society Organisations (CSOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives. An independently operating nancial organisation, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. Since 1991, GEF has achieved a strong track record with developing countries and countries with economies in transition, providing Euro 8.33 billion in grants and leveraging Euro 41.28 billion in co-nancing for over 3,215 projects in over 165 countries. Through its Small Grants Programme (SGP), the GEF has also made more than 16,030 small grants directly to civil society and community based organisations, totalling Euro 473.10 million. GEFs projects are managed by separate organisations typically multilateral development banks.

McKinsey which talks of an order of magnitude of Euro 0.72 trillion in incremental capital required by 2030. Just for renewable/clean energy, investment requirement will be Euro 14.49 billion in the next ve years (2012-17). No matter how large the different projects are Indian public monetary contributions are generally limited in comparison to the need of foreign direct investments and the private sector capitalisation input. As mentioned in the International Financing section for targeting markets such as India the role of the private investments should be kept high on agenda. India is fast emerging as a preferred destination for clean energy/low-carbon investments in terms of industry-attractiveness which is driven by favourable natural endowments for solar, wind, biomass and small hydro projects and there is huge potential for energy efciency. Sectors such as urban transport, water, wastewater and solid waste management are also gradually witnessing growth on the back of policy initiatives such as implementation of the urban renewal mission (JNNURM), national water policy and revision of guidelines for water treatment.

energy efciency, etc. Each of the sectors are under the overall administrative jurisdiction of separate ministries at the central government level and their corresponding departments at the state government level. As a result there is no single unied nancing mechanism for cleantech. The nancing available under such schemes and programmes varies from support for technology development to capital subsidy for commercialising and roll-out of projects. The funding options available in each sector have been addressing the respective sections. This section will present a broad overview of the range of institutions involved across various stages of the value chain. Developing and commercialising clean technologies in India can be divided into two phases for the purposes of discussing the nancing options. The rst phase covers technology innovation, R&D, concept demonstration, pre-commercialisation and commercialisation. For this rst phase, grants and subsidies can be applied for from various sources (as listed later in this chapter). As the company approaches actual commercialisation, loans are usually required. In the second phase, the roll-out or the post commercialisation stage when goods or services are produced, equity investments, loans and insurances are often required. This type of nancing is usually provided by commercial and international nancial institutions. Other potential funding sources for this stage include venture capital and private equity.

NEFCO
www.nefco.org NEFCO is an international nancial institution established by the ve Nordic countries. NEFCO nances climate projects across the world. NEFCOs main focus is to generate positive environmental effects of interest to the Nordic region

Other key international nanciers


Climate Investment Funds (CIF) runs two trust funds the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF) and focuses on climate resilience, energy efciency, forests, renewable energy and transport. In India the CIFs key model is to fund the efforts of the government in striving for sustainability. India has drafted an investment plan that will tap Euro 561.32 million from the Clean Technology Fund (CTF) for transformative investments to improve and expand the countrys hydropower operations, develop untapped solar resources, and improve energy efciency. The plan was drafted in coordination with the Asian Development Bank (ADB), World Bank (IBRD), and key Indian stakeholders. CTF nancing is expected to leverage nearly Euro 21.73 billion in additional nancing, and will focus in particular on catalysing private sector development in the low-carbon sectors. As the funds of CIF are relayed via multilateral development banks, the private sector participation is again usually via tenders to World

The GEF work focuses on the following main areas


Biodiversity, climate change (mitigation and adaptation), chemicals, international waters, land degradation, sustainable forest management/REDD +, ozone layer depletion

Financing framework for Cleantech in India


Cleantech is an emerging area in India and as such the focus has been sector-specic. For e.g., there are separate programmes and schemes targeted at individual sectors such as solar, wind,

4.2

India

Introduction
India has embarked on a low carbon inclusive growth trajectory through a slew of policy, institutional, market development measures. These include the National Action Plan on Climate Change, solar missions national and states, energy efciency mission, green SEZs, green transportation and renewable energy certicates. It has also set up expert groups on low-carbon inclusive growth strategies. All these initiatives would require a humongous amount of nancing and a number of estimates have been made for that, such as the one by

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Organisation Department of Science and Technology (DST)

Target Scientists/ Technologists/ Entrepreneurs/R&D Labs/Industry

Purpose To develop analytical, environmental monitoring, geo-scientic, agri electronic instruments and sensors, to develop low-cost domestic purication technologies, options for disposal of scientic waste, initiating application of nano-technology Funds for scientic projects where markets and technology risks are high Grants, early stage funding, loans for high risk, innovative ideas/ products for commercialisation in elds such as bioengineering, environment, etc. Grants for generating power through two-stage process, rst producing RDF and then combustion; setting up power plants based on high rate biomethanation tech; setting up demonstration projects based on gasication/pyrolysis and plasma arc technologies; generation of power from biogas being produced at sewage treatment plants; generation of power in elds of small wind energy, small hydro, biomass power, biomass pacier and biogas power; and carrying out R&D projects in eld of renewable energy

Provides Funds For A, B, D, E

Council of Scientic & Industrial Research (CSIR) Department of Bio-Technology (DBT)

Small, medium and large companies involved in R&D and public institutions Biotech companies/ Entrepreneurs/Small, Medium and large companies involved in R&D Entrepreneurs, project developers, NGOs, government agencies industry-institute collaboration, etc.

A, B, C, D

A, B, D, E

Ministry of New and Renewable Energy (MNRE)

A, B, D, E, F

Types of nancing and sources of funding


A: Technology development B: Patent protection

C: Technology in-licensing D: Technology scale-up/validation/de-risking E: Market entry F: Expansion Govenment supported institutions National Research Development Corporation (NRDC) Department of Information Technology (DIT) IREDA Entrepreneurs/ Incubatees at Business Incubators/Inventors Industry-R&D institution partnership All enterprises

Organisation Government Department of Scientic & Industrial Research (DSIR)

Target

Purpose

Provides Funds For

Angel funds (Department of Science and Technology), nancial and technical support for patenting of inventions Grant to create indigenous products/ packages, to encourage R&D projects in elds of ICT Operates as a revolving fund for development and deployment of new and renewable sources of energy and gives nancial support to specic projects and schemes for generating electricity and/or energy through new and renewable sources and conserving energy through energy efciency

A, B, D

A, D, E

Students/Individuals/ Entrepreneurs/ Startups/Industry Institutions

Grants for creating lab model, prototypes, product features, patent protection, design, international technology transfer promotion, etc. Funds for accelerated product development in 9-12 months for faster market entry Provides grants to technology startups for prototyping and getting mentoring, etc. to build their companies, for marketing in exhibitions, patents, provides loans for post-commercialisation stage

A, B, C, D, E, F

D, E, F

Ministry of Micro, Small & Medium Enterprises (MoMSME)

SMEs/Entrepreneurs

B, C, D, E, F

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Organisation Bureau of Energy Efciency Power Finance Corporation National Innovation Foundation (NIF) Financial institutions Infrastructure Development Finance Company (IDFC) Karnataka Information Technology Venture Capital Fund (KITVEN) Small Industries Development Bank of India (SIDBI) Other nationalised banks (State Bank of India, Bank of Baroda, Indian Overseas Bank, etc.) and private banks (ICICI, HDFC, etc.) World Bank & ICICI Bank collaboration

Target SMEs Power sector enterprises Innovator/ Entrepreneur

Purpose Funds DPR (detailed project report) for energy efciency in SMEs Debt, private equity, investment in project assets Soft loans for unaided, green, grassroots technological innovation.

Provides Funds For

Organisation Venture Capitalists

Target Entrepreneurs, SMEs

Purpose Different VCs in India who make equity investments in companies that have reached expansion phase To facilitate entrepreneurs with ideas and assist in early stages of venture development; to work with them to develop/provide new ideas and turn those into new ventures

Provides Funds For F

A, C, D B, D, E

Accelerators

Entrepreneurs

A, B, C, D, E

All enterprises

Debt, private equity, investment in project assets VC fund providing equity capital for investment in IT, Nano-Tech and other knowledge based industries Term loans; growth and equity capital (exceptional cases) Debt investment in wide range of growth sectors

C, D, F

4.3
A, B

Finland

All enterprises

Introduction
The signicance of India as a target market for the internationalisation of Finlands trade and industry has grown. Ofcial cooperation agreements between Finland and India are the key in terms of cooperation in various elds. Cleantech has been recognised as one of the focus areas of collaboration between Finland and India. In addition to research, technology and innovation, the following key cleantech sectors have been identied as the cutting edges in this context. Energy industry, and renewable energy in particular Energy efciency Environmental learning business, education and

taking capacity in the various stages of company growth. Hence, this section examines some of the critical Finnish public nanciers/institutions having the potential to promote Indo-Finnish cleantech funding and businesses collaboration. Nonetheless, its vital to bear in mind, public funding in Finland is currently not in particular directed towards cleantech companies or projects. Properly speaking, as such the term cleantech is very much sector cross cutting and can be considered as any other technology, consequently credit decisions are taking place according to traditional institutional (in some instances cautious) policy guidelines. Furthermore, theres growing generalised conception that SMEs, unlike big enterprises, are lacking the resources to grow and to invest in ones own for the reference instrumentor capacity. Piloting becomes burdensome with scarce private nancial resources, hence investments do not rise for international markets. Nonetheless, it can be concluded that the Finnish public sector nanciers form a group of a comprehensive societal collaborators, regardless of whether funding policies have a developmental dimension or not.

Entrepreneurs, SMEs

D, E, F

All enterprises

D, E, F

Private companies conducting research in partnership with public R&D institutes Entrepreneurs/ Startups/Companies

Provide loans to promote technology development by private sector in partnership with technology institutions like CSIR labs, IITs, etc. To facilitate development and commercialisation of innovative technology projects pertaining to new product/process/applications

A, B, C, D

Technology Information, Forecasting and Assessment Council (TIFAC)-Small Industries Development Bank of India (SIDBI) Small and Medium Enterprise Stock Exchanges

C, D, E, F

Water and waste management sectors

SMEs with track record of three years of operations and two years of positive net worth or distributable prots

For capitalising SMEs

Cleantech nancing environment, Finland


There are various nancial options and service providers in the private capital markets for trade related exports and commercially protable technological product and services launches. Assessing these private nancial service providers is an extensive task and the opportunity to explore them further in this handbook is restrained. More important, however, is the fact that private sector risk taking appetite may be limited or reduced in many instances for various reasons. Public funds may complement these deciencies of risk

Private investors Public-private venture funds (Infuse Ventures, Magnetar Venture, Indian Angles Network, Ncubate, etc.) Incubator Related Seed Funds Startups/ Entrepreneurs To fund entrepreneurs/startups in the area of sustainable energy A, B, C, D, E, F

Public nanciers impact on company nancial life cycle


Figure no. 5 reects, with an Indo-Finnish bias the overall potential impact of selected public nanciers on enterprise funding options at the various stages of growth. Instrument impact, with an Indo-Finnish bias may also be illustrated in the individual nancier presentation sections later.

Entrepreneurs

Equity investment in startup companies

B, C, D

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matchmaking services to enhance long-term partnerships between Finland and developing countries, normally between companies.

Services cover organisations throughout the lifespan of their business projects, irrespective of their operating sector, planning or improving business activities.

The Ministry of Employment and the Economy


Enterprise nancing is regulated by international and national statutes. The Ministry of Employment and the Economy (MEE) is responsible, within its purview, for the availability of sufcient nancial resources to both domestic-supply and export enterprises with regard to the enterprises needs in general and any restrictions imposed by the international nancial and legal framework. The MEE actively monitors the domestic nancing market and strives, through early interventions, to guarantee that there are sufcient nancing options available for the full spectrum of enterprises, irrespective of economic uctuations and in consideration of regional aspects. Furthermore, the MEE controls and manages the regional centres for economic development, transport and the environment with regard to the subsidies rendered for enterprises use to develop their operations.

Publicly funded organisations


Finnpartnership
Many Finnish Cleantech sector businesses possess knowledge and expertise for which there could be a demand for in India and which may present commercial opportunities. Finnpartnership supports feasible and commercially viable business partnerships between companies and organisations in Finland and India with the objective to enhance positive development effects. Finnpartnership is a Business Partnership Programme (BPS) providing nancial support, grant type funding for the planning, and development and training phases of a project. Support can be granted for companies and organisations registered in Finland or elsewhere that have a substantial link to Finland. In addition, Finnpartnership provides advisory services and Business partnership support is a grant type seed capital which may be approved to be used for covering expenses incurred in the preparatory phase and to cover training and business development, such as: Establishing a joint venture (e.g. production or services) Establishing a subsidiary company (e.g. production or services) Subcontracting services) (e.g. manufacturing or Pilot projects related to commercial/ merchandised technology or solutions Vocational education and training, and support for local education

Examples of projects supported in India are production of windmills, lifters and precast concrete, production and sale of low-tension products and mobile application services. Note: Finnpartnerships operations are limited to the developing countries. India is currently in the upper middle income developing country category listed by OECDs Development Assistance Committee (DAC). Business partnership support: Max 200,000/company, de minimis aid Max 400,000/company, non-de minimis aid if not affecting competition inside EEA

Importing to a developing country (project with commercial market potential and developmental impacts which boosts developing country import to Finland and possibly to other countries) Other long-term business partnership in a developing country designed to sustain business activities related to, for example, long-term subcontracting or maintenance, franchising or licensing agreements

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30/50/70 per cent of approved expenses depending on the size of the applicant and development level of the target country

Finnpartnership is funded by the Ministry for Foreign Affairs of Finland and governed by Finnfund

Finnfund
Finnfund is a Finnish development nance company that provides long-term investment loans and risk capital for commercially protable

private projects in challenging markets where commercial nancing is hard to obtain. In recent years, a proportion of the nance has been for projects in India, China and Russia.

Finnfund is promoting investments to renewable energy, cleantech and energy efciency sectors. It is typically focusing on projects involving advanced but commercially proven technology, innovations supporting new ways of employing technology that contributes to economic and social development in target countries. Financing on market terms for establishments or expansion projects in different sectors, from SMEs to large companies, with a minority stake range of 1-10 million. Finnfund has a dedicated team with sector-specic knowledge on renewable energy, environment and forestry. The team: Follows the development in these sectors and maintains relationships with project

developers abroad and technology providers and other relevant parties in Finland Has a wide network of nancier partners, e.g. other development nance institutions Can help ll the holes in nancing packages, e.g. by catalysing private funds for the projects it nances Provides the customers of Finnish equipment suppliers in developing countries with other instruments than traditionally used in customer nance, and in wider range of countries Participating in the equipment or service supply backed by Finnfund can provide an easier entry to developing markets, such as India, for a technology provider

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Table 1: Investments in India on December 31, 2012, Operations and the Finnish Company
India Ashley Alteams India Pvt. Ltd. Bharti Airtel Ltd. Incap Contract Manufacturing Services Pvt. Ltd. Ojala (India) Engineering Pvt. Ltd. Polygenta Technologies Ltd. SREI Infrastructure Finance Ltd. Stera Engineering (India) Pvt. Ltd. VME Precast Pvt. Ltd. West Coast Paper Mills Ltd. Aluminium Components Telecommunications Contract Manufacturer of Electromechanices Metal Products Polyester Manufacturing Leasing Contract Manufacturer of Electromechanices Concrete Elements Paper Mill Ojala-Yhtyma Oy Stera Techonology Oy Valkeaskosken Betoni Oy Metso Paper Oy Alteams Group Nokia Siemens Networks Oy Incap Oyj

Finnvera Plc
Finnvera Plc is a specialised nancing company owned by the State of Finland and it has the ofcial Export Credit Agency (ECA) status in Finland. Finnvera provides Finnish SMEs with loans, guarantees and venture capital investments. Finnvera also offers export credit guarantees and

nancing for export credits. Payment terms for export credits supported by Finnvera may vary from cash payment to over ten years in larger buyer credits. Total exposure of export credit guarantees was EUR 10.7 billion as at June 2013. Asia accounts for 11 per cent or EUR 1.2 billion of total exposure with India being the most important country with over EUR 700 million exposure (Figure 12)

As of end 2012, 50 per cent of the Finnish partners were companies with turnover of 50 million or less out of the total of 36 companies Note: Finnfund is owned by the State of Finland 91.5 per cent, Finnvera 8.4 per cent and Confederation of Finnish Industries EK 0.1 per cent Finances projects only countries and Russia in developing

Financing is not tied to Finnish exports but the project should involve a Finnish interest Capital can only be injected into the Indian company (or other such acceptable legal entity) covering nancial instruments such as equity investments (max 30 per cent), investment loans (~1/3 of total), mezzanine nancing (convertible bonds, preferred shares, unsecured subordinated loans) and combinations of these

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When a Finnish cleantech company is starting to explore export business opportunities to India, its useful to know that: (i) According to Finnvera, Indias country risk category is currently (September 2013) set as 3 on a scale from 0 to 7 (7 being the weakest category). Indias economic situation has, however, weakened during 2013 and the classication should be veried from Finnvera website (www.nnvera.) (ii) The risks related to the operating environment of companies in India could be signicant because of problems in trading across borders, legal environment, authorities, enforcing contracts, etc. (iii) A careful analysis of payment terms offered to the Indian client is warranted

Export Credit Guarantees


Are suitable as well for large and small export transactions for Finnish companies producing goods and services, without limitations to specic sectors or technological standards Are used by exporters and banks to hedge against the political and commercial risks in export transactions In the nancing can reduce the all-in-cost for the Indian buyer, because the overall pricing of the nancing reects Finnveras AAA rating Finnvera analyses the creditworthiness of each counterparty and transaction and charges premium according to perceived risk Deferred payment terms (payment time) can be offered to the Indian importer also with a conrmed ILC Finnvera can provide credit enhancement to the conrming bank with its Letter of Credit Guarantee Although Finnvera recommends the use of ILC, export to India on open account terms is a possibility. Finnvera can consider providing insurance against the risk of non-payment by the Indian importer. Such credit insurance is normally used in shortterm transactions (payment of 30-180 days). Often the insurance is granted without additional securities In addition, Finnvera can be involved in different kind of working capital arrangements for Finnish exports the Finnish SMEs. Finnvera can support the internationalisation of Finnish SMEs by providing a guarantee to the Finnish bank nancing the parent SME in Finland (Figure 15.) Finnveras guarantee may be used when a subsidiary or an afliated company abroad needs funding for investment, development or growth. To be eligible, the subsidiary or afliated company abroad must primarily engage in production, assembly, and maintenance or service (nancing cannot be used to set up a sales ofce) As an alternative to the internationalisation guarantee, Finnvera can provide an internationalisation loan directly to a Finnish parent SME. In both cases, the parent SME in Finland is responsible for the repayment of the loan

Internationalisation of Finnish SMEs


Local presence in the Indian market may improve the competitiveness of

Payment terms
Finnish exports to India are generally commenced with advance payments

The alternative to advance payment is an Irrevocable Letter of Credit, Figure 14

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In the last ve years Tekes has funded yearly 13-23 projects that have India-related activities including some cleantech projects. Half of them are company R&D projects and half university research projects. Funding for those projects have been around 4-7 million per year. Tekes provides funding for the development of innovations that aim at creating growth and new business. In 2012, 62 per cent of Tekes funding was related to enterprise projects of which nearly 70 per cent was allocated to development projects of small and medium-sized enterprises.

The Groove Growth from Renewables programme enhances the business capabilities of Finnish small and medium-sized enterprises working with renewable energy by improving their international competitiveness and developing networks with the nancier network. The programme offers assistance in enhancing business skills and networking, with a strong emphasis on international networks. Companies operating in Finland can apply for funding at any time. Research organisations may apply funding on specic application periods.

Larger export contracts


Buyer credits are most common when the Indian client seeking 3 to 10 years credit terms in large scale investment projects. Finnvera can accept both company and bank risk provided that the counterparty risk is acceptable Buyer credits are structured and arranged by international banks in cooperation with Finnvera. In addition to Finnvera Buyer Credit Guarantee, the arranging/lending bank may apply for renancing of the larger buyer credit from Finnish Export Credit (Finnveras daughter company) for longer maturity

Tekes The Finnish Funding Agency for Technology and Innovation


Global environmental problems and the challenges facing developing countries represent a huge growth market. Tekes Green Growth programme offers ambitious companies and research institutions cooperation in the development of innovations in material and energy efciency. Tekes Green Growth programme is actively looking for company projects in cleantech which are aiming for Indian markets.

Tekes nancial contribution is determined based on the novelty of the project, market distance and the size of the company. Grants will typically be awarded to research and development projects that generate know-how that can be utilised in the long-term. The project as such does not produce a directly marketable product. Instead, product development will be done on later phases utilising the results of the research project.

Acceptable costs include items such as Salaries relating to project The related indirect personnel costs and overheads, travel costs, materials and supplies costs and under certain conditions, machinery and equipment costs as well as services purchased from external suppliers Costs relating to the planning of production, marketing, internationalisation or internal training can be accepted as a part of the project

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Costs relating to preparation for market entry and verication of the functionality of development work may constitute only a part of the costs of a project funded by Tekes

The loan is intended especially for projects that produce a marketable product or service or create a new business concept.

Finnish Industry Investment Ltd.


Finnish Industry Investment Ltd. (FII) is a government-owned prot-orientated investment company. FII is a part of the Team Finland network and national innovation system.

technology, while creating new growth companies, jobs and well-being Contributes to the innovation system services by providing venture capital and private equity nancing to companies. Financing through exits and governmental equity injections have secured the continuous and growing investment activity Attracts foreign capital into Finland by investing in international venture capital and private equity funds and by coinvesting in Finnish companies together with international investors. Finnish Industry Investment is a local partner for international investors in Finland In recent years, average yearly investment volumes have hit EUR 100 million, divided equally between fund investments and direct investments. Current investments and commitments totalling EUR 700 million have been placed in around 80 investment funds and 80 growth companies

Prospects
FIIs goal is to channel venture capital into growth companies over economic cycles. The Finnish government decided to strengthen growth company nancing and capitalise it by 2013. Special focus areas for FIIs investments will be high value-added growth companies, the mining cluster, the bio-economy and cleantech sectors, and the marine industrys cluster companies.

Finnish Industry Investment Ltd.


Invests in Finnish companies in their growth and internationalisation stages Seeks to stimulate Finnish industry, promote the development and deployment of new

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Nopef Focus on globalisation


The Nordic Project Fund (Nopef) is part of the organisation of the Nordic Council of Ministers (NCM). Nopef is nanced by the Nordic Council of Ministers. The funds are used to strengthen the international competitiveness of small and medium-sized enterprises by providing loans on favourable terms for co-nancing feasibility studies, aiming at contributing to the internationalisation of companies. Nopef supports feasibility studies that have strong commercial potential.

This expertise, with emphasis on the preinvestment phase gives Nopef a unique competence to support small and mediumsized companies, in close cooperation with Nordic and national nancial institutions and trade organisations. Nopef is one of the four Nordic nancial institutions located in Helsinki. The other three are the Nordic Investment Bank (NIB), the Nordic Development Fund (NDF) and the Nordic Environment Finance Corporation (NEFCO).

Sitra
The Finnish Innovation Fund is operating directly under the Finnish Parliament, thus decisionmaking processes are tied to parliamentary systems.

Promote health and well-being Solve social problems in society Improve material and energy efciency Speed up the smart use of natural resources Promote an ecological way of life

New sustainable business


Sitra notes that by 2017 Asia will generate nearly half of the growth of the global economy outside the US. Asian countries are implementing new green economy and technology, looking for sustainable solutions for environmental problems, energy production and the efcient use of raw materials. Most of the worlds metropolises are in Asia. Two-thirds of Asians will eventually live in cities, consuming the majority of the worlds commodities, services and energy. Cities are both the problem and the solution. India is not an exception in this context. Sitra concludes that the fortunes of Finlands economy are bound to Asian growth, hence new investments are targeted at businesses that

Investment terms in a nutshell


Investments on equal terms with other investors Good nancial return Investments typically in the range of 300,000-1 million Minority ownership of 10-30 per cent in the rst nancing round Investments mainly in equity, but may also grant convertible loans or regular loans Always seeking other investors to co-invest in each company Commits to the ownership and development of the company, on average 4 to 10 years No grants or subsidies nor free support to companies

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Mapping the Channel of Setting up Business in India

5.1 Cultural, social and geographical trends apart from market trends
India is a huge country which is like a continent in itself with the territory of India divided into 28 states. Each state has its own set of laws and regulations called as the state governed laws. However, each state is abided by common central government laws. It is important to see the attractiveness of different states when considering India market as per the business potential, business environment, available infrastructure, human resource availability, taxation, etc. The country is diverse and different as you go from one state to another in terms of socio economic culture and demographics. The country has a vast young age population of more than 50 per cent below the age of 25 years and the average age by 2020 will be 29 years, while the population is about 240 times that of Finland.

its a price competitive market but promises huge volume growth for feasible business due to its high consumer base.

5.3

Things to keep in mind

It is important to keep things in mind while choosing a specic location by a company for its business. Most importantly, the demographics, right infrastructure, tax rules of the state, vicinity to suppliers, human resource availability, special economic zone, price parity, exit options in case of dissolution. The above stated inuences the decision to choose a specic location in comparison to others.

5.4 Different avenues for market entry


A realistic plan should be drawn and the benets and risks should be discussed before arriving at any conclusion. Recently in 2013, the new Company Law Bill 2012 has been amended replacing the old Company Act Bill of 1956 which has improved the transparency and compliances of companies especially the small and medium and micro industries in India. The entry option is decided for the client from the below options Liaison Ofce (LO) or Branch Ofce (BO) Establishment of 100 per cent wholly-owned Indian subsidiary of parent company Joint Venture (JV) Strategic acquisition of existing Indian company Operating through an agent/representation, distributor/partner in India

MAPPING THE CHANNEL OF SETTING UP BUSINESS IN INDIA

5.2

Doing business in India

India as a destination to do business has attracted many countries around the world and today it is one of the leading emerging economies. Almost all the sectors in India have grown by and large in the last couple of decades after the liberalisation of the economy in the early nineties. Business in India has advantages of long-term and sustainable business possibilities owing to its large domestic consumption and international business growth in the past. Some of the companies have predetermined way of entry to this market owing to their long business relations with India. However, a very clear entry mode should be chosen by the companies from the options available when planning to associate their business with India. It is important to note that

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Role of Communication for Cleantech in India

Introduction
Like any sector, the biggest challenge facing cleantech companies at the moment is the dynamism of evolving economies. It can be extremely difcult for early-stage companies to access the nancing they need to get their technologies off-the-ground and the general atmosphere that is increasingly risk-averse. That said, this backdrop offers a real opportunity for cleantech growth because the technologies that will ultimately be successful are those that work more cheaply, more efciently, or more intelligently. In a time of austerity, these are the real drivers of cleantech adoption in India and the companies that can get this message right are those that will succeed, regardless of the economic climate.

business plan or sales strategy and should be a priority from day one. You could have a magic box that could save the world but if no one knows that it exists or what it does, and no one understands why wed want it, it wont make any difference at all. Indian companies irrespective of size are extremely particular about branding for a competitive edge and more so to communicate on behalf of the sector. Given this trend, communication should be considered by Finnish companies as an integral part while developing an entry strategy or while doing business in India.

Cleantech companies Reach out to mainstream audience in India


The approach is very much about focusing on the bigger picture in India and this is important for two reasons. Firstly, public acceptance and consumer demand are crucial for the vast majority of technologies; unless people understand the benets of new technologies they are unlikely to accept change. There are also plenty of examples of consumer demand for more sustainable products or services driving innovation. Secondly, its important to remember that the stakeholders that companies need to engage with are people. If you can engage those people with your story and reach them on a personal level, theyll be far more ready to sit through a data-heavy presentation of your growth projections.

ROLE OF COMMUNICATION FOR CLEANTECH IN INDIA

Importance of communications and PR in cleantech business


There are mixed perceptions about dovetailing communication with business strategy, but its clear that the companies getting the communications aspect right are those that are succeeding. Especially in a highly competitive market like India, a good communication will set an excellent example of strong company message that is underpinning the success of the low-carbon sector. Indian media is craving for stories from companies that is all about jobs, investing in the economy and national leadership, which is why theres such good support for the sector. The truth is that people respond much more to those messages than to climate change issues. However, still a lot of cleantech companies think of PR and communications as something to address when they have the time or money; the reality is that whether or not you are in a position to use an external agency, the success of a communications activity is absolutely integral to your success as a business.

Tips to a business start-up looking to communicate its message to the industry


Think about communications from the very beginning; they are integral to the success of any business at any stage of growth. At the very least, its important that the company is absolutely clear about what its does and why it matters. Describe your business clearly in one line; it sounds simple enough but its amazing how many people cant do this. Also, develop an awareness of the bigger issues that you are aligned with and how you are helping to address them. Perhaps most importantly of all, present yourself as the company you want to be, i.e. a company with a solution for a green economy.

Need for change to be successful in the Indian market


Communication is vital to the success of any company in India and is particularly crucial in the cleantech sector. Its as important as your

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Does size of the company matter?


Its not about size; its about how established you are. There are companies of four people who are doing a great job of communicating and really building a prole for themselves in India. In contrast, there are companies with much larger payrolls that no one has really heard of. The basic principles of communication are the same, however, big the company is; the difference is the prole of the company. Once you have a prole and people know who you are and what you do, it becomes more about managing your reputation, which is when companies usually start looking for a PR agency. However, this strategy doesnt apply to businesses that dont yet have a reputation. Thats where its important to take professional help, who work with companies across all their communication activities to do the hard work of building that prole in the rst place.

focus to a narrow range of media because the more widely the message is spread the better. Of course certain stories will complement certain publications, but its important to make the story as interesting as possible to as many publications as possible. Its too easy (and too lazy) to just get stories about a lighting client into the lighting press. They should be talked about in the business press, the green media and the mainstream media.

Role of Cleantech Finland


With a national objective to develop the sector into a new cornerstone industry, CLEANTECH FINLAND, acts as a platform dedicated to the Finnish cleantech industry that could offer an excellent understanding of the environment and clearly and effectively communicate the complexities of clean technology in emerging markets including India. CLEANTECH FINLAND is a network of top cleantech experts. Cleantech Finland connects clients, partners, investors and other stakeholders with the best cleantech expertise.

Should the communication be limited to target journalists/section of the media?


Indian media landscape is dynamic. While setting up the communication plan, avoid limiting

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Team Finland in India

7.1

Introduction

Team Finland network was set up to support Finlands external economic relations and promote the country brand, internationalisation of Finnish companies as well as foreign investment directed at Finland. The network brings together actors both from Finland and abroad. At the heart of the Team Finland network are the Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Ministry of Education and Culture of Finland. Team Finland encourages numerous players promoting Finland and Finnish business into progressively better cooperation. Around the world there are over 70 local teams which handle Team Finland activities abroad, one of which is in India. Each local team gathers together the Finnish authorities, publicly funded organisations, and other central players representing Finland in the particular region. The signicance of India as a target market for the internationalisation of Finlands trade and industry has grown. Team Finland in India has ofciated several activities to strengthen collaboration between Indian and the Finnish players. Cleantech has been recognised as one of the focus areas of collaboration between Finland and India.

in Finland and India with the objective to enhance positive development effects in India innfund, a Finnish development nance F company providing long-term investment loans and risk capital for private projects in India Finnvera promotes Finnish enterprises activities targeted at India, by granting export guarantees and loans and guarantees for internationalisation Tekes the Finnish Funding Agency for Technology and Innovation represents Finnish innovation actors in India Finnish Industry Investment Ltd, being a part of the Finnish national innovation system seeks to stimulate Finnish industry, promote the development and deployment of new technology Finpro, an MEE Group agency, and its trade centres assist Finnish trade and industry actors in forging contacts and networks in India. It also implements industry-specic projects in the Indian market

TEAM FINLAND IN INDIA

In addition, Sitra, the Finnish Innovation Fund promotes and stimulates new business models that aim for sustainable well-being Nopef which has a focus on globalisation is nanced by the Nordic Council of Ministers. The funds are used to strengthen the international competitiveness of small and medium-sized enterprises by providing loans on favourable terms for co-nancing feasibility studies, aiming at contributing to the internationalisation of companies

Team Finland network


The Team Finland network promotes Finlands economic external relations, country branding and promotion activities, internationalisation of enterprises and foreign investment in Finland. Its activities are aimed at enhancing cooperation between Finnish actors operating in these sectors. The Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Ministry of Education and Culture form the core of the Team Finland network. Some of the important Finnish Team Finland network and key actors enhancing Indo-Finnish trade and industry actions include the following publicly funded organisations. innpartnership supports feasible and F commercially viable business partnerships between companies and organisations

Internationalisation of Finnish cleantech enterprises and India


The MEEs export promotion policy aims to ensure that Finnish enterprises have at least equal internationalisation conditions and are operating possibilities in the market compared to the companies of competitor countries. An agreement on economic cooperation between Finland and India entered into force in 2011. On Finlands side, the agreement on economic

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cooperation and the Joint Commission between Finland and India are coordinated by the Ministry for Foreign Affairs. Under the agreement, a cleantech working group will commence its operations in autumn 2013. With the help of the working group, Finland aims to increase concrete cooperation between companies in the cleantech sector and the Indian authorities and funding organisations, utilising the working group for communications and networking between the countries. Within the working group, the MEE engages in close cooperation with Team Finland network. The MEE strives, with public services and subsidies, to encourage primarily Small and Medium-sized Enterprises (SMEs) operating on the home market to internationalise their business, as well as to accelerate the internationalisation process of enterprises that have already started exporting. Furthermore, the MEE is focusing a higher number of innovation policy and export and internationalisation promotion measures on India too. Enterprises can apply to the Centres for Economic Development, Transport and the Environment (ELY Centres) for aid for their internationalisation projects.

Forests on the Indian side. The JWG shall report on its work to the Indo-Finnish Joint Commission coordinated by the Ministry for Foreign Affairs of Finland and the Ministry of Commerce and Industry of India. The JWG shall consist of representatives of the Coordinating Authorities and representatives of other ministries, governmental, industrial and nancial organisations, as well as enterprises from both sides, as deemed relevant respectively by both sides. The JWG shall meet once a year or when considered appropriate by the sides either in Finland or in India. The date and place of the meetings shall be mutually agreed upon by the coordinating authorities. Both sides may propose issues to the agenda of the JWG. After each meeting of the JWG, minutes of the meeting/a protocol will be prepared by the host of the meeting and agreed upon by the coordinating authorities. A mutually decided action plan and progress report will be prepared periodically. Between the ofcial JWG meetings different networking events, workshops, seminars and exchange visits can be organised under the JWG umbrella. The working language of the JWG shall be English. Both sides shall bear their respective costs arising from functioning of the JWG.

Facilitating access to cleaner technologies by small and medium enterprises Other elds as mutually agreed upon by the coordinating authorities

3. Creating favourable conditions and suggesting mechanisms for collaboration 4. Supporting investments and R&D cooperation in indentied cooperation elds 5. Scanning on joint funding of mutually agreed projects and activities under the JWG umbrella 6. Networking of professionals, organisations and enterprises by organising workshops, seminars and exchange visits

Tasks of the Joint Working Group (JWG):


1. Identication of joint activities and areas for cooperation 2. Exchanging information and knowledge and sharing experience

7.2 Indo-Finnish Joint Working Group on Clean Technologies and Waste Management is under the Bilateral Joint Commission
The Indo-Finnish Joint Working Group on Clean Technology and Waste Management has been established under the Indo-Finnish Joint Commission. The Joint Working Group (JWG) will implement the Agreement on Economic Cooperation between the Government of the Republic of Finland and the Government of the Republic of India. The coordinating authorities of the JWG are the Ministry of Employment and Economy on the Finnish side and the Ministry of Environment and

Identied elds of cooperation


Renewable energy (solar, wind, bioenergy) Energy efciency Sustainable cities Water and wastewater Waste management Smart grid Combined heat and power Measuring, analyses and automation Climate and environment Pollution risk reduction Sustainable management of forests

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Key Cleantech Industry Consortiums and Organisations

Multilateral Organisations UNDP

Field The United Nations' global development network helps India achieve the global Millennium Development Goals (MDGs) and the national objectives Programmes for clean technologies and renewable energy, mitigating global climate change and access to energy and water The specialised agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalisation and environmental sustainability Energy, climate change and adaptation Helps developing countries adapt to climate change, embark on low-carbon growth and tackle deforestation Expertise for sustainable development, economic development, food security, health and basic education; and environmental protection, resource conservation and climate change mitigation Protection of Indias ecological security. Minimising wasteful consumption and promotion of sustainable and wise use of natural resources by all sectors of society The intergovernmental panel on climate change A corporate sustainability and clean and green technologies investment advisory rm in Asia Pacic

Website www.in.undp.org/india/en/ home.html

USAID

transition.usaid.gov/in/

UNIDO

www.unido.org/ofce/ india.html

NORAD ICF

www.norad.no/en/ front-page www.climatefundsupdate. org/ www.giz.de

KEY CLEANTECH INDUSTRY CONSORTIUMS AND ORGANISATIONS

GIZ

WWF

www.wwndia.org

IPCC Sustain Asia

www.ipcc.ch/ sustainasia.com/en/index.php

Bilateral Organisations DFID India Sharing skills and expertise in priority areas such a growth, health, food security and climate change The Swiss Agency for Development and Cooperation's emphasis is on innovation, dialogue, capacity building and cooperation in climate change and energy themes To build transformative solutions that protect the earth and improve peoples lives in India www.gov.uk/government/ world/organisations/ dd-india www.swiss-cooperation. admin.ch/india/

SDC

WRI India

wri-india.org/about/

Research Organisations CSE The Centre for Science and Environment (CSE) is a public interest research and advocacy organisation based in New Delhi www.cseindia.org

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Key Cleantech Industry Consortiums and Organisations

TERI

The Energy and Resources Institute focusing its research activities in the elds of energy, environment and sustainable development

www.teriin.org/index.php

ASSOCHAM

Institiutions& Universities EDF The Economic Development Forum is a Non-Prot Membership organization. The Economic Development Forum provides a platform for companies and individuals to explore sustainable development Group of autonomous public engineering and management institutes of India www.edf.org/climate/indianding-paths-sustainablegrowth FISME www.iitd.ac.in

One of the apex trade associations of India. The organisation represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives. The goal of this organisation is to promote both domestic and international trade, and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India The progressive face of Indian MSMEs and is regarded as such by the Government of India. It is a member of the National MSME Board formed under the MSME Act 2006. FISME is consulted by SME policy making set-up of the country and also works in close coordination with the Ministry of Micro, Small and Medium Enterprises as well as major multilateral and bilateral bodies in India

ww`cham.org/

www.sme.org.in

IIT's Indian NGOs Development Alternatives

Development Alternatives (DA) has acted as a research and action organisation, designing and delivering eco-solutions for the poor and the marginalised Solar Energy Society of India the Indian Section of the International Solar Energy Society (ISES) Promotion and development of wind power in India Integrated Sustainable Energy and Ecological Development Association. Concentrating promotion of renewable energy, ecological and natural resources development programmes with special focus on the implementation of biogas development in rural areas of the country, since 1980 Collaborative non-prot initiative of the users, developers and researchers of clean technologies, dedicated entirely to the use of eco-efcient techniques and practices for environmental impact mitigation of industrial, developmental and human activities CII is a non-government, not-for-prot, industryled and industry-managed organisation, playing a proactive role in India's development process and working to create and sustain an environment conducive to the development of India, partnering industry, government, and civil society, through advisory and consultative processes A non-government, not-for-prot organisation, an association of business organisations in India. Involved in sector-specic business policy consensus building, and business promotion and networking

www.devalt.org/about_ us.aspx

SESI InWEA INSEDA

www.sesi.in/aboutus.aspx www.inwea.org www.inseda.org

CLEANTECH International Foundation

www.cleantechfoundation. org/

CII

www.cii.in/

FICCI

www.cci.com/

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Other Cleantech Organisations in India

Country Cleantech Holland Germany DCTI (Deutsches Clean TechInstitut) - GIZ

Programmes Decentralised energy solutions for villages Energy, sustainable development and industrial development, renewable energy supply for rural areas, commercialisation of solar energy in urban and industrial areas (ComSolar) (BMU) Indo-German Energy Forum International Climate Initiative Green Energy Corridors Project Indo-German Energy Programme Integration of Renewable Energies into the Indian Electricity System

Webpage www.cleantechholland.nl/en/ www.dcti.de/en/

Norway -INTPOW UK-Bridge Cleantech

Promoting renewable energy Technology Vision 2020 UK India Business Leaders Climate Group South Asia Water Initiative Renewable energy, especially solar Advances the water and renewable energy sectors by supporting academia and research, encouraging implementation in the local market, and by helping Israeli companies succeed in the international arena Solutions for water treatment and wastewater management Facilitates exports of Swedish cleantech and support the development of Swedish companies and promote research and innovation in this eld. Operated and developed by the Swedish Agency for Economic and Regional Growth Tillvxtverket Cooperation and MoU concerning energy efciency with CII, Indo-Swedish Innovation Platform Helping member companies start and nish projects in India; networking platform for all cleantech sectors Facilitates and delivers Australian clean technology investments on behalf of both investors and project proponents

www.intpow.no/ www.bridgecleantech.com/ www.bridgecleantechindia.com/ www.france-cleantech.fr www.frenchcleantech.com israelnewtech.com/tag/cleantechisrael/

OTHER CLEANTECH ORGANISATIONS IN INDIA

FranceCleantech Israel NewTech

SwitzerlandCleantech Swedish Cleantech

www.swisscleantech.ch/ www.cleantech-switzerland.com swedishcleantech.se

Cleantech Scandinavia USA- Cleantech Group AustraliaCleantech

www.cleantechscandinavia.com/

www.cleantech.com

www.auscleantech.com.au/

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References

REFERENCES

envfor.nic.in/about-ministry/about-ministry www.indiaenvironmentportal.org.in/organisation/ministry-petroleum-and-natural-gas powermin.nic.in/JSP_SERVLETS/internal.jsp www.mnre.gov.in/mission-and-vision-2/mission-and-vision/ www.c2es.org/international/key-country-policies/india/climate-plan-summary www.pib.nic.in/newsite/erelease.aspx?relid=46172 www.cwet.tn.nic.in/html/aboutus.html jnnurm.nic.in/ wrmin.nic.in/index1.asp?linkid=201&langid=1 wrmin.nic.in/writereaddata/linkimages/NWP2012Eng6495132651.pdf www.teriin.org/index.php?option=com_content&task=view&id=17 mnre.gov.in/le-manager/UserFiles/biofuel_policy.pdf www.simplydecoded.com/2013/02/24/a-ninth-mission-national-bio-energy-mission/ unfccc.int/cooperation_and_support/nancial_mechanism/bilateral_and_multilateral_funding/items/2822.php www.earthdirectory.net/India.htm www.dst.gov.in/ moud.gov.in/sites/upload_les/moud/les/Mandate_0_0.pdf www.indianetzone.com/51/ministry_urban_development.htm www.nland.org.in/public/default.aspx?contentid=266232&nodeid=46694&contentlan=2&culture=en-US team.nland./public/default.aspx?nodeid=46788&contentlan=2&culture=en-US www.google.co.in/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&ved=0CEMQFjAB&url=http%3A%2 F%2Fwww.researchgate.net%2Fpublication%2F200122206_Wind_energy_in_India_Status_and_future_prospects%2Ff ile%2F204c11a7dfe7d34eca11dc7907fdaeee.pdf&ei=Nj_vUeOHGIir4ATN5IDoBA&usg=AFQjCNEPM2qAffppOqELM6Kk WmkJo_6Wvw&sig2=MDnPWNCQ918GxFdL1TvTxA&bvm=bv.49641647,d.bGE www.eai.in/ref/ae/sol/cs/spi/solar_pv_in_india_industry_status_and_trends.html www.mnre.gov.in/centers/sss-nire/(Insitute for Bioenergy under MNRE) www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/taxes-incentives-renewable-energy-2012. pdf (lobal Investment in RE) www.eai.in/ref/ae/win/business_opportunities.html (Wind energy Business opportuntities) cleanenergyministerial.org/Portals/2/pdfs/CEM4_roundtables_report_web.pdf (Clean Energy Ministerial Meet report ****) www.mnre.gov.in/le-manager/UserFiles/mission_document_JNNSM.pdf (Solar Mission docu-ment MNRE) www.eai.in/ref/ae/sol/sol.html (Unique Proposition why solar) www.mapsondia.com/maps/nonconventional/solarpower.htm# (Solar project maps) www.ebtc.eu/pdf/110926_REP_EBTC_Greentech_Energy.pdf (List of organisations in Solar, Wind, Bioenergy etc mnre.gov.in/le-manager/UserFiles/strategic_plan_mnre_2011_17.pdf www.ey.com/Publication/vwLUAssets/Renewable_energy_country_attractiveness_indices_February_2013/$FILE/ Renewable_energy_country_attractiveness_indices.pdf siteresources.worldbank.org/EXTENERGY2/Resources/Unleashing_potential_of_renewables_in_India.pdf gyananalytics.com/The%20Potential%20of%20Renewable%20Energy%20in%20India%20-%202012.pdf www.eai.in/ref/ae/win/win.html#sthash.qY0uBng5.dpuf eqmaglive.com/EQ-ARTICLE-668-Acceleration-Of-Renewable-Energy-With-Emphasis-On-Wind-Energy-Through-ProActive-National-Policies-In-India.html Source: Report of The Working Group on Power for Twelfth Plan 2012-17, Government of India, Ministry of Power www.cityoondon.gov.uk/business/support-promotion-and-advice/promoting-the-city-internationally/india/Documents/ BC_PR_CityofLondon1.pdf www.eco-ventures.in/pdfs/indian_solar_market_potential_anita.pdf tejas.iimb.ac.in/articles/75.php www.triplepundit.com/2013/07/renovate-india-renewable-energy-sources/ (Very good article about RE++++) www.salvuscapital.com/iiwes.pdf (Very good wind energy report) LArge solar power plans in India by MNRE (500MW) articles.economictimes.indiatimes.com/2013-06-14/news/39976619_1_solar-power-welspun-energy-mw www.emergent-ventures.com/docs/energetica-india.pdf www.gwec.net/wp-content/uploads/2012/11/India-Wind-Energy-Outlook-2012.pdf mnre.gov.in/file-manager/UserFiles/presentation-01082012/Presentation%20on%20Policy%20Issues%20and%20 12th%20Plan%20Proposals%20by%20JS,%20MNRE.pdf www.academicresearchjournals.com/serialjournalmanager/pdf/1364630101.pdf

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References

techcurry.co/indias-wind-power-potential-stands-at-massive-2000-gw-lawrence-berkeley/ nexusnovus.com/wind-energy-opportunities-india www.emergent-ventures.com/docs/energetica-india.pdf www.ebtc.eu/pdf/111031_SNA_Snapshot_Biofuels-and-Bio-energy-in-India.pdf www.simplydecoded.com/2013/02/24/a-ninth-mission-national-bio-energy-mission/ Bioenergy mission under NAPCC as Ninth misssion www.bioenergyindia.org/Capabilities.aspx... Bioebergy council of India www.bioenergyconsult.com/tag/biomass-potential-in-india/ www.rcuk.ac.uk/documents/india/BioenergyprogrammeIndia-DBTDrRenuSwarup.pdf Good report on Bioenergy..highlighting barriers www.tech-action.org/Perspectives/BioenergyIndia.pdf www.tech-action.org/Perspectives/BioenergyIndia.pdf UNEP report on Bioenergy www.unep.org/bioenergy/Portals/48107/doc/issues/issuespaper/Issue%20Paper%207%20-%20REDD%20and%20 Bioenergy.pdf Very veryimprotant report on Bioenergy mission www.eai.in/club/users/Shweta/blogs/7498 www.inspirenetwork.org/pdf/issue_7_(mar11).pdf www.slideshare.net/iaeme/future-potential-of-small-hydro-power-project-in-india www.renewableenergyworld.com/rea/news/article/2013/07/nancing-indias-small-hydro-capacity www.thelearningpoint.net/home/infographic-insights---visualizing-data-and-statistics-related-to-india/infographics--visualizing-small-hydro-power-potential-in-india-non-conventional-energy-resources cleantechnica.com/2013/03/01/indias-budget-includes-145-million-incentive-for-wind-energy-low-cost-funding-forrenewable-energy-projects/#7AbL8J0gwKbb5d6Q.99 www.greenfeathers.in/greendirectory/clean-and-green-category.php?page=2&category=66&name=RE-SmallHydro www.slideshare.net/IPPAI/issues-in-hydro-power-development www.nrel.gov/docs/fy11osti/48948.pdf www.eai.in/ref/ae/wte/wte.html#sthash.oLAvZVID.dpuf (Background) www.eai.in/ref/ae/wte/pol/policies.html#sthash.4WKP3ywI.dpuf (government policy) www.seas.columbia.edu/earth/wtert/sofos/Natl_%20Master_%20Plan_of_India.pdf (good presenation) wtert.in/25-08-2012-Day2/Regina_Dube.pdf www.seas.columbia.edu/earth/wtert/sofos/Sustainable%20Solid%20Waste%20Management%20in%20India_Final.pdf Sedish waste to energy www.swedenabroad.com/SelectImageX/165865/WtEreportSidanal.doc wtert.in/24-08-2012-Day1/Vikram_Reddy.pdf envfor.nic.in/divisions/ic/wssd/doc2/ch4_anx.pdf panchabuta.com/2012/11/29/indian-govt-earmarks-rs-5-4-billion-subsidy-for-rural-electrication/ www.tem./en/enterprises/internationalisation/aid_to_individual_enterprises www.tem./en/enterprises/internationalisation/joint_export_promotion_projects_of_enterprises_and_project_aid www.slideshare.net/iaeme/future-potential-of-small-hydro-power-project-in-india www.renewableenergyworld.com/rea/news/article/2013/07/nancing-indias-small-hydro-capacity www.thelearningpoint.net/home/infographic-insights---visualizing-data-and-statistics-related-to-india/infographics--visualizing-small-hydro-power-potential-in-india-non-conventional-energy-resources cleantechnica.com/2013/03/01/indias-budget-includes-145-million-incentive-for-wind-energy-low-cost-funding-forrenewable-energy-projects/#7AbL8J0gwKbb5d6Q.99 www.asiapacicpartnership.org/pdf/Projects/Cross-Cutting-Other/PSU/CCO-07-03_Financing_Energy_Efciency_in_ India_Nov_2008.pdf www05.abb.com/global/scot/scot316.nsf/veritydisplay/bcb30e13c8cbe734c125786400512e26/$le/india.pdf www.ipeec.org/docs/countryreports/India-Country-report.pdf www.google.co.in/url?sa=t&rct=j&q=energy%20efciency%20opportunities%20report%20india&source=web&cd=4& cad=rja&ved=0CDgQFjAD&url=https%3A%2F%2Fwww.econ.umd.edu%2Fresearch%2Fpapers%2F592%2Fdownload %2F346&ei=mvAWUr27I6v24QS1voGYAQ&usg=AFQjCNHOZp8zehWlMLg3OrWCwR0OXrhm6g&bvm=bv.51156542,d. bGE www.ebtc.eu/pdf/111031_SNA_Snapshot_Energy-Efciency-in-India.pdf www.idfc.com/pdf/report/Chapter-4.pdf conference.aimt.edu.in/mba/mba%20paper/CONCEPT%20OF%20GREEN%20FINANCE%20AND%20ITS%20 VIABILITY%20IN%20INDIA.pdf

www.irjcjournals.org/ijmssr/Feb2013/9.pdf indianresearchjournals.com/pdf/IJMFSMR/2012/July/3.pdf www.venturecenter.co.in/funding/ www.greenfeathers.in/greendirectory/clean-and-green-category.php?page=2&category=66&name=RE-Small www.slideshare.net/IPPAI/issues-in-hydro-power-development www.nrel.gov/docs/fy11osti/48948.pdf www.climateinvestmentfunds.org/cifnet/country/india www.cleantechcluster./en/services/international/?id=158 www.ifc.org/wps/wcm/connect/4252af804a95fe15b284f29e0dc67fc6/IFC+Activities+in+Cleantech.pdf?MOD=AJPERES www.2point6billion.com/news/2011/05/30/asian-development-bank%E2%80%99s-clean-tech-vc-funds-target-chinaand-india-9377.html www.thehindubusinessline.com/economy/usaid-commits-100-m-to-india-cleantech-fund/article4843648.ece List of investment funds India bridgecleantech.in/index.php/funds/list-of-investment-funds (BridgeCleantech) Infuse Mangnetar Venture Pvt limited...USD 100 m IDFC IFC www.idfc.com/alternatives/pdf/private-equity-nancing-for-cleantech-infrastructure.pdf (very good report on CT funding) www.unep.org/pdf/UNEP_Investing.pdf www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/les/CTF%20CRP%205%20%20India%20ppt. pdf www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/les/CTF_India_investment_plan_101411.pdf entrepreneurindia.in/people/coverstory/the-real-green-shoots/19980/ www.hindustantimes.com/business-news/WorldEconomy/IFC-bets-big-on-India-s-green-biz/Article1-1081152.aspx www.irjcjournals.org/ijmssr/Feb2013/9.pdf indiabudget.nic.in/ub2013-14/bh/bh1.pdf www.sustainabledevelopment.in/pdf/events/day2/Pankaj_Sindwani.pdf trade.gov/publications/pdfs/india-clean-energy2008.pdf www.siemens.co.in/sustainable-development-in-india/?stc=inccc020017 mospi.nic.in/mospi_new/upload/sel_socio_eco_stats_ind_2001_28oct11.pdf pg 38 www.tcpomud.gov.in/Divisions/MUTP/Provisional_Census_Report_2011.pdf mospi.nic.in/Mospi_New/upload/cocsso_data/agenda-IV_20th_cocsso.pdf jnnurm.nic.in/wp-content/uploads/2013/07/sectorwise-details.pdf tcpomud.gov.in/Schemes/index.html nerudp.nic.in/ www.pwc.com/gx/en/capital-projects-infrastructure/assets/gridlines-india-article-2013.pdf www.business-standard.com/article/economy-policy/land-talks-on-for-smart-cities-project-112080502012_1.html www.mckinsey.com/insights/urbanization/urban_awakening_in_india www.moef.nic.in www.wmrindia.com www.ebtc.eu/pdf/111031_SNA_Snapshot_Waste-management-in-India.pdf urbanindia.nic.in/programme/lsg/twelfth_5y_plan.pdf http://www.nbmcw.com/articles/green-construction/25586-green-building-going-green-concept-on-rise-in-india.html http://www.wienerberger.in/events/previous-events/the-green-building-congress-2012.html?lpi=1208673813172 http://www.nrdc.org/international/india-constructingchange.asp http://www.noppen.com.cn/upcoming/B1212/index.asp http://greencleanguide.com/2012/08/22/three-primary-ratingsystems-for-green-buildings-in-india/ http://www.ijetae.com/les/Conference%20ICERTSD-2013/IJETAE_ICERTSD_0213_51.pdf http://www.nswaienvis.nic.in/ http://wiego.org/wiego/sewa-bharats-inclusive-solid-waste-management-tool http://www.environment.tn.nic.in/SoE/images/WasteManagement.pdf http://www.moef.nic.in/downloads/public-information/Roadmap-Mgmt-Waste.pdf

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Abbreviations

ABBREVIATIONS
ADB: AIT: Asian Development Bank Austrian Institute of Technology and Assessment Council EK: Confederation of Finnish Industries ELY Centres:  Centres for Economic Development, Transport and the Environment EPC: Engineering, Procurement and Construction ASSOCHAM: The Associated Chambers of Commerce and Industry of India BEE: Bureau of Energy Efciency EPCM: Engineering, Procurement and Construction Management EU: FDI: European Union Foreign Direct Investment

JnNURM: Jawaharlal Nehru National Urban Renewal Mission JV: JWG: KFW: Joint Venture Joint Working Group Kreditanstalt Fr Wiederaufbau (Reconstructioncredit Institute)

PPPs: PV: RBI: R&D: REC:

Public Private Partnerships Photo Voltaic Reserve Bank of India Research and Development Renewable Energy Certicates

KITVEN: Karnataka Information Technology LEED: Leadership in Energy and Environmental Design

REDD: Reducing Emissions From Deforestation and Forest Degradation REEEP: Renewable Energy and Energy Efciency Partnership RPOS: Renewable Purchase Obligation RRECL: Rajasthan Renewable Energy Corporation Ltd. SCADA: Supervisory Control and Data Acquisition SCF: SDC: SEC: SECI: Strategic Climate Fund Swiss International Cooperation Solar Energy Centre Solar Energy Corporation of India

BOOT: BuildOwnOperateTransfer BPS: Business Partnership Programme

LO or BO: Liaison Ofce or Branch Ofce MNRE: Ministry of New and Renewable Energy MOEF: Ministry of Environment and Forest MOMSME: Ministry of Micro, Small and Medium Enterprises MOP: Ministry of Power

CAGR: Compound Annual Growth Rate CAPEX: Capital Expenditure CEA: CEPT: Central Electricity Authorithy Centre for Environmental Planning and Technology University

FICCI: Federation of Indian Chambers of Commerce and Industry FISME: Federation of Indian Micro, Small and Medium Enterprises GBI: Generation Based Incentive

GEDA: Gujarat Energy Development Agency GEF: GHG: GIZ: Global Environemnt Facility Green House Gases Deutsche Gesellschaft Fr Internationale Zusammenarbeit

MOUD: Ministry of Urban Development MP: Madhya Pradesh

CERC: Central Electricity Regulatory Commission CES: CFL: CII: Centre for Ecological Sciences Compact Fluorescent Lamp Confederation of Indian Industry

MSME: Micro, Small and Medium Enterprises MSW: Municipal Solid Waste

SERC: State Electricity Regulatory Commission SESI:  Solar Energy Society of India SEZs: SGP: SIDBI: SLEM: Special Economic Zones Small Grants Programme Small Industries Development Bank of India and Other Nationalised Banks The Sustainable Land and Ecosystem Management

CPCW: Central Pollution Control Board CPHEEO: The Central Public Health and Environment Engineering Organisation CSE: CSIR: CSOs: CSP: CTF: DA: DAC: Centre for Science and Environement Council of Scientic and Industrial Research Civil Society Organisations Concentrated Solar Power Clean Technology Fund Development Alternatives Development Assistance Committee

GRIHA: Green Rating for Integrated Habitat Assessment HVAC: Heating, Ventilation and Air Conditioning IASH: ICT: IDFC: IFC: IGBC: IIT: ILC: IMF: International Association from Small Hydro Information Communication Technology Infrastructure Development Finance Company International Finance Corporation Indian Green Building Council of NRDCs (Natural Resource Defence Council of India) Indian Institute of Technology International Law Commission Indian Monitory Fund

NABARD: National Bank for Agriculture and Rural Development NAPCC: National Action Plan on Climate Change NDF: NEERI: Nordic Development Fund National Environmental Engineering Research Institute

NEFCO: The Nordic Environment Finance Corporation NERUDP: North Eastern Region Urban Development Programme NGO: Non-Governmental Organisation

SPCBs: State Pollution Control Boards STP: Sewage Treatment Plant

TCPO: Town and Country Planning Organisation TEKES, THE FINNISH FUNDING AGENCY FOR TECHNOLOGY AND INNOVATION TEM: TERI: TIFAC: Ministry of Employment and The Economy The Energy and Resources Institute Technology Information Forecasting

NHPC: National Hydroelectric Power Corporation NIB: NIF: The Nordic Investment Bank National Innovation Foundation

DBFOT: Design-Build-Finance-Operate-Transfer DBO: DBT: DCTI: DFID: DIT: DMIC: Design-Build-Operate Department of Bio-Technology Deutsches Clean Tech Institute Department for International Development Department of Information Technology Delhi-Mumbai Industrial Corridor

INSEDA: The Integrated Sustainable Energy and Ecological Development Association INTPOW: Norwegian Renewable Energy Partners INWEA: Indian Wind Energy Association IPCC: IPP: Intergovernmental Panel on Climate Change Independent Power Producer Centre for Wind Energy Technology (C-Wet)

NMEEE: National Mission on Enhanced Energy Efciency NOPEF: The Nordic Project Fund NPV: Net Presente Value

UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns ULB: UN: Urban Local Bodies United Nations

NRDC: National Research Development Corporation NRDMS: Natural Resources Data Management System O&M: Operations and Maintenance

UNDP: United Nations Development Porgramme UNEP: United National Environment Programme UNIDO: United Nations Industrial Development Organisation USAID: United States Agency for International Development VCF WB: WRI: Venture Capital Fund The World Bank World Resources Institute

DMICDC: The Delhi-Mumbai Industrial Corridor Development Corporation Ltd. DPRs: DSIR: DST : ECA: Detailed Project Reports Department of Scientic and Industrial Research Department of Science and Technology Export Credit Agency

IREDA: Indian Renewable Energy Development Agency IRR: IWMI: JBIC: JICA : Internal Rate of Return International Water Management Institute Japan Bank Internation Corporation Japan International Corporation Agency

OECD: Organisation for Economic Cooperation and Development OPEX: Operational Expenditure PAT: Perform Achieve and Trade

PCRA: Petroleum Conservation Research Association PFC: Power Finance Corporation

JNNSM: Jawaharlal Nehru National Solar Mission

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Finpro, Trade Centre


New Delhi, Mumbai

Editors
Shriya Ramachandran Ulf sterberg Ashish Koltewar