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Ieema Journal January 2015
Ieema Journal January 2015
Intelligent Electricity
Dear Friends,
For far too long Electrical Engineering has been considered stagnant.
The same machine theory, the same tables for selection of Cables, the
same application of Faraday’s laws, and what not? All this is changing
fast. The changing world, influenced by the liberalization of the electricity
market, the uncoupling of generation and transmission and the large-
scale introduction of renewable and distributed energy sources requires
newer solutions by the day. To cope with minute-by-minute changes in
electricity supply and demand, grid operators today construct a network
of sensors and controls that will give a detailed picture of the state of
the grid in real time and allow rapid reactions to variations in electricity
supply and demand – a so-called smart grid. These innovations will
reduce the amount of excess capacity that grid operators require and make it easier to integrate
renewable sources of energy.
Today, Technologies are available for use in the home, in commercial buildings and in the energy
distribution system. The Web has given a new dimension to how Electricity is distributed and
consumed. Users have access to real time data and actionable rules for remotely controlling electricity
via the internet – a sophisticated, scalable, yet affordable energy management system for residential
and commercial applications. The Smart Circuit allows control of electricity consumption, access
data and switch loads, reduce carbon footprint, lower energy bills, and automate load shedding and
KWH reduction via a user-friendly web interface.
New Technologies always provide new business opportunities.
To leverage this opportunity, IEEMA in partnership with three IEEE societies has planned the INTELECT
2015 - the 1st edition of IEEE-IEEMA Conference & Exposition from 22-24 January 2015 at the Bombay
Exhibition Centre in Mumbai, India. The conference theme is Smart Electricity for Emerging Markets,
and the exposition will focus on the connected intelligence in the Electricity of Things.
IEEE Computer Society, IEEE Communications Society, and IEEE Power & Energy Society will
produce the event’s conference portion, which will feature globally renowned keynote speakers
and high-caliber panelists. IEEMA members present in this space, will be showcasing cutting-edge
innovations and future technologies on Digital Smart Cities, Smart Rural Electrification, including smart
solutions for H3O – Home, Hotel, Hospital & Office – a term spanning the end-to-end application of
energy in our society.
“INTELECT 2015” is designed to draw builders, architects, city planners, energy and government
officials, transportation industry representatives, venture capitalists, utilities, contractors, consultants,
academia, and others interested in learning about new technological advancements and knowledge
to smart electricity.
“INTELECT 2015” is supported by the Ministries of Power, Urban Development and Telecommunication
and would also have a ‘Sub 11 KV’ show. The ambitious target of 24 x 7 electricity requires
sustainable and cost effective solutions for the Distribution Sector and IEEMA along with the Ministry
of Power would be concurrently hosting a ‘Round
Table’ where CEOs of all the Utilities of the Country
would be participating.
As promising as it sounds, INTELECT is also a
platform to translate many of the proven global
concepts in smart energy management into workable
business opportunities for India. As we prepare to
embark on the next phase of double-digit growth and
development, this is a bus that few of us can afford to
miss! Look forward to meeting you at INTELECT 2015.
Vishnu Agarwal
8 January
July 2014
2015
“Samvaad...
Dear Members,
Towards the end of last year came the brilliant idea of ‘Make in India’.
IEEMA welcomes and compliments the government’s initiative to boost
Indian manufacturing through ‘Make in India’ campaign.
In the last week of the year, Government officials worked tirelessly with
Industry through the holidays to arrive at an action plan for ‘Make in India’.
IEEMA has identified a four point agenda to pursue with the policy makers
this year. This four point agenda covers:
1. Domestic funded tenders by Utilities to be in INR and if for some reasons
there needs to be international bidding, then 15% for preference to
Domestic industry.
2. Mandatory Vendor development programme by Utilities.
3. Mandatory testing of all Imported Electrical Equipment by test house
in India.
4. Standard specifications and standard bidding terms for same products
across Utilities across the country.
We intend pursuing this vigorously to make it happen.
Going forward, Intelligent Electricity is need of the hour. For a country like
ours, where the sizeable population lives in rural areas, smart cities alone
will not suffice. We need to provide smart solutions to rural electrification
which will be an integral part of a smart India. In fact, this has been a
strong basis of IEEMA’s partnership with IEEE, conforming to an efficient
use of technology, products and solutions for a more dynamic ecosystem
of energy and infrastructure for India. We will witness this in terms of what
is showcased on ground at INTELECT-Upto 11 kV Show this January at
Mumbai.
Be it home automation, smart offices, smart cities to smart products or for
that matter Standards or Protocols mandated by the Government or State
machinery – at the end of it, the viability and sustainability of the same
is dependent on intelligent or optimal use of electricity and making it an
affordable and reliable proposition for all stakeholders.
The INTELECT and the Upto 11 kV Show will definitely will be a global
platform for IEEMA members to exchange views and interact with utilities
engineers, entrepreneurs, planners and technologists.
I look forward to meeting you at the INTELECT at Mumbai and wish you
a very happy and prosperous new year.
Sunil Misra
July 20142015
January 9
Contents
Contents
9
Intelligent Electricity Samvaad...
26
Cover Story
Moving towards 24X7 Intelligent Electricity
The electrical and industrial
electronics industry has witnessed
a 7.25% growth in Q2 of the
Cover Story
Intelligent Electricity:
Events & Interactions
8th IEEMA T&D Conclave
current year (versus the previous
year against the same period,
INTELECT MPs Meet – Electricity Challenges
Special Report Country Profile
Half-Yearly Industry Review United Kingdom
Face2Face
Mr SS Sarkar,
SME Talks
Chhabi Electricals
rly w
respectively) and overall 7.82%
ea vie
growth in the 1st half of 2014.
Associate Project Director, Terminal Technologies
lf-Y Re 5
Mission Orbit Mars, ISRO
Ha stry -201
u 1 4
Ind 20
For a country like ours, where the
sizeable population lives in rural 44
areas, smart cities alone will not
Tech Space
suffice. We need to provide smart
solutions to rural electrification Reduction of Auxiliary Power
of In-house HT Equipment
which will be an integral part of
in Thermal Power Plant by
a smart India.
Energy Conservation
34
Face to Face
12 January 2015
Contents
62
PoliticalMeet
Members of Parliament for
systematic framework to
promote domestic production
IEEMA organised a meeting with
10 Members of Parliament at the
Constitution Club of India, New
Delhi to discuss core issues.
66
SMETalks
From January 2015 we have
8th IEEMA T&D Conclave (Page 70) introduced a new column
named as “SMETalks” where
56 we will feature two of our SME
Tech Space members every month.
Retail supply electricity tariff -
Price Cap Regulation 70
IEEMA EVENT
One Mission: Strengthening
the T&D Network
8th IEEMA T&D Conclave
76
IEEMA Activities
The introduction of regulatory
regime in the power sector with 80-81
enactment of the act called Power Scenario
“Regulatory Commission’s Global Scenario
Act, 1998” was the first step in Indian Scenario
the direction of distancing the
Government from involvement in 82-83
the determination of tariff. IEEMA Database
Basic Prices & Indices
60 Production Statistics
IndustryView
86
ERDA News
92
Seminars & Fairs
January 2015 13
Contents
102 118
National News
• India’s power utilities to
maintain high capex: Fitch
In United Kingdom, electricity • Government may adopt
satellite imaging for
is generated in a number of
transmission projects
different ways. It is important to
have different fuel sources and
technologies to generate electricity
110
ensuring constant supply. Corporate News
• Tata Power may not source
100 coal from Indonesia for
Mundra
International News • Aditya Birla Group plans to
IEEMA Journal wishes its readers a
• Russia awards Sesa Sterlite enter into Power sector Happy and Prosperous New Year!
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14 January 2015
CoverStory
26 January 2015
CoverStory
The Cabinet also approved Rs 43,033 crore scheme, 4) Providing access to electricity to rural
which includes the requirement of budgetary support households.
of Rs 33,453 crore, for rural areas to separate The process of sanction of projects shall commence
agricultural supply from non-farm supply. immediately. After sanction of projects, contracts
Cutting transmission losses and improving for execution of projects will be awarded by States
distribution is a key element for the power sector, and Discoms / Power Departments. The projects shall
the initiative follows steps to ease coal shortage and be completed within 24 months from date of award.
discussions to formulate a financial package for the
sector, where thousands of megawatts of capacity
North Eastern Region Power System
are idling or operating sub-optimally because of fuel Improvement Project
shortage or inadequate distribution network. The North Eastern Region Power System
Taking a look at the proposed benefits of the three Improvement Project (NERPSlP) for six States
major Cabinet decisions aimed at solving problems (Assam, Manipur, Meghalaya, Mizoram, Tripura and
of the power sector: Nagaland) is meant for strengthening of the Intra
State Transmission and Distribution System at an
Integrated Power Development Scheme estimated cost of Rs 5111.33 crore.
The Integrated Power Development Scheme (IPDS) The scheme is to be taken up under a new Central
is aimed at strengthening sub-transmission and Sector Plan Scheme of Ministry of Power (MoP). The
distribution network in the urban areas; metering of scheme is to be implemented with the assistance of
distribution transformers /feeders / consumers in the World Bank loan and the budget of MoP.
urban areas; IT enablement of distribution sector and
strengthening of distribution network. Efficient Electricity for India’s Growth
According to a press release from the government, The Indian Electrical & Electronics Manufacturers’
“The scheme will help in reduction in AT&C losses, Association (IEEMA) and three societies of Institute
establishment of IT enabled energy accounting / of Electrical and Electronics Engineers (IEEE) and
auditing system, improvement in billed energy will co-host the INTELECT Conference & Exposition
based on metered consumption and improvement from 22-24 January 2015 at the Bombay Exhibition
in collection efficiency.” Centre in Mumbai, India. The conference theme
is Smart Electricity for Emerging Markets, and the
The process of sanction of projects shall commence
exposition will focus on the connected intelligence in
immediately. After sanction of projects, contracts for
the Electricity of Things. The concurrent Show UPTO
execution of projects are to be awarded by States
11 kV will demonstrate the readiness of the Indian
Discoms / Power Departments. The projects shall
electrical industry to help the Government of India
be completed within 24 months from date of award.
to accelerate Distribution Sector Reforms and focus
Deendayal Upadhyaya Gram Jyoti Yojana on rural electrification. It will be a unique opportunity
The Deendayal Upadhyaya Gram Jyoti Yojana for the Equipment manufacturers to effectively
(DDUGJY) aims (i) to separate agriculture and non showcase their latest equipment, technology and
agriculture feeders facilitating judicious rostering services and interact with utility officials from all
of supply to agricultural and non-agricultural across the country. The expo cum conference will
consumers in rural areas and (ii) strengthening and feature globally renowned keynote speakers and
augmentation of sub transmission and distribution high-caliber panelists, as well as user-experience
infrastructure in rural areas, including metering of pavilions showcasing cutting-edge innovations
distribution transformers/feeders/consumers. and future technologies on Home-Hotel-Hospital-
Office (H3O), Digital Smart Cities, and Smart Rural
According to the Cabinet, the scheme would help in:
Electrification.
1) Improvement in hours of power supply in
INTELECT is designed to draw builders, architects,
rural areas,
city planners, energy and government officials,
2) Reduction in peak load, transportation industry representatives, venture
3) Improvement in billed energy based on capitalists, utilities, contractors, consultants,
metered consumption and academia, and others in learning about new
January 2015 27
CoverStory
28 January 2015
CoverStory
January 2015 29
CoverStory
30 January 2015
Face2Face
The challenge was to find the right man for the right job:
Mr SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO
34 January 2015
Face2Face
Payb
a
belts speculated to have been formed by furious solar With ck perio
in 4 d
mon :
winds and harmful cosmic rays....These belts are a ths
part of Earth’s inner magnetosphere and stretch from
an altitude of 1000 km to 60,000 km above Earth.
Prolonged exposure to these belts poses a significant
threat to various sensitive components of a spacecraft
this was the main challenge for us. Thus we designed
spacecraft with sufficient safeguards against such
fatal particles. Moreover the other challenge which
we faced was to find the right man for the right job.”
“The satellite was launched into an elliptical Earth
Parking Orbit of 250km x 23,500km. Since the satellite
had to come out of Earth’s gravitational field, it
Switches your Lights on automatically
needed to acquire a velocity of more than 11.2km/s. when there is insufficient Natural Light
The velocity of the s/c was increased progressively
by making go around earth seven times. Every time Your choice Unique features
that the s/c passed through its closest point to earth, ▲ Analog or Digital ▲ Duo fix spring terminals
the liquid engine on the s/c was fired and its velocity
▲ 1channel or 2 channel ▲ Zero cross Switching
increased,” explains Mr Sarkar.
▲ With Timer or without Timer ▲ IP55/IP65 light sensor
To the layman, there is perhaps nothing as fascinating
as the idea of sending humans into space ever since
Yuri Gagarin’s successful attempt in 1961. He smiles
SMART SAVER – Street Light Controller
• Power rating - 40 amps to 125 Amps (3 kW to 40 kW)
and says, “In India, preparation began in 2006-07
with a study which estimated the cost of sending a • Time based operation of lights – suitable for municipalities / Street Light /
Common area lighting
two-member crew in orbit around Earth and bringing
them back safely.” • LUX and Time based Operation of lights / with holiday settings – Suitable
for industrial / Corporate campuses
“One of the biggest challenges of this mission will
be to “human rate” the vehicle carrying the crew • Astronomically controlled and yearly programmable – Suitable for industrial
/ Corporate campuses
module or ensuring that it is highly reliable because,
as former ISRO head U R Rao wryly observes, many
people may be dying on the roads every day but
even a single loss of human life in a space mission
would be unacceptable. The actual flight could
take another seven to eight years before which the
developmental flight of GSLV Mark III would take LUXA 102-180 LED 32W LUXA 102 FL LED 32W LUXA 103-360 LUXA S 180
place, environmental control and life support systems
codified, and flight suit and crew escape module
developed. The developmental flight of GSLV Mark III Cape Electric Private Limited
Plot A - 41B, SIPCOT Industrial Growth Centre, Oragadam, Sriperumbudur Taluk,
is scheduled for 2016-17. We are already in process Kancheepuram Dist-602 105, Ph no: 044 71018100, Fax:044 71018199,
and we are hopefull that this mission will also be E-mail: sales@capeindia.net , Website : www.capeindia.net
January 2015 35
SpecialReport
The electrical and industrial electronics industry has witnessed a 7.25% growth in Q2
of the current year (versus the previous year against the same period, respectively) and
overall 7.82% growth in the 1st half of 2014.
- IEEMA Research Group
India Ratings & Research (Ind-Ra) has maintained capacity of 2.5 GW. However, during the last 2-3
a stable outlookon most of its rated power sector months the capacity addition has not been upto the
entities for FY15, on the back of improving fuel supply mark and slowed down considerably mainly due to
andfinancial health of state power utilities (SPUs). The fuel linkage issues coupled with the credit squeeze.
agency expects that its rated entities willcontinue to It is also reportedly understood that scarcity of fuel
manage fuel and SPU risks due to a favourable tariff to the existing generating plants and such issues are
mechanism, their comfortableliquidity and support emerging in the wake of cancellation of some of the
from the central and state governments. coal block allocations. This has an adverse effect on
the growth of heavy electrical equipment industry.
The power sector has been in the mix of news In the transmission and sub-station development
last sixmonths. During this period about 9000 programme, 220 Kv and 400 kV transmission
MW capacity was added surpassing the installed network and sub-stations were completed as per
0
3750
36 January 2015
SpecialReport
the plan. However, HVDC & 765 kV segment looks and Low Voltage equipment. However, increase in
still under achieved which will be in the focus during foreign exchange rates, raw material prices and other
the remaining period of 12th Plan. inflations, cutthroat domestic and unfair overseas
competition, delays, cash flow issues, high cost
of credits etc. are the major hurdles towards the
Generation
industry. Adverse domestic economic situation and
• Addition to Power Generation during credit squeeze is having an impact on the domestic
April-September FY14-15: 8,978MW (50% growth of the industry.
achievement)
January 2015 37
SpecialReport
uptoSep2014-2015 %Growthover2013-2014
Market Size Domestic
Product
ITC codes Import Export Import Export for 2014-15 Growth
Groups
Rs. Crores %2013-14
Value in Rs. Crores
8501 excl. Motors & AC
967 829 (-)17 16 5750 (-) 5.2
850110 & 20 Generators
850423,850434 Power TRF 195 482 (-)3 23 4350 6.8
850421-22,
Distribution TRF 219 709 (-)41 13 5990 9
850431-33
853210 Capacitors 32 132 (-)10 11 400 44.6
8535 HT Switchgears 455 531 53 22 2900 (-) 0.9
LT Switchgears &
8536,8537 3942 3035 11 27 11050 (-) 1.7
Custom Built Prd
8544 Cables 2523 2052 19 4 29000 9.6
854610,20,90 Insulators 185 213 2 12 2200 (-)12.0
902830 EnergyMeters 41 196 230 (-)26 2800 15
source:DGCIS
38 January 2015
SpecialReport
Ajit Ranade shares his perspective on The third bonus benefit from drop in oil prices is in
Economic Outlook for India reduced inflation. Since oil and energy costs are
important ingredients of almost all industries, the
The International Monetary lower oil (and also coal) prices are a big plus. The
Fund (IMF) publishes a Wholesale Price Index based inflation for October
quarterly assessment of
came out to be zero percent, thanks to fall in oil,
the outlook for the global
energy and commodity prices. Even consumer
economy as well as individual
and food price inflation is likely to be lower in
countries. During 2014, the
the coming year. Low inflation is a positive for
IMF assessment has become
economic growth.
progressively pessimistic
Ajit Ranade, every quarter. Japan is Beyond these three positive impacts of lower oil
Chief Economist, officially in recession. The prices, there are the expectations of pro-growth
Aditya Birla Group
Eurozone prospects are policies. The government has the support of an
clouded. There is anxiety about China slowing down absolute one party majority, something that did not
further. Only two major economies have brighter happen for 30 years. That means many pending
prospects for 2015, as per IMF. These are USA economic reforms awaiting Parliamentary approval
and India. Both these economies have structural will move ahead. We also are near a national
and domestic factors that will be advantageous consensus on a nationwide Goods and Services
for economic growth. The USA recently registered Tax (GST). The actual implementation of GST
its highest quarterly growth of the past 11 years. might have to wait till 2016. But it alone can add to
Manufacturing output is the highest it has ever 1 or 1.5 percent to GDP growth on a sustained
been, and unemployment numbers have been basis. GST regime eliminates inefficiencies in inter-
falling. The shale oil revolution has catapulted the state commerce, and its inter-locking nature of
US into becoming one of the largest oil producers in tax credits reduces tax evasion and increases
the world, greatly reducing its import dependence. compliance. The Prime Minister has championed
This reduction on US dependence on global oil has “Make in India” campaign, with a slogan of “zero
caused oil prices to fall by almost 45 percent since defect, zero effect” manufacturing, which he
June. This too is the single biggest factor benefiting mentioned in his Independence Day speech.
the Indian economy. This slogan implies that Indian manufacturing
should be top class in quality, and hence globally
The sharp drop in oil prices provides a triple bonus
competitive, and also environmentally sound
to India’s economy. Firstly, it will lead to a lower
(i.e. zero effect). Indeed the Make in India (MII)
fiscal deficit. That’s because the euphemistically
campaign is not about blind import-substitution
called “under-recoveries” on account of below-
by raising tariff barriers. Nor is it about subsidizing
cost selling by oil companies will go down. The
under-recoveries along with cheaper cooking shoddy, inefficient exporters. It is about making
gas and kerosene are subsidies, which ultimately Indian business more competitive. This calls for
are borne by the central exchequer. This saving comprehensive reforms, captured in the “Ease of
could be as high as Rs 40,000 crore to the central Doing Business”, a World Bank ranking method.
government. Secondly, lower oil prices means The PM has said that India’s rank should be
lower outgo of dollars, and hence a lower current in the top 50 of the world, not 142 where it is
account deficit. This is because 70 percent of currently. To improve the ease of doing business,
India’s oil requirement is imported. Last year India needs to reduce delays in approvals and
during July and August 2013, there was near panic permissions. We also need to reduce regulatory
in India, as the exchange rate plummeted to 68. and inspection requirements, and improve quality
One of the factors causing that panic was the high and access to infrastructure such as electricity. It
current account deficit, which was then close to is said, that we need less “inspector-raj” and more
5 percent of GDP. Thanks to lower oil prices this “enforcement-raj”.
year, and other measures, the current account In the current business cycle, the Indian economy
deficit may fall to only 1.5 percent of GDP this year. needs an investment push. This will come both
January 2015 39
SpecialReport
from the public and private sector, including foreign Other initiatives like roadways, ports, private sector
investors. Public investments will be enabled engagement in railways and smart city projects,
by the fiscal savings due to lower oil prices. In bode well for the infrastructure sector.
addition we also have additional revenues from The stock market has had a great run during
auctions and disinvestment. India’s stated goal is 2014. Perhaps the sentiment was running ahead
to spend 9 percent of GDP on infrastructure. This of ground reality in the economy. But in the coming
will be attained hopefully in the next five years. months we should see the combined effect of
Infrastructure spending has a “crowding in” effect many fortuitous developments and efforts. The
on further private investment. The electricity sector triple bonus following lower oil prices, a fiscal push
needs a massive overhaul to bring state-owned into infrastructure and public investments, lower
utilities’ balance-sheets back to fiscal health. Some interest rates following lower inflation, and a more
of the reforms called for in the 2003 Electricity competitive industry – all point to an economy
Act are still not implemented in letter and spirit. more robust that in the recent past.
IEEMA has flagged this issue consistently to the However, the domestic coal output could not
concerned Ministries for a policy remedial measures. keep pace. This is leading to the sub optimal use
Exports in general is growing for most of the product of generating capacities and increase in reliance
segments and helping the industry to remain on imported coal. However, as CIL ramps up its
competitive. production,the growth rates seen in the use of
imported coal could decline.
Key Power Issues
On the back of coordinated efforts by the ministries Concern Areas
of Coal and Environment to fast-track mine approvals,
PMO`s intervention and supervision on Project
the Ministry of Coal’s (MoC) constant monitoring of
Monitoring Group (PMG) indicates Government`s
new mining projects and the presidential directive to
commitment for 24 x 7Electricity Vision. However,
sign fuel supply agreements, Coal India Ltd is likely
to increase its domestic coal output to 475mmt and special attention is needed for T&D segment for
500 mmt (lower than its target of 482mmt) in FY14& commercial viability of this entire sector and in turn
FY 15-16, up 5% year on year, the highest seen in overall economic growth. Availability of Credit at
the last three years. However, despite the increase affordable cost, Restructuring of DISCOMs, policy
in domestic coal output, reliance on imported coal is support to domestic industry to be competitive
likely to continue. MOC expected48,951MW domestic against Imports are the three main focus areas
coal-based capacities to be commissioned during government need to look at on top priority basis.
FY10-FY14, with total linkage coal at 204.8mmt. IEEMA is committed to give full support in this task.
40 January 2015
TechSpace
44 January 2015
TechSpace
Figure 1 : Schematic of thermal power plant Figure 2 : Energy share of auxiliary equipment
power plant. Figure 2 gives the share of Auxiliary MCR condition. Figure 3 is the variation of specific
power for different individual equipment at Maximum auxiliary power of BFP with PLF. It can be seen from
Continuous Rating (MCR) condition at 100% PLF of the Figure that the actual measured auxiliary power
210 MW plant. It can be seen from the Figure that is more than the design value may be due to higher
the major auxiliary power is being used by BFP that passing in by-pass re-circulation valve, higher specific
forms about 2.43% of gross energy generation. steam consumption (SSC) and higher blow downs,
etc. Actual measured average specific auxiliary power
The auxiliary power is greatly influenced by the plant
for major auxiliary equipment is given in Table 1.
load factor (PLF). Many of the Indian power stations
are operating at sub-optimal plant load factor that The variation of specific auxiliary power is in the range
cause higher AP and increase the pollution of 2.43 to 2.88% for BFP. The measured AP is higher
by 0.16% than the design value at MCR and 0.18%
As per the plant performance reports published by
ICRA, 2003[4], MECON Ltd. report for MSPGCL plants, at 70% PLF. The deviation in specific auxiliary power
2007[5], RTPS, 2008 [6], DVC, 2005[7], the percentage for operating the unit at 70% PLF is 17.6%.
of AP decreases with increase in PLF. The FW flow is varying in the range of 480 to 710 t/h.
The difference in FW flow between actual measured
In-House HT Auxiliary Equipment value and design value is 3% at MCR and 17% at
The auxiliary power for major in-house HT equipment 70% PLF. The deviation in FW flow at 70% PLF is
forms about 5.49% and in-house LT equipment about 29.3%. The deviation in flow is much higher
is 1.50%. The quantum of energy conservation than the deviation in specific auxiliary power. The
opportunities are more in in-house HT equipment. SEC is computed in the range of 7.21 to 8.57 kWh/t
The detailed energy conservation techniques for of FW flow and is higher than the design value of
in-house HT equipment are discussed below: 7.04 – 8.2 kWh/t. SEC is greatly influenced by the PLF
(Figure 4). The computed average SEC of major
Boiler feed pumps auxiliary equipment is given in Table 2.
January 2015 45
TechSpace
Some of the energy conservation measures to 27 years) that the power loss due to higher
improve the capacity factor and the energy efficiency pressure drop across the hydrodynamic resistive
of BFP are: elements is about 133.06 kW that forms about
}} Initial during start-up of unit, the FW flow is
2% of the total power used by BFPs. This loss will
high for the smaller and older units.
by-passed to deaerator through re-circulation
valve and during normal operation, the Condensate Extraction pumps
re-circulation valve will be fully closed. But due
to very high pressure difference between suction Condensate extraction pumps are centrifugal pumps
(about 5.0 – 6.0 kgf/cm2) & discharge side (about with HT induction motor of 6.6 kV. Generally in a
170 – 180 kgf/cm2) of re-circulation valve, there 210MW power plant, two pumps of 500 kW or
is passing in re-circulation valve is measured three pumps of 250 kW are installed, one pump
during the performance test. The passing in (for 500 kW) or two pumps (for 250 kW) will be
re-circulation valve is cause additional power in BFP working continuously and other will be stand-by. The
which is a loss (Table 3). Reducing the passing in condensate flow will be regulated by throttle valve.
re-circulation valve (measured passing flow at The AP used by CEP accounts for 0.22% of gross
BFP 3B is about 38.18 m3/h i.e., 9.8% of total FW energy generation at MCR as against to the design
flow of one BFP) by replacing the valve seat had value of 0.22%. Figure 5 is the variation of specific
reduced the auxiliary power of BFP by 1.8 MU/year AP of CEP with PLF. In many of the power plants,
and reduce the generation cost by 0.25%. due to deterioration in turbines, the specific steam
consumption (SSC) is increased. It can be seen from
}} BFP is a multistage high pressure pump, there will
the Figure that the actual measured auxiliary power
be inter stage packing rings, but due to ageing
is more than the design value may be due to higher
of pump, there is cartridge internals wear and
SSC, higher blow downs, lower efficiency of turbines,
damage of inter-stage packing rings and higher
etc. For a 210 MW plant, the SSC had increased from
gap between impeller & casing. Rectification
of pump impeller (cartridge) of one BFP had
improved the pump efficiency from 63.3% to
68.9 that reduced the auxiliary power of one
BFP by 2.0 MU/year that reduce the generation
cost by 0.29%.
}} The pressure drop across FW circuit elements
(Water walls, Economizer tubes, SH & RH tubes
and HP heaters tubes) increases due to scaling
inside the tubes over the time period of 10 – 15
years. It was observed in many of the plants, the
tubes are plugs due to leakages. It can be seen
from the Table 3 (energy audit study carried out
for 210 MW power plant which had served about Figure 4 : SEC of BFP
46 January 2015
TechSpace
09 Pressure drop across water wall & SH MPa 1.25 1.31 1.31
January 2015 47
TechSpace
48 January 2015
TechSpace
and energy efficiency of ID fans are: whereas other tiers are fed from Indian coal.
}} Use of washed coal (i.e., higher calorific value and Generally in most of the power plants, tier blending
low ash content coal) reduced the flue gas flow
is being used for enhancing the performance
by 10.6% that reduced the energy consumption
of power plants. The coal blending in a 210 MW
of ID fans by 6.01 MU/year for 210 MW
plant (Table 4). power plant, reduce the auxiliary power of ID fans by
about 6.8% and energy saving of 1.24 MU/year
}} Generally Indian boilers are designed with the
is envisaged.
coal having a calorific value (CV) in the range of
4000 to 4500 kcal/kg but the presently available
coal for power stations is having a CV in the range Table-4: Performance results of ID fans with
of 2300 to 4000 kcal/kg. At reduced CV of coal beneficiating coal
reduce the capacity of plant and also increase the Sl. Raw Washed
auxiliary power of Mills, ID fans, FD fans & PA fans. Particulars Unit
No. Coal Coal
As a step towards improving the performance
01 Moisture % 16.0 18.0
of Indian boilers, imported coals from Australia,
South Africa and Indonesia whose CV is varying 02 Ash content % 52.0 31.0
between 5000 to 6500 kcal/kg are being used. Calorific
03 kcal/kg 2800 4300
But in Indian boilers, the imported coal cannot be value
burned directly because of higher heating value of 04 Flue gas flow t/h 1080.5 965.6
coal and low ash fusion temperature of imported
Total ID fan
coal (ash fusion temperature in the range of 05 kW 2659.6 1886.7
power
1100 – 1200 oC). The imported coal can be used
06 SEC kWh/t 2.44 1.95
with blended along with Indian coal. The lower ash
fusion temperature of coal cause slag formation Furnace
07 -5.6 -4.9
inside the boiler. The optimum proportion of coal pressure
blending is about 20 – 28% (study carried out by Fan Suction
08 mmWC -276.6 -255.7
CPRI at RSTPS, Raichur). The coal blending can pressure
be done in mainly three ways i.e., Fan
09 discharge mmWC 15.3 15.2
i) blending in yard by using dozers (in this case pressure
maintaining the proportion is difficult),
Flue gas
10 o
C 151 147
ii) blending in conveyor belts but this needs temperature
time synchronization of conveyor belts of both 11 IGV position % 89.5 78.3
Indian coal & imported coal and
12 ID Fan Eff. % 39.41 46.07
iii) Tier blending: In this technique, out of six tiers
Reduction in kW (%
(for 210 MW corner fired boilers), any one 13 772.9 (0.37%)
ID fan Power of PL)
of the middle tier is fed from imported coal
January 2015 49
TechSpace
}} Reducing the furnace ingress and air ingress in fans with HT induction motor of 6.6 kV. Generally
flue gas ducts reduced the burden on ID fans. in a 210 MW power plant, two fans of 650 kW or
}} Improving the dust extraction efficiency of 750 kW or 850 kW are installed and both will be
Electrostatic Precipitators (ESP) reduced erosion working continuously to provide the secondary
rate of ID fan impellers and reduced the loading air for combustion at windbox and to maintain the
of ID fans. windbox differential pressure to about 100 mmWC.
The secondary air flow is regulated by operating
}} Use of Variable frequency drives for ID fans in
pitch of FD fan blades. The specific AP used by FD
a 210 MW power plant will reduce the auxiliary
fans account for 0.21% of gross energy generation
power by 2.12 MU/year (Table 5). In the modern
at MCR is on par with the design value. Figure 9 is
power plants of 210 MW, 250 MW & 500 MW
the variation of specific AP of FD fans with PLF. It can
power plants VFDs are being used for ID fans.
be seen from the Figure that the actual measured
In order to incorporate VFD for ID fans for the
auxiliary power is lower than design value may be
existing power plants, both fans and motors have
due to in some plants the secondary air flow is less
to be replaced because the motors are being used
may be because of more air ingress through furnace
of double winding (two channels) for HT motors
and reduced fan discharge pressure. The variation
for ID fans.
of specific auxiliary power is in the range of 0.21 to
}} Generally in a 210 MW power plant, regenerative 0.30%. The actual measured specific auxiliary power
rotary air pre-heaters (APH) are used to extract the at MCR is lower by 0.02% compared to design value
heat from flue gas to heat the primary & secondary and is higher by 0.015% compared to design value
air. The APH consists of tri-sector, one for flue at 70% PLF. The deviation in specific AP at operating
gas, one for secondary air and other for primary the unit at 70% PLF is 37.6%.
air. The primary air pressure will be on higher
side and will try to escape to flue gas side which The secondary air flow is varying in the range of
will be negative pressure. This cause air leakage 410 to 452 t/h. The difference in secondary air flow
through APH that will increase the flue gas flow between actual measured value and design value is
and will load the ID fans. This is overcome by lower by 18.5% at MCR and 7.2% higher at 70% plant
incorporating the dynamic double seal technique load. The deviation in secondary air flow is computed
for APH [10]. The reduction air leakage in APH in the range of 9.1%. The variation in computed SEC
from 30% to 5% reduced the energy consumption is in the range of 0.99 to 1.04 kWh/t of SA (Figure 10)
of ID fans by 2.5 MU/year. and SEC is slightly high at MCR condition compared
design value (i.e., 0.97 kWh/t) and is lower at 70%
}} The implementation of above energy conservation
PLF (i.e., 1.07 kWh/t). SEC is greatly influenced by
measures reduces the generation cost by 1.53%.
the PLF.
Forced draft fans Some of the measures to improve the capacity factor
Forced Draft fans are generally of axial reaction type and energy efficiency of FD fans are:
50 January 2015
TechSpace
Mills
Generally in a 210 MW power plant six numbers of
XRP 863 Bowl mills are installed. According to the
Original design of the plant, four mills have to be
working continuously, one mill will be hot stand-by
and one mill will be cold stand-by. But due to use
of inferior coal quality, presently five mills are being
used continuously and sixth mill will be stand-by.
Figure 10 : SEC of FD Fans The specific AP used by Mills accounts for 0.54%
January 2015 51
TechSpace
52 January 2015
TechSpace
[1] CEA, 2008, Performance Review of Thermal Power Thermal Power Plants”, Proceedings of the Eighth IASTED
Stations 2006-07, website: http//:www.cea.nic.in. International Conference Power and Energy Systems
[2] B.S.K. Naidu, “India’s Leadership in Renewable Energy (EuroPES 2008), June 23-25, 2008 Corfu, Greece, pp.
Development for a sustainable future”, presentation 176 – 182, paper No.608-069.
at the California Energy Commission, Sacramento and [10] Jonathan L. Gomez, “Modeling of air leakages on a Tri-
the Electric Power Research Institute (EPRI), Palo Alto, sector Air heater”, Public Service Indiana, 1987
California, June 1995.
[11] Chris Harley, Conforma Clad inc. K. Scott Trunkett,
[3] M. Siddhartha Bhatt and R.P. Mandi, “Performance
Conforma Clad Inc. “Improving Plant Performance with
enhancement in coal fired thermal power plants, part
Advanced Wear Protection Technologies”, Coal-Ge,
III: Auxiliary power”, International Journal of Energy
Research, No.23, 1999, pp.779-804. August 7, 2003.
[4] ICRA, 2003, “Revised report to the Power Finance [12] Ananth P. Chikkatur, Ambuj D. Sagar, “Cleaner Power
Corporation of Gujarat Power Sector”, ICRA Ltd., 26, in India: Towards a Clean-Coal-Technology Roadmap”,
Kasturba Gandhi Marg, New Delhi – 110 001. Energy Technology Innovation Policy, John F. Kennedy
[5] MECON Ltd., 2007, “Report on achievable heat rate and School of Government, Harward University, Discussion
auxiliary power consumption of thermal power stations of paper 2006-07, Dec. 2007.
MSPGCL”, MECON Ltd., Ranchi – 834002, August 2007.
[6] RTPS, 2008, “Generation performance of units”, website: Authors
http//: www.karnatakapower.com.
[7] DVC, 2005, “Performance parameters of Thermal Power Mr Rajashekar P Mandi
Plants of DVC for Last Five Years”, website: http//:www. Engineering Officer
dvcindia.org. Energy Efficiency & Renewable Energy Division
[8] Yantra Harvest Energy Pvt. Ltd., Technical article on Central Power Research Institute, Bangalore
“Medium Voltage AC drives for Auxiliary Power Reduction
in thermal power plant”, Ref No: AN-001/09-R00, Issue
Mr Uday Kumar Yaragatti
Professor & Head,
date: 15/07/2009
Department of Electrical and Electronics Engineering,
[9] Rajashekar P. Mandi and Udaykumar R. Yaragatti, National Institute of Technology Karnataka, Surathakal
”Enhancing energy efficiency of Induced Draft Fans in
January 2015 53
TechSpace
56 January 2015
TechSpace
In incentive-based regulation, prices or revenues Studies have revealed that the X factor for bigger
are no longer directly based on the company’s distribution companies is generally higher than small
actual costs or revenues. Unlinking prices from distribution companies for a control period of 3 years.
actual costs provides very strong incentives for Studies in developed countries have revealed the
productivity improvement. Price-cap systems are following;
located somewhere between these two extremes.
That is, prices and costs are detached from each a) If X factor being too small, the regulated firm will
other, but not to a full extent; there still remains earn an excessive profit
some interdependency. b) If X factor being too large, financial viability of the
The annual change in prices is determined by the regulated firm can be threatened or jeopardized
X factor. If the utility manages to reduce its costs in c) X=1% for distribution Company's investments
excess of the X factor, it earns additional profits and being more than capital expenditure.
conversely, if it performs worse than the X factor, it d) X=2% for distribution Company's investments
earns less profit. This is the basic incentive provided being more than 1.5 times the capital expenditure.
by the price-cap system. e) X= 1% to 2% for conditions when constant costs
Yardstick competition describes the simultaneous of Company exceeds significantly as compared
regulation of identical or similar firms. The reward is to constant costs of other companies.
given based on the firm’s standing which is far too f) X>3% for conditions when company has large
long to apply in present Indian environment. investments and does not efficiently manage
X factor based or incentive based regulation is constant costs.
practiced in developed countries like US, Canada
In other method correlation coefficient (CC) is used
and the UK in different sectors. Now a time has come
which is worked out as follows.
where electricity tariff must be determined based on
efficiency factor (X-factor) in India also. CC=Rt x St /(Rt-1 X St-1 )
Where R is the revenue and S is the sales and T is
What is X factor the year for which price are being determined
X factor is the efficiency; a distribution company
Pricet=CC x Pricet-1
must reach in managing their cost. X factor can
be determined to a reasonable extent when no Price cap regulation is less vulnerable to ‘cost plus
major structural changes are anticipated in the inefficiency and over capitalization more over price
economy, historic data on productivity and input caps largely limit firms incentives to game the system,
price growth rates often provide the best estimates both because of adjustments within review periods
of corresponding future growth rates. are predetermined and because in practice, review
procedures often includes an elements of yardstick
Z represents the change in unit costs due to external
com. The privatised utilities always have an incentive
forces(+ or -). Zis the difference in the effects of
to be efficient.
exogenous changes on a specific company and on
the rest of the company and can be neglected due PBR mechanism provide Discoms with a fixed price
to lack of data. or revenue as opposed to a predetermined level
of profits with this approach Discoms can earn
Rise in constant costs (%)=RPI(%) - X(%)+Z%
higher or lower profits depending upon the level
Pt+1= Pt(100+RPI(%) – X(%)+Z%) of operational efficiency they have in mind for their
if Real Price Index(RPI) is 4% and X is 2% distribution system.
Rise is constant cost allowed is=4 - 2= 2% (neglecting Z) The main weaknesses with the incentive based
regulation is
Example
}} Degree of stability concerning price for long-term
a) Expected annual productivity growth rate in the businesses as X factor can wrongly be estimated
regulated industry=1.5% in the absence of complete information.
b) Corresponding annual growth rate elsewhere in }} Wrong decisions by Regulators due to Imperfect
the competitive economy=0.5%. market and information.
c) Expected rise in prices in the regulated
industry=1%
Author
d) Corresponding growth rate of input prices
Mr Alok Gupta
elsewhere in the economy=2%. Member, MPERC
X factor=a-b+d-c=1.5 – 0.5 + 2 - 1=2%.
January 2015 57
IndustryView
Mounting Trend of
60 January 2015
PoliticalMeet
IEEMA President Shri Vishnu Agarwal interacting with Hon'ble MPs: Shri Bhagat Singh Koshiyari (BJP), Dr Arun Kumar (RLSP),
Shri Khan Saumitra (AITC), Shri BJ Panda (BJD), Shri Kalikesh Narayan Deo (BJD), Shri Anupam Hazra (AITC), Shri Ram Jethmalani
(Independent and Others), Shri Anand Bhaskar Rapolu (INC) and Shri Tarun Vijay (BJP).
Members of Parliament Shri Bhagat Singh Koshyari The President cited that the Power Sector has not
(LS; BJP), Dr. Arun Kumar (LS; RLSP); Shri Khan been receiving significant focus and a major share of
Saumitra (LS; AITC), Shri B.J. Panda (LS; BJD), Shri the Indian population is devoid of sufficient quantity
Kalikesh Narayan Deo (LS; BJD), Shri Anupam Hazra and quality of power. He further added that “Our PM
(LS; AITC), Shri Ram Jethmalani (RS; Independent & Mr Narendra Modi’s aim about power for all 24×7,
Others), Shri Anand Bhaskar Rapolu (RS; INC) & Shri ‘Make in India’ and ‘Made In India’ projects which will
Tarun Vijay (RS; BJP) attended the crucial meeting bring focus on manufacturing in India. Besides this,
held by IEEMA and discussed on issues pertaining the PM had sought to encourage young talents not to
be a job seeker but be entrepreneurs and employers.
to the electricity sector.
Therefore, there is a need to create an institutional
Mr. Vishnu Agarwal, President, IEEMA, gave a brief mechanism so that these future entrepreneurs stay
about IEEMA and Indian Electrical Equipment industry. back in the country and contribute to the economy.”
He stated, “An efficient power supply system is a key
The Indian Industry is fully
geared up to meet any
domestic demand; there is
disproportionate reliance on
imported power equipment,
especially from China, by
different utilities across
the country. This imported
equipment has uncertain
Shri Ram Jethmalani, disccusing issues with IEEMA Members. Also seen in the picture are quality and lifecycle, with no
Shri Pyarimohan Mohapatra, Shri Khan Soumitra and Shri Anupam Hazra domestic manufacturing facility
62 January 2015
PoliticalMeet
Talking about the imports of electrical equipment in the CRGO is a critical raw material for large generators/
country, Mr Agarwal said, The imports have touched transformers, manufactured by 14 companies (no
36.26% mark for electrical equipment in India, whereas Indian manufacturer) in the world, and totally imported.
there is significant underutilisation of installed domestic The ambitious power development projects of the
capacity (under 70%), resulting in loss of employment government necessitate setting up of a domestic
of qualified engineers, technicians, workers, etc. The CRGO manufacturing facility, which has failed earlier.
Domestic industry suffers a significant disadvantage
IEEMA President emphasised on the need to sustain
vis-à-vis imports due to sales tax / VAT, entry tax / octroi;
the desired annual GDP growth rate, it is required
higher financing cost; lack of quality infrastructure;
that power sector should grow at a much faster rate.
dependence on foreign sources for critical raw material
Dr. Ram Jethmalani, MP, Rajya Sabha, extended
and components, etc.”
support to these genuine issues of the domestic
He further added, “In addition, Chinese counterparts industry. He requested a detailed note from IEEMA
are given by their Government export subsidies as high on any deficiency in the present government policy;
as 17% of the export value, social security subsidies, provisions of law; adverse conditions and requirements
lower income tax rate (15%) and access to financing at related to manufacturing and corruption etc.
low rates of interest, which gives Chinese companies While Shri Bhagat Singh Koshyari, MP, Lok Sabha, took
over 24% unfair pricing advantage and allows them to some clarification on voltage ratings and equipment
price their products very competitively. Further, China capacities required for transmission of electricity. Shri
is also offering credit to foreign buyers on very soft Ananda Bhaskar Rapolu, MP, Rajya Sabha, sought a
terms to finance their imports. As a result, imports from brief note on difficulties in production of CRGO Steel
China are escalating every year. All this makes Indian in India; current technological difficulties; corruption
industry non-competitive in its own country.” in utilities and procurement practice in other countries
There are several critical inputs / raw material used which are funded domestically and are open to
in the manufacture of electrical equipment which is International Competitive Bidding.
not readily available domestically. Concerted action While Shri Kalikesh Narayan Deo, MP, Lok Sabha,
needs to be taken to secure supplies of these. requested a brief note on industry recommendations
on overcoming the issues of the industry. He also
requested for a copy of the B K Chaturvedi Report and
information on SCADA installations across different
locations in the country. Shri B J Panda, MP, Lok
Sabha, sought suggestions which are workable and
can be put forth with a logical argument for creating
a level playing field for Indian industry e.g. Penalty on
imported generation equipment having higher rating of
coal conversion into MW of electricity generated. The
argument may be backed up with practises adopted
in USA and EU. He also requested information of
Shri Bhagat Singh Koshiyari and Shri Ram Jethmalani difficulties in access to Chinese market and a copy
listening to IEEMA members of the B K Chaturvedi Report.
January 2015 63
SMETalks
66 January 2015
SMETalks
Overview of upcoming projects with global exposure, source components from world
over and they are imported under zero duty structure
As we have been investing in the past few years,
which does not encourage companies to invest in
and since all of them have not really fully utilized,
local tooling to develop parts domestically. As many
we are currently going slow with new projects except
parts are under zero duty, there is no incentive for
for small capacity addition in areas where we lacked
the domestic OEs to actively encourage localization
adequate depth. Though we have been growing in
as the cost pressure is easily addressed by the
the past years, they have not been to our satisfaction.
international suppliers as soon as they realize the
We will look at serious expansion once we clock 25
move about localization.
% growth from current levels. On an inorganic growth
front, we are looking for opportunities to invest in Support infrastructure is very poor and specialized
areas where we can utilize our core strength of metal product validation services are offered for fresh
stamping and injection molding expertise. product developments. Only MNC test labs are
providing freelance services and charges are
Priority areas to focus prohibitive discouraging fresh product launches by
We are looking into areas where our core strength can the companies.
be deployed. It can be electrical or auto electrical part Open global manufacturing practices does not
.We have been working on reducing our cost structure incentivises local manufacturing of parts in a large
to meet the cost challenges put by costumers. We are way as imports are duty free and hassle free from
also focusing on complex insert molded parts which established player with years of experience and
require high precision production process. unlimited money power.
January 2015 67
IEEMAEvent
ttended by more than 250 people, the 8th IEEMA results and the growth India's electrical equipment
A T&D Conclave saw renowned technologists
and Indian manufacturing companies with T&D
industry is 7.82% as compared to the same period
last year. Fortunately, things seem to be changing for
operations sharing their views on strengthening the better. This is reflected both in figures published
of T&D infrastructure in the Country. The One day by the Government as well as larger number of
event held at Hotel Westin, Gurgaon witnessed the tenders being floated by different utilities. This is
presence of eminent personalities like Mr. S.S. Sarkar, particularly true for the Distribution sector and it is
Associate Project Director, Mission Orbit Mars, ISRO, expected that this trend will continue for at least a
Dr. Ajit Ranade, Chief Economist, Aditya Birla Group, couple of years.”
Mr. Anil Sachdeva, founder & CEO, Grow Talent
He further adds, “However the state of the Indian
Company and the School of Inspired Leadership
power sector was not good until last year but
and Ms. Mohua Mukherjee, Senior Energy Specialist,
the first half of 2014 is showing some positive
The World Bank, Washington.
results and the growth India's electrical equipment
The Government recently cleared three major industry is 7.82% as compared to the same period
schemes for strengthening the country's power last year. Fortunately, things seem to be changing
transmission and distribution (T&D) network including for the better. This is reflected both in figures
100 per cent metering and underground cabling, published by the Government as well as larger
an Integrated Power Development Scheme was number of tenders being floated by different
also given approval. It rn investment of Rs 32,612
crore, including budgetary support from the Centre
of Rs. 25,354 crore over the implementation period.
This scheme would also look at completion of
targets under the Restructured Accelerated Power
Development and Reforms Programme for the 12th
and 13th five-year plans, by carrying forward the
approved outlay for the latter to this one.
70 January 2015
IEEMAEvent
utilities. This is
We have a triple bonus due to lower oil prices:
particularly true for
lower fiscal deficit, lower current account deficit and
the Distribution sector lower inflation. This bonus must now translate into
and it is expected that higher growth - Mr Ajit Ranade, Chief Economist,
this trend will continue Aditya Birla Group
for at least a couple of
years.” need to boost capital spending. We have a triple
The Indian electrical bonus due to lower oil prices: lower fiscal deficit,
equipment industry lower current account deficit and lower inflation. This
was valued at over bonus must now translate into higher growth. The
INR 1.31 lakh crores Manufacturing sector has been showing positive
in 2013-14, with signal in terms of leading indicators. But we await a
generation equipment sustained resurgence. Exports have not picked up as
sector at 18% of the much as required.
Ms. Mohua Mukherjee, Senior total industry, and
Energy Specialist, The World The star attraction
the transmission &
Bank, Washington, addressing the of the event was the
audience distribution (T&D)
presentation done
equipment sector:
by Mr SS Sarkar,
82%. The T&D industry is 9.92% of the manufacturing
sector in terms of value and 1.39% of the GDP. It Associate Project
also provides direct and indirect employment to Director, Mission
15 lakh people and over 50 lakh across the entire Orbit Mars, ISRO on
value chain. The industry exported USD 5 billion his successful Mars
worth of electrical equipment in 2013-14. The industry Mission. He said, "It’s
has a diversified, mature and strong manufacturing a real privilege to have
base, with robust supply chain, fully equipped to been invited by your
meet domestic demand and any capacity addition. esteemed Society
to come here and
Mohua Mukherjee, Senior Energy Specialist, The Mr SS Sarkar, Associate Project
get an opportunity Director, ISRO made a presentation
World Bank said, “Indian transmission and distribution to share with you on the successful interplanetary
industry should look for opportunities globally to
the excitement of mission- the Mars Orbiter Mission
enhance exports in next five years in the fields of
our country’s first
power generation, transmission and distribution. This
interplanetary mission – the Mars Orbiter Mission.
growth potential should be seen in the perspective
As you would be aware, the orbiter to Mars which was
of the huge untapped demand for power. The World
launched on 5th Nov, 2013 was successfully inserted
bank is lending $ 8 billion globally, including India,
into its designated orbit around Mars on 24th Sep, 2014
to power producing and transmission companies.”
after travelling more than 650million km over a period
Dr. Ajit Ranade, Chief of nearly 300 days since its departure from earth in
Economist, Aditya Birla the early hours of 1st Dec, 2013. This maiden
Group is hopeful on the successful foray into spaces beyond earth’s gravity
new initiatives taken by has generated enormous
the government. He interest not only within
also said, “The Reserve the scientific community,
Bank of India's policy but has also caught the
on inflation control public imagination in
has helped. Going a big way. The entire
ahead we can expect team worked round-
interest rates to come
the-clock to meet the
down. Internationally
deadline and put in their
the commodity prices
utmost effort to provide
are falling. Even the
the best technology
coal prices have
Mr Ajit Ranade, Chief Economist, for the mission. We
Aditya Birla Group sharing his
gone down by 35%.
Mr AS Chouhan, VP, IEEMA were quite confident of
views on overall economic To benefit from lower sharing the IEEMA President’s
situation of India prices and inflation, we vision
its success.”
January 2015 71
IEEMAActivities
the success of the 2nd edition of this in his key note address.
seminar held at the Le Meridien, The technology providers of various High performance
New Delhi on 4th of December wherein conductor solutions as well as Hardware solution
CEA became the co-organizer and providers presented ample case studies of their
brought in the policy makers and industry projects executed in the various Indian utilities that
experts including former Power Secys, was well reverberated by the utilities who shared
CIGRE, CEA and CTU to share their their experience with HPC and Dr. Brian from CIGRE
thoughts on the subject to a thundering gave an enriching session on the applications and
participation of delegates from utilities & international case studies along with CEA’s Mr. S. K.
EPCs PAN India. Ray Mohapatra providing the true comparative and
Leaders including Managing Directors, pros-cons to the network planning perspective.
Directors, Chief Engineers, Designers The Seminar also gave insight to the participants to
and Industry captains listened to a very understand in detail stringing practices and techniques
eminent array of speakers lined up for in India and internationally and peculiarities, types
the single day event – as many as of hardware used, etc. The key leaders of Power
130 delegates from the utilities and 70 industry including Mr. S. K. Negi, MD GETCO, Mr. Y.
from EPCs and Industry listened to the K. Sehgal, COO, CTU, Mr. Indera Arifianto, PT-PLN
bouquet of eminent speakers speaking (Persero) & Mr. Aryoko Sudiro, Indonesian Utility, Mr.
to packed schedules. Rajesh Gupta, DGM, Power Grid and other eminent
Need for infrastructural investments and speakers from KEC, Hardware Industry etc. presented
reforms in the direction of improving the different aspects of this topic, as well as shared case
power availability scenario by optimizing studies & experiences.
power transfer per unit ROW (corridor
intensity in MWhr/km) to the impending Interface With Government And Agencies
need for reduction in Transmission On 25th November 2014, a delegation of Economic
losses (and ways and means to and Taxation Committee Members, led by its Vice
achieve the same) received special Chairman, Mr. P Ramakrishnan, had Pre-Budget
focus in this edition of the seminar. Meeting for Budget 2015-16 with Chairman,
“We need reduction in the resistance Central Board of Direct Taxes, Ministry of Finance,
of HTLS solutions to cater to the highly Government of India; in presence of other senior
congested and urban corridors” was officials of CBEC and CBDT. IEEMA made a power
IEEMA VISION
‘Electricity for All and Global Excellence
Leading to Human Enrichment’
76 January 2015
IEEMAActivities
point presentation on various economic and policy Micro, Small and Medium Enterprises, Government
issues besides direct and indirect taxes. of India, to discuss MSME participation in !ntelect
Exhibition covering the areas of automation, tooling,
On 26 th November 2014, Mr. Sudeep Sarkar,
aerospace and electronics.
Deputy Director, IEEMA, attended a meeting at
Department of Heavy Industry, Government of India, On 11th December 2014, Mr Anil Mehta, Executive
on Enhancement of Competitiveness of Capital Officer, IEEMA and Mr Jayant Chopra, Executive
Goods Sector. The department of Heavy Industry Officer, IEEMA, attended a meeting chaired by Mr.
had invited various Technical Institutes from all over Ambuj Sharma, Additional Secretary, Department of
the country, which made presentations on their Heavy Industry, Ministry of Heavy Industries & Public
proposals on this subject, such as Common Facility Enterprises, Government of India, on Non-essential
Centres etc. imports from China. A detailed presentation was
made on Indian Electrical Equipment which should not
On 1st December 2014, Mr. Sudeep Sarkar, Deputy
be allowed to be imported from China as the Industry
Director, IEEMA, attended an interactive meeting with
has enough capacity to cater to domestic demand.
negotiators of countries participating in Regional
Comprehensive Economic Partnership (RCEP). On 11th December 2014, Mr. Sudeep Sarkar, Deputy
IEEMA representative spoke on under-utilisation of Director, IEEMA, attended a meeting Chaired by Mr.
capacities of domestic industry; lack of level playing Rajesh Kumar Singh, Joint Secretary, Department
field vis-à-vis imports; non-tariff & technical barriers of Heavy Industry, Government of India, regarding
in RCEP countries etc. Import Appraisal of Engineering Goods. A
discussion was held for reducing dependence on
On 2nd December 2014, Mr Vishnu Agarwal, President, imports and to develop a suitable mechanism for
along with Mr. Sunil Misra, Director General, and Mr. maintaining ITC HS code wise industrial statistics.
Anuj Chaturvedi, Resident Director, IEEMA, met Mr.
Alok Ranjan, Chief Secretary and Infrastructure & On 15th December 2014, Mr. P Sridharan, Vice
Industrial Development Commissioner, Government President, ERDA, Mr. S.B. Gupte, ERDA Managing
of Uttar Pradesh, to discuss possibility of CPRI Committee Member, Mr. N.P. Jhaveri, ERDA Managing
Campus in Uttar Pradesh and development of Committee Member, Dr. M. K. Shah, Director, ERDA,
Electrical Equipment Cluster, also cooperation Mr. H. K. Mishra, Dy. Director, ERDA and Mr. Jayant
with IEEMA to increase Energy Efficiency. Chopra, Executive Officer, IEEMA, attended a meeting
chaired by Mr. Ambuj Sharma, Additional Secretary,
On 3rd December 2014, IEEMA organised an interactive Department of Heavy Industry, Ministry of Heavy
session with Hon’ble Members of Parliament on Industries & Public Enterprises, Government of India,
‘Electricity – Challenges & Opportunities’. Most of at Udyog Bhawan, New Delhi, to discuss on a project
the MPs are also Members of ‘Parliamentary Standing to establish a, Center of Excellence for R&D in
Committee on Energy’. Many of them expressed Medium Voltage Switchgear and Transformers. A
interest in taking up issues faced by electrical presentation was made by ERDA apprising Mr Ambuj
equipment industry. Sharma, on the proposed project and seeking his
On 4th December 2014, Mr. Sunil Misra, Director advice and guidance.
General and Mr. Jayant Chopra, Executive Officer, On 15th December 2014, Mr. Uttam Kumar, Executive
IEEMA, called on Mr. Ravi Capoor, Joint Secretary, Officer & Mr. Vivek Arora, Executive Officer, IEEMA,
Department of Commerce, Government of India, on attended the Meeting of Instrument Transformers
Branding of Indian Engineering. Government of Sectional Committee (ET-34) at the Bureau of Indian
India is promoting Indian engineering products in Standards. The issue of marking on the name plates
potential countries abroad. as per clause no. 8.1(n) of the IS 3156 (Pt-1) was
On 8th December 2014, a delegation of Economic deliberated upon.
and Taxation Committee members, led by its Former On 17th December’2014, Mr. Uttam Kumar, Executive
Chairman, Mr. G S Sharma, had Pre-Budget Meeting Officer, IEEMA, attended the Brainstorming Session
for Budget 2015-16 with Department of Industrial with Centre for WTO studies, Exim Bank & UNCTAD
Policy and Promotion, Government of India. IEEMA on Trans-Pacific Partnership Agreement
made a power point presentation on various economic (TPP). The major topics covered during the session
and policy issues besides direct and indirect taxes. were Countries Involved in TPP, Status of Negotiations,
th
On 10 December 2014, Mr. Sunil Misra, Director Regulatory coherence, Govt. procurement process,
General and Mr. Nischal Churamani, Head-PR Media Labour rights etc.
& Branding, IEEMA, met Mr. R K Rai, Director (Tool), On 18th December, 2014, Mr. Uttam Kumar, Executive
Office of the Development Commissioner, Ministry of Officer, IEEMA, attended the Meeting of Electrical
January 2015 77
IEEMAActivities
78 January 2015
PowerStatistics
1993 2011
82% Nuclear 82% Nuclear
Fossil
Fossil
Renewables
Renewables (other (other than
than large hydro) large hydro)
11%
10% Hydro (>10
Hydro (>10 MW) MW)
5% 2%
6% 2%
2020
Lighting
76%
Nuclear 13%
19% Household appliances
8%
Fossil Electronics
Resistance heating
Renewables
12%
Vehicle: trains
16% (other than
large hydro)
3% Electrochemical
Hydro (>10
MW) 40% 2% Miscellaneous
6% 2% 3% Motors
80 January 2015
PowerStatistics
MW Capacity addition
Type/Sector achivement in 12th Central state Private
plan (2012-17) up to
October 2014
Target Achivement Target Achivement Target Achivement Target Achivement
Thermal 14878 7283 13922 9309 43540 28348 72340 37657
Hydro 6004 1555 1608 102 3285 169 10897 271
Nuclear 5300 0 0 0 0 0 5300 0
Total 26182 8838 15530 9411 46825 28517 88537 37928
% Achivement 34% 61% 61% 43%
Sub-station
Transmission Addition in MVA/ MW during 12th Plan up to October 2014
Addition in ‘CKM’ during 12th Plan up to October 2014 Up to October 2014
38409
10754 35695
9596
53% 51%
31%
36%
0 19%
3750
HVDC 765 KV 400KV 220KV
HVDC 765 KV 400KV 220KV
10340 27000 38000 35000
19250 149000 45000 760000
Source: CEA
January 2015 81
IEEMADatabase
Rs/MT
BASIC PRICES AND INDEX NUMBERS
as on as on
Unit Unit
01.10.14 01.01.15
IRON, STEEL & STEEL PRODUCTS OTHER RAW MATERIALS
BLOOMS(SBL) `/MT Epoxy Resin CT - 5900 `/Kg 330
32601
150mmX150mm
180000
170000
Electrolytic High Grade Zinc
160000
150000
140000
RS./MT
130000
120000
110000
100000
`11-12
`12-12
`01-13
`02-13
`03-13
`04-13
`05-13
`06-13
`07-13
`08-13
`09-13
`10-13
`11-13
`12-13
`01-14
`02-14
`03-14
`04-14
`05-14
`06-14
`07-14
`08-14
`09-14
`10-14
The basic prices and indices are calculated on the basis of raw material prices, exclusive of excise/C.V.
duty wherever manufactures are eligible to obtain MODVAT benefit.
These basic prices and indices are for operation of IEEMA’s Price Variation Clauses for various products.
Basic Price Variation Clauses, explanation of nomenclature can be obtained from IEEMA office.
Every care has been taken to ensure correctness of reported prices and indices. However, no
responsibility is assured for correctness. Authenticated prices and indices are separately circulated
by IEEMA every month. We recommend using authenticated prices and indices only for claiming
price variation.
82 January 2015
IEEMADatabase
6000
Distribuon Transformers
5000
4000
000' KVA
3000
2000
1000
4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8
April 2010 - September 2014
Production
Accounting
Name of Product For the Month From Oct 13 Highest Annual
Unit
September-14 to Sept 14 Production
Electric Motors*
AC Motors - LT 000' KW 878 10272 11217
Switchgears*
Contactors 000' Nos. 772 8139 8505
Switch Fuse & Fuse Switch Units Nos. 45227 616057 947878
HRC Fuses & Overload Relays 000' Nos. 1179 13656 16875
Transformers
Distribution Transformers 000' KVA 4050 40546 43346
Instrument Transformers
Current Transformers 000' Nos. 54 648 660
* Weighted Production
January 2015 83
ERDANews
86 January 2015
CPRINews
88 January 2015
ProductShowcase
90 January 2015
Seminars&Fairs
92 January 2015
January 2015 93
CountryProfile
94 January 2015
CountryProfile
January 2015 95
CountryProfile
96 January 2015
CountryProfile
January 2015 97
98 January 2015
HANNOVER MESSE. Are you ready for
Partner Country
India 2015
January 2015 99
InternationalNews
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Steps soon to help coal, ` 4,000 crore push for 25 solar parks
natural gas-based The renewable energy ministry has proposed a gross
power plants budgetary support of ` 4,050 crore for setting up 25
The government will shortly take steps to solar parks of 500 mw each and ultra-mega solar
address all fiscal and fuel hurdles faced power projects to add 20,000 mw green generation
by coal and natural gas based power capacity in the next five years.
plants so that people get affordable
The money is expected to be spent in phases,
and uninterrupted supply, Power, Coal
starting with ` 500 crore in 2014-15 and rising to
and Renewable Energy Minister Piyush
` 1,400 crore in 2018-19. Solar Energy Corporation of
Goyal told in a news conference recently.
India under the ministry would be the nodal agency
“The government will look at all possible
and manage the funding for a fee, equivalent to 1%
options to provide fuel to power projects
of the grant disbursed.
with an aim to keep tariff low for the
utilities and end users,” said Goyal. He The parks would be developed in collaboration with
said banks are on board to discuss the state governments. Altogether 12 states have given
possibilities of relaxing lending norms to their consent for setting up solar plants, renewable
power sector. energy minister Piyush Goyal told Lok Sabha. He said
National News
the project developers would be selected through organizations, which represent 95 percent of the entire
bidding as per norms set by the central tariff regulator. electrical equipment installed in India. On one side the
major drivers are cable, LV and HV switchgear while
Broad contours of the scheme indicate measures to
on the other side Power transformers, Transmission
make the parks attractive for investors by offering
lines and conductors continue to show declining
readymade locations. Promoters usually have to
trend. The growth in LV product and FHP motors
spend a lot of time for getting approval for changing
indicates some industrial activity.
land use and other clearances from various state
government bodies, including consent from state Mr Vishnu Agarwal, President, IEEMA says, “The
transmission utilities. adverse domestic economic situation and credit
squeeze is having a significant impact on the
Under the scheme, developers would be invited
growth of the industry, apart from intense overseas
after all statutory approvals are in place. Besides,
competition. But the sector is slowly positive signs
the land would also be levelled and the parks would
of recovery and India’s position in the global
come with additional infrastructure such as access
economy is showing signs of stabilizing.”
to roads, water and communication facilities required
for commissioning and operating the plants. These Mr Sunil Misra, Director General, IEEMA is of the
measures would save additional expenditure by view that “The sector has registered a growth of
developers and reduce project cost. Goyal pegged 7.24% as compared to 2013-14 but huge imports of
the project cost at ` 0.95 crore per mw. EHV transformers, reactors, cables and insulators
at alarmingly high value mainly from China,
States would be free to choose their agency for
Sweden and Germany are worsening the situation.
implementing, developing and maintaining the solar
We do not see much positive change visible for at
parks. Special purpose vehicles of state governments
least for 12 to 15 months due to lack of momentum
too would be eligible to develop and manage the
in public private partnership.”
parks, as would be 50:50 joint ventures between
SECI and state government entities. Speaking on a recently held IEEMA Transmission
and Distribution Conclave, Dr. Ajit Ranade, Chief
The ministry is modelling the scheme after the 590
Economist, Aditya Birla Group, “The Reserve Bank
mw Charanka solar park in Gujarat. Such large
of India’s policy on inflation control has helped.
solar parks are expected to reduce construction and
Going ahead we can expect interest rates to come
operations costs owing to economy of scale. But
down. Internationally the commodity prices are
smaller parks could also be considered under the
falling. Even the coal prices have gone down by
scheme in Himalayan states where large tracts of
35%. To benefit from lower prices and inflation, we
contiguous land may be difficult to acquire.
need to boost capital spending. We have a triple
bonus due to lower oil prices: lower fiscal deficit,
IEEMA Reiterates Made In India Focus lower current account deficit and lower inflation.
This bonus must now translate into higher growth.
while Electrical Equipment Jumps
The Manufacturing sector has been showing
7.82% in H1 - 2014 positive signal in terms of leading indicators but
The electrical and industrial electronics industry has we await a sustained resurgence. Exports have
witnessed a 7.25% growth in Q2 of the current year not picked up as much as required.”
versus the previous year and overall 7.82% growth IEEMA recommends that restructuring of discoms
in the 1st half of 2014. and their financial turnaround is the need of the hour.
Sluggish demand and higher imports still plague the Apparently the addition to power generation has also
industry but policy changes and various initiatives slowed down mainly due to fuel linkage issues which
undertaken are eventually showing signs of evolution will have an adverse effect on the growth of heavy
for the sector, The data compiled by IEEMA, the electrical equipment industry overall.
apex Indian industry association of manufacturers of
electrical, industrial electronics and allied equipment
shows that the second quarter growth in FY 2014 has Government plans to restart stalled power
accelerated to 7.24 percent as compared to first half projects & create distribution infrastructure
of last fiscal. The government is planning to revive stalled power
IEEMA came out with these growth figures on the projects and build new infrastructure for electricity
production and sales data collected from its member distribution in frontier regions like Jammu & Kashmir,
which is in the midst of assembly elections, and also “The Indian solar industry is visibly upbeat since
in the North East. the elections and especially after getting past the
Power, coal and renewable energy minister Piyush anti-dumping case,” commented Raj Prabhu, chief
Goyal told that the long-delayed Teesta Hydropower executive and cofounder of Mercom Capital.
project in Sikkim, where over ` 8,000 crore of private The Ministry of New and Renewable Energy’s (MNRE)
and public money is invested, will be resuscitated new target is to increase solar installations by fivefold
and the Subansiri Hydropower project in Assam to 15 GW by 2019 via solar parks - large areas and
and Arunachal Pradesh, which is among the largest
infrastructure set aside by states to accommodate
projects of the National Hydroelectric Power Company
installations of 500-1,000 MW.
(NHPC), will also be revived.
Goyal had earlier said that the government plans to
build new power transmission infrastructure in Leh,
Kargil and Srinagar, and will soon inaugurate the first
power evacuation transmission line that connects Leh
to Srinagar via Kargil.
Prime Minister Narendra Modi during his visit to
Kargil in August had dedicated the 44 MW Chatuk
hydropower project, a run-of-the river project built on
the Suru river in Kargil.
Piyush Goyal said power production should soon start
in the Teesta hydropower project. “I have just resolved
all issues pertaining to the Teesta hydropower project
in Assam a lot of public and private money was
stuck in this project most of those issues have been
resolved and power production should start soon,”
Goyal said. Maharashtra
Tata Power commissions wind farm in
India’s solar power capacity addition Maharashtra
to pick up after dismal 2014
Tata Power has announced commissioning of
India is expected to add solar power capacity at the remaining 8 MW of the 32 MW wind farm at
more than twice the speed of this year in 2015, Girijashankarwadi in Maharashtra. “With this
after a disappointing 2014 when installations of commissioning, Tata Power’s total wind generation
photovoltaic cells have fallen short of previous year’s
capacity stands at 470.6 MW,” the company said
levels, a solar consultancy firm said. India’s total solar
in a statement. The wind farm is expected to
installations have crossed the 3-gigawatt capacity
generate approximately 62 million units (MUs) per
mark with addition of 734 megawatt so far this year,
year which will be procured by Tata Power-Distribution
and the country is expected to end the year with
towards fulfilment of its Renewable Purchase
total additions of 800 MW, as much as 20% less
than in 2013. Obligations (RPO).
Land acquisition delays due to elections and With this commissioning, Tata Power’s total generation
uncertainty caused by an anti-dumping issue capacity stands at 8623 MW.
contributed to the slowdown in installations. In its
quarterly update on the Indian solar market, Mercom The company has wind farms located across five
Capital Group forecast 2015 installations to reach states - Maharashtra, Rajasthan, Gujarat, Tamil Nadu
about 1,800 MW by generation capacity. India earlier and Karnataka. Tata Power has developed this project
this year dropped plans to impose anti-dumping duty through its 100 per cent subsidiary, Tata Power
on solar panel imports. The duty, aimed at protecting Renewable Energy Limited (TPREL).
local manufacturers, would have increased the import
cost of local project developers who rely mostly on TPREL also has a further 300 MW of wind capacity
countries like the US, China and Taiwan for the under development and construction in the states of
photovoltaic cells. Maharashtra, Gujarat and Rajasthan.
Aditya Birla
Aditya Birla Group plans an entry into
ABB Ltd power sector
ABB bags ` 334 crore Coal woes have dealt a double blow to Kumar
transmission and distribution Mangalam Birla's flagship company Hindalco, not
substations orders in Bihar only did the Supreme Court judgment cancel its
Corporate News
and West Bengal coal blocks, the auction guidelines have reserved
its mines for the power sector, leaving Aditya Birla
ABB has bagged two orders valued at Group high and dry.
` 334 crore to set up transmission and
distribution substations in Bihar and This has spurred hectic re-strategising at the Aditya
West Bengal. The company has secured Birla Group. Sources with direct knowledge share
the orders from Bihar Grid Corporation that Kumar Mangalam Birla is contemplating an entry
Limited (BGCL) and West Bengal State into the power sector, a plan he had shelved a few
Electricity Transmission Company Ltd years back.
(WBSETCL) to build new transmission People familiar with the development say that the
and distribution substations that will top strategy team at the Birla Centre met last week
boost power supplies in the regions, a to deliberate on an entry into the power sector and
release issued here said. it is expected to be through acquisitions. Sources
As part of a turnkey contract in share that JP Power's Nigrie and Bina thermal power
Bihar, ABB will design, supply, install projects are on Kumar Mangalam Birla's radar. This
and commission 220/132/33 kV could be bad news for Sajjan Jindal's JSW Energy
gas-insulated switchgear (GIS) which is in talks to buy those units after announcing
the deal to buy JP's hydro power assets.
substations across four locations.
Aditya Birla Group is evaluating the option of a foray
These substations will deploy ABB's
into the power sector to aggressively bid for coal
compact high-voltage GIS technology,
blocks in the upcoming auctions which will take
which can reduce the substation footprint
care of the coal, electricity security of the Group,
by up to 70 per cent compared with
especially, its flagship firm, Hindalco. While Hindalco
conventional air-insulated switchgear
is expected to bid for coal blocks in the capacity of a
(AIS) substations. It will also supply
Captive Power Producer, KM Birla is hoping to take
IEC 61850-compliant protection and
the benefit of participating as an Independent Power
substation automation systems, as
Producer by buying a unit which is necessary as the
well as fiber-optic telecommunications
auction which will take care of the coal, electricity
systems, the release said.
security of the Group, especially, its flagship firm,
In West Bengal, the company will Hindalco. While Hindalco is expected to bid for coal
design, supply, install and commission blocks in the capacity of a Captive Power Producer,
a 220/132/33 kV AIS substation to help KM Birla is hoping to take the benefit of participating
meet the growing demand for electricity as an Independent Power Producer by buying a unit
in the Sadaipur region of Birbhum district. which is necessary as the auction guidelines require
Other ABB product supplies include IEC the specifics on the end-use plant.
CRM 100
SCADA
CRP
TRM 14
RTU TWFLS
TRM 10
CRM 100B+
TRM 104
SCOT MXP+ HISAC Ultima
SCOPE
CRM 200B RTMon
DC Trace CSG
SCOT M3K+
DCRM
TRM 25 Cases
CRM 100C
CFL
Dir CT RTK CBSCOPE
CRM 200 ISSPL BRT1 SA 10i SAMon Protect DecR
SA 30i
SCOT MXP
RTK
clarity on the issue of compensatory tariff, Sardana acquisition is subject to statutory approvals and
said, "The compensatory tariff issue is only concerned certain conditions precedent,” the company said in
with UMPP. As far as the two additional units are a filing to BSE.
concerned, they will be at market prices, so therefore Based on domestic coal, the 540 MW plant in Nagpur
the two phases are completely different."
saw 270 MW commissioned on May 2013. IEPL had
Central Electricity Regulatory Commission earlier been looking to sell the project since 2011. With this
this year asked the power procurers to pay acquisition, Tata Power’s total generating capacity will
` 329.45 crore as compe nsatory tariff for the Mundra increase to 8,885 MW.
plant to partly offset escalation in the price of “We are happy to announce our intent to acquire
imported coal.
this project in Maharashtra,” Tata Power managing
director and CEO Anil Sardana said in a statement.
Tata Power has set a target of generating 18,000
Tata Power MW by 2022 and presently has projects of about
Tata Power to acquire Maharashtra 3,000 MW capacity which are under various
power plant stages of execution.
Tata Power said it has signed a share purchase IEPL is promoted by members of Mhaiskar family of
agreement (SPA) for acquisition of 100 percent IRB Infrastructure Developers Ltd, an infrastructure
shareholding in Nagpur-based Ideal Energy Projects constructions company. IRB Infrastructure, which
Limited (IEPL). executed the country’s first build-operate-transfer
“An agreement was reached between Tata Power road project, is one of the largest operators of
and IEPL for sale of 100 percent stake in IEPL. The such ventures.