Deloitte's View on CMPDI as Sectoral Planner and Coal Scenario in India
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
Selected Projects of 750 MW Grid connected Solar PV Projects under JNNSM Phase-II Batch-I
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)
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| 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)
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| 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 | |||
Coal India Limited (CIL) Restructuring Plan - A Concise view of Deloitte's Draft Report
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.
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.
JNNSM Phase-II : Assessment of Domestic manufacturing capability to meet Domestic Content Requirement
"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.
List of Companies in the Race for 750 MW SOLAR PV Projects under JNNSM Phase -II, Batch-I
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
JNNSM PHASE-II, BATCH-I: LIST OF SUBMITTED BIDS
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| S.No. | Bidder's Name | No. of Projects Submitted | Capacity of Projects Submitted (MW) | ||||
DCR
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Open
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Total
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DCR
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Open
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Total
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| 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 | |||||||
Digital Photo Frames to Help Conserve Energy…!!! I Had to Agree on This
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.
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:
The main objectives of the VGF Scheme and these Guidelines are:
- To enable scaling up of size of projects thereby leading to economies of scale of projects under JNNSM
- To facilitate speedier implementation of the solar power projects to be selected to meet the Phase-II target of JNNSM
- To enhance confidence in the Project Developers
- To promote manufacturing in the Solar PV sector in India
- To create good business model and systems for various State Governments and DISCOMs to take forward and
- To facilitate fulfillment of RPO requirement of the obligated entities.
- 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.
- 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.
- The developer has to put his own equity of at least Rs.1.5 Cr/MW.
- The remaining amount can be raised as loan from any source by the developer.
- 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).
- The VGF will be released in six tranches as follows:
- 50% on successful commissioning of the full capacity of the project (COD);
- 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:
- End of 1st Year from COD – 10%
- End of 2nd Year from COD – 10%
- End of 3rd Year from COD – 10%
- End of 4th Year from COD – 10%
- End of 5th Year from COD – 10%
- 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.
- 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.
- 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.
- In case of projects financed through loan, the charge created on the project assets shall be shared with the Lending Institutions.
- 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.
- What is instore for Jawaharlal Nehru National Solar Mission (JNNSM) - Phase II
- Can JNNSM-Phase I Achievements Fuel Phase-II?
Japan Solar PV Market Outlook to 2017: Market Growth on Highway
Japan solar PV market has witnessed a high growth since the
government introduced the feed-in tariff (FiT) scheme in June 2012 for grid
connected solar PV. Country has a robust supply chain for solar PV with local
manufacturers producing quality solar panels.
Japan is leader among the countries initiated R&D and
development plan for solar PV. In 2004, it was crowned as a first country to achieve
one Giga-watt (GW) of cumulative solar PV installation. However, solar PV deployment
slowed in mid-2000s due to the country’s ten-year energy plan focusing largely
on nuclear generation expansion program to achieve approximately 30% by 2011.
Despite high dependence on imports to cater domestic energy
requirement, Japan is ranked fourth largest energy consumer globally. The
electricity development market roadmap was driven by nuclear power before
Fukusima accident. Considering the issue of energy security climate change and
more importantly Fukushima disaster on March 11 2011, Japan has changed its energy
policy to align it with renewable development. …….To read
complete article CLICK HERE.
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