Power Sector Budget Outlay for the Year 2014-15

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A detailed outlay of budget planned for the year 2014-15 for Indian Power Sector by the much hyped Union Government was released recently. Every sector of the Indian economy has enormous expectations from the government and is keen watching its very move and every initiative. Lets have a look at the proposed union budget for power sector for the year 2014-15 that is expected to bring momentum to the renewable energy generation in the country. 
Conventional Power Source: The total outlay for the power sector is Rs.60,384.02 crore, out of which Rs.9,642.00 crore is budgetary support for Schemes/projects –

Scheme/ Project
Allocation(Rs. Crore)
North Eastern Electric Power Corporation - Rs.142.10 crore
142.10
Tehri Hydro Development Corporation India Limited (THDCIL) - Rs.62.92 crore
62.92
Central Electricity Authority - Rs.46.29 crore
46.29
Rajiv  Gandhi Grameen Vidyutikaran Yojana
5144.09
Restructured Accelerated Power Development Resource Programme 
1261.04
Central Power Research Institute - Rs.295.53 crore
295.53
National Power Training Institute - Rs.60.52 crore
60.52
Energy Conservation  Rs.107.65 crore, Bureau of Energy Efficiency - Rs.139.55 crore
139.55
National Hydro Electric Power Corporation Limited  NHPC) - Rs.478.80 crore
478.80
Interest Subsidy - National Electricity Fund - Rs.50.69 crore
50.69
Strengthening of Transmission System in the States of Arunachal Pradesh and Sikkim - Rs.175.18 crore
175.18
220 KV transmission line from Srinagar to Leh via kargil - Rs.268.14 crore
268.14
Financial Support for Debt Restructuring of Discoms - Rs.1,200.00 crore
1200
Power  System Improvement Project in NER (except Sikkim and Arunachal Pradesh) - Rs.200.00 crore
200
Deen Dayal  padhyaya Feeder Separation Scheme - Rs.500 crore
500
Power Sector Support to NCT of Delhi - Rs.200 crore
200
Integrated Power Development Scheme - Rs.100 crore.
100

IEBR of Rs.50,742.02 crore is for schemes/projects –
Scheme/ Project
Allocation(Rs. Crore)
National Thermal Power Corporation Ltd.
22400.00
NHPC
2745.46
Damodar Valley Corporation
2764.99
EEPCO
945.88
Satluj Jal Vidyut Nigam Ltd.
1091.93
THDCIL
793.79
Power Grid Corporation of India Ltd.
20000
Nuclear Power: The total outlay under Power Sector for 2014-15 is Rs.8213.42 crore. The plan Outlay consists of Rs.970.00 crore by way of budgetary support and Rs.7243.42 crore by way of Internal and Extra Budgetary Resources (IEBR). The budgetary support includes equity investment in Bharatiya Nabhikiya Vidyut Nigam Ltd. (BHAVINI), externally Aided Project at Kudankulam, being executed by the Nuclear Power Corporation of India Ltd. with the assistance of Russian Federation. Neighbourhood Development Projects (in Kundankulam), Projects of Bhabha Atomic Research Centre and of Indira Gandhi Centre for Atomic Research to provide R&D support for the power programme are also included.
New and Renewable Energy: The Plan outlay for the Ministry of New and Renewable Energy (MNRE) is Rs.5,519.00 crore (inclusive of Rs.3,000.00 crore as IEBR and Rs.1578.00 crore from National Clean Energy Fund) for the year 2014- 15. The following physical targets/activities have been set under the various programmes during the financial year:
·         Grid-Interactive and Distributed Renewable Power: Provision of Central Financial Assistance for about 3770 MW grid-interactive Power capacity addition from Wind, Small Hydro, Biomass Power/Cogeneration, Urban & Industrial waste to Energy and Solar Power and deployment of about 150 MW equivalent Off Grid/Distributed Renewable Power Systems. These figures include 1000 MW grid power and 60 MW equivalent off-grid/distributed solar power systems to be installed under Solar Mission. It is also proposed to launch new schemes on Solar Pumps, Solar Energy Parks and Schemes on Solar Parks near irrigation canals. It also includes provision of Central Financial Assistance for Scheduled Castes beneficiaries.
·         Renewable Energy for Rural Applications: The provision will be used for construction of 1.10 lakh family type biogas plants and start of a new programme on cook stoves. It also includes provision for Scheduled Castes beneficiaries.
·         Renewable Energy for Urban, Industrial and Commercial Applications: Deployment of Solar Thermal Systems and Promotion of Energy-efficient buildings and master plans for Solar Cities.
·         Research, Design & Development in Renewable Energy: R&D activities on different aspects of new and renewable energy technologies, support to MNRE Centres/Institutions (SEC, C-WET and NIRE); Standards &  Testing; Renewable Energy Assessment (including Research Design & Development activities to be undertaken under Solar Mission).
·         Supporting Programmes: Information, Publicity and Extension (IPE) of Renewable Energy Systems; International Relations; Administration and Monitoring including HRD & Training; Support to States (including HRD & Training activities to be undertaken under Solar Mission).
Source: Union Budget 2014-15
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Quick Review of Major Initiatives Taken With a View to Improve Power Sector in 2013-14

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Indian Power Sector has seen quite a good number of initiatives that are expected to yield fruitful results in improving the operational statistics. It included initiatives from foreign direct investments, fuel supply agreements, power purchase agreemtns, coal block allocations, etc. A quick overview of the initiatives taken in the power sector during the year 2013-14 is presented below.


Automatic approval for foreign direct investment
  • Automatic approval (Reserve Bank of India [RBI] route) for 100 per cent foreign equity is permitted in generation, transmission and distribution, and trading in the power sector without any upper ceiling on the quantum of investment. The government on 22.08.2013 notified its revised position on foreign direct investment (FDI) cap for power exchanges registered under Central Electricity Regulatory Commission (CERC) Regulations 2010 as 49 per cent (26 per cent FDI+23 per cent foreign institutional investment [FII]) through automatic route.
Signing of fuel supply agreements
  • The Cabinet Committee on Economic Affairs (CCEA) in a meeting held on 21 June 2013 issued a directive to the Ministry of Coal/Coal India Limited to sign fuel supply agreements (FSAs) for a total capacity of 78,000 MW, including tapering linkage, which are likely to be commissioned by March 2015. With concerted efforts made in this regard, FSAs have been signed for 160 units totaling capacity around 74,000 MW.
Allocation of new coal blocks to the NTPC
  •  The National Thermal Power Corporation (NTPC) has been allocated four coal blocks (Banai, Bhalumuda, Chandrabila, and Kudanali-Laburi) in August 2013 for power projects of 8460 MW.
Pass-through mechanism
  • Pass-through mechanism for the concluded PPAs has been approved by the CCEA (14,000 MW-Case I and Case II post 2009 plants) in June 2013.
  • The CERC/State Electricity Regulatory Commissions (SERC) have been advised to consider the request of individual power producers in this regard as per due process on a case-by-case basis in public interest. The appropriate commission has been requested to take immediate steps for the implementation of this decision of the government.
Incorporation of PPA condition for coal block allocation
  • The Ministry of Coal has issued letters to independent power producers (IPP) and state governments for incorporating the PPA condition at the time of executing mining lease with IPPs for coal block allocation so that the benefits of low cost coal can be passed on to the consumers.
Independent Coal Regulatory Bill
  • The Independent Coal Regulatory Bill has been approved by the Cabinet on 27 June 2013. The Ministry of Coal introduced the Bill in Parliament in December 2013. An executive order for setting of coal regulation has been issued by the Ministry of Coal.
Third-party sampling and quality control mechanism
  • The Ministry of Coal/ Coal India Limited agreed to third-party sampling at loading points to address the issue of coal quality in October 2013. A Coal India Limited (CIL)-appointed agency for third-party sampling has been operational w.e.f. 1.10.2013.
Source: Economic Survey 2013-14
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An Incident that Demands for a Quicker Smart Grid Implementation

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While grid related issues continue to happen most frequently in northern part of India, Smart grid implementation still is under pilot stages. The recent incident of sudden load crash that occurred on 30th May 2014 in parts of Delhi, UP, Haryana and Uttarakhand demand for a more quicker implementation of smart grid at a national level.

This incident is reportedly occurred as a result of bad weather (rain, dust storm/thunder storm). The incident led to a massive reduction in the demand that in turn led to widespread increase in voltage levels throughout the grid system. As a result about 68 nos. AC transmission lines along with one HVDC line has tripped. This effected a load crash of about 8000MW in Northern Region, including 3500 MW in Delhi.
As a result of this incident the demand in the northern region grid started decreasing at a rate of ~200MW/min and reached 32780 MW which is considerably a very low value compared to the demand of the previous day during the same time. The consequence was grid frequency shot up to as high as 50.65 HZ and an increase in the grid voltage level.
Actions Delivered during and after the incident occurred have been reported recently in a document published on ministry of power website. These actions probably have mitigated the adverse effects that could have happened in the event of negligence to weather report information.
  • Backing down of generation to control the high frequencies besides over voltages at Inter-State Generating Stations (ISGS)/Regional entity generators was attempted. This action achieved a backing down of around 2700 MW generation in Northern Region. Similar step was taken in other parts of the country to meet exigencies.
  • More than 75% of the tripped lines including one HVDC line were restored at the earliest possible time.
  • Regions like Delhi are given priority in the restoration process and importance was given to restoring power to hospitals, Delhi metro, water treatment plants and NMDC area.
  • Help was sought from POWERGRID where towers got damaged and alternate line are used to supply power.
All these measures were the result of an anticipated storm or bad weather condition that the weather report team conveyed. A smart grid in place would have possibly reduced this effect to a great extent with a more redundant system. The operational efficiency of the grid is better managed through a smart grid. A smart grid can sense, alert and respond with a solution to even the minute changes against the set criteria for an incident to happen.
You may comment your thoughts in the comment section below for better ways to respond to such situations and smart grid’s response to such situations.
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Deloitte's View on CMPDI as Sectoral Planner and Coal Scenario in India

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CMPDI as sectoral planner: In the wake of changing dynamics in the coal sector, Deloitte, in its draft report, has called for elevating the role of Central Mine Planning & Design Institute Limited (CMPDl). CMPDI is a fully owned subsidiary of Coal India Limited having its headquarters at Ranchi. It provides technical functions in each stage of the mining life cycle. Considering the technical expertise of CMPDl, Deloitte has suggested that CMPDI should be elevated as a sector planner. The consultant has recommended three restructuring options for CMPDl.
Under this first option CMPDl may be made an independent organization reporting directly to the Ministry of Coal. The role of CMPDl would be principally similar to that of CEA for the energy sector with the exclusion of the Drilling and exploration activities. As a technical excellence entity for the sector it can work for CIL as well as other private parties.
Another option which can be considered is to retain CMPDI as a subsidiary for CIL along with the additional responsibilities of the national coal sector planning. This needs to be designed such that it functions and services provided to CIL and its subsidiaries producing more than 80% of the coal as a technical excellence arm continues in current shape. Thus it is imperative that CMPDI acts as a part of CIL yet takes up more responsibilities of that of a sector planner
Under the third model, CMPDI as an existing subsidiary of CIL would continue to stay in its current role. It would continue to act as a technical excellence arm for CIL and other private players. A separate organization should be carved out / created from the employees of CMPDI which would act as sector planner. This organization would report directly to the Ministry of Coal. The function of this organization would be effective planning of the mining industry. The employees of this organization should have rich experience and knowledge of the mining industry for addressing the issues and challenges faced by the mining sector and effectively plan the mining activities.
In its final analysis, Deloitte feels that the objectives of creating a sector planning agency and providing technical services to CIL and captive players is best met through the third option.

Also Read: Coal India Limited (CIL) Restructuring Plan - A Concise view of Deloitte's Draft Report

Coal market scenario in India: According to Deloitte, India's overwhelming dependence on coal is likely to stay. The following are the views of the consultant in this regard:
It is reasonably sure that in the next two decades India will be overwhelmingly depend up on coal for fulfilling its primary energy needs. 2013 BP Energy Outlook predicts the same. It mentions that although Coal consumption in OECD countries will decline by 2030, it will continue to grow in non-OECD countries such as India and China. Interestingly the report predicts that China will remain the largest coal consumer (52% of the global consumption now), while India (12% of global consumption) will overtake US to become the second largest in 2024. China and India will account for 63% and 29% or a combined 92% of overall global coal growth till 2030. For India's energy security, adequate domestic coal production is extremely critical.
However, there is a mismatch between CIL Coal Production and demand for coal from power and other sectors. In the last decade, Coal Production by CIL has grown by 4.5%, with dispatches to the Power sector growing by 4.6%, while the installed capacity base of coal fired power plants in India has grown by 7.4% in the same period. This mismatch has led to imports of coal. Imports have grown significantly over the last 2-3 years and are estimated to reach around 200-250 MT by the terminal year FY17 of the 12th Plan period. This level of imports is not good for India - as it drains our foreign exchange, exposes the country to the volatility of international coal prices, and puts pressure on the allied infrastructure such as ports. Thus, there is increasing impetus from Government of India to improve the domestic coal production.
The introduction of the Coal Regulatory Authority Bill will impact on Coal India Limited's operations. The advent of the Coal Regulator would also create a need for an independent technical body which could offer its services to the Regulator. The Regulator would need technical inputs to facilitate its functioning. Also with the increasing production envisaged in the 12th plan period from captive coal blocks and blocks allocated to the private utilities, there is a requirement for a sector planning agency which would work in tandem with CIL, Captive Block developers and others in order to increase the production and productivity for the entire sector. Comprehensive Integrated Planning (Mine Planning, etc.) would also become a necessity for these captive block developers leading to the requirement of an independent organization who can these provide services. Currently CMPDIL within CIL does these functions and any future structure will have to take into consideration these new requirements.
Based on a consumer complaint, recently Competition Commission of India (CCI) imposed a heavy fine on CIL accusing it for exploiting its monopoly position. . Although CIL is going to appeal against this order, it does brings home the facts that there will be increasing scrutiny of its market power in the coming days by different agencies and CIL should gear to mitigate these incoming challenges.
As part of the restructuring study a customer survey was conducted covering clients of CIL from all regions in the country. One common complain of consumers was regarding Quality of coal. They have mentioned that CIL is not able to supply the grade of coal for which they charge the consumer. The calorific values are much lower than what the consumer is supposed to get. Customers also felt that the organization is not very responsive in its customer service in terms of resolving disputes invoices etc.
There are issues plaguing the sector some due to inherent Ownership and Regulatory structure defined by the Coal Mines (Nationalization) Act 1973 and some due to issues related to Coal India. The consumer choices and competition as envisaged by induction different players is severely impacted by this law. In our study we have explored options that are feasible within the overall framework of this Act without any further comprehensive amendment to induct private sector participation. The legacy arrangements of fuel linkages, Fuel Supply agreement and their longer term nature also act as a constraint to make any significant overhaul of the system. However we understand there is need to critically look at areas of improvement in CIL, including need for structural changes, which will bring in efficiency in operation and higher production for the country.

Source: Praveen Patlolla, BHEL Executive, RCPuram.

Also Read: Coal India Limited (CIL) Restructuring Plan - A Concise view of Deloitte's Draft Report
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Selected Projects of 750 MW Grid connected Solar PV Projects under JNNSM Phase-II Batch-I

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The bids for JNNSM Phase-II Batch-I have been scrutinised for their proposal and the list of projects for a total capacity of 750 MW. The following is the list of projects that have been selected under Part-A and Part-B of the scheme. Both the parts have been allotted with equal capacity of 375 MW under the VGF sought by the bidder  basis.

Project-wise Allocation for DCR Category (Part-A) 
Sl. No.  Bidder Name  Project Capacity as per Bid Submitted Project Capacity Allocated (MW) VGF Sought by Bidder in (INR/MW)
1 Swelect Energy Systems Ltd.  10 10 135,00,000 
2 Sharda Construction & Corporation Pvt. Ltd.  10 10 139,50,000 
3 Today Homes And Infrastructure Pvt. Ltd.  10 10 144,50,000 
4 SEI Suncells Pvt. Ltd.  20 20 147,29,000 
5 Today Homes And Infrastructure Pvt. Ltd.  10 10 169,50,000 
6 SEI Sitara Pvt. Ltd.  30 30 186,97,000 
7 Laxmi Diamond Pvt. Ltd.  10 10 202,00,000 
8 Today Homes And Infrastructure Pvt. Ltd.  10 10 209,50,000 
9 RDA Energy Pvt. Ltd.  10 10 212,00,000 
10 Palimarwar Solar Project Pvt Limited  10 10 216,40,000 
11 Solairedirect Energy India Pvt. Limited  20 20 219,00,000 
12 Azure Power India Pvt. Ltd.  40 40 220,00,000 
13 Karnataka Power Corporation Ltd.  10 10 225,00,000 
14 Solairedirect Energy India Pvt. Limited  10 10 229,00,000 
15 Azure Power India Pvt. Ltd.  20 20 230,00,000 
16 Waaree Energies Pvt. Ltd.  50 50 235,00,000 
17 Hero Solar Energy Pvt. Ltd.  10 10 239,00,000 
18 IL&FS Energy Development Company Limited  20 20 239,99,000 
19 Green Energy Development Corporation Of Odisha Limited  20 20 240,00,000 
20 IL&FS Energy Development Company Limited  20 20 241,00,000 
21 Ranji Solar Energy Pvt. Ltd.  20 20 244,99,872 
22 Welspun Renewables Energy Ltd.  20 5 245,60,000 
TOTAL CAPACITY  375 MW 

Project-wise Allocation for OPEN Category (Part B) 
Sl. No.  Bidder Name  Project Capacity as per Bid Submitted Project Capacity Allocated (MW) VGF Sought by Bidder in (INR/MW)
1 Gujarat Power Corporation Ltd.  10 10 17,50,000 
2 SEI L'Volta Pvt. Ltd.  20 20 73,29,000 
3 Finnsurya Energy Pvt. Ltd.  30 30 81,99,000 
4 Rishabh Buildwell Pvt. Ltd.  10 10 85,00,000 
5 SEI Suryalabh Pvt. Ltd.  30 30 87,28,494 
6 Finnsurya Energy Pvt. Ltd.  10 10 96,99,000 
7 Medha Energy Pvt. Ltd.  20 20 97,79,439 
8 Backbone Enterprises Limited  10 10 99,00,000 
9 Today Homes And Infrastructure Pvt.  10 10 99,50,000 
10 Focal Energy Solar India Pvt. Ltd.  10 10 99,89,000 
11 Gujarat State Electricity Corporation  10 10 104,00,000 
12 Enersan Power Pvt. Ltd.  10 10 108,00,000 
13 Acme Mumbai Power Pvt. Ltd.  20 20 113,99,884 
14 Belectric Photovoltaic India Pvt. Ltd.  10 10 117,90,000 
15 4G Identity Solutions Pvt. Ltd.  10 10 118,00,000 
16 Acme Rajdhani Power Pvt. Ltd.  20 20 118,98,897 
17 Today Homes And Infrastructure Pvt.  10 10 119,50,000 
18 Focal Energy Solar India Pvt. Ltd.  10 10 119,99,000 
19 Hero Solar Energy Pvt. Ltd.  10 10 122,00,000 
20 Acme Gurgaon Power Pvt. Ltd.  20 20 129,99,943 
21 Vishwaj Energy Private Ltd.  10 10 130,00,000 
22 Azure Power India Pvt. Ltd.  40 40 130,00,000 
23 Hero Solar Energy Pvt. Ltd.  10 10 131,00,000 
24 Focal Energy Solar India Pvt. Ltd.  20 20 131,80,000 
25 Sunil Hitech Engineers Ltd.  10 5 135,00,000 
TOTAL CAPACITY  375 MW
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Coal India Limited (CIL) Restructuring Plan - A Concise view of Deloitte's Draft Report

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Deloitte recently submitted a draft report to the Coal Ministry has recommended three restructuring options for Coal India Limited (CIL).
The first option, which is also the most plausible one, calls for carrying out internal changes in structure, system and roles to reform the holding company and its subsidiaries. Under this option CIL will continue to operate in its current form but with certain organizational changes. This restructuring alternative focuses more on empowerment in the current as-is structure. In the context of restructuring this will be the most non-disruptive alternative. The current structure has features of centralized control as can be noticed from bulk purchase of heavy equipment, maintenance of executive manpower pool and liaising with central agencies. However, as per the report, it is important to look into certain facets such as market concentration of power and customer orientation and realignment of roles and responsibilities with requisite changes in the Delegation of Powers matrix. In this option, there is no change in the legal holding structure of CIL.
Under the second option, Deloitte has suggested creating Independent Mega Regional Companies out of CIL, while CIL will cease to be the holding company of the coal producing companies. Each redesigned entity will have a production capacity of range between 70-160 MTPA as the initial commencement level and migrate towards 200-300 MT within 5 to 7 years thus creating mega regional CILs. The company formation will be made in such a way that each of them will have sustainable reserves. Once the Mega regional companies are formed, each of the companies can spin off production focused Subsidiaries - each with capacity 30/40 MT. Under this alternative mega regional companies are created, with CIL no longer playing the holding company role for these coal producing companies. This is expected to lead to disruption on account of various manpower aspects.
In this option, the entire legal holding structure of CIL will undergo a change, with CIL no longer remaining as the holding company for the producing subsidiary companies. The seven coal producing subsidiaries will be merged into CIL and then subsequently de-merged into independent entities in selected combination.
Under Option III, Deloitte has recommended phased creation of independent Entities with continuation of holding company during transition. This option calls for a gradual change in structure to create more viable entities in a phased manner. Under the option Entities with production base of 80-100 MTPA may be progressively carved out of existing CIL structure and made fully independent entities. For e.g. MCL, NCL and SECL may be taken up in the first phase. CIL will continue to hold rest of the subsidiaries as the incubator. Under the option provision of further sub division can be based on sustainability potential across all independent companies.
In the third option, MCL, SECL and NCL will be carved out from the purview of CIL and will become independent companies. As per Deloitte, this can be achieved by two alternatives. First is through merger of MCL, SECL and NCL into CIL and subsequent demerger of business of these companies into separate companies. Second alternative is through de-merger of Investment Undertakings of Investment in MCL, SECL and NCL into New Companies (New Cos) and subsequent listing of new companies or/ Exit Offer to public shareholders in new companies.
In its overall evaluation, as per Deloitte, if business transformation measures are implemented, the achievement of CIL objectives is possible through the first option with minimum disruption. If the challenges persist and the objectives are not met, Deloitte has recommended that the third option (through Alternative I) may be considered.
 Source: Praveen Patlolla, BHEL Executive, RCPuram.
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JNNSM Phase-II : Assessment of Domestic manufacturing capability to meet Domestic Content Requirement

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"Domestic Content Requirement" was emphasized in Phase II of JNNSM so as to encourage domestic manufactuirng capabilities for solar energy. Solar Energy Corporation of India on 10th January 2014 has called upon for a meeting to assess preparedness of manufacturing to meet demand created for indigenous manufactured solar PV cells and modules for Projects under JNNSM Phase-II Batch-I, 750 MW scheme. The meeting was atteneded by major Solar PV Cells and module manufactures in the country, solar project developers and some lending institutions. As per the guidelines issued by MNRE dated 25th October 2013 for implementation of the above scheme, 375 MW capacity is reserved for “Domestic content required” (DCR) category which stipulates use of Solar PV cells and Modules manufactured in India. The discussions revolved around issues related to overall manufacturing capacity, capacity available on their assembly lines, delivery schedule to meet the timelines stipulated in the guidelines, bankability of the product, cost difference, etc.
Manufacturing Capacity: Approximately 550 MW of cell manufacturing capacity and approx. 1.1 GW of Solar PV modules manufacturing capacity is available which is much more than the requirement under “DCR” category. In fact, availability of solar cells and modules produced in India was reported to meet the balance requirements of the scheme also.
PV Modules Performance: It was emphasized that Indian manufacturers have been supplying indigenously manufactured PV modules to many other countries meeting global performance requirements. It was mentioned that the apprehensions, if any, regarding performance are without any basis. The performance of Indian modules is comparable to best available in the global market.
Guaranties and Warranties: Domestic PV module manufactures have indicated that they are extending one of best guaranties and warranties (e.g. Nominal Power Output) as available globally to the PV module purchasers.
Bankability: PV module manufactures have indicated that Solar PV Projects using their PV modules have got funded by most of the leading banks / financial institutions. Bankability Report of Solar PV modules can also be made available to the Solar PV module purchasers.
Cost difference: It was agreed by the manufacturers that there is a difference in the cost of PV modules which are manufactured indigenously and the ones which are imported due various reasons beyond their controls, such as, higher cost of financing, higher electricity tariff. It was mentioned that this difference could be of the order of Rs. 50-60 lakh per MW capacity of the project.
Delivery Period: It was emphatically indicated by the PV manufactures that are in absolute readiness to meet timelines of project commissioning as per requirements of the scheme.
Conclusion: It was felt that there is enough available capacity of indigenously manufactured PV Cells and Modules to meet DCR requirement under 750 MW VGF scheme under JNNSM Phase-II Batch-I.
All the above conclude the country's ability to fulfill the Mission's aim for DCR, but the actual results are expected only when te financial closures are made by the participitating companies for setting up solar power plants using DCR scheme. The participants are expected to undergo many challenges in terms of cost and availability before complete execution of the projects.
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List of Companies in the Race for 750 MW SOLAR PV Projects under JNNSM Phase -II, Batch-I

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List of Companies in the Race for 750 MW SOLAR PV Projects under JNNSM Phase -II, Batch-I
Subsequent to issue of RfS (Request for selection) document by Solar energy Corporation of India (SECI) dated 28th October 2013 for the subject scheme, Bids were opened on 20th January 2014 in presence of Officials from MNRE, NVVN and representatives of various bidders numbering about 120. Based on the preliminary examination of bids, following has been noted:


  • Number of total bids received: 68
  • Capacity: DCR: 700 MW
  • Capacity Open: 1470 MW
  • Total Capacity: 2170 MW
The details of the bidders and the capacity quoted by them in each category are appended below. SECI shall carry out the Techno-Commercial bid examination in regard to the bid conditions and may seek clarifications if required from the bidders in line with provisions in the RfS document. After completion of Techno-Commercial bid examination, the list of shortlisted Bidders shall be uploaded in website of SECI.
JNNSM PHASE-II, BATCH-I: LIST OF SUBMITTED BIDS
S.No. Bidder's Name No. of Projects Submitted Capacity of Projects Submitted (MW)
DCR
Open 
Total 
DCR
Open 
Total
1 PMP Auto Components Pvt Ltd.  0 1 1 0 10 10
2 Solairedirect Energy India Pvt. Ltd.  2 0 2 30 0 30
3 Emami Cement Ltd.  0 1 1 0 10 10
4 Oriental Sales Agenices India Pvt. Ltd.  0 1 1 0 20 20
5 Zandu Realty Ltd.  0 1 1 0 10 10
6 Gujarat State Electricity Co. Ltd.  0 2 2 0 20 20
7 Sargam Retails PVt. Ltd.  0 2 2 0 60 60
8 ILF&S Energy Development Co. Ltd.  2 3 5 40 60 100
9 ILF&S Renewable Energy Ltd.  1 2 3 10 40 50
10 Palimarwar Solar Project Pvt. Ltd.  1 0 1 10 0 10
11 Green Energy Dev. Co. of Odhisha Ltd.  1 0 1 20 0 20
12 Neyveli Lignite Corporation Ltd.  0 1 1 0 10 10
13 Neel Metal Products Ltd.  0 2 2 0 50 50
14 Backbone Enterprise Ltd. 0 1 1 0 10 10
15 Enersan Power Pvt. Ltd.  0 1 1 0 10 10
16 HIRA Ferro Alloys Ltd  0 2 2 0 20 20
17 Vishva Vishal Eng Ltd  0 1 1 0 20 20
18 Mahindra EPC Services Pvt. Ltd  0 1 1 0 30 30
19 Sunil Hitech Engineering Ltd  0 5 5 0 50 50
20 Shapoorji Pallonji Solar PV Pvt. Ltd 0 1 1 0 20 20
21 Greenenergy Wind Corp Pvt. Ltd  1 0 1 20 0 20
22 Maheswari Mining & Energy Pvt Ltd  0 1 1 0 10 10
23 Essel Infraprojects Ltd.  0 5 5 0 100 100
24 Swelect Energy Systems Ltd  1 0 1 10 0 10
25 Surya Vidyut Ltd  0 1 1 0 10 10
26 Acme Gurgaon Power Pvt Ltd  1 1 2 20 20 40
27 Acme Mumbai Power Pvt Ltd  1 1 2 20 20 40
28 Ranji Solar Energy Pvt Ltd  1 1 2 20 20 40
29 Medha Energy Pvt Ltd  1 1 2 20 20 40
30 Acme Rajdhani Power Pvt Ltd  1 1 2 20 20 40
31 Finnsurya Energy Pvt Ltd. 0 2 2 0 40 40
32 KSK Energy Ventures Ltd.  0 1 1 0 30 30
33 4G Identity Solution Pvt. Ltd.  0 1 1 0 10 10
34 Sharda Construction & Corporation Pvt. Ltd.  1 1 2 10 10 20
35 Today Homes and Infrastructure PVt. Ltd.  3 3 6 30 30 60
36 West Bangal State Electricity Distribution Company Ltd. 0 1 1 0 10 10
37 Subhash Infraengineers PVt. Ltd  0 1 1 0 10 10
38 Gujarat Power Corporation Ltd  0 1 1 0 10 10
39 Karnataka Power Corporation Ltd.  1 0 1 10 0 10
40 West Bangal Power DevelopmentCorp. Ltd. 0 1 1 0 10 10
41 SEI Suncells Pvt Ltd  1 0 1 20 0 20
42 SEI Sitara Pvt Ltd  1 0 1 30 0 30
43 SEI Green Flash Pvt Ltd  1 0 1 30 0 30
44 SEI Tejas Pvt Ltd  1 0 1 10 0 10
45 SEI L'Volta Pvt Ltd  0 1 1 0 20 20
46 SEI Surya Lab Pvt Ltd  0 1 1 0 30 30
47 SEI Peoples Pvt Ltd  0 1 1 0 10 10
48 Madhav Infra Projects Ltd.  0 2 2 0 20 20
49 ALEO Manali Hydropower PVt. Ltd.  0 1 1 0 10 10
50 Inspira Enterprise India Pvt. Ltd.  0 1 1 0 10 10
51 Golden Crystal Infrabuild Ltd.  0 2 2 0 20 20
52 Waree Energies Ltd.  1 0 1 50 0 50
53 Jakson Power Pvt. Ltd  0 1 1 0 20 20
54 Hero Solar Energy PVt. Ltd  1 3 4 10 40 50
55 Renew Solar Power Ltd. (Consortium with JKEPL)  0 1 1 0 50 50
56 Renew Solar Power Pvt. Ltd.  0 1 1 0 50 50
57 Vishwaj Energy Pvt. Ltd  0 1 1 0 10 10
58 First Solar Power India Pvt Ltd  0 1 1 0 30 30
59 Azure Power India Pvt. Ltd.  3 3 6 100 100 200
60 Green Infra Corporate Solar Ltd.  0 3 3 0 50 50
61 Focal Energy Solar India PVt. Ltd  0 3 3 0 40 40
62 Belectric Photovoltaic India Pvt. Ltd.  0 1 1 0 10 10
63 Tata Power Renewables Enrgy Ltd.  1 0 1 40 0 40
64 RDA Energy Pvt. Ltd  1 1 2 10 10 20
65 Welspun Renewables Energy Ltd.  3 5 8 60 100 160
66 Rishabh Buildwell Pvt. Ltd.  1 0 1 10 0 10
67 Moser Baer Powergen Ltd *  1 0 1 30 0 30
68 Laxmi Diamond Pvt. Ltd. 1 1 2 10 10 20
TOTAL CAPACITY 36 86 122 700 1470 2170








* EMD not submitted by the Bidder
Source: Solar Energy Corporation of India
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Digital Photo Frames to Help Conserve Energy…!!! I Had to Agree on This

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Do you agree that a digital photo frame can help in conserving energy as a demand side management program? Yes is what many of them say in the countries where this is the next solution to market energy sale. Countries in the European and American nations have chosen to bring a change in the energy consumption pattern of the residential customers using this technique.
Let’s see how this technique actually works out. With the smart meters already in place and technology blooming for implementation of these meters in distribution sector, a way to keep the attention of the customers on their consumption pattern looks more promising. A smart meter integrated with notifications on a Digital frame placed on wall or table inside the home that is visible frequently will tell you the current usage of electricity for the month. This sounds just like you receive a notification of amount deducted from your balance after you hang up a call from your mobile. Your personal pictures will mix with the notifications from the distribution utility and scroll down in the frame.
That’s not all. Apart from energy consumption it alerts you for energy consumption increase when you turn on your AC or washing machine. It also gives you information on the prevailing tariff for the season and delivers alerts on billing for the current and previous months. It additionally provides energy conservation quotes that most of them are not aware of in regard to usage of electricity in homes. Looks something like the one in the below pictures. By this way the utilities will have a better interaction with their end users which is the actual need of the hour. This will help the utilities to be no way an undermined commodity that lack’s customer service.
Can this really bring a change in the consumption patterns of electricity for residential customers? It was revealed in many research studies of human behavioral patterns that the people subjected to repeated exposure to changes in a message through vision tend to identify the cause for the change. And this will make the customer more aware of how their electricity is being used.
Now for a country like India where the already financially weak utilities exist, will this be a feasible option and are the investments possible? This is a question that is uncertain at this point of time but nevertheless it is not far from making it a reality. All we need is a determined support from the government to help such initiatives happen and put these schemes in place where R-APDRP, BEE and DSM Programs exist.
Your thoughts on the same as of how this can help in conserving energy and promote Demand side management programs are most invited as comments below.
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JNNSM Phase II-Batch I Bids Reveal Non-DCR Projects Highly Preferred over DCR Projects

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Solar Energy Corporation of India (SECI) after extension of bid submission date from 28th December 2013 to 20th January 2014 has opened bids for the allocation under batch I of phase II of the National Solar Mission (NSM). It was observed that a capacity totaling to 2,170MW was bidded by various companies. This total capacity comprises of 68 bids submitted by 58 developers and covering 122 projects. The bids opened revealed some notable facts that the Domestic Content Requirement (DCR) bids were twice oversubscribed than actual allotment while the Non-Domestic Content Requirement (Non-DCR) accounted for almost four times over subscription than the actual allotment. It is however understood that both will have an equal distribution in the end.
It was aimed through the mission in this phase, that a capacity amounting to 375MW will enforce Domestic content requirement (DCR) and favouring this a total of 36 projects with a capacity equivalent to 700 MW was bidded under DCR  and the rest 86 projects with a capacity equivalent to 1,470 MW opted for the open bids.  The results of the financial bid are to be announced by 20th February 2014.
Some of the prominent bids by capacity have been from developers such as Azure Power (200 MW), ACME (200 MW), Welspun (160 MW), IL&FS (150 MW), SunEdison (150 MW), ReNew Power (100 MW) and Essel Infra Projects (100 MW). Each developer can only be allocated a maximum capacity of 100 MW. Some of the prominent companies that have opted for the DCR part of the bids are TATA Power, Waaree, Moser Baer, SolaireDirect, SunEdison, ACME, Azure, IL&FS and Welspun. State owned power companies from Gujarat, Karnataka, Odisha and West Bengal have also bid for projects. SECI is expected to announce the second round of bidding for 1,000 MW under phase two by May 2014.
It is a known fact that the Mission's phase-I was predominantly  focused on Bundling and Generation Based Incentive (GBI) mechanism and the second phase unlikely focuses on Viability Gap Funding (VGF) mechanism. 
Details of Implementation of 750 MW Grid-connected solar PV power projects with Viability Gap Funding under Batch-1 Phase-II of JNNSM.
 The main objectives of the VGF Scheme and these Guidelines are:
  1. To enable scaling up of size of projects thereby leading to economies of scale of projects under JNNSM
  2. To facilitate speedier implementation of the solar power projects to be selected to meet the Phase-II target of JNNSM
  3. To enhance confidence in the Project Developers
  4. To promote manufacturing in the Solar PV sector in India
  5. To create good business model and systems for various State Governments and DISCOMs to take forward and
  6. To facilitate fulfillment of RPO requirement of the obligated entities.
The mechanism of operation of Viability Gap Funding is enumerated below:
  1. The tariff to be paid to the developer is fixed at Rs.5.45 per kWh. This tariff will remain firm for 25 years project period. In case benefit of accelerated depreciation is availed for a project, the tariff will get reduced to Rs.4.75 per kWh.
  2. The developer will be provided a viability gap fund based on his bid. The upper limit for VGF is 30% of the project cost or Rs.2.5 Cr/MW, whichever is lower. The developer will be required to indicate his preliminary estimate of project cost as per format in Annexure-A. The project cost will be as per developer’s own estimation & declaration at the time of bidding, which will be finally confirmed by his own declaration at the time of financial closure and will be considered for provision of VGF as per the above specified upper limit.
  3. The developer has to put his own equity of at least Rs.1.5 Cr/MW.
  4. The remaining amount can be raised as loan from any source by the developer.
  5. The VGF when paid by the SECI may be used to return part of the loan or developer contribution (in excess of Rs.1.5 Cr./MW) or a combination thereof as the case may be, in case investments have already been made. SECI will issue a letter confirming sanction/ grant of VGF so that bidder is able to achieve financial closure for full amount if required at the time of signing of Power Purchase Agreement (PPA).
  6. The VGF will be released in six tranches as follows:
    1. 50% on successful commissioning of the full capacity of the project (COD);
    2. Balance 50% progressively over next 5 years subject to the project meeting generation requirements (CUF within specified range as per Clause 2.13.1) as under:
      1. End of 1st Year from COD – 10%
      2. End of 2nd Year from COD – 10%
      3. End of 3rd Year from COD – 10%
      4. End of 4th Year from COD – 10%
      5. End of 5th Year from COD – 10%
  7. If the project fails to generate any power continuously for any 1 year within 25 years or its major assets (components) are sold or the project is dismantled during this tenure, SECI will have a right to refund of VGF on pro-rata basis and if not paid by the developer then a claim on assets equal to the value of VGF released, on pro-rata basis.
  8. If the project is transferred or sold to a third party during its tenure (after initial lock-in period of 1 year as per provision under Clause 2.10, SECI will retain full rights to operationalize the PPA with the third party, which will be under full obligation to honour all the obligations and terms & conditions of the PPA.
  9. Solar Power Developers (SPDs) and SECI shall enter into suitable VGF Securitization Agreement creating a charge over the Project assets in favour of SECI as specified under sub-clause (7) above along with signing of PPA.
  10. In case of projects financed through loan, the charge created on the project assets shall be shared with the Lending Institutions.
  11. In case the lending institution exercises its right to step in or take over the project, SECI will also have right to step in along with the lending institution to reclaim or handover the project to another party for operation.
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 Source: Cerebral Business Research Pvt. Ltd.

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