IEEMA Journal - January 2015

IJjanuary copy.pdf

the leading electrical & electronics monthly

VOLUME 6



ISSUE NO. 5



JANUARY 2015

ISSN 0970-2946



Rs. 50/-

Intelligent Electricity

Cover Story

Events & Interactions

Intelligent Electricity: INTELECT

8th IEEMA T&D Conclave MPs Meet – Electricity Challenges

Special Report

Country Profile

Half-Yearly Industry Review

Face2Face Mr SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO

United Kingdom

SME Talks Chhabi Electricals Terminal Technologies

rly iew a e ev Y f l y R 15 a H str -20 u 14 d n I 20

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24/12/14

4:41 PM

From the President’s Desk

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 largescale 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

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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

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Contents

the leading electrical & electronics monthly

Volume 6 Issue No. 5 Janaury 2015 CIN U99999MH970GAP014629 Official Organ of Indian Electrical & Electronics Manufacturers’ Association Member: Audit Bureau of Circulation & The Indian Newspaper Society

Contents the leading electrical & electronics monthly

VOLUME 6



ISSUE NO. 5



JANUARY 2015

ISSN 0970-2946



8

36

From the President’s Desk

Special Report

Rs. 50/-

9 Intelligent Electricity

Samvaad...

26 Cover Story Moving towards 24X7 Intelligent Electricity

Cover Story

Events & Interactions

Intelligent Electricity: INTELECT

8th IEEMA T&D Conclave MPs Meet – Electricity Challenges

Special Report

Country Profile

Half-Yearly Industry Review

Face2Face Mr SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO

United Kingdom

SME Talks Chhabi Electricals Terminal Technologies

rly w ea vie lf-Y Re 5 Ha stry -201 4 u 1 Ind 20

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.

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.

44 Tech Space Reduction of Auxiliary Power of In-house HT Equipment in Thermal Power Plant by Energy Conservation

34 Face to Face

IEEMA Members Helpline No. 022-66605754

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After Mangalyaan to Mars, ISRO plans to send an Indian into space, Mr. SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO speaks exclusively to IEEMA team about the successful Mars mission and also about ISRO’s plan to send humans into space.

The auxiliary power is the essential power used by the auxiliary equipment and the auxiliary power can be broadly classified into in-house auxiliary power and out-lying or common auxiliary power.

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 8th IEEMA T&D Conclave (Page 70)

56 Tech Space Retail supply electricity tariff Price Cap Regulation

From January 2015 we have introduced a new column named as “SMETalks” where we will feature two of our SME members every month.

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 enactment of the act called “Regulatory Commission’s Act, 1998” was the first step in the direction of distancing the Government from involvement in the determination of tariff.

60 IndustryView

80-81 Power Scenario Global Scenario Indian Scenario

82-83 IEEMA Database Basic Prices & Indices Production Statistics

86 ERDA News

Energy efficiency of Electric Motors plays a vital role, considering the demand supply gap widening with Industrialization, shortage of coal/gas and increased comfort level aspirations of people.

88 CPRI News

90 Product Showcase

92 Seminars & Fairs

January 2015

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Contents

94 Country Profile - United Kingdom

for energy efficiency projects • Germany inks pact with India to provide EUR 625 mn loan

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117 Index to Advertisers

118

National News

In United Kingdom, electricity is generated in a number of different ways. It is important to have different fuel sources and technologies to generate electricity ensuring constant supply.

100 International News • Russia awards Sesa Sterlite

• India’s power utilities to maintain high capex: Fitch • Government may adopt satellite imaging for transmission projects

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Corporate News • Tata Power may not source coal from Indonesia for Mundra • Aditya Birla Group plans to enter into Power sector

IEEMA Journal wishes its readers a Happy and Prosperous New Year!

Editorial Board Advisory Committee Founder Chairman Mr R G Keswani

Chairman

Mr Vishnu Agarwal

Members Mr Mr Mr Mr Mr

Babu Babel Sunil Misra J Pande Narayan Sethuramon Mustafa Wajid

Content & Production Co-ordinator Ms Pragati Sohoni

Advertisements Incharge Ms Vidya Chikhale

Circulation Incharge Ms Chitra Tamhankar

Statistics & Data Incharge

Annual Subscription: Inland: ` 300/Foreign: (Airmail) US $ 120/Single Copy ` 50/Articles: Technical data presented and views expressed by authors of articles are their own and IEEMA does not assume any responsibility for the same.

IEEMA Journal owns copyright for original articles published in IEEMA Journal.

Advertisements: Positives / artworks accepted upto 15th day of previous month of issue.

Advertisements published in IEEMA Journal are on good faith basis. Advertisers are solely responsible for contents/ violation of any law in the contents / actions arising from contents.

IEEMA Journal does not take responsibility for claims made by advertisers regarding products, ownership, trademarks, logos, patents and other such things.

Mr Ninad Ranade

Posting Date: 1st working day of the month of issue.

Designed by Reflections Processed at India Printing Works

Subscribers can write to the Editor for an extra copy if issue is not received by 15th day of the month.

Edited, Printed and published by Mr Sunil Kumar Misra on behalf of Indian Electrical and Electronics Manufacturers’ Association, and Printed at India Printing Works, India Printing House, 42, G. D. Ambekar Road, Wadala, Mumbai 400 031 and Published at 501, Kakad Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai 400 018.

Website: www.ieema.org

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Enquiries & Correspondence: Editor, IEEMA Journal, Regd Office - Mumbai 501, Kakad Chambers, 132, Dr A Besant Road, Worli, Mumbai 400 018.

Phones: +91(0) 22 24930532 / 6528 Fax: +91(0) 22 2493 2705 E-mail: mumbai@ieema.org

Corporate Office - New Delhi Rishyamook Building, First floor, 85 A, Panchkuian Road New Delhi 110001.

Phones: +91 (0) 11-23363013, 14, 16 Fax: +91 (0) 11-23363015 E-mail: delhi@ieema.org Branch Office - Bangalore 204, Swiss Complex, 33, Race Course Road, Bangalore 560 001.

Phones: +91 (0) 80 2220 1316 / 1318 Fax: +91 (0) 80 220 1317 E-mail: bangalore@ieema.org Branch Office - Kolkata 503 A, Oswal Chambers, 2, Church Lane, Kolkata 700 001.

Phones: +91 (0) 33 2213 1326 Fax: +91 (0) 33 2213 1326 E-mail: kolkata@ieema.org Representatives: Guwahati (Assam) - Nilankha Chaliha E-mail: nilankha.chaliha@ieema.org Mobile: +919706389965 Raipur (Chhattisgarh) - Rakesh Ojha E-mail: rakesh.ojha@ieema.org Mobile:+919826855666 Lucknow (U.P. and Uttarakhand) Ajuj Kumar Chaturvedi E-mail: anuj.chaturvedi@ieema.org Mobile: +919839603195 Chandigarh (Punjab & Haryana) Bharti Bisht E-mail: bharti.bisht@ieema.org Mobile: +919888208880 Jaipur (Rajasthan) Devesh Vyas E-mail: devesh.vyas@ieema.org Mobile: +918955093854 Bhubaneshwar (Odisha) Smruti Ranjan Samantaray E-mail: smrutiranjan.samantaray@ieema.org Mobile: +919437189920

January 2015

CoverStory

Moving towards 24X7 Intelligent Electricity

...and what to expect at the INTELECT & Upto 11kV Show ndia being the world’s 6th largest energy consumer and accounting for 3.4% of global energy consumption, with Maharashtra as the leading electricity generator among Indian states. Due to India’s economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. 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. These ambitions will require intelligent electricity and is bound to open up a huge business opportunity.

I

With fast urbanisation and digitisation to adapt to the growing aspirations of the large young population.

Its impact on electricity demand and consumption will be significant. Connectivity and availability of broadband, smart use of natural resources, energy efficiency, renewable energy, alternative mobility, smart governance, smart education, smart services such as health, smart security and policy, smart municipal services are but a few areas which will help make a city smart. Indian cities in a small way are using advanced technology within departments to solve problems.

Indian Urban population and Energy consumption pattern The global urban population is expected to grow from 47% of the total in 2000 to 70% in 2050.

The urban populations of China and India are continuing to grow

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rapidly to 2050, reaching more than one billion in China and India. By 2050, it is predicted that about 73% of the Chinese population will be urban. In India drastic urbanization is mainly due to both social and political motivation. Brazil‘s urbanization rate is beginning to reach saturation level and it is a much more urban country than others. The construction boom, especially in China, is increasing building energy demand dramatically with economic development and living standard improvement In line with expanding development and population, India‘s building sector is expected to grow five-fold by 2050 as two-thirds of the commercial and high-rise residential structures that will exist in 2030 are yet to be built (70%). While India’s total energy requirement is projected to grow at 6.5 percent per year between 2010-11 and 2016-17 to support the country‘s projected growth rate, India is en route to becoming the world‘s second largest emitter of greenhouse gas.

Key schemes for 24X7 electricity Moving towards PM Narendra Modi-led government’s objective to provide 24X7 power supply, the Cabinet has approved multiple schemes to improve transmission and distribution networks and begin work on the North Eastern Region Power System Improvement Project. The Rs 32,600 crore Integrated Power Development Scheme (IPDS) will strengthen the transmission and distribution networks and metering in urban areas and smarten it with information technology.

January 2015

CoverStory

The Cabinet also approved Rs 43,033 crore scheme, which includes the requirement of budgetary support of Rs 33,453 crore, for rural areas to separate agricultural supply from non-farm supply.

Cutting transmission losses and improving distribution is a key element for the power sector, and the initiative follows steps to ease coal shortage and discussions to formulate a financial package for the sector, where thousands of megawatts of capacity are idling or operating sub-optimally because of fuel shortage or inadequate distribution network.

Taking a look at the proposed benefits of the three major Cabinet decisions aimed at solving problems of the power sector:

Integrated Power Development Scheme

4) Providing access to electricity to rural households.

The process of sanction of projects shall commence immediately. After sanction of projects, contracts for execution of projects will be awarded by States Discoms / Power Departments. The projects shall be completed within 24 months from date of award.

North Eastern Region Power System Improvement Project The North Eastern Region Power System Improvement Project (NERPSlP) for six States (Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland) is meant for strengthening of the Intra State Transmission and Distribution System at an estimated cost of Rs 5111.33 crore.

The Integrated Power Development Scheme (IPDS) is aimed at strengthening sub-transmission and distribution network in the urban areas; metering of distribution transformers /feeders / consumers in the urban areas; IT enablement of distribution sector and strengthening of distribution network.

The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power (MoP). The scheme is to be implemented with the assistance of World Bank loan and the budget of MoP.

According to a press release from the government, “The scheme will help in reduction in AT&C losses, establishment of IT enabled energy accounting / auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency.”

The Indian Electrical & Electronics Manufacturers’ Association (IEEMA) and three societies of Institute of Electrical and Electronics Engineers (IEEE) and will co-host the INTELECT 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. The concurrent Show UPTO 11 kV will demonstrate the readiness of the Indian electrical industry to help the Government of India to accelerate Distribution Sector Reforms and focus on rural electrification. It will be a unique opportunity for the Equipment manufacturers to effectively showcase their latest equipment, technology and services and interact with utility officials from all across the country. The expo cum conference will feature globally renowned keynote speakers and high-caliber panelists, as well as user-experience pavilions showcasing cutting-edge innovations and future technologies on Home-Hotel-HospitalOffice (H3O), Digital Smart Cities, and Smart Rural Electrification.

The process of sanction of projects shall commence immediately. After sanction of projects, contracts for execution of projects are to be awarded by States Discoms / Power Departments. The projects shall be completed within 24 months from date of award.

Deendayal Upadhyaya Gram Jyoti Yojana The Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) aims (i) to separate agriculture and non agriculture feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and (ii) strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.

According to the Cabinet, the scheme would help in: 1) Improvement in hours of power supply in rural areas, 2) Reduction in peak load, 3) Improvement in billed energy based on metered consumption and

January 2015

Efficient Electricity for India’s Growth

INTELECT is designed to draw builders, architects, city planners, energy and government officials, transportation industry representatives, venture capitalists, utilities, contractors, consultants, academia, and others in learning about new

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CoverStory

First time in India:

► Supported

by three Ministries of Govt. of India: Ministry of Power, Urban Development and Communications & IT

► India Utility Roundtable ► Conference: Smart Electricity

for Emerging

Markets

► Pavilions: Make In India, Smart Tech,

smart grid based solutions, as well as solutions to help make the distribution sector more efficient.

Hence the timing of IEEMA and IEEE is perfect to respond to the Government and the dire need of intelligent electricity for the nation.

Former Union Power Secretary, Mr P Uma Shankar, speaks about the efficient consumption of electricity How do you describe the concept of Intelligent electricity with India perspective? How should India look at this concept?

Micro & Small Scale Industries, Utilities

technological advancements and knowledge to smart electricity. India is fast becoming more urbanized and digitized to adapt to the growing aspirations of the large young population. Its impact on electricity demand and consumption will be significant. IEEMA, as the voice of the Indian electrical sector is privileged to partner with IEEE which can provide invaluable global knowledge and expertise. For the first time, with the support of three ministries of the Government of India Ministry of Power, Ministry of Urban Development and Ministry of Communications & IT – an all India Utility Round table will be organized. This will witness participants, such as, heads of distribution Utilities, Rural Electrification Corporation, Bureau of Energy Efficiency and Bureau of Indian Standards. Also, an exclusive Discom pavilion showcasing best practices, success stories, services & future plans, a Make In India pavilion and Micro and Small Scale Industries pavilion will be showcased.

IEEMA is the first ISO certified industry association in India with 800 member organisations encompassing the complete value chain in power generation, transmission and distribution equipment, and its members have contributed to more than 90% of the power equipment installed in India. IEEE is the world’s largest professional association for the advancement of technology.

It is a no-brainer that production itself isn’t adequate, the use of the product has to be intelligent. Outside the country, having met fully the electricity demand, the move has been towards supplying and consuming that electricity smartly. Techniques and processes and appliances have been developed to this end.

Efficient consumption leads to reduction in carbon foot-print as well.

India should be looking at a variety of ideas and technologies available worldwide; our special needs are to reduce AT&C losses, to shave peak consumption, to flatten the load curve, to minimise shortages, to prevent thefts etc. It will also be to look at better and more sophisticated ways of using electricity, in homes, hotels, workplaces etc

Do you think the aim for providing electricity to all by 2022 can be achieved?

Govt has to aim to provide electricity to all, that is govt’s responsibility. By which year it will happen is another matter. To provide electricity, households will have As per the Ministry of Power: In the next 5 years to be connected with electric a billion tonne of coal lines first. The govt’s aim in production is planned. In India is a large country with a unique 2005 was to provide access parallel, 100 Gw of solar set of requirements and challenges. to electricity to all households power capacity are proposed Intelligent electricity will help India by 2009 and to ensure to be added along with optimize power requirements through minimum life-line consumption investments of about $50 energy saving, manage peak deficits of 1 kwh/day/household. Now, billion in the transmission better and through Smart Grids, enable the govt is reportedly aiming and distribution segment. two-way communication between utilities This will create a massive at 24/7 electricity supply to and users. demand for smart power and all, not by 2022, but by 2019.

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January 2015

CoverStory

Although, Rajiv Gandhi at best play a facilitating In the quest for Power for All by 2019, the role, like, providing huge Grameen Viduy tikaran first task will be to connect these 32% of total grants for increasing Yojana (RGGVY) launched rural households to electricity. Then, address access to households; in 2005 achieved much the task of providing them and the already through RGGVY, central more than any rural connected 68% with 24/7 electric supply. The govt met 90% of the electrification programme, availability of electricity in the rural areas expenditure incurred in the target of access to all varies widely from State to State. There are rural electrification; even households by 2009 was many States wherein rural supply is much then, enthusiasm from missed by a wide margin. less than the 6-8 hours supply required under state govts, particularly the As on April 2014, 5.4 RGGVY. ones where unelectrified crore rural households of villages and households the total 16.74 crore rural were huge, was at best lukewarm. How does one households remained unelectrified, i.e., did not have get the states to own this responsibility of power for access to electricity. all is a major issue. Once the state govt owns this, In the quest for Power for All by 2019, the first task will then efforts will be made by them towards this end. be to connect these 32% of total rural households to If the state does not see this as a priority, then is electricity. Then, address the task of providing them there anything the central govt can do to force the and the already connected 68% with 24/7 electric issue is another question. supply. The availability of electricity in the rural areas The central govt is in the process of engaging varies widely from State to State. There are many consultants to prepare state-wise and UT-wise States wherein rural supply is much less than the action plan to achieve power for all by 2019.

6-8 hours supply required under RGGVY. This is expected to show the gaps in generation, The situation in urban areas is better to the extent transmission and distribution segments, the action to that electric connection is not a major issue but 24/7 be taken to bridge the same. It would also hopefully supply and reliable, quality supply are issues. indicate action to be taken to improve the financial The task is definitely gigantic and daunting, but has condition of discoms, which is a major cause for to be attempted. At best, the aim will be fulfilled. lack of forward movement in meeting the electricity At worst, it may not be fulfilled in the time-frame demand of consumers. I hope it indicates the need projected, but may take longer. In either case, it to urgently align tariffs to cost of service and to make may bring to the fore the primary duty of the govts, a surplus, however small. Only then, discoms as a especially the state govts, of ensuring uninterrupted commercial entity will be interested in increasing electric supply to all the households in that state. supply of power and will want to avoid disruptions That in itself will be a great boost for the power in supply or load-shedding to a minimum. sector.

What is the reality check that the government should look for achieving this aim? And what are the obstacles?

The responsibility of providing electric supply is primarily that of the States/UTs. The central govt can

January 2015

With IEEMA coming up with INTELECT and Upto 11KV. Can you share your perspective on this show?

One would expect to see Intellect exhibiting in one place all that is best in the world in smart distribution and consumption of electricity. The Technology

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CoverStory

Demonstration Pavilion How can IEEMA The Mission Plan is a great spring board for will make you experience members as well as the electrical industry to grow maniforld from its these technologies live, electrical equipment current output of $ 25 billion to $100 billion by not merely as concepts, industry benefit from this 2022, not just to meet domestic requirements not just the information and what are the unique but to make India the country of choice for that they are being used features of this show? production of electrical equipment. elsewhere. That should Our members will get to make a lot of difference. If see ideas of the future, seeing is believing, experiencing is even better. showcased innovatively to create and empower One also expects a lot of intellectual input and Smart utilities and Smart consumers. It seeks to exchange of ideas from the IEEE seminar and take the thinking to a whole new level.

Distribution Reforms seminar

What are your views on the Mission Plan 2012-2022?

The Mission Plan is a great spring board for electrical industry to grow maniforld from its current output of $ 25 billion to $100 billion by 2022, not just to meet domestic requirements but to make India the country of choice for production of electrical equipment.

The Plan has all the actions required to be taken by various stakeholders to not only “make in India” for India but to “make in India” for the world. But , it is still, all said and done, a plan. It has to be pursued vigorously and relentlessly at all levels to make the plan a reality.

Organising Committee, Chairman for INTELECT 2015, Mr Krishna Kumar shares his perspective on intelligent electricity, INTELECT 2015 and upto 11kV show.

With IEEMA coming up with INTELECT and Upto 11kV. Can you share your perspective about this show for our readers?

How do you describe the concept of Intelligent electricity with India perspective?

India is a large country with a unique set of requirements and challenges. Intelligent electricity will help India optimize power requirements through energy saving, manage peak deficits better and through Smart Grids, enable two-way communication between utilities and users.

How should India look at this concept?

Welcome it, vigorously advocate it and start its implementation!

Do you think the aim for providing electricity to all by 2022 can be achieved?

Yes! This is an idea whose time has come.

India’s Sustainable Development India‘s economic growth can only be sustained with corresponding to growth in infrastructure.

Presently the growing demand is being met by crumbling infrastructure, such as road networks, city transport, water and sanitation etc. A solution to the contradiction requires a massive enlargement of urban infrastructure which will further require newer green and sustainable techniques for building infrastructure.

Tr adi t i o n a ll y, electrical exhibitions in India have focused on display of products and systems. INTELECT focuses on Intelligent application of electricity, showcasing ideas for the future. The 11 kV show will create a robust B2B platform to help exhibitors and distribution utilities come together, while showcasing innovations.

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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 After Mangalyaan to Mars, ISRO plans to send an Indian into space, Mr. SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO speaks exclusively to Shalini Singh, IEEMA Journal about the successful Mars mission and also about ISRO’s plan to send human into space.

India’s space agency ISRO (Indian Space Research Organisation) spent a mere $75 million to launch a small spacecraft bound for Mars, 140 million miles away thereby making India the first Asian country, and the fourth in the world, to get to the planet.

Mr. SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO, “It’s a real privilege to share with you the excitement of our country’s first interplanetary mission–the Mars Orbiter Mission. As you would be aware, the orbiter to Mars which was launched on 5th Nov, 2013 was successfully inserted into its designated orbit around Mars on 24th Sep, 2014 after travelling more than 650million km over a period of nearly 300 days since its departure from earth in the early hours of 1st Dec, 2013.”

Neighbours always interest us and Mars happens to be our celestial neighbour.

But, why Mars has always been an object of general interest and specific scientific inquiries since time immemorial is because of its similarities to earth.

“This maiden successful foray into spaces beyond earth’s gravity has generated enormous interest not only within the scientific community, but has also caught the public imagination in a big way.”

Neighbours always interest us and Mars happens to be our celestial neighbour. But, why Mars has always been an object of general interest and specific scientific inquiries since time immemorial is because of its similarities to earth. “Besides, detection of methane on Mars, which of course is subject to intense debate and speculation, in recent times, has furthered the curiosity about Mars. It has once again opened up that perennial question of whether life, in whatever form, exists or ever existed on Mars,” opines Mr Sarkar.

Asked about the important objectives for this mission, he says, “It’s primarily about designing, developing and executing an inter-planetary mission with clear emphasis

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on deep space communication, navigation and control of the spacecraft given the large distance between Earth and the s/c which ranges from 225 million km to 400 million km during the course of this mission.

Because of the large distances involved, the round trip communication delay between earth and the s/c can vary from 7 min to 43 min with an average of nearly 28 min. It is clear then that this mission cannot be micro-managed by ground commanding and hence the spacecraft has certain autonomy features built into it to handle the contingencies.”

What were the challenges faced during this mission?

He explains, “The two doughnut shaped blankets that shroud the Earth with highly charged plasma particles comprising electrons, protons and nuclei are called Van Allen Radiation belts. MOM has successfully sustained several passes of these lethal radiation

January 2015

Face2Face

Why to Switch on Lights, when there is enough of Natural light ?

Payb a With ck perio d in 4 mon : ths

belts speculated to have been formed by furious solar winds and harmful cosmic rays....These belts are a 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 needed to acquire a velocity of more than 11.2km/s.

The velocity of the s/c was increased progressively by making go around earth seven times. Every time that the s/c passed through its closest point to earth, the liquid engine on the s/c was fired and its velocity increased,” explains Mr Sarkar.

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 and says, “In India, preparation began in 2006-07 with a study which estimated the cost of sending a two-member crew in orbit around Earth and bringing them back safely.”

“One of the biggest challenges of this mission will be to “human rate” the vehicle carrying the crew 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 place, environmental control and life support systems codified, and flight suit and crew escape module developed. The developmental flight of GSLV Mark III is scheduled for 2016-17. We are already in process and we are hopefull that this mission will also be successful,” concludes Mr Sarkar.

January 2015

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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 a stable outlookon most of its rated power sector entities for FY15, on the back of improving fuel supply andfinancial health of state power utilities (SPUs). The agency expects that its rated entities willcontinue to manage fuel and SPU risks due to a favourable tariff mechanism, their comfortableliquidity and support from the central and state governments.

The power sector has been in the mix of news last sixmonths. During this period about 9000 MW capacity was added surpassing the installed

Transmission Addi on in ‘CKM’ during 12th Plan Up to September 2014

12th Plan (2012-17) Targets

74000 Sub-sta on

24467

Addi on in MVA/ MW during 12th Plan Up to September 2014

10676

8626

12th Plan (2012-17) Targets

34195

37903

3750

0

36

capacity of 2.5 GW. However, during the last 2-3 months the capacity addition has not been upto the mark and slowed down considerably mainly due to fuel linkage issues coupled with the credit squeeze.

It is also reportedly understood that scarcity of fuel to the existing generating plants and such issues are emerging in the wake of cancellation of some of the coal block allocations. This has an adverse effect on the growth of heavy electrical equipment industry.

In the transmission and sub-station development programme, 220 Kv and 400 kV transmission network and sub-stations were completed as per

HVDC

765 KV

400 KV

220 KV

HVDC

765 KV

400 KV

220 KV

10340

2700

38000

3500

1925

1490

4500

7600

January 2015

SpecialReport

the plan. However, HVDC & 765 kV segment looks still under achieved which will be in the focus during the remaining period of 12th Plan.

Generation • Addition to Power Generation during April-September FY14-15: 8,978MW (50% achievement) • Total Addition till September 14 during 12th plan: 46,766 MW (Achievement of 52% against 12th Plan Target) • Total installed Capacity at the end of September 2014: 2,54,049 MW Another major issue faced by the electrical equipment industry is the availability of credit for execution of projects as power sector is not favoured by the Financial Institutions. Furthermore, industry also does not expect more than 60% of the planned expenditure by the Government due to tight fiscal situation. While going further, high allocations to Distribution Reform Programmes like RGGVY is expected in the next budget. Not much positive change is visible for atleast 12-15 months due to lack of momentum in the Public/Private Partnership (PPP) activities.

Review of Growth of electrical industry The Indian electrical equipment industry is worth Rs 1.25 crores has grown by 7.82% during the first half year of 2014-15 over the same period of the last year.

The second quarter registered a growth of 7.2% while first quarter growth was 9.3%. Prima facie, although growth numbers are encouraging, in reality the growth is on very low base of last year. As compared to similar period data of two years ago, the industrial growth is still in the negative territory of about 5%.This indicates broadly the current production level is not yet come up to the level prevailing two years ago. The growth numbers are arrived from the data compiled by IEEMA from its members and non-members and based on further analysis. There are only two major sub-sectors driving the growth i.e.

Cable and Switchgear whereas other major sectors like Transmission Lines, Conductors, Transformers, Energy Meters, Capacitors and Rotating Machines are still showing a negative growth varying from 1% to 16%. The growth and de-growth of various sectors signifying cyclical nature of the electrical equipment industry as identified last year. The growth seems to have shifting further from HV segment to Medium

January 2015

and Low Voltage equipment. However, increase in foreign exchange rates, raw material prices and other inflations, cutthroat domestic and unfair overseas competition, delays, cash flow issues, high cost of credits etc. are the major hurdles towards the industry. Adverse domestic economic situation and credit squeeze is having an impact on the domestic growth of the industry.

% Growth Index Product

Weightages for 14-15

LT Motors HT Motors Alternators FHP Motors Rotating Machines

3.5 1.3 2.0

Power Contactors LT Circuit Breakers MCB S/F & F/S Units LV Switchgear HV Switchgear Switchgear Power Cables: PVC

3.0

Control Cables & other Special Purpose Cables Cables Power Transformers Distribution Transformers Transformers HT Capacitors LT Capacitors Capacitors Energy Meters Energy Meters T.L.T. Conductors Transmission Lines Total

1.8 8.6

HY FY 15 -10.8 -3.8 -0.5 22.7

Q1 FY 15 -5.4 4.0 -4.4 19.0

Q2 FY 15 -15.5 -9.8 4.6 26.9

-0.3

1.4

-1.1

10.9

13.2

8.7

5.1 4.4 0.5 13.0 3.3 16.3 19.4

6.7 -3.8 -0.5 -2.6 -27.1 -35.8 3.9 -0.7 7.3 5.6 4.6 0.6

19.0 1.4 -16.9 9.3 9.0 9.2

22.8

27.2

19.2

49.2 30.8

32.0 28.7

63.5 32.6

-15.9

5.9

-29.1

8.4

27.8 6.6 8.9 15.5 0.3 0.6 0.9 4.2 4.2 15.7 11.0 26.7 100.0

8.3 2.8 -2.0 4.1 -15.7 -0.7 4.4 22.4 -2.3 14.7 -4.2 -16.8 -4.2 -16.8 -4.2 17.7 -2.6 -15.5

12.9 -5.0 -26.7 -11.0 -16.2 6.6 6.6 -23.7 10.2

-3.5

4.1

-9.7

7.82

9.32

7.24

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SpecialReport

Product Sector Review From the product specific,decline in the transformer is attributed to 16%decline in power transformers segment. The Distribution Transformer segment is showing a moderate growth of 8%. Although domestic demand for transformers is still negative, export orders are helping to arrest this negative trend. However, huge imports of EHV transformers and Reactors mainly from China and Sweden through Project imports route are worsening the situation. However, consistent increase in the order book position of transformers is the only ray of hopes.

In the cable sector, high demand for control cables and 1.1 kv power cables are driving the growth of the sector supported by moderate growth in the export orders. House wiring, telecom and instrument cables are also showing up trend in growth.

In the switchgear sector, the LV Segment is turned from minus 2% to 19% growth during 1stquarter one to 2ndquarter mainly the growth of Contactors, LT Circuit Breakers and Miniature Circuit Breakers. This is due to demand coming from industrial and realty sectors. HV Switchgear reported moderate growth of 7%mainly on MV Segment supported by Exports.

Transmission Line segment consisting of Transmission Line Towers, Accessories and Conductors is over all showing negative trend although in the second quarter conductor segment has started showing

ITC codes

Product Groups

uptoSep2014-2015 Import

Export

some positive trend. Decline is attributed to lack of domestic orders.

In Energy Meters both single and polyphase static meters are showing declining trend due to lack of off-take from the domestic Utilities Growth in exports is helping the industry to restrict the negative trend.

In the capacitors, HT Capacitors in the last year there has been de-growth in this segment. Accordingly growth in LT Capacitors is again attributed to export orders.

In Rotating Machines segment both HT & LT Motors showing a negative trend indicates very little offtake from the core sector industry. The growth in FHP motors signifies improvement in the while goods sector. Imports, however, continue to substitute domestic supplies which are on the verge of serious juncture and urgently need to take trade remedial measures.

Exim Trend High growth of imports of more than Rs. 500 Crores of MV/HV Breakers, GIS, LT Circuit Breakers and other switchgear and control gear products, HV cables, Energy Meters, AC Motors is observed during the first half. Imports of worth Rs.500 crores EHV Transformers, Reactorsand Accessories, Cables (Rs. 125 crores), Insulators (Rs. 100crores) etc. is observed through project import routes. Share of Chinese imports have increased alarmingly and

%Growthover2013-2014 Import

Export

Market Size for 2014-15 Rs. Crores

Domestic Growth %2013-14

Value in Rs. Crores

8501 excl.

850110 & 20

Motors & AC Generators

967

829

(-)17

16

5750

(-) 5.2

850423,850434

Power TRF

195

482

(-)3

23

4350

6.8

850421-22, 850431-33

Distribution TRF

219

709

(-)41

13

5990

9

853210

Capacitors

32

132

(-)10

11

400

44.6

8535

HT Switchgears

455

531

53

22

2900

(-) 0.9

8536,8537

LT Switchgears & Custom Built Prd

3942

3035

11

27

11050

(-) 1.7

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 Economic Outlook for India The International Monetary Fund (IMF) publishes a quarterly assessment of the outlook for the global economy as well as individual countries. During 2014, the IMF assessment has become progressively pessimistic every quarter. Japan is Ajit Ranade, Chief Economist, officially in recession. The Aditya Birla Group Eurozone prospects are clouded. There is anxiety about China slowing down further. Only two major economies have brighter prospects for 2015, as per IMF. These are USA and India. Both these economies have structural and domestic factors that will be advantageous for economic growth. The USA recently registered its highest quarterly growth of the past 11 years.

Manufacturing output is the highest it has ever been, and unemployment numbers have been falling. The shale oil revolution has catapulted the US into becoming one of the largest oil producers in the world, greatly reducing its import dependence.

This reduction on US dependence on global oil has caused oil prices to fall by almost 45 percent since June. This too is the single biggest factor benefiting the Indian economy.

The sharp drop in oil prices provides a triple bonus to India’s economy. Firstly, it will lead to a lower fiscal deficit. That’s because the euphemistically called “under-recoveries” on account of belowcost selling by oil companies will go down. The under-recoveries along with cheaper cooking gas and kerosene are subsidies, which ultimately are borne by the central exchequer. This saving could be as high as Rs 40,000 crore to the central government. Secondly, lower oil prices means lower outgo of dollars, and hence a lower current account deficit. This is because 70 percent of India’s oil requirement is imported. Last year during July and August 2013, there was near panic in India, as the exchange rate plummeted to 68.

One of the factors causing that panic was the high current account deficit, which was then close to 5 percent of GDP. Thanks to lower oil prices this year, and other measures, the current account deficit may fall to only 1.5 percent of GDP this year.

January 2015

The third bonus benefit from drop in oil prices is in reduced inflation. Since oil and energy costs are important ingredients of almost all industries, the lower oil (and also coal) prices are a big plus. The Wholesale Price Index based inflation for October came out to be zero percent, thanks to fall in oil, energy and commodity prices. Even consumer and food price inflation is likely to be lower in the coming year. Low inflation is a positive for economic growth.

Beyond these three positive impacts of lower oil prices, there are the expectations of pro-growth policies. The government has the support of an absolute one party majority, something that did not happen for 30 years. That means many pending economic reforms awaiting Parliamentary approval will move ahead. We also are near a national consensus on a nationwide Goods and Services Tax (GST). The actual implementation of GST might have to wait till 2016. But it alone can add to 1 or 1.5 percent to GDP growth on a sustained basis. GST regime eliminates inefficiencies in interstate commerce, and its inter-locking nature of tax credits reduces tax evasion and increases compliance. The Prime Minister has championed “Make in India” campaign, with a slogan of “zero defect, zero effect” manufacturing, which he mentioned in his Independence Day speech.

This slogan implies that Indian manufacturing should be top class in quality, and hence globally competitive, and also environmentally sound (i.e. zero effect). Indeed the Make in India (MII) campaign is not about blind import-substitution by raising tariff barriers. Nor is it about subsidizing shoddy, inefficient exporters. It is about making Indian business more competitive. This calls for comprehensive reforms, captured in the “Ease of Doing Business”, a World Bank ranking method.

The PM has said that India’s rank should be in the top 50 of the world, not 142 where it is currently. To improve the ease of doing business, India needs to reduce delays in approvals and permissions. We also need to reduce regulatory and inspection requirements, and improve quality and access to infrastructure such as electricity. It is said, that we need less “inspector-raj” and more “enforcement-raj”.

In the current business cycle, the Indian economy needs an investment push. This will come both

39

SpecialReport

from the public and private sector, including foreign investors. Public investments will be enabled by the fiscal savings due to lower oil prices. In addition we also have additional revenues from auctions and disinvestment. India’s stated goal is to spend 9 percent of GDP on infrastructure. This will be attained hopefully in the next five years.

Infrastructure spending has a “crowding in” effect on further private investment. The electricity sector needs a massive overhaul to bring state-owned utilities’ balance-sheets back to fiscal health. Some of the reforms called for in the 2003 Electricity Act are still not implemented in letter and spirit.

IEEMA has flagged this issue consistently to the concerned Ministries for a policy remedial measures.

Exports in general is growing for most of the product segments and helping the industry to remain competitive.

Key Power Issues On the back of coordinated efforts by the ministries of Coal and Environment to fast-track mine approvals, the Ministry of Coal’s (MoC) constant monitoring of new mining projects and the presidential directive to sign fuel supply agreements, Coal India Ltd is likely to increase its domestic coal output to 475mmt and 500 mmt (lower than its target of 482mmt) in FY14& FY 15-16, up 5% year on year, the highest seen in the last three years. However, despite the increase in domestic coal output, reliance on imported coal is likely to continue. MOC expected48,951MW domestic coal-based capacities to be commissioned during FY10-FY14, with total linkage coal at 204.8mmt.

40

Other initiatives like roadways, ports, private sector engagement in railways and smart city projects, bode well for the infrastructure sector.

The stock market has had a great run during 2014. Perhaps the sentiment was running ahead of ground reality in the economy. But in the coming months we should see the combined effect of many fortuitous developments and efforts. The triple bonus following lower oil prices, a fiscal push into infrastructure and public investments, lower interest rates following lower inflation, and a more competitive industry – all point to an economy more robust that in the recent past.

However, the domestic coal output could not keep pace. This is leading to the sub optimal use of generating capacities and increase in reliance on imported coal. However, as CIL ramps up its production,the growth rates seen in the use of imported coal could decline.

Concern Areas PMO`s intervention and supervision on Project Monitoring Group (PMG) indicates Government`s commitment for 24 x 7Electricity Vision. However, special attention is needed for T&D segment for commercial viability of this entire sector and in turn overall economic growth. Availability of Credit at affordable cost, Restructuring of DISCOMs, policy support to domestic industry to be competitive against Imports are the three main focus areas government need to look at on top priority basis.

IEEMA is committed to give full support in this task.

January 2015

TechSpace

T

he total installed power generation capacity in India is about 228.72 GW, out of which 134.39 GW is from coal based thermal power plant that forms 58.75% of total installed capacity by 30th Sept.

2013[1]. For coal fired thermal power plants, auxiliary power is essential to run the auxiliary equipment.

The auxiliary power varies depending on the type of auxiliary equipment used. The estimated auxiliary power used for running the coal fired thermal power plants in India is about 11,340 MW that forms average of about 8.4% of coal based power plants & 4.9% of total installed capacity[2]. The thermal power plant availability largely depends upon the operational reliability of the auxiliary equipment and the capability of the auxiliary system. The net overall efficiency of the coal fired thermal power plants are in the range of 19.23% (30 MW plant) and 30.69% (500 MW plant).

The auxiliary power consumption is varying between 5.2% (500 MW plant) and 12.3% (30 MW plant).

The thermal power plant availability & reliability depends largely upon the operational reliability of the auxiliary equipment and the capability of the auxiliary system. The auxiliary power consumption is on higher side in Indian power plants as compared to other developed countries due to poor plant load factor, poor coal quality, excessive steam flow, internal leakage in equipment, inefficient drives, lack of operational optimization of equipment, ageing of equipment, hesitation in technology upgradation, obsolete equipment, design deficiencies, oversizing of equipment, use of inefficient controls, etc. The auxiliary power consumption can be reduced by

44

improving the plant load factor of the plants, by operational optimization, adoption of advanced control techniques and implementation of energy conservation measures [3]. By reducing the auxiliary power of coal fired stations in India by 1%, about 1350 MW of power can be pumped into grid with nominal investment for plant performance improvement.

Auxiliary Power The auxiliary power is the essential power used by the auxiliary equipment and the auxiliary power can be broadly classified into in-house auxiliary power and out-lying or common auxiliary power. The in-house auxiliary power is the power used for major in-house equipment whose loading vary with change in plant load of particular unit and does not affect the loading of other units. The typical in-house auxiliary equipment are: Boiler feed pumps (BFP), Condensate Extraction pumps (CEP), Induced draft fans (ID), Forced draft fans (FD), Primary air fans (PA), Mills, etc. The out-lying or common auxiliary power is the power used by the common auxiliary equipment i.e., they cater the power to more than one particular units. The typical out-lying auxiliary equipment are: Circulating water pumps (CWP), Ash slurry pumps, HP & LP water pumps, DM pumps, Crushers, Conveyors, Wagon tipplers, etc.

In this study we are discussing on the energy conservation techniques and performance of major in-house equipment. Figure 1 is the schematic of major in-house auxiliary equipment in thermal

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 power for different individual equipment at Maximum Continuous Rating (MCR) condition at 100% PLF of 210 MW plant. It can be seen from the Figure that the major auxiliary power is being used by BFP that forms about 2.43% of gross energy generation.

MCR condition. Figure 3 is the variation of specific auxiliary power of BFP with PLF. It can be seen from the Figure that the actual measured auxiliary power is more than the design value may be due to higher passing in by-pass re-circulation valve, higher specific steam consumption (SSC) and higher blow downs, etc. Actual measured average specific auxiliary power for major auxiliary equipment is given in Table 1.

The auxiliary power is greatly influenced by the plant load factor (PLF). Many of the Indian power stations are operating at sub-optimal plant load factor that cause higher AP and increase the pollution As per the plant performance reports published by ICRA, 2003[4], MECON Ltd. report for MSPGCL plants, 2007[5], RTPS, 2008 [6], DVC, 2005[7], the percentage of AP decreases with increase in PLF.

The variation of specific auxiliary power is in the range 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% at 70% PLF. The deviation in specific auxiliary power for operating the unit at 70% PLF is 17.6%.

Boiler feed pumps

The FW flow is varying in the range of 480 to 710 t/h.

The difference in FW flow between actual measured value and design value is 3% at MCR and 17% at 70% PLF. The deviation in FW flow at 70% PLF is about 29.3%. The deviation in flow is much higher than the deviation in specific auxiliary power. The SEC is computed in the range of 7.21 to 8.57 kWh/t of FW flow and is higher than the design value of 7.04 – 8.2 kWh/t. SEC is greatly influenced by the PLF (Figure 4). The computed average SEC of major auxiliary equipment is given in Table 2.

Boiler feed pumps are multistage, horizontal, barrel type, high capacity, high speed (about 5000 rpm), centrifugal pumps that increase the feed water pressure from deaerator (i.e., about 5 – 6 kgf/cm2 to 160 – 175 kgf/cm2) to drum pressure. There are three BFPs with HT induction motors of 6.6 kV. The motor rating for 210 MW will be of either 4.0 MW or 3.5 MW. Two pumps will be working continuously and third will be stand-by. The feed water flow will be regulated by scoop (fluid coupling) control and 3 element feed control valve station. The power used

by BFP accounts for 2.43% of gross power generation and is high compared to design value of 2.28% at

Figure 3 : Auxiliary power of BFP

In-House HT Auxiliary Equipment The auxiliary power for major in-house HT equipment forms about 5.49% and in-house LT equipment is 1.50%. The quantum of energy conservation opportunities are more in in-house HT equipment.

The detailed energy conservation techniques for in-house HT equipment are discussed below:

January 2015

45

TechSpace

Table-1: Average AP of major auxiliary equipment Sl. No.

Equipment

Value at 70 % PLF,%

Table-2: SEC of HT auxiliary equipment (X-axis: Plant load factor).

Value at 100 % PLF,%

Sl. No.

Equipment

Value at 70% PLF, kWh/t

Value at 100% PLF, kWh/t

01

BFP

2.88

2.43

01

BFP

8.39

7.29

02

CEP

0.30

0.22

02

CEP

1.16

1.08

03

ID fan

1.33

1.10

03

ID fan

2.51

2.25

04

FD fan

0.29

0.21

04

FD fan

1.03

1.00

05

PA fan

1.18

0.93

05

PA fan

6.79

6.14

06

Mills

0.70

0.54

06

Mills

10.09

8.15

Some of the energy conservation measures to improve the capacity factor and the energy efficiency of BFP are: }} Initial during start-up of unit, the FW flow is

by-passed to deaerator through re-circulation valve and during normal operation, the re-circulation valve will be fully closed. But due to very high pressure difference between suction (about 5.0 – 6.0 kgf/cm2) & discharge side (about 170 – 180 kgf/cm2) of re-circulation valve, there is passing in re-circulation valve is measured during the performance test. The passing in re-circulation valve is cause additional power in BFP which is a loss (Table 3). Reducing the passing in re-circulation valve (measured passing flow at BFP 3B is about 38.18 m3/h i.e., 9.8% of total FW flow of one BFP) by replacing the valve seat had reduced the auxiliary power of BFP by 1.8 MU/year and reduce the generation cost by 0.25%. }} BFP is a multistage high pressure pump, there will

be inter stage packing rings, but due to ageing of pump, there is cartridge internals wear and damage of inter-stage packing rings and higher 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%.

27 years) that the power loss due to higher pressure drop across the hydrodynamic resistive elements is about 133.06 kW that forms about 2% of the total power used by BFPs. This loss will high for the smaller and older units.

Condensate Extraction pumps Condensate extraction pumps are centrifugal pumps with HT induction motor of 6.6 kV. Generally in a 210MW power plant, two pumps of 500 kW or three pumps of 250 kW are installed, one pump (for 500 kW) or two pumps (for 250 kW) will be working continuously and other will be stand-by. The condensate flow will be regulated by throttle valve.

The AP used by CEP accounts for 0.22% of gross energy generation at MCR as against to the design value of 0.22%. Figure 5 is the variation of specific AP of CEP with PLF. In many of the power plants, due to deterioration in turbines, the specific steam consumption (SSC) is increased. It can be seen from the Figure that the actual measured auxiliary power is more than the design value may be due to higher SSC, higher blow downs, lower efficiency of turbines, etc. For a 210 MW plant, the SSC had increased from

}} 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

46

Figure 4 : SEC of BFP

January 2015

TechSpace

Table-3 : Performance test conducted at 210 MW power plant at Rupnagar STPS Sl. No.

Particulars

Unit

Predicted (Design) value at 100% PLF (MCR)

BFP 3A

BFP 3B

01

Plant load

MW

-

02

BFP Motor rating

MW

4.00

4.00

4.00

03

BFP Pump (Booster) suction pressure

MPa

-

0.56

0.56

04

BFP discharge Pressure

MPa

-

17.90

18.60

05

Pressure gain

MPa

17.16

17.34

18.04

06

Pressure drop across HP heaters

MPa

0.25

0.28

0.28

07

Pressure drop across FRS

MPa

0.10

0.35

0.35

08

Pressure drop across Economizer

MPa

0.15

0.16

0.16

09

Pressure drop across water wall & SH

MPa

1.25

1.31

1.31

10

Pump discharge FW flow

m3/h

391.03

394.56

390.63

11

Re-circulation flow

m3/h

-

1.29

38.18

12

Total FW flow in pump

m3/h

391.03

395.85

428.81

13

Electrical power

kW

2578.45

3186.91

3216.86

14

Load factor of motor

%

59.95

70.05

65.94

15

Motor efficiency

%

93.00

92.72

92.91

16

Electrical power input to pump

kW

2397.96

2802.17

2988.78

17

Mechanical power output

kW

1828.50

1464.10

2107.99

18

Main pump & Booster pump efficiency

%

76.25

63.30

70.53

19

Overall efficiency

%

70.91

58.69

65.53

kWh/m /h of FW flow

6.59

7.63

7.50

% of plant load

2.46

3

210.0

20

Specific Energy Consumption

21

Specific Auxiliary Power

22

Increased power due to higher Pr. Drop across HP heaters

kW

-

5.51

5.89

23

Increased power due to higher Pr. Drop across FRS

kW

-

45.95

49.10

24

Increased power due to higher Pr. Drop across Economizer

kW

-

1.84

1.96

25

Increased power due to higher Pr. Drop across Water walls & SH

kW

-

11.03

11.78

26

Increased power due to passing in re-circulation valve

kW

-

-

315.47

27

Increased power by improving the pump efficiency by replacing pump impeller (cartridge)

kW

-

259.02

-

January 2015

2.97

47

TechSpace

250 MW power plant is 26.4% of CEP power that will reduce the total auxiliary by 0.06% of gross energy generation. The envisaged energy saving by adopting VFD for CEP is 1.08 MU/year [8].

Induced draft fans

Figure 5 : Auxiliary power of CEP

a design value of 3.01 t/MW to 3.21 t/MW which had increased the condensate flow by about 6%. The poor quality of steam leads to use of frequent blow downs in many of the power plants for which the Demineralized (DM) water make up increased. The DM make up is as high as 3.5% in many of the power plants as compared to design value of 1%. This leads to higher FW flow as well as condensate flow handled by pumps. The variation of specific auxiliary power is in the range of 0.22 to 0.31%. The difference in AP between actual measured value and design value is 0.05% at MCR and 0.005 at 70% PLF. The deviation in specific AP at operating the unit at 70% PLF is 35%.

The variation of condensate flow is in the range of 380 to 439 t/h. The difference in condensate flow between actual measured value and design value is 2.1% at MCR and 7.9% at 70% PLF. The deviation in condensate flow is 12.5%. The variation of computed SEC is in the range of 1.07 to 1.18 (Figure 6) and is higher than the design value of 1.07 – 1.10 kWh/t.

SEC is greatly influenced by the PLF as well as condensate flow.

Some of the energy conservation measures to improve the capacity factor and the energy efficiency of CEP are:

Induced draft fans are of radial fans with HT induction motor of 6.6 kV. Generally in a 210 MW power plant, two fans of either 1250 kW or 1300 kW or 1500 kW are installed and both will be working continuously to maintain the furnace pressure to -3 to -8 mmWC and throw out the flue gas to atmosphere through chimney. The flue gas flow will be regulated generally

by Inlet Guide Vane (IGV) and / or Scoop control.

The specific AP used by ID fans account for 1.10% of gross energy generation at MCR as against to the design value of 0.90%. As the PLF on unit increases, the flue gas flow and ID fan suction & discharge pressure increases [9]. Figure 7 is the variation of specific AP of ID fans with PLF. It can be seen from the Figure that the actual measured AP is more than the design value may be due to furnace air ingress, excess air, leakage in Air pre-heater (APH) & flue gas ducts, poor coal quality, higher pressure drop across APH & ESP, etc. The variation of specific AP is in the range of 1.09 to 1.36%. The difference in AP between actual measured value and design value is 0.20% at MCR and 0.31% at 70% PLF. The deviation in specific AP operating the unit at 70% PLF is 20.7%.

The variation of flue gas flow is in the range of 752 to 1028 t/h. The difference in flue gas flow between actual measured value and design value is 0.4% at MCR and 2.2% at 70% PLF. The deviation in flue gas flow at 70% PLF is 24.1%. The variation in computed SEC is in the range of 2.22 to 2.54 kWh/t of flue gas flow (Figure 8) and is higher than the design value of 1.85 to 2.06 kWh/t.

Some of the measures to improve the capacity factor

}} Rectification of pump impeller by maintaining

the clearances in pump internals and optimizing the CEP pump discharge pressure will reduce the auxiliary power. In a case study at a 210 MW power plant, the CEP pump efficiency is enhanced from 65.15% to 69.38% after overhaul.

The pump internal liners were replaced and overhauled the pump. The improvement in CEP pump efficiency had reduced the CEP power by about 0.16 MU/year. }} Installation of Variable frequency drive for

one of CEPs reduced the auxiliary power at

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Figure 6 : SEC of CEP

January 2015

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Figure 7 : Auxiliary power of ID fans

Figure 8 : SEC of ID Fans

and energy efficiency of ID fans are: }} Use of washed coal (i.e., higher calorific value and

low ash content coal) reduced the flue gas flow by 10.6% that reduced the energy consumption of ID fans by 6.01 MU/year for 210 MW plant (Table 4). }} Generally Indian boilers are designed with the

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 of 2300 to 4000 kcal/kg. At reduced CV of coal reduce the capacity of plant and also increase the auxiliary power of Mills, ID fans, FD fans & PA fans.

As a step towards improving the performance of Indian boilers, imported coals from Australia, South Africa and Indonesia whose CV is varying between 5000 to 6500 kcal/kg are being used.

But in Indian boilers, the imported coal cannot be burned directly because of higher heating value of coal and low ash fusion temperature of imported coal (ash fusion temperature in the range of 1100 – 1200 oC). The imported coal can be used with blended along with Indian coal. The lower ash fusion temperature of coal cause slag formation inside the boiler. The optimum proportion of coal blending is about 20 – 28% (study carried out by CPRI at RSTPS, Raichur). The coal blending can be done in mainly three ways i.e., i) blending in yard by using dozers (in this case maintaining the proportion is difficult), ii) blending in conveyor belts but this needs time synchronization of conveyor belts of both Indian coal & imported coal and iii) Tier blending: In this technique, out of six tiers (for 210 MW corner fired boilers), any one of the middle tier is fed from imported coal

January 2015

whereas other tiers are fed from Indian coal.

Generally in most of the power plants, tier blending is being used for enhancing the performance of power plants. The coal blending in a 210 MW power plant, reduce the auxiliary power of ID fans by about 6.8% and energy saving of 1.24 MU/year is envisaged.

Table-4: Performance results of ID fans with beneficiating coal Sl. No.

Particulars

Unit

Raw Coal

Washed Coal

01

Moisture

%

16.0

18.0

02

Ash content

%

52.0

31.0

03

Calorific value

kcal/kg

2800

4300

04

Flue gas flow

t/h

1080.5

965.6

05

Total ID fan power

kW

2659.6

1886.7

06

SEC

2.44

1.95

07

Furnace pressure

-5.6

-4.9

08

Fan Suction pressure

mmWC

-276.6

-255.7

09

Fan discharge pressure

mmWC

15.3

15.2

10

Flue gas temperature

o

C

151

147

11

IGV position

%

89.5

78.3

12

ID Fan Eff.

%

39.41

46.07

13

Reduction in ID fan Power

kWh/t

kW (% of PL)

772.9 (0.37%)

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Table-5: Performance results of ID fans with and without VFD Sl. No.

Particulars

500 MW plant Without VFD

210 MW plant

VFD

Without VFD

VFD

-256.6

-246. 0

-265.0

-266.0

4.20

-47.88

8.00

4.50

Flue gas flow, t/h

474.16

511.77

439.41

427.47

04

Electrical power input, kW

1436.9

867.15

889.35

621.96

05

Mechanical power output, kW

406.98

333.69

439.37

423.52

06

Operating overall efficiency,%

28.32

38.48

49.40

68.09

07

SEC, kWh/t

3.03

1.69

2.02

1.45

08

Energy saving per fan, MU/year

01

Suction Pr., mmWC

02

Discharge Pr., mmWC

03

}} Reducing the furnace ingress and air ingress in

flue gas ducts reduced the burden on ID fans. }} Improving the dust extraction efficiency of

Electrostatic Precipitators (ESP) reduced erosion rate of ID fan impellers and reduced the loading of ID fans. }} Use of Variable frequency drives for ID fans in

a 210 MW power plant will reduce the auxiliary power by 2.12 MU/year (Table 5). In the modern power plants of 210 MW, 250 MW & 500 MW power plants VFDs are being used for ID fans.

In order to incorporate VFD for ID fans for the existing power plants, both fans and motors have to be replaced because the motors are being used of double winding (two channels) for HT motors for ID fans. }} Generally in a 210 MW power plant, regenerative

rotary air pre-heaters (APH) are used to extract the heat from flue gas to heat the primary & secondary air. The APH consists of tri-sector, one for flue gas, one for secondary air and other for primary air. The primary air pressure will be on higher side and will try to escape to flue gas side which will be negative pressure. This cause air leakage through APH that will increase the flue gas flow and will load the ID fans. This is overcome by incorporating the dynamic double seal technique for APH [10]. The reduction air leakage in APH from 30% to 5% reduced the energy consumption of ID fans by 2.5 MU/year. }} The implementation of above energy conservation

measures reduces the generation cost by 1.53%.

Forced draft fans Forced Draft fans are generally of axial reaction type

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4.51

2.12

fans with HT induction motor of 6.6 kV. Generally in a 210 MW power plant, two fans of 650 kW or 750 kW or 850 kW are installed and both will be working continuously to provide the secondary air for combustion at windbox and to maintain the windbox differential pressure to about 100 mmWC. The secondary air flow is regulated by operating pitch of FD fan blades. The specific AP used by FD fans account for 0.21% of gross energy generation at MCR is on par with the design value. Figure 9 is the variation of specific AP of FD fans with PLF. It can be seen from the Figure that the actual measured auxiliary power is lower than design value may be due to in some plants the secondary air flow is less may be because of more air ingress through furnace and reduced fan discharge pressure. The variation of specific auxiliary power is in the range of 0.21 to 0.30%. The actual measured specific auxiliary power at MCR is lower by 0.02% compared to design value and is higher by 0.015% compared to design value at 70% PLF. The deviation in specific AP at operating the unit at 70% PLF is 37.6%.

The secondary air flow is varying in the range of 410 to 452 t/h. The difference in secondary air flow between actual measured value and design value is lower by 18.5% at MCR and 7.2% higher at 70% plant load. The deviation in secondary air flow is computed in the range of 9.1%. The variation in computed SEC is in the range of 0.99 to 1.04 kWh/t of SA (Figure 10) and SEC is slightly high at MCR condition compared design value (i.e., 0.97 kWh/t) and is lower at 70% PLF (i.e., 1.07 kWh/t). SEC is greatly influenced by the PLF. Some of the measures to improve the capacity factor and energy efficiency of FD fans are:

January 2015

TechSpace

higher pressured drop across APH, etc. The variation of specific auxiliary power is in the range of 0.93 to 1.21%. The difference in auxiliary power between actual measured value and design value is 0.30% at MCR and 0.34 at 70% PLF. The deviation in specific AP at operating the unit at 70% PLF is 26.9%.

The primary air flow is varying between 250.8 to 320.7 t/h. The difference in primary air flow between actual measured value and design value is 15.8% at MCR and 35.6% at 70% PLF. The deviation in primary air Figure 9 : Auxiliary power of FD fans

}} Use of washed coal (i.e., higher calorific value and

low ash content coal) reduced the secondary air flow 11 t/h that reduced the energy consumption of FD fans by 0.08 MU/year for one 210 MW plant that help in reduction of generation cost by 0.01%. }} The reduction of air leakage in APH from 30% to

5% reduced the energy consumption of FD fans by 0.21 MU/year and also reduced the generation cost by 0.03%.

Figure 11 : Auxiliary power of PA fans

Primary air fans Primary air fans are of radial fans with HT induction motor of 6.6 kV. Generally in a 210 MW power plant, two fans of either 1100 kW or 1250 kW are installed and both will be working continuously to provide the primary air of about 700 – 800 mmWCL at mill inlet to lift the pulverized coal from mills to burners. The primary air flow is regulated generally by IGV. The specific AP used by PA fans account for 0.93% of gross energy generation at MCR as against to the design value of 0.65%. Figure 11 is the variation of specific AP with PLF. It can be seen from the Figure that the actual measured auxiliary power is more than the design value may be due to excess air, leakage in Air pre-heater (APH), poor coal quality,

flow is computed in the range of 21.1%. The variation in computed SEC is in the range of 6.13 to 6.83 kWh/t of PA flow (Figure 12) and the SEC is higher compared to design value of 4.93 to 6.20 kWh/t. SEC is greatly influenced by the plant load factor.

Some of the measures to improve the capacity factor and energy efficiency of PA fans are: }} Use of washed coal (i.e., higher calorific value and

low ash content coal) reduced the primary air flow by 21 t/h that reduced the energy consumption of PA fans by 0.92 MU/year for one 210 MW plant and help in reducing the generation cost by 0.13%. }} The reduction air leakage in APH from 30% to

5% reduced the energy consumption of PA fans by 0.34 MU/year which reduces the generation cost by 0.05%.

Mills

Figure 10 : SEC of FD Fans

January 2015

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.

The specific AP used by Mills accounts for 0.54%

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higher ash content, the mill capacity is reduced.

This is overcome by use of beneficiated (washed) of coal that had reduced the ash content to 15 – 20% and improved the mill throughput by about 15 – 20%. The energy saving of about 2.7 MU/year is achieved in 210 MW plant and helps in reducing generation cost by 0.37%. }} Appropriate sizing of pulverized coal i.e., 70%

Figure 12 : SEC of PA Fans

of gross energy generation at MCR as against to the design value of 0.50%. Figure 13 is the variation of specific AP with PLF. It can be seen from the Figure that the actual measured auxiliary power is more than the design value may be due to poor coal quality. The variation of specific AP is in the range of 0.54 to 0.72%. The difference in auxiliary power between actual measured value and design value is 0.05% at MCR and 0.08% at 70% PLF. The deviation in specific AP at operating the unit at lower PLF is in the range of 16.7%.

The variation of coal flow is in the range of 100 to 143.2 t/h. The difference in coal flow between actual measured value and design value is 3.7% at MCR and 5.1% at 70% PLF. The deviation in coal flow is computed in the range of 27.9%. The variation in computed SEC is in the range of 8.0 to 10.3 (Figure 14). SEC is greatly influenced by the PLF as well as coal flow.

Some of the measures to improve the capacity factor of mills are: }} At presently the coal quality is poor that contains

the ash quantity of the order of 50 – 60%. At

Figure 13 : Auxiliary power of Mills

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passing through 200 mesh (below 75 micron size).

If the fineness is more the SEC of mills increases, the carbon particle escape the combustion zone faster and increase un-burnt carbon in fly ash.

If the fineness is lower, the SEC of mills will be low, the heavier particle will fall down before combustion and increase the un-burnt carbon in bottom ash [11]. }} Use of hi-chrome liner, wear plates, bull-ring

segments and rollers reduced the erosion rate that improved the mill performance and also enhanced the life of rollers from 4500 to 6000 hours

.

[12]

Operating the plant at MCR condition (100% PLF) reduced the auxiliary power from 12.05% to 8.74%.

The use of washed coal improved the performance of auxiliary equipment and reduced the auxiliary power by about 0.5 – 0.6% of gross energy generation.

Reducing the hydrodynamic resistance in flue gas circuit, water circuit, air circuit and CW circuit reduced the auxiliary power by about 0.4 – 0.5% of gross energy generation. Operating the plant at optimum excess air, controlling the furnace ingress, improving the performance of individual equipment by proper maintenance, etc., reduced the auxiliary power by about 0.2 – 0.5% of gross energy generation. The implementation of energy conservation measures for in-house HT auxiliary equipment reduces the average generation cost by 2.66%.

REFERENCES

Figure 14 : SEC of Mills

January 2015

TechSpace

[1]

CEA, 2008, Performance Review of Thermal Power Stations 2006-07, website: http//:www.cea.nic.in.

[2]

B.S.K. Naidu, “India’s Leadership in Renewable Energy Development for a sustainable future”, presentation at the California Energy Commission, Sacramento and the Electric Power Research Institute (EPRI), Palo Alto, California, June 1995.

[3]

M. Siddhartha Bhatt and R.P. Mandi, “Performance enhancement in coal fired thermal power plants, part III: Auxiliary power”, International Journal of Energy Research, No.23, 1999, pp.779-804.

[4]

ICRA, 2003, “Revised report to the Power Finance Corporation of Gujarat Power Sector”, ICRA Ltd., 26, Kasturba Gandhi Marg, New Delhi – 110 001.

[5]

MECON Ltd., 2007, “Report on achievable heat rate and auxiliary power consumption of thermal power stations of MSPGCL”, MECON Ltd., Ranchi – 834002, August 2007.

[6]

RTPS, 2008, “Generation performance of units”, website: http//: www.karnatakapower.com.

[7]

DVC, 2005, “Performance parameters of Thermal Power Plants of DVC for Last Five Years”, website: http//:www. dvcindia.org.

[8]

Yantra Harvest Energy Pvt. Ltd., Technical article on “Medium Voltage AC drives for Auxiliary Power Reduction in thermal power plant”, Ref No: AN-001/09-R00, Issue date: 15/07/2009

[9]

Rajashekar P. Mandi and Udaykumar R. Yaragatti, ”Enhancing energy efficiency of Induced Draft Fans in

January 2015

Thermal Power Plants”, Proceedings of the Eighth IASTED International Conference Power and Energy Systems (EuroPES 2008), June 23-25, 2008 Corfu, Greece, pp.

176 – 182, paper No.608-069.

[10] Jonathan L. Gomez, “Modeling of air leakages on a Trisector Air heater”, Public Service Indiana, 1987 [11] Chris Harley, Conforma Clad inc. K. Scott Trunkett, Conforma Clad Inc. “Improving Plant Performance with Advanced Wear Protection Technologies”, Coal-Ge, August 7, 2003.

[12] Ananth P. Chikkatur, Ambuj D. Sagar, “Cleaner Power in India: Towards a Clean-Coal-Technology Roadmap”, Energy Technology Innovation Policy, John F. Kennedy School of Government, Harward University, Discussion paper 2006-07, Dec. 2007.

Authors Mr Rajashekar P Mandi

Engineering Officer Energy Efficiency & Renewable Energy Division Central Power Research Institute, Bangalore

Mr Uday Kumar Yaragatti

Professor & Head, Department of Electrical and Electronics Engineering, National Institute of Technology Karnataka, Surathakal

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TechSpace

T

he Retails Supply Tariff is the sum of all the costs in the process of generation, transmission, distribution and supply of electricity. Costs such as taxes, duties, surcharges and the return of equity are added to these costs. The tariff must be designed in such a manner so as to guarantee sufficient funds for the service providers to cover operational cost, remunerating appropriately the prudent investments for the augmentation of capacity and system improvement to ensure high standard of quality services at a reasonable cost.

Prior to regulatory regime, the tariffs were determined by the erstwhile Electricity Boards generally, in consultation with the State Governments. Very low tariff to some of the consumer categories were given as social aspect and populism measure. Bulk high end consumers were charged higher rates although such consumers have been regular payers, thus cross subsidizing domestic consumers. The tariff determined, generally was not commensurate with the actual cost of supply and the Electricity Boards were not in a position to recover their costs and went into red.

The introduction of regulatory regime in the power sector with enactment of the act called “Regulatory Commission’s Act, 1998” was the first step in the direction of distancing the Government from involvement in the determination of tariff. Subsequent enactments by some of the State Governments as “power sector reform acts” and finally the Electricity Act, 2003 laid down the framework for determination of tariff that is independent of any State intervention.

of tariff, and determination of tariff by bidding process and procedure to be adopted for determination of tariff.

As per tariff policy beside guiding for multiyear tariff emphasis that tariff must progressively reflect the cost of supply for which the Commission’s were to notify roadmap such that tariffs are within+/- 20% of the average cost of supply. Tariff for designated group of BPL consumers will be at least 50% of the average cost of supply.

The intention is to ensure that tariff for all the consumer categories are within +/- 20% of the average cost of supply.

Methods of Tariff Determination Under a pure rate-of-return scheme, prices would be set on the basis of the company’s actual costs.

This provides no incentives for higher productivity.

The present tariff setting methodology based on ROR does not encourage efficient operations firstly because there is no competition, secondly the tariff is not linked to productivity and inflation and there is little incentive to reduce the cost.

The Electricity Act at Section 61 to 64 has laid down the provisions for tariff regulations, determination

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January 2015

TechSpace

In incentive-based regulation, prices or revenues are no longer directly based on the company’s actual costs or revenues. Unlinking prices from actual costs provides very strong incentives for productivity improvement. Price-cap systems are located somewhere between these two extremes.

That is, prices and costs are detached from each other, but not to a full extent; there still remains some interdependency.

The annual change in prices is determined by the X factor. If the utility manages to reduce its costs in excess of the X factor, it earns additional profits and conversely, if it performs worse than the X factor, it earns less profit. This is the basic incentive provided by the price-cap system.

Yardstick competition describes the simultaneous regulation of identical or similar firms. The reward is given based on the firm’s standing which is far too long to apply in present Indian environment.

X factor based or incentive based regulation is practiced in developed countries like US, Canada and the UK in different sectors. Now a time has come where electricity tariff must be determined based on efficiency factor (X-factor) in India also.

What is X factor X factor is the efficiency; a distribution company must reach in managing their cost. X factor can be determined to a reasonable extent when no major structural changes are anticipated in the economy, historic data on productivity and input price growth rates often provide the best estimates of corresponding future growth rates.

Z represents the change in unit costs due to external forces(+ or -). Zis the difference in the effects of exogenous changes on a specific company and on the rest of the company and can be neglected due to lack of data.

Rise in constant costs (%)=RPI(%) - X(%)+Z% Pt+1= Pt(100+RPI(%) – X(%)+Z%) if Real Price Index(RPI) is 4% and X is 2% Rise is constant cost allowed is=4 - 2= 2% (neglecting Z)

Example a) Expected annual productivity growth rate in the regulated industry=1.5% b) Corresponding annual growth rate elsewhere in the competitive economy=0.5%. c) Expected rise in prices in the regulated industry=1% d) Corresponding growth rate of input prices elsewhere in the economy=2%.

X factor=a-b+d-c=1.5 – 0.5 + 2 - 1=2%.

January 2015

Studies have revealed that the X factor for bigger distribution companies is generally higher than small distribution companies for a control period of 3 years.

Studies in developed countries have revealed the following; a) If X factor being too small, the regulated firm will earn an excessive profit b) If X factor being too large, financial viability of the regulated firm can be threatened or jeopardized c) X=1% for distribution Company's investments being more than capital expenditure. d) X=2% for distribution Company's investments being more than 1.5 times the capital expenditure. e) X= 1% to 2% for conditions when constant costs of Company exceeds significantly as compared to constant costs of other companies. f) X>3% for conditions when company has large investments and does not efficiently manage constant costs.

In other method correlation coefficient (CC) is used which is worked out as follows.

CC=Rt x St /(Rt-1 X St-1 )

Where R is the revenue and S is the sales and T is the year for which price are being determined Pricet=CC x Pricet-1 Price cap regulation is less vulnerable to ‘cost plus inefficiency and over capitalization more over price caps largely limit firms incentives to game the system, both because of adjustments within review periods are predetermined and because in practice, review procedures often includes an elements of yardstick com. The privatised utilities always have an incentive to be efficient.

PBR mechanism provide Discoms with a fixed price or revenue as opposed to a predetermined level of profits with this approach Discoms can earn higher or lower profits depending upon the level of operational efficiency they have in mind for their distribution system.

The main weaknesses with the incentive based regulation is }} Degree of stability concerning price for long-term

businesses as X factor can wrongly be estimated in the absence of complete information.

}} Wrong decisions by Regulators due to Imperfect

market and information.

Author Mr Alok Gupta Member, MPERC

57

IndustryView

Mounting Trend of

Energy Efficient Electric M tors E

lectric motors use about 46 percent of Global Electricity and hence it is imperative to use energy efficient motors. In developed countries such as USA, Canada, European Union (EU28) and China, the use of High Efficiency Motors (IE2) have been mandatory since last three to five years. Now they are moving to make the use of Premium Efficiency Motors (IE3) mandatory in 2014-2016. The IE4 Super Premium efficiency levels and guide line for IE5 have been specified in IEC 60034-30-1 published in June 2014. While the world is moving towards IE5, we in India are still struggling to achieve 10 percent production level of IE2 motors.

The implementation of energy efficient motors has lagged behind in our Country. Though the first Indian standard IS 12615 on energy efficient motors was published in 1996 with two classes of efficiency, i.e. eff2 and eff1, the sale of these motors did not take off. Subsequently the IEC 60034-30 was published and the Indian standard was revised in line with the new IEC standard. However the confusion increased since dual standards were still followed i.e. IS 325 & IS 12615 (IE2 & IE3). These two standards had two different testing methods, leading to the situation where a higher efficient motor was labeled with lower efficiency than a low efficiency motor. Manufacturers had a hard time explaining this to users. Finally from July 2014, IS 325 stands abolished and the prevailing Indian Standard IS12615 came into existence.

With IS12615 (IE2 & IE3) to be followed by all motor manufacturers & IE1 stands removed, Typical 15 kW 4 P motor annual saving of higher efficiency IE2, IE3 & IE4 motor over IE1 for working hours of 6000 / Year & Tariff Rs. 9 / kWh is as below.

Efficiency Class Energy saving in Rs/Year

IE1

IE2

IE3

IE4

15390

27540

42120

As on date only about 10 percent of motor production in the country is of IE2 and above level. Just making IE2 level as mandatory, at current levels of motor production, in the first year itself, India can save Rs. 500 crore. With the cascading effect, by the fifth year the savings would reach Rs. 5000 crore per year.

For end user of IE2/IE3 motors payback in 10 to 15 months and continuous saving thereafter corporates like NTPC, Aditya Birla Group and others have started using minimum IE3 motors in their new plants. This

60

will give further energy saving to the users. Almost all motor manufacturers are ready with this range of IE3 motors. Some manufacturers have also developed Super premium efficiency IE4 motors which are now available on order. Hence with updated standards in India, every purchase & technical specifications for these Motor Driven systems needs to be revised and updated with new standards i.e. by including IE2 & IE3 motors in the specifications.

In India motor manufacturers have developed capability and capacities to meet 100 % Industry demand with IE2 & IE3 motors and have also invested in test facilities to measure actual stray load losses as per International standard IEC 60034-30-1.

Institutions like ERDA has developed test facilities for measurement of motor efficiency levels as per new standards and are offering services to Industry as third party testing also. This will help us to reduce import considerably from present Rs. 2000 Cr/ annum level and increase export as global usage is increasing of IE2 and IE3 motors.

The end users have been insisting for higher efficiency level motors (IE2, IE3 & IE4) from equipment suppliers and consultants as they save in power cost while in return will have compounded effect in next 15 to 20 years life of the motor. Further in Industries where motors with a life span of more than 20 years will be scrapped as they now have low efficiency level than IE2.

We can take examples from Germany (World leader in Energy Efficiency) wherein several projects are currently underway in a bid to unlock more potential energy savings in trade and industry. One such project in particular is the “Motor Challenge Programme�.

The main aim is to motivate companies to optimize the efficiency of their electric motor systems.

We appeal to Ministry of Commerce to follow the steps taken by other countries and make the use of minimum IE2 energy efficient motors standard IS 12615 mandatory at the earliest. We also urge BEE to give same importance of LED lighting to promote energy efficient IE2/IE3 motors considering higher energy saving potential & Electric Motors identified in 5 sectors by DIPP for good investment potential for the domestic & export market.

Author

Mr Anil Mangesh Naik

Chairman, IEEMA Rotating Machines Division

January 2015

PoliticalMeet

Members of Parliament for Systematic Framework to Promote Domestic Production 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).

I

EEMA organised a meeting with 10 Members of Parliament at the Constitution Club of India, New Delhi to discuss core issues. The Members of Parliament have asked IEEMA to come up with a systematic framework to promote domestic production and exports of power equipment, impacting GDP.

ingredient for economic growth and quality of life.

Assured availability of quality power will not only act as a catalyst in the socio-economic development of the nation but also enhance the global competitiveness of the domestic industry leading to greater employment generation and higher levels of per capita income.”

Members of Parliament Shri Bhagat Singh Koshyari (LS; BJP), Dr. Arun Kumar (LS; RLSP); Shri Khan Saumitra (LS; AITC), Shri B.J. Panda (LS; BJD), Shri Kalikesh Narayan Deo (LS; BJD), Shri Anupam Hazra (LS; AITC), Shri Ram Jethmalani (RS; Independent & Others), Shri Anand Bhaskar Rapolu (RS; INC) & Shri Tarun Vijay (RS; BJP) attended the crucial meeting held by IEEMA and discussed on issues pertaining to the electricity sector.

The President cited that the Power Sector has not been receiving significant focus and a major share of the Indian population is devoid of sufficient quantity and quality of power. He further added that “Our PM Mr Narendra Modi’s aim about power for all 24×7, ‘Make in India’ and ‘Made In India’ projects which will bring focus on manufacturing in India. Besides this, the PM had sought to encourage young talents not to be a job seeker but be entrepreneurs and employers.

Therefore, there is a need to create an institutional mechanism so that these future entrepreneurs stay back in the country and contribute to the economy.”

Mr. Vishnu Agarwal, President, IEEMA, gave a brief about IEEMA and Indian Electrical Equipment industry.

He stated, “An efficient power supply system is a key

Shri Ram Jethmalani, disccusing issues with IEEMA Members. Also seen in the picture are Shri Pyarimohan Mohapatra, Shri Khan Soumitra and Shri Anupam Hazra

62

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 quality and lifecycle, with no domestic manufacturing facility

January 2015

PoliticalMeet

to provide emergency repairs, spares, replacements, etc. especially for heavy equipment installed in power sector. With integration of automation and communication technology into the T&D network, there is also a possibility of a major security concern.

The core issues discussed was about the capability and the preparedness of the Indian electrical sector wherein it was felt that the Indian electrical industry is capable of taking up the challenge of adopting any technology. As a special case, the domestic industry had already developed 1200 Kv Transmission and Distribution equipment and contributed to the nation at Bina, in Madhya Pradesh, through Powergrid.

Talking about the imports of electrical equipment in the country, Mr Agarwal said, The imports have touched 36.26% mark for electrical equipment in India, whereas there is significant underutilisation of installed domestic capacity (under 70%), resulting in loss of employment of qualified engineers, technicians, workers, etc. The Domestic industry suffers a significant disadvantage vis-à-vis imports due to sales tax / VAT, entry tax / octroi; higher financing cost; lack of quality infrastructure; dependence on foreign sources for critical raw material and components, etc.”

He further added, “In addition, Chinese counterparts are given by their Government export subsidies as high as 17% of the export value, social security subsidies, lower income tax rate (15%) and access to financing at low rates of interest, which gives Chinese companies over 24% unfair pricing advantage and allows them to price their products very competitively. Further, China is also offering credit to foreign buyers on very soft terms to finance their imports. As a result, imports from China are escalating every year. All this makes Indian industry non-competitive in its own country.”

There are several critical inputs / raw material used in the manufacture of electrical equipment which is not readily available domestically. Concerted action needs to be taken to secure supplies of these.

Shri Bhagat Singh Koshiyari and Shri Ram Jethmalani listening to IEEMA members

January 2015

(From L to R) Shri Tarun Vijay, IEEMA President Shri Vishnu Agarwal, Vice President Shri AS Chouhan and Director General Shri Sunil Misra interacting during the meet

CRGO is a critical raw material for large generators/ transformers, manufactured by 14 companies (no Indian manufacturer) in the world, and totally imported.

The ambitious power development projects of the government necessitate setting up of a domestic CRGO manufacturing facility, which has failed earlier.

IEEMA President emphasised on the need to sustain the desired annual GDP growth rate, it is required that power sector should grow at a much faster rate.

Dr. Ram Jethmalani, MP, Rajya Sabha, extended support to these genuine issues of the domestic industry. He requested a detailed note from IEEMA on any deficiency in the present government policy; provisions of law; adverse conditions and requirements related to manufacturing and corruption etc.

While Shri Bhagat Singh Koshyari, MP, Lok Sabha, took some clarification on voltage ratings and equipment capacities required for transmission of electricity. Shri Ananda Bhaskar Rapolu, MP, Rajya Sabha, sought a brief note on difficulties in production of CRGO Steel in India; current technological difficulties; corruption in utilities and procurement practice in other countries which are funded domestically and are open to International Competitive Bidding.

While Shri Kalikesh Narayan Deo, MP, Lok Sabha, 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 difficulties in access to Chinese market and a copy of the B K Chaturvedi Report.

63

SMETalks

By 2019 we see Chhabi as the most preferred supplier of DC System: Chhabi Electricals MD Chhabi Electricals Private Limited, an ISO 9001 2008 is engaged in manufacturing of Battery Chargers, SMPS based Battery Chargers, AC/DC Distribution Boards, Battery Maintenance Tools I.e Cell Booster and Discharge Resistor Panel, Isolation Transformers / Lighting Transformers / LT Dry Type, Battery Health Monitoring Systems, Energy Saving Systems, LED Products, Solar Product/Services for the manufactured and supplied equipment, Spares Business etc. Chhabiraj Madhusudan Rane, Managing Director, Chhabi Electricals speaks to IEEMA Team about his company’s aim of providing innovative solutions for a better tomorrow.

Overview of upcoming projects We are the leading supplier of Battery and Battery Chargers to all the major Thermal, Hydro Power Generating Plants, Utilities, Refineries, Pipeline Projects, Steel, Cement, Chemical Industries in the country as well as more than 25 overseas countries.

From this Financial Year, we have focused on supply of our product to all Utilities in Oman, where we have already executed projects worth Rs. 3.5 Crores and targeting the business worth of 10 Crores of next Financial Year.

Priority areas to focus Presently we are focusing the Industrial Battery, LED and Solar product to be added in our product range.

Also we are trying to add the products like SMPS Based Battery Chargers, IGBT Based Battery Chargers, Microprocessor based Traction Battery chargers, High current Rectifiers, Feeder Monitoring and Insulation Monitoring Systems, Automatic Power factor Controller Panel, Active Filters, UPS, Polarization Rectifiers, IT Services, and Software/Hardware etc.

Projects in pipeline To enhance the overseas business and to grab the opportunities available in the overseas market, we are planning to set up our own Office in Oman. To enter in to Joint Ventures for Solar Products, SMPS products, Battery etc.

Expansion plans To provide round the clock Customer Support, we are setting up Service Centers across the country through which we will achieve the Customers Satisfaction. This will also help us to generate the Spares business, R&M Jobs, New requirements.

Challenges faced by power sector Talking about electrical and electronics equipments manufacturing industry the problem is of excess

66

capacity. On account of the growth targets we have very huge capacity expansions. Almost every company has double or tripled its production capacities where the order booking has not kept pace the capacity of expansion. Price War, Intense competition, and pressure of margins are major challenges for us. As the taxation is high, we cannot compete with global partners. Also I would like to state that the Transportation/Road infrastructure required to be improved.

Being Industrial product, production cycle, Inspection clearances, commissioning /installations is a long Cycle/ Process due to which major funds are blocked.

Even after Commissioning 10% to 20% payments are blocked for which we have to submit the Bank Guarantee that too after Commissioning /installation which took months together.

Project Delay is also a major setback /Challenge to our industry, if the projects are getting delayed, customers are not lifting the finished goods till they get clearances from the project authority, and ultimately our Capital is blocked. We are also facing challenge of On Time Delivery, and naturally the customers are deducting Liquidated Damages (LD)/ Penalties for delay in deliveries which in turn results in loss from both side.

Next five years plan As we are regular suppliers of Battery and Battery Charges in the country as well as abroad and as per our survey we trying to add other products like LED and Solar Products in our Product range. In next five years, we would have been achieved at least Rs.100 Crores turnover. Presently, the revenue generated through our Export business is around 2-3% which will be enhanced to at least 40-45% of our total business revenue. We are marching towards the target we have set for ourselves for next 5 years. By 2019 we see Chhabi as the most preferred supplier of DC System i.e. Battery, chargers as well as LED and Solar Products.

January 2015

SMETalks

We would be looking at a CAGR of 25% for the next 5 years: CA Anto, Director, Terminal Technologies Serving a wide spectrum of industries like automotive industry, appliance industry and electrical industry, Mr CA Anto, Terminal Technologies speaks to IEEMA about addressing the needs of majority of Indian two wheelers, tractors and heavy vehicles.

Overview of upcoming projects As we have been investing in the past few years, and since all of them have not really fully utilized, we are currently going slow with new projects except for small capacity addition in areas where we lacked adequate depth. Though we have been growing in the past years, they have not been to our satisfaction.

We will look at serious expansion once we clock 25 % growth from current levels. On an inorganic growth front, we are looking for opportunities to invest in areas where we can utilize our core strength of metal stamping and injection molding expertise.

Priority areas to focus We are looking into areas where our core strength can be deployed. It can be electrical or auto electrical part .We have been working on reducing our cost structure to meet the cost challenges put by costumers. We are also focusing on complex insert molded parts which require high precision production process.

with global exposure, source components from world over and they are imported under zero duty structure which does not encourage companies to invest in local tooling to develop parts domestically. As many parts are under zero duty, there is no incentive for the domestic OEs to actively encourage localization as the cost pressure is easily addressed by the international suppliers as soon as they realize the move about localization.

Support infrastructure is very poor and specialized product validation services are offered for fresh product developments. Only MNC test labs are providing freelance services and charges are prohibitive discouraging fresh product launches by the companies.

Open global manufacturing practices does not incentivises local manufacturing of parts in a large way as imports are duty free and hassle free from established player with years of experience and unlimited money power.

Projects in pipeline

Next five years plan

Currently we are investing in higher tonnage press capabilities for processing higher thickness material with accuracy. This year we will be installing 2 numbers of 80 tonnes high speed presses for the purpose and this will open upto 3.00 mm thickness process capability at our both units with ease.

Investments are being made or an in house test lab for product validation and crimp validation.

We would be looking at a CAGR of 25% for the next 5 years. We will be at the top position of connection technologies in India and would be specialised company with core competency in manufacturing technologies of high speed stamping and injection molded products.

Expansion plans As explained we will open the projects once we clock 25% growth this year which is the optimum utilization of current facilities. As we approach that figure, new plans will be made for expansion and possibly related field diversification as well.

Challenges faced by power sector Almost free import of parts is relatively deterrent for the local manufacturing companies. Most companies

January 2015

Inorganic route will be explored earnestly to bolster the growth and we are not limited by geographical limitation on that front.

- IEEMA Desk

From January 2015, we are introducing the new ‘SME TALKS’ column in IEEMA Journal where we will feature our two SME members every month. Readers can send their feedback regarding this column.

- Editor, IEEMA Journal

67

IEEMAEvent

One Mission: Strengthening the T&D Network 8th IEEMA T&D Conclave ttended by more than 250 people, the 8th IEEMA T&D Conclave saw renowned technologists and Indian manufacturing companies with T&D operations sharing their views on strengthening of T&D infrastructure in the Country. The One day event held at Hotel Westin, Gurgaon witnessed the presence of eminent personalities like Mr. S.S. Sarkar, Associate Project Director, Mission Orbit Mars, ISRO, Dr. Ajit Ranade, Chief Economist, Aditya Birla Group, Mr. Anil Sachdeva, founder & CEO, Grow Talent Company and the School of Inspired Leadership and Ms. Mohua Mukherjee, Senior Energy Specialist, The World Bank, Washington.

A

The Government recently cleared three major schemes for strengthening the country's power transmission and distribution (T&D) network including 100 per cent metering and underground cabling, an Integrated Power Development Scheme was 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.

Speaking on behalf of President IEEMA, Mr AS Chouhan, Vice President IEEMA stated, “the state of the Indian power sector was not good until last year but the first half of 2014 is showing some positive

70

results and the growth India's electrical equipment industry is 7.82% as compared to the same period last year. Fortunately, things seem to be changing for the better. This is reflected both in figures published by the Government as well as larger number of tenders being floated by different utilities. This is particularly true for the Distribution sector and it is expected that this trend will continue for at least a couple of years.”

He further adds, “However the state of the Indian power sector was not good until last year but the first half of 2014 is showing some positive results and the growth India's electrical equipment industry is 7.82% as compared to the same period last year. Fortunately, things seem to be changing for the better. This is reflected both in figures published by the Government as well as larger number of tenders being floated by different

Section of audience

January 2015

IEEMAEvent

utilities. This is particularly true for the Distribution sector and it is expected that this trend will continue for at least a couple of years.”

The Indian electrical equipment industry was valued at over INR 1.31 lakh crores in 2013-14, with generation equipment sector at 18% of the Ms. Mohua Mukherjee, Senior total industry, and Energy Specialist, The World the transmission & Bank, Washington, addressing the distribution (T&D) audience equipment sector: 82%. The T&D industry is 9.92% of the manufacturing sector in terms of value and 1.39% of the GDP. It also provides direct and indirect employment to 15 lakh people and over 50 lakh across the entire value chain. The industry exported USD 5 billion worth of electrical equipment in 2013-14. The industry has a diversified, mature and strong manufacturing base, with robust supply chain, fully equipped to meet domestic demand and any capacity addition.

Mohua Mukherjee, Senior Energy Specialist, The World Bank said, “Indian transmission and distribution industry should look for opportunities globally to enhance exports in next five years in the fields of power generation, transmission and distribution. This growth potential should be seen in the perspective of the huge untapped demand for power. The World bank is lending $ 8 billion globally, including India, to power producing and transmission companies.”

Dr. Ajit Ranade, Chief Economist, Aditya Birla Group is hopeful on the new initiatives taken by the government. He also said, “The Reserve Bank of India's policy on inflation control has helped. Going ahead we can expect interest rates to come down. Internationally the commodity prices are falling. Even the coal prices have Mr Ajit Ranade, Chief Economist, gone down by 35%.

Aditya Birla Group sharing his views on overall economic To benefit from lower situation of India prices and inflation, we

January 2015

We have a triple bonus due to lower oil prices: lower fiscal deficit, lower current account deficit and lower inflation. This bonus must now translate into higher growth - Mr Ajit Ranade, Chief Economist, Aditya Birla Group need to boost capital spending. We have a triple bonus due to lower oil prices: lower fiscal deficit, lower current account deficit and lower inflation. This bonus must now translate into higher growth. The Manufacturing sector has been showing positive signal in terms of leading indicators. But we await a sustained resurgence. Exports have not picked up as much as required.

The star attraction of the event was the presentation done

by Mr SS Sarkar, Associate Project Director, Mission Orbit Mars, ISRO on his successful Mars Mission. He said, "It’s a real privilege to have been invited by your esteemed Society to come here and Mr SS Sarkar, Associate Project get an opportunity Director, ISRO made a presentation to share with you on the successful interplanetary the excitement of mission- the Mars Orbiter Mission our country’s first interplanetary mission – the Mars Orbiter Mission.

As you would be aware, the orbiter to Mars which was launched on 5th Nov, 2013 was successfully inserted into its designated orbit around Mars on 24th Sep, 2014 after travelling more than 650million km over a period of nearly 300 days since its departure from earth in the early hours of 1st Dec, 2013. This maiden successful foray into spaces beyond earth’s gravity has generated enormous interest not only within the scientific community, but has also caught the public imagination in a big way. The entire team worked roundthe-clock to meet the deadline and put in their utmost effort to provide the best technology for the mission. We Mr AS Chouhan, VP, IEEMA were quite confident of sharing the IEEMA President’s its success.” vision

71

IEEMAActivities

Mr Bharat Jaisinghani appointed Chairman, IEEMA Cable Division Mr. Bharat Jaisinghani, Director, Polycab Wires Ltd has been elected as the new Chairman for the Cable Division during the meeting held on 25th November 2014 at Mumbai.

IEEMA Activities

CEA - IEEMA Seminar on High Performance Conductor Further to the promising response received from utilities & industry in the 1st edition of HPC conductor seminar held by IEEMA earlier this year under the coveted ELECRAMA platform in Bangalore, we are glad to announce the success of the 2nd edition of this seminar held at the Le Meridien, New Delhi on 4th of December wherein CEA became the co-organizer and brought in the policy makers and industry experts including former Power Secys, CIGRE, CEA and CTU to share their thoughts on the subject to a thundering participation of delegates from utilities & EPCs PAN India.

Leaders including Managing Directors, Directors, Chief Engineers, Designers and Industry captains listened to a very eminent array of speakers lined up for the single day event – as many as 130 delegates from the utilities and 70 from EPCs and Industry listened to the bouquet of eminent speakers speaking to packed schedules.

Need for infrastructural investments and reforms in the direction of improving the power availability scenario by optimizing power transfer per unit ROW (corridor intensity in MWhr/km) to the impending need for reduction in Transmission losses (and ways and means to achieve the same) received special focus in this edition of the seminar.

“We need reduction in the resistance of HTLS solutions to cater to the highly congested and urban corridors” was

echoed by Mr. I.S. Jha, Director Projects, PowerGrid in the inaugural speech given by him and Mr. Uma Shankar (Former Power Secy to the GOI) relayed the relevance of High Performance conductors for a futuristic approach to the planners of the country.

Mr. Major Singh, Member PS, CEA set the tone for acceptability of the new generation solutions assuring that CEA has already provided guidance and assured the utilities of CEA’s full confidence in these solutions in his key note address.

The technology providers of various High performance conductor solutions as well as Hardware solution providers presented ample case studies of their projects executed in the various Indian utilities that was well reverberated by the utilities who shared their experience with HPC and Dr. Brian from CIGRE gave an enriching session on the applications and international case studies along with CEA’s Mr. S. K. Ray Mohapatra providing the true comparative and pros-cons to the network planning perspective.

The Seminar also gave insight to the participants to understand in detail stringing practices and techniques in India and internationally and peculiarities, types of hardware used, etc. The key leaders of Power industry including Mr. S. K. Negi, MD GETCO, Mr. Y. K. Sehgal, COO, CTU, Mr. Indera Arifianto, PT-PLN (Persero) & Mr. Aryoko Sudiro, Indonesian Utility, Mr. Rajesh Gupta, DGM, Power Grid and other eminent speakers from KEC, Hardware Industry etc. presented different aspects of this topic, as well as shared case studies & experiences.

Interface With Government And Agencies On 25th November 2014, a delegation of Economic and Taxation Committee Members, led by its Vice Chairman, Mr. P Ramakrishnan, had Pre-Budget Meeting for Budget 2015-16 with Chairman, Central Board of Direct Taxes, Ministry of Finance, Government of India; in presence of other senior 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 issues besides direct and indirect taxes.

On 26 th November 2014, Mr. Sudeep Sarkar, Deputy Director, IEEMA, attended a meeting at Department of Heavy Industry, Government of India, on Enhancement of Competitiveness of Capital Goods Sector. The department of Heavy Industry had invited various Technical Institutes from all over the country, which made presentations on their proposals on this subject, such as Common Facility Centres etc.

On 1st December 2014, Mr. Sudeep Sarkar, Deputy Director, IEEMA, attended an interactive meeting with negotiators of countries participating in Regional Comprehensive Economic Partnership (RCEP).

IEEMA representative spoke on under-utilisation of capacities of domestic industry; lack of level playing field vis-à-vis imports; non-tariff & technical barriers in RCEP countries etc.

On 2nd December 2014, Mr Vishnu Agarwal, President, along with Mr. Sunil Misra, Director General, and Mr. Anuj Chaturvedi, Resident Director, IEEMA, met Mr. Alok Ranjan, Chief Secretary and Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, to discuss possibility of CPRI Campus in Uttar Pradesh and development of Electrical Equipment Cluster, also cooperation with IEEMA to increase Energy Efficiency.

On 3rd December 2014, IEEMA organised an interactive session with Hon’ble Members of Parliament on ‘Electricity – Challenges & Opportunities’. Most of the MPs are also Members of ‘Parliamentary Standing Committee on Energy’. Many of them expressed interest in taking up issues faced by electrical equipment industry.

On 4th December 2014, Mr. Sunil Misra, Director General and Mr. Jayant Chopra, Executive Officer, IEEMA, called on Mr. Ravi Capoor, Joint Secretary, Department of Commerce, Government of India, on Branding of Indian Engineering. Government of India is promoting Indian engineering products in potential countries abroad.

On 8th December 2014, a delegation of Economic and Taxation Committee members, led by its Former Chairman, Mr. G S Sharma, had Pre-Budget Meeting for Budget 2015-16 with Department of Industrial Policy and Promotion, Government of India. IEEMA made a power point presentation on various economic and policy issues besides direct and indirect taxes. th

On 10 December 2014, Mr. Sunil Misra, Director General and Mr. Nischal Churamani, Head-PR Media & Branding, IEEMA, met Mr. R K Rai, Director (Tool), Office of the Development Commissioner, Ministry of

January 2015

Micro, Small and Medium Enterprises, Government of India, to discuss MSME participation in !ntelect Exhibition covering the areas of automation, tooling, aerospace and electronics.

On 11th December 2014, Mr Anil Mehta, Executive Officer, IEEMA and Mr Jayant Chopra, Executive Officer, IEEMA, attended a meeting chaired by Mr. Ambuj Sharma, Additional Secretary, Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India, on Non-essential imports from China. A detailed presentation was made on Indian Electrical Equipment which should not be allowed to be imported from China as the Industry has enough capacity to cater to domestic demand.

On 11th December 2014, Mr. Sudeep Sarkar, Deputy Director, IEEMA, attended a meeting Chaired by Mr. Rajesh Kumar Singh, Joint Secretary, Department of Heavy Industry, Government of India, regarding Import Appraisal of Engineering Goods. A discussion was held for reducing dependence on imports and to develop a suitable mechanism for maintaining ITC HS code wise industrial statistics.

On 15th December 2014, Mr. P Sridharan, Vice President, ERDA, Mr. S.B. Gupte, ERDA Managing Committee Member, Mr. N.P. Jhaveri, ERDA Managing Committee Member, Dr. M. K. Shah, Director, ERDA, Mr. H. K. Mishra, Dy. Director, ERDA and Mr. Jayant Chopra, Executive Officer, IEEMA, attended a meeting chaired by Mr. Ambuj Sharma, Additional Secretary, Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India, at Udyog Bhawan, New Delhi, to discuss on a project to establish a, Center of Excellence for R&D in Medium Voltage Switchgear and Transformers. A presentation was made by ERDA apprising Mr Ambuj Sharma, on the proposed project and seeking his advice and guidance.

On 15th December 2014, Mr. Uttam Kumar, Executive Officer & Mr. Vivek Arora, Executive Officer, IEEMA, attended the Meeting of Instrument Transformers Sectional Committee (ET-34) at the Bureau of Indian Standards. The issue of marking on the name plates as per clause no. 8.1(n) of the IS 3156 (Pt-1) was deliberated upon.

On 17th December’2014, Mr. Uttam Kumar, Executive Officer, IEEMA, attended the Brainstorming Session with Centre for WTO studies, Exim Bank & UNCTAD

on Trans-Pacific Partnership Agreement (TPP). The major topics covered during the session

were Countries Involved in TPP, Status of Negotiations, Regulatory coherence, Govt. procurement process, Labour rights etc.

On 18th December, 2014, Mr. Uttam Kumar, Executive Officer, IEEMA, attended the Meeting of Electrical

77

IEEMAActivities

Apparatus for Explosive Atmospheres Sectional Committee (ET- 22) at Bureau of Indian Standards.

During the meeting it was discussed that lot of standards which are under printing and lying pending since long time may be expedited.

On 22nd December 2014, Mr. Sunil Misra, Director General and Mr. J. Pande, Senior Director, IEEMA, attended a preparatory meeting of Ministry of Power regarding Workshop on Make in India. IEEMA presented a 5 point strategy on the subject.

On 23rd December 2014, Mr. Sanjeev Sardana, Member Executive Council, Mr. Sunil Misra, Director General, Mr. Sudeep Sarkar, Deputy Director and Mr. Jayant Chopra, Executive Officer, IEEMA, participated in a meeting with Mr. Rajesh Kumar Singh, Joint Secretary and Mrs. Sanyukta Samaddar, Director, Department of Heavy Industry, Government of India, on the status, issues and recommendations of the Indian electrical equipment industry.

78

IEEMA Representations Representation submitted to Power Grid Corporation of India Limited, on 22nd December 2014, requesting incorporating IEEMA PV Clause for Composite Insulators in Upcoming Tenders.

Representation submitted to Department of Heavy Industry, Government of India, on 18th December 2014, regarding draft notification on preference to domestically manufactured capital goods in Government procurement.

Representation submitted to Ministry of Finance, Government of India, on 16th December 2014, regarding submission of detailed note on the queries raised by Ministry of Finance on Pre-Budget 2015-16 recommendations of IEEMA. Representation submitted to Department of Industrial Policy and Promotion, Government of India, on 16th December 2014, regarding submission of detailed note on the qu eries raised by Ministry of Finance on Pre-Budget 2015-16 recommendations of IEEMA.

January 2015

PowerStatistics

WORLD - Key indicators for 1993, 2011 and 2020 1993

2011

2020

Population, billion

5.5

7

8.1

% Growth 1993-2011 27%

GDP, Trillion USD

25

70

65

180%

TPES Mtoe

9532

14092

17208

48%

Coal Mt

4474

7520

10108

68%

Oil Mt

3179

3973

4594

25%

Natural Gas bcm

2176

3518

4049

62% 13%

Nuclear TWh

2106

2386

3761

Hydro Power TWh

2286

2767

3826

21%

Biomass Mtoe

1036

1277

1323

23%

44

515

1999

-

12607

22202

23000

76%

2

3

3

52%

Total CO2 Gt

21

30

42

44%

Per capita tonne CO2

4

4

-

0.24

0.19

Other renewables* TWh Electricity Production/year Total TWh Per capita MWh CO2 emissions/year

Energy intensity koe, 2005 USD

11% -21%

* includes figures for all renewables, except Hydro

Total Primary Energy Supply by Resource 1993, 2011 and 2020

2011

1993 82%

Nuclear

82%

Nuclear

Fossil

Fossil

Renewables (other than large hydro)

10%

11%

Hydro (>10 MW)

6%

Renewables (other than large hydro)

5%

2%

Hydro (>10 MW)

2%

Total Primary Energy Supply by Resource 1993, 2011 and 2020

2020 19%

6%

2%

Resistance heating Vehicle: trains

3% 40%

Source: World energy council 2013

80

Electronics

12%

Renewables (other than large hydro) Hydro (>10 MW)

Household appliances

8%

Fossil

16%

Lighting

13%

Nuclear

76%

January 2015

3%

2%

Electrochemical Miscellaneous Motors

PowerStatistics

Cumulative State wise sanctions under REC Projects up to 2013-14 CKM Transmission HVDC

Addition Total %age expected Achivement achievement by 12th in 12th plan Plan 2012-17 2012-17 upto Oct 14 10340 0 0%

2012-13 Target

2013-14

Achivement

Target

Achivement

2014-15 (upto October '14) Target Achivement

0

0

0

0

0

0

765 KV

27000

9596

36%

1913

1209

3011

4637

6551

3750

400 KV

38000

25220

66%

10016

11361

11445

7777

8764

6082

220 KV

35000

10754

31%

5497

4537

4218

4334

5567

1883

MVA

Target

HVDC

Addition Total %age expected Achivement achievement by 12th in 12th plan Plan 2012-17 2012-17 upto Oct 14 19250 3750 19%

0

3750

0

0

0

0

765 KV

149000

78500

53%

9500

24000

12000

34000

30000

20500

400 KV

45000

35695

79%

8370

16795

13400

9630

9340

9270

220 KV

76000

38409

51%

13799

19120

9963

13700

8531

5589

Substation

MW Type/Sector

2012-13

Capacity addition achivement in 12th plan (2012-17) up to October 2014 Target

2013-14

Achivement

Target

Central

state

Achivement

2014-15 (upto October '14) Target Achivement

Private

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%

All India installed capacity (MW) as on 31-10-2014 region -wise Region Coal 39481 60120 27383 26528 60 0 153572

Northern Western Southern Eastern North - East Islands All India

THERMAL Gas Diesel 5331 13 10915 17 4963 939 190 17 1209 143 0 70 22608 1199

Total 44825 71052 33285 26735 1412 70 177379

Nuclear 1620 1840 1320 0 0 0 4780

Hydro 16598 7448 11398 4113 1242 0 40799

RES 5936 11271 13785 433 257 11 31693

Grand Total 68979 91611 59788 31281 2911 81 254651

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

66%

78500 53% 35695 53%

10754

9596

0

12th Plan (2012-17) Targets

25220

12th Plan (2012-17) Targets

31%

36%

HVDC

765 KV

400KV

220KV

10340

27000

38000

35000

38409 51%

19% 3750 HVDC

765 KV

19250

149000

400KV 45000

220KV 760000

Source: CEA

January 2015

81

IEEMADatabase

Rs/MT

BASIC PRICES AND INDEX NUMBERS as on 01.10.14

Unit IRON, STEEL & STEEL PRODUCTS

OTHER RAW MATERIALS

BLOOMS(SBL) 150mmX150mm

`/MT

32601

BILLETS(SBI) 100MM

`/MT

33451

CRNGO Electrical Steel Sheets M-45, C-6 (Ex-Rsp)

`/MT

54,500

CRGO ELECTRICAL STEEL SHEETS a) For Transformers of rating up to 10MVA and voltage up to 33 KV

`/MT

b) For Transformers of rating above 10MVA or voltage above 33 KV

`/MT

as on 01.01.15

Unit

Epoxy Resin CT - 5900

`/Kg

330

Phenolic Moulding Powder

`/Kg

104

PVC Compound - Grade CW - 22

`/MT

128750

PVC Compound Grade HR - 11

`/MT

129750

`/KLitre

74686

Transformer Oil Base Stock (TOBS) 177139

OTHER IEEMA INDEX NUMBERS

210343

IN-BUSDUCTS (Base June 2000=100) for the month July 2014

236.38

IN - BTR - CHRG (Base June 2000=100)

324.52

NON-FERROUS METALS Electrolytic High Grade Zinc

`/MT

171800

IN - WT (Base June 2000=100

215.74

Lead (99.97%)

`/MT

151800

IN-INSLR (Base: Jan 2003 = 100)

242.71

Copper Wire Bars

`/MT

443234

Copper Wire Rods

`/MT

457310

Aluminium Ingots - EC Grade (IS 4026-1987)

`/MT

161967

Aluminuium Properzi Rods EC Grade (IS5484 1978)

`/MT

167717

Aluminium Busbar (IS 5082 1998)

`/MT

Wholesale price index number for ‘Ferrous Metals (Base 2004-05 = 100) for the month July 2014 Wholesale price index number for’ Fuel & Power (Base 2004-05 = 100) for the month July 2014

156.70

214.00

All India Average Consumer Price Index Number for Industrial Workers (Base 2001=100) August 2014

215800

253

# Estimated, NA: Not available 180000

Electrolytic High Grade Zinc

170000 160000

RS./MT

150000 140000 130000 120000 110000 100000 `10-14

`08-14

`09-14

`07-14

`05-14

`06-14

`03-14

`04-14

`02-14

`01-14

`12-13

`11-13

`09-13

`10-13

`08-13

`07-13

`06-13

`05-13

`04-13

`02-13

`03-13

`01-13

`11-12

`12-12

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

Distribu on Transformers

6000

000' KVA

5000

4000

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

Name of Product

Accounting Unit

Production For the Month

From Oct 13

Highest Annual

September-14

to Sept 14

Production

Electric Motors* AC Motors - LT

000' KW

878

10272

11217

AC Motors - HT

000' KW

375

3094

4647

DC Motors

000' KW

32

359

618

000' KVA

822

10823

10426

Contactors

000' Nos.

772

8139

8505

Motor Starters

000' Nos.

158

1764

1909

Nos.

45227

616057

947878

000' Poles

10436

109785

116151

Circuit Breakers - LT

Nos.

143427

1698892

1815007

Circuit Breakers - HT

Nos.

6400

68846

72155

Custom-Build Products

Rs. Lakhs

22711

208382

265267

HRC Fuses & Overload Relays

000' Nos.

1179

13656

16875

KM

40138

400181

434967

000' KVAR

4247

52474

53417

Distribution Transformers

000' KVA

4050

40546

43346

Power Transformers

000' KVA

17568

151660

178782

Current Transformers

000' Nos.

54

648

660

Voltage Transformers

Nos.

10200

98476

114488

000' Nos.

2673

19562

22645

000' MT

89

1226

1250

AC Generators Switchgears*

Switch Fuse & Fuse Switch Units Miniature Circuit Breakers

Power Cables* Power Capacitors - LT & HT* Transformers

Instrument Transformers

Energy Meters* Transmission Line Towers* * Weighted Production

January 2015

83

ERDANews

Flue Gas Analysis in Progress

The Energy Management Group at ERDA was set up in the year 1995 with the prime objective of providing energy conservation services to the nation. Over the years, the group has developed vast expertise in energy efficiency optimization for conventional fuels such as coal, gas, & oil. The group uses sophisticated State-of-the-Art instrumentation with data logging and trending capability for conducting measurements of plant equipment/machinery. More than 275 comprehensive energy audits have been successfully completed to date These audits include 141 Power Generating Units of Power Plants. Annual recurring savings to the tune of Rs. 163 crore have been reported as achieved by the audited industries and utilities. The identified saving potential is equivalent to nearly 50 MW. Due emphasis has been given to “No Cost� measures that include good housekeeping practices, minor changes in the operation practices, etc. No cost saving potential of 11% to 50% has been realized during the course of energy audit programs in addition to other energy conservation measures with payback period ranging from few days to two years. The group is also actively engaged in measurement phase of the Perform Achieve & Trade (PAT) scheme of Bureau of Energy Efficiency.

The list of industries and utilities audited include ONGC, GAIL, Jindal Steel and Power, IPCL, ESSAR Steel, General Motors, KRIBHCO, Heavy Water Plant of DAE, GNFC, GSFC, GACL, Ordnance Factories, Tata Steel, TATA Bearings, Hospet Steels, Power Generating Units of Utilities such as National Thermal Power Corporation (NTPC), Nuclear Power Corporation of India Ltd. (NPCIL) etc.

Key Energy Services Provided uu Energy Efficiency of Electrical Equipment / Machinery (Motors, Pumps, Fans, Blowers, Chiller Compressors, Compressors, Transformers, Capacitor Banks, Lighting Loads, HVAC Systems, etc.)

86

Oxygen Mapping on Flue Gas Path of Thermal Power Plant

uu Energy Efficiency of Mechanical & Thermal Equipment/Machinery (Heaters, Steam Generators/Boilers, Condensers, Cooling Towers, Steam Ejectors, Turbines, etc. uu PAT Scheme Related Measurements & Analysis uu Performance Efficient Testing of Thermal Power Plants as per ASME PTC Codes Using Time Series Based Data Acquisition and Trending uu Process Modeling of Chemical / Metallurgical Process Reactors of Ferrous and Non-Ferrous Plants uu Heat and Mass Balance Analysis uu Second Law Analysis uu Exergy and Availability Analysis uu Computation Fluid Mechanics Analysis for Process Equipment Optimization uu R&D in Renewable Energy uu Conducting Seminars and Workshops on Energy Conservation and Energy Auditing

Major Recognitions ERDA is recognized as an energy auditor by (BEE), (under Energy Conservation Act-2001), Petroleum Conservation Research Association, Gujarat Energy Development Agency, Maharashtra Energy Development Agency.

Energy Conservation Awards Received by the Energy Management Group uu Best Improvement in Performance Award from PCRA consecutively for 3 years uu Best Energy Auditor Award from PCRA consecutively for 2 years uu MEDA Award for the years 2004 & 2005 Dr G S Grewal, Deputy Director (MTD) Phone: 0265-3048027, Mobile: 09978940951 E-mail: gurpreet.grewal@erda.org Website: www.erda.org

January 2015

CPRINews

Evaluation of Solar Products at CPRI Bangalore

CPRI has Established Pre-Qualification Test Facility for Cables and Accessories at Bangalore Unit The Cables laboratory at CPRI, Bangalore has full-fledged facilities in the areas of Testing & Evaluation of Power Cables upto 220kV covering different type of cable insulation. The 600kV, 4200kVA AC test facilities covers paper test system cables, PVC cables, Rubber cables & XLPE cables. The Cables Laboratory has been testing power cables for the past more than four decades. It is the only laboratory in India where test facility exists for EHV Power Cables testing covering the voltage rating up to and including 220 kV as per national and international standards. The institute has set up Pre-qualification test facility under Eleventh plan capital project and the laboratory is now ready to take up the tests. The laboratory is augmented with facilities like 2400 kV, 240 kJ Impulse Generator, 600 kV, 4200 kVA AC test system, 600 kV dividers, Current loading coils, Data loggers, Measuring instruments like Partial discharge detectors, dissipation factor bridges, 600 kV Standard capacitors etc for both type tests and PreQualification tests upto 400 kV cables.

Need for Pre Qualification test (Long duration tests) The basic requirement of power cable is that it withstands the electrical, thermal, mechanical and environmental stresses imposed on it during its expected service life of 25 to 35 years. The development of cable for EHV applications is achieved through increased stress design, which demands very stringent quality requirements during production of cables and development of accessories. Since various designs are available for cables and accessories, it is essential to carry out long duration test to establish their compatibility and reliability.

88

Energy Efficiency and Renewable Energy Division of CPRI Bangalore offers evaluation and certification services to cater to the needs of solar energy system TFL and CFL test setup product manufacturers, developers and renewable energy project owners/ operators for solar photovoltaic power plant, power conditioners, products such as lanterns, luminaries for street lightings, home lightings, path lightings etc. Our technical experts are active members in Indian and International Standards Working Groups and have a long industry association.

This Division provides the following evaluation services to qualify for National & International Standards and MNRE (Ministry of New and Renewable Energy) specifications for the solar based lighting systems, illumination systems and power conditioners. Some of our testing areas include: uu Solar Lanterns and Solar home lighting systems uu uu uu uu uu

(LED/CFL) as per IEC standards and MNRE requirements Solar Street Lighting systems as per IEC standards and MNRE requirements TFL/CFL/LED Luminary and Endurance tests Efficiency and environmental tests for solar inverters as per MNRE specifications and IEC standards Induction Lamp testing Photometry and electrical performance test as per LM 79 IEC/IS standard for LED system

Solar Products Evaluated at CPRI Bangalore Forthcoming Technical Programmes of CPRI SI. No.

Name of the Event

Date

1

National Conference on “Insulating Oils Past, Present and Future�

December 19, 2014

2

EHV Sub-Station Equipments Condition Based Assessment

December 26, 2014

3

Short Term Course on Distribution Transformer Technology

January 19-23, 2015

4

International Conference on Power Cables- CABLETECH 2015

February 26-27, 2015

For details, contact: Shri. Prabhakar Hegde, Joint Director (Information and Publicity Division) CPRI, Bangalore. Tel: 080 23602329 Email: hegde@cpri.in

January 2015

ProductShowcase

Images are viewed and processed in FLIR Tools software for PC’s. UltraMax images allow users to zoom in on smaller heat anomalies, get more accurate measurements and see more detail than with previous un-processed images.

Select T-Series cameras also now come with improved thermal sensitivity – as low as 20mK – and improved temperature measurement accuracy.

Easy9 Switchgear Schneider Electric has launched the Easy9 switchgear, the company’s new range of switchboards for homes and small-sized buildings.

Easy9 is designed to facilitate electricians to complete their installations swiftly and professionally. The range includes miniature circuit breakers, residual current circuit breakers, surge protection devices, comb busbars, and switchboard enclosures.

All Easy9 products are manufactured in Schneider Electric’s production units that are IS09000-certified.

In addition, the devices are approved by independent authorities as compliant with electrical safety standards.

The new T460 and the T660 include all of these features plus temperature ranges expanded to 2,000°C, continuous auto-focus, and onboard recording of real-time radiometric video files. Data can be played back and analyzed in FLIR Tools and FLIR Tools+ software so thermal changes over time can be studied in detail.

For Details, contact: FLIR Systems India Pvt. Ltd 1111, D Mall, Netaji Subhash Place, Pitampura, New Delhi – 110034, INDIA Tel: +91-11-4560 3555

CORRIGENDUM

For Details, contact: Schneider Electric 9th Floor, DLF Building No. 10, Tower C, DLF Cyber City, Phase II, Gurgaon - 122002, Haryana, India.

T-Series Cameras with UltraMax™ Resolution FLIR Systems, Inc announced the addition of exciting new features and capabilities for its popular T-Series family of premium thermal cameras, as well as two new members of that family, the T460 and the T660.

FLIR T-Series cameras now feature UltraMax™, a unique image processing feature that significantly improves the IR resolution and sensitivity of the cameras. UltraMax images have four times the thermal pixels, twice the resolution, and 50% greater sensitivity than standard unprocessed images.

90

Shaped conductor with rounding of edges For 11 kV Cables Due to some inadvertent error the figure 3 placed in the article “Manufacturing of Medium Voltage Cable designed with Shaped and Elliptical conductor” by Mr S. K. Ganguli in the December 2014 issue of IEEMA Journal was incorrect. The corrected figure is placed above.

January 2015

Seminars&Fairs

Energy Harvesting & Storage 2015 28 - 29 April 2015, Berlin, Germany

Integrated Systems Europe 2015 10-12 February 2015, Amsterdam RAI

The event was launched in 2004 to fulfill the need for a pan-European forum for the emerging markets of professional AV and electronic systems integration.

The show grew quickly to become the undisputed annual marketplace for these industries – a focus not only for doing business but also for networking, education and technological innovation.

Always owned by not-for-profit trade associations, ISE has been a joint venture between InfoComm International and the Custom Electronic Design & Installation Association (CEDIA) since 2007. As well as ensuring that all proceeds from ISE are re-invested into the industry, these associations act as the cornerstone of the event’s extensive education programme, which continues to grow year-on-year.

As in the past eight years, ISE 2015 will be held at the superb Amsterdam RAI, occupying every hall of this world-leading meeting and convention venue.

The show will attract professionals from every link in the systems integration value-chain, including manufacturers, distributors, dealers, contractors and consultants. ISE also draws ever-growing numbers of end customers, from fields as diverse as education, sports, corporate facilities, hospitality and live events For contact details: Stefanie Hanel Marketing and Communications shanel@iseurope.org

92

This seventh annual IDTechEx event provides insight into energy harvesting technologies, case studies and markets, ranging from consumer electronics and sensors all the way to vehicles, building and industrial automation. Attendees to this event will learn: Who needs energy harvesting, the ROI and sectors close to adoption. End user and integrators from a diverse range of markets present their needs and experiences.

All the technology options - from energy harvester choices, energy storage options, through to the latest in low power electronics and wireless sensors and related technologies such as thin film harvesters and super capacitors. The current state of the technology at the event trade show. More than 2000 people attend this event to aid their critical business and technology development strategy decisions in this emerging, high growth topic. Application-focused sessions cover the opportunity of energy harvesting in the built environment, showing how it is enabling smart - and more energy efficient - buildings and smart cities, merging with the Internet of Things (IoT) and M2M evolution.

For contact details: Corinne Jennings Event Director c.jennings@IDTechEx.com

Konnect North-East And Beyond 23rd and 24th April, 2015 at Guwahati, Assam

“KONNECT NORTH-EAST AND BEYOND” is being organized in Guwahati, Assam on 23rd and 24th April, 2015 at Maniram Dewan Trade Centre. An Exhibition is also being organized over these 2 days where all the top T & D players will exhibit their product and capabilities which proves their commitment towards development of the North-East.

The Summit will provide a platform to different industries and utilities in Eastern and North Eastern States to exchange views and bring focus and attention to the potential of the Eastern and North Eastern Region in Power Sector. This summit will also bring together industry stalwarts and key decision makers from various Government departments, utilities and users from across the Eastern, North Eastern States and neighbouring countries.

For contact details Anupam Banerjee 91-9874425724 anupam.banerjee@ieema.org

January 2015

January 2015

93

CountryProfile

Sydney Opera House

T

he United Kingdom (UK) is made up of England, Wales, Scotland and Northern Ireland. It has a long history as a major player in international affairs and fulfils an important role in the EU, UN and NATO. UK has historically played a leading role in developing parliamentary democracy and in advancing literature and science. At its pinnacle in the 19th century, the British Empire stretched over one-fourth of the earth’s surface. The first half of the 20th century saw the UK’s strength seriously depleted in two world wars and the Irish Republic’s withdrawal from the union.

The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous European nation. As one of five permanent members of the UN Security Council and a founding member of NATO and the Commonwealth, the UK pursues a global approach to foreign policy. The UK is also an active member of the EU, although it chose to remain outside the Economic and Monetary Union.

The Scottish Parliament, the National Assembly for Wales, and the Northern Ireland Assembly were established in 1999. The latter was suspended until May 2007 due to wrangling over the peace process, but devolution was fully completed in March 2010.

Facts XX

Full name: United Kingdom of Great Britain and Northern Ireland

XX

Population: 64.10 million 2013

XX

Capital: London

XX

Major language: English

XX

Major religion: Christianity

XX

Head of state: Queen Elizabeth II

XX

Prime minister: David Cameron

XX

GDP $2.521: trillion 2013

XX

GDP growth: 1.7% 2013

XX

Inflation 2.6%: 2013

Britain was the world’s first industrialised country. Its economy remains one of the largest, but it has for many years been based on service industries rather than on manufacturing.

Economy The UK, a leading trading power and financial centre, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced public ownership. Agriculture is intensive, highly mechanized, and efficient by

India Exports & Imports of Electrical Equipment in INR Lakhs United Kingdom

2005 2006

2006 2007

2007 2008

2008 2009

2009 2010

2010 2011

2011 2012

2012 -2013

2013 -2014

Export

44,846

70,605

75,270

82,210

70,379

87,151

89,330

99,581

96,668

Import

49,567

76,275

61,065

69,794

57,491

67,000

1,17,769

1,26,480

1,14,260

94

January 2015

CountryProfile

European standards, producing about 60% of food needs with less than 2% of the labour force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, are key drivers of British GDP growth. Manufacturing, meanwhile, has declined in importance but still accounts for about 10% of economic output. After emerging from recession in 1992, Britain’s economy enjoyed the longest period of expansion on record during which time growth outpaced most of Western Europe. In 2008, however, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Falling home prices, high consumer debt, and the global economic slowdown compounded Britain’s economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets; these included nationalizing parts of the banking system, temporarily cutting taxes, suspending public sector borrowing rules, and moving forward public spending on capital projects.

Facing burgeoning public deficits and debt levels, in 2010 the CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated a five-year austerity program, which aimed to lower London’s budget deficit from about 11% of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George OSBORNE announced additional austerity measures through 2017 largely due to the euro-zone debt crisis. The CAMERON government raised the value added tax from 17.5% to 20% in 2011. It has pledged to reduce the corporation tax rate to 21% by 2014.

Britain’s economy is accelerating faster than its G7 peers but recovery slowed in the third quarter of the year, with growth of 0.7% compared with 0.9% in the second quarter. Britain’s economy grew for a seventh successive quarter between July and September, further establishing recovery. Third quarter growth of 0.7% was slightly slower than the 0.9% achieved in the second quarter but the path of recovery has been relatively stable.

The UK is outperforming its G7 peers, but there are mounting fears that a weak euro zone economy and geopolitical tensions will

start to weigh on the domestic economy. The latest business surveys suggest the recovery might be losing steam. As a result – and with inflation low of 1.2% – economists do not expect the Bank of England to raise interest rates until the middle of 2015.

Growth in the third quarter was broad-based, with output increasing in services, construction, industrial production and agriculture. This chart shows the construction and production industries were hardest hit during the crisis, and the services sector, which accounts for about three-quarters of the economy, is leading the recovery. Although there has been growth across all sectors since the beginning of 2013, only the services sector is back above its pre-crisis peak. Recent survey data suggests recovery in UK manufacturing is slowing, partly as exports are hit by weaker demand from Europe - the UK’s main trading partner.

Energy Outlook In UK, electricity is generated in a number of different ways. It is important to have different fuel sources and technologies to generate electricity ensuring

The overall institutional framework of decision-making for electricity in the United Kingdom is as follows:

January 2015

Department of Energy and Climate Change Responsible for policy approach and decisions, including electrical systems planning and new generation National Grid Owns and operates the electricity and gas transmission infrastructure. Is also the system operator Administers contracts for difference

OFGEM Regulates electricity sector and

Administers the UK feed in tariff scheme Administers Regulates National Capacity Grid and oversees their Market performance in delivering CFD and Capacity Market

95

CountryProfile

constant supply and not relying on one type of power generation.

Most of the UK’s electricity is produced by burning fossil fuels, mainly natural gas (47% in 2010) and coal (28%). A very small amount is produced from oil (under 1%). The volume of electricity generated by coal and gas-fired power stations changes each year, with some switching between the two depending on fuel prices.

16% of UK’s electricity comes from nuclear reactors, in which uranium atoms are split up to produce heat using a process known as fission. The UK’s nuclear power stations will close gradually over the next decade or so, with all but one expected to stop running by 2025. Several companies have plans to build a new generation of reactors, the first of which could be running by 2018.

Renewable technologies use natural energy to make electricity. Fuel sources include wind, wave, marine, hydro, biomass and solar. It made up 7% of electricity generated in 2010 - this will rise as the UK aims to meet its EU target of generating 30% of its electricity from renewable sources by 2020.

The UK electricity network is connected to systems in France and Ireland through cables called interconnectors. The UK uses these to import or export electricity when it is most economical. In total, the UK exported 4,481 GWh of electricity in 2010 and imported 7,144 GWh, which accounted for less than 1% of the electricity supplied.

The grid plays a key role in the electricity system.

Keeping the balance between supply and demand is an important task. This is vital because unlike gas, it is very difficult to store electricity.

National grid National Grid runs the grid system across Great Britain. They manage the flow of electricity across the entire network. They also own the England and Wales transmission system. Other operators are: XX

Scottish Power Transmission

Scottish Hydro Electric Transmission Limited Northern Ireland Electricity Similar to electricity, gas is taken from the high pressure transmission system and distributed through low pressure networks of pipes to properties across the country.

XX XX

Covering separate regions of Britain, there are eight gas distribution networks. There are also a number of smaller networks owned and operated by Independent Gas Transporter.

96

Smart grid It’s estimated that £30 billion is needed to modernise the grid. The ultimate aim is to have an improved so-called ‘smart grid’ which would bring: XX

More efficient transmission of electricity

XX

Faster restoration of electricity after power disturbances

XX

Reduction in peak demand

XX

Better integration of renewable energy generation – both small and large scale

Electricity Shortage Challenge As identified by the U.K. Office of Gas and Electricity Markets (OFGEM), the U.K will experience a shortage in electricity capacity over the next four years. There are several factors at play. First, older coal and oil power stations must be shut down (i.e. mothballed) or replaced due to their inability to meet new European Union environmental legislation. There are also uncertainties regarding whether new gas fired generation will be built, whether currently “mothballed” power stations will return, how interconnectors will flow at peak demand times and regarding the level of demand.

OFGEM expects demand to remain flat until 2016/17, with any modest demand increases driven by economic growth to be offset by improvements in energy efficiency and demand side response measures. With the reduction of electricity supply form coal and oil plants, OFGEM estimates that capacity will significantly decline in the 2015/16 timeframe, at which time there is a major risk of electricity shortfalls.

In order to meet the expected shortage of electricity, the Government of the United Kingdom plans to invest £110 billion (~US$173 billion) in electricity generation and transmission upgrades over the next ten years. The Government’s Energy policy is focused around three main pillars: Over the last few years, the energy industry has invested more than £43 billion in the UK economy, generating an additional 54,000 jobs. Unlike some other industries, this growth is across all regions in the UK, and helps to balance out the concentration of jobs in the South East. The energy industry has a crucial role to play in UK’s economic recovery, and it is expected that the sector will continue to create jobs and growth in the coming years.

Looking ahead, the nation has a significant challenge to meet - old power stations have to close down, the power lines that bring power to homes need to be upgraded, and there is a need to move towards using low carbon energy. It’s estimated the investment

January 2015

CountryProfile

Security of Supply Electricity demand may double by 2050 · We need diverse, reliable and resilient electricity supplies to keep the lights on ·

Climate Change: By 2050 we need 80% reduction in carbon transmission By 2020, we need 15% of energy from renewable sources Affordability Minimise costs to taxpayer and keep energy bills down

needed by the energy industry to do this by 2020 will be around £200 billion.

Establishing a UK Branch for an Indian Company Choosing between a Private Limited Company or a Public Limited Company A limited company is that in which the liability of the investors in that company is limited to the sum of investments made. A limited company can be further be divided into two categories which are: public limited and private limited.

A public limited company allows investments from members of the public in form of selling its shares etc while a private limited company allows investment from individuals the founding members personally choose as investors. Therefore when establishing a branch office in the UK, the choice of what type of limited company you require must first be answered before proceeding to the next steps.

Registering the Branch of the Company After picking the choice of the type of company you want and understanding the legal terms involved, the next step in the company configuration procedure is registering your Company’s branch name. The registration involves: stating the name of the company which must end in LTD for a limited company, the details of one of the firm’s senior directors, details of the international registered address of the parent company and other items that can serve as a means of identifying the company’s owners.

The documents above should also be accompanied with a memorandum which states the share capital, the share holders and what amount they hold, initial founders of the company with addresses and the goals, goods or services the company wishes to provide to the public.

January 2015

The internal rules of conduct for the company and its Melbourne at night staff coupled with a statement of compliance should also be provided to show how the organization can be managed. If all the above documents are found to be correct, the registrar of companies UK would issue a certificate of incorporation confirming the companies’ formation and their existence.

These details can be sent directly from your company’s base to the registrar of companies UK and all information should be provided on an A4 sheet. Charges also apply and without issuing payment to the relevant organizations, your proposal would be overlooked.

A second method can be applied for those who feel they need a physical presence to help them with the delivery and quick processing of their company formation details and this requirement can be fulfilled by outsourcing the job to online companies that specialize in helping foreigners open offices in the UK. These agencies could provide you with branch offices, subsidiary companies run by their staff but report directly to your parent company or a temporary branch in the UK.

Trade Fair First Renewable Energy Global Investment Promotion Meet & Expo (RE - INVEST) on 15-17 February, 2015 in New Delhi.

Important Addresses British High Commission New Delhi Shantipath, Chanakyapuri New Delhi 110021 India Emailweb.newdelhi@fco.gov.uk General telephone+91 (11) 2419 2100 (24 hrs a day) Management fax+91 (11) 2419 2492 Press & Public Affairs fax+91 (11) 2419 2411 Economic & Commercial fax+91 (11) 2419 2301 Defence fax+91 (11) 2419 2252 Political fax+91 (11) 2419 2464 Consular fax+91 (11) 2419 2491 (not for visa issues) High Commission of India in UK India House, Aldwych, London, WC2B 4NA Public Response Unit High Commission of India, London Email: info.london@hcilondon.in Tel No.: +44-(0)20-76323070

(0930 to 1700 hrs on all working days)

+44-(0)20-76323170

(0930 to 1700 hrs on all working days) Sources World Bank CIA Department of Energy Strategic Insights BBC IMF

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January 2015

HANNOVER MESSE. Are you ready for the 4th Industrial Revolution?

13 – 17 April 2015 Hannover ▪ Germany hannovermesse.com

ut u t ab o Find o r y of the c to the fa – and all future t trends. te s the la

Partner Country

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Hannover Milano Fairs India Pvt. Ltd. ▪ Tel. +91-22-66875519 ▪ geeta.bisht@hmf-india.com

January 2015

99

InternationalNews

The third pact was of 500 million euro between Power Grid Corporation and KfW for inter-state transmission schemes.

Two separate loan agreement of 2 million euro each were signed for technical assistance to Himachal Pradesh Forest Ecosystems Climate Proofing project and Tamil Nadu Urban Infrastructure Development Fund project.

International News

Germany has showed its willingness to support GEC project with funds amounting to 1 billion euro over a period of five years under the Indo-German bilateral development cooperation.

Alstom sells euro 12.35 bn energy business to GE French firm Alstom said a majority of its stakeholders have approved the sale of its energy business to US-based General Electric (GE). In a regulatory filing to the National Stock Exchange, Alstom said 99.2 percent of the stakeholders approved the sell-out which will be closed in the second quarter of 2015.

Under the deal, GE will buy assets which account for around 70 percent of the French group’s revenue.

The companies will also set up three GE-controlled joint ventures in nuclear power, electricity grids and renewable energy. Also, GE will be selling its rail signalling unit to Alstom. The transaction remains subject to the authorisation required from a regulatory and merger control standpoint in a number of jurisdictions.

Germany inks pact with India to provide EUR 625 mn loan “The government signed note of exchange with Germany for financial cooperation to support Green Energy Corridors (GEC) project under Indo German bilateral development cooperation,” an official release said. Three separate loan agreements were signed under the pact.

The agreements included 76 million euro and 49 million euro loan from German government’s development bank KfW for intra-state transmission schemes for Tamil Nadu and Rajasthan respectively.

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India agrees to identify second site for Russian nuclear plant India has agreed to expeditiously identify a second site, in addition to Kudankulam in Tamil Nadu, for setting up Russian-designed nuclear power reactors. The issue figured prominently during Summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin. “India has agreed to expeditiously identify a second site for Russian-designed nuclear power units in India,” External Affairs Ministry Spokesperson Syed Akbaruddin said.

Both sides also decided to fast-track implementation of agreed cooperation projects for nuclear power plants. Russia has already built a 1000 MW-capacity reactor as part of Kudankulam Nuclear Power Plant and a second reactor is expected to be commissioned next year.

Russia awards Sesa Sterlite for energy efficiency projects Sesa Sterlite Limited, Jharsuguda, has been honoured at an international forum organised by Russian Government for “Best Energy Efficiency Projects realised abroad.” The company, which participated in the 3rd International Forum for “Energy Efficiency and Energy Savings ENES” organised recently in Moscow by Russian Government, was presented the award, a company release said.

The company had submitted papers on four new innovative projects carried out in-house for energy efficiency improvement.

On behalf of the company Dayanidhi Behera and Bijneswar Mohanty received this prestigious award.

Ministry of Energy, Government of Russia, has conferred this much coveted award to SSL, Jharsuguda, during the BRICS Experts Consultation on Energy Efficiency held during the ENES summit, it said.

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Project Management is the key focus area nowadays because it’s the science & art of organizing the components of a project, whether the project is development of a new product, construction of a building, setup of large or small manufacturing units, constructing a road or a highway, launch of a new service, a marketing campaign, hiring of resources, financing a Project or even a wedding at home.

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NationalNews

Steps soon to help coal, natural gas-based power plants

National News

The government will shortly take steps to address all fiscal and fuel hurdles faced by coal and natural gas based power plants so that people get affordable and uninterrupted supply, Power, Coal and Renewable Energy Minister Piyush Goyal told in a news conference recently.

“The government will look at all possible options to provide fuel to power projects with an aim to keep tariff low for the utilities and end users,” said Goyal. He said banks are on board to discuss the possibilities of relaxing lending norms to power sector.

“We are in discussions with banks to extend the term of payment for power plants to prevent them from turning non-performing assets,” said Goyal.

The ministers held meetings with stakeholders in the power sector, who are facing an acute fuel shortage and are under pressure from banks to repay loans.

The government has already announced plan to auction coal blocks and hopes to double the country’s coal output to meet the fuel shortage. Thousands of megawatts of new power generation capacity is idling or operating at suboptimal capacity because Coal India, the state monopoly, could not keep pace with rising demand.

Goyal stated that the government will try to increase domestic gas and coal output for power projects. “We have looked at all possible options to address the problems of gas-based power projects. We have already initiated the coal block auction process and are looking at natural gas-based plants to utilise stranded capacity with an aim to keep the tariff low,” Goyal said.

The government is working on big-ticket financial reforms for about 1,30,000 mw thermal and hydropower power plants worth over ` 6,00,000 crore that are hit by severe funds crunch while continuing to face cost and time overruns.

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` 4,000 crore push for 25 solar parks The renewable energy ministry has proposed a gross budgetary support of ` 4,050 crore for setting up 25 solar parks of 500 mw each and ultra-mega solar power projects to add 20,000 mw green generation capacity in the next five years.

The money is expected to be spent in phases, starting with ` 500 crore in 2014-15 and rising to ` 1,400 crore in 2018-19. Solar Energy Corporation of India under the ministry would be the nodal agency and manage the funding for a fee, equivalent to 1% of the grant disbursed.

The parks would be developed in collaboration with state governments. Altogether 12 states have given their consent for setting up solar plants, renewable energy minister Piyush Goyal told Lok Sabha. He said

India’s power utilities to maintain high capex: Fitch Ratings agency Fitch said that India’s power utilities are likely to maintain high capital expenditure levels for generators and grid operations. According to the ratings agency, this trend will lead to negative free cash flow over the medium term. The ratings agency in its recent report pointed out that the sector also faces fuel shortages, lower profitability and possible up-tick in acquisitions.

However, rating outlook on Indian utilities remains stable in 2015 because they continue to have strong operating cash flows and healthy balance sheets. “While the new tariff order passed in 2014 will have some negative implications for issuers like NTPC, there is now regulatory certainty on tariffs until FY19,” the report was quoted.

“Power industry is likely to expand capacity by 15-18 gigawatts in 2015. While capacity will increase, fuel supply is not likely to keep pace, leading to fuel shortages for both coal-fired and gas-fired power plants in 2015.”

Fitch expects that there is a possibility for consolidation in the industry in 2015, with stronger power generation companies looking to acquire smaller, distressed generation assets.

Other acquisition targets could also be coal upstream assets to improve vertical integration and fuel security.

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the project developers would be selected through bidding as per norms set by the central tariff regulator.

Broad contours of the scheme indicate measures to make the parks attractive for investors by offering readymade locations. Promoters usually have to spend a lot of time for getting approval for changing land use and other clearances from various state government bodies, including consent from state transmission utilities.

Under the scheme, developers would be invited after all statutory approvals are in place. Besides, the land would also be levelled and the parks would come with additional infrastructure such as access to roads, water and communication facilities required for commissioning and operating the plants. These measures would save additional expenditure by developers and reduce project cost. Goyal pegged the project cost at ` 0.95 crore per mw.

States would be free to choose their agency for implementing, developing and maintaining the solar parks. Special purpose vehicles of state governments too would be eligible to develop and manage the parks, as would be 50:50 joint ventures between SECI and state government entities.

The ministry is modelling the scheme after the 590 mw Charanka solar park in Gujarat. Such large solar parks are expected to reduce construction and operations costs owing to economy of scale. But smaller parks could also be considered under the scheme in Himalayan states where large tracts of contiguous land may be difficult to acquire.

IEEMA Reiterates Made In India Focus while Electrical Equipment Jumps 7.82% in H1 - 2014 The electrical and industrial electronics industry has witnessed a 7.25% growth in Q2 of the current year versus the previous year and overall 7.82% growth in the 1st half of 2014.

Sluggish demand and higher imports still plague the industry but policy changes and various initiatives undertaken are eventually showing signs of evolution for the sector, The data compiled by IEEMA, the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment shows that the second quarter growth in FY 2014 has accelerated to 7.24 percent as compared to first half of last fiscal.

IEEMA came out with these growth figures on the production and sales data collected from its member

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organizations, which represent 95 percent of the entire electrical equipment installed in India. On one side the major drivers are cable, LV and HV switchgear while on the other side Power transformers, Transmission lines and conductors continue to show declining trend. The growth in LV product and FHP motors indicates some industrial activity.

Mr Vishnu Agarwal, President, IEEMA says, “The adverse domestic economic situation and credit squeeze is having a significant impact on the growth of the industry, apart from intense overseas competition. But the sector is slowly positive signs of recovery and India’s position in the global economy is showing signs of stabilizing.”

Mr Sunil Misra, Director General, IEEMA is of the view that “The sector has registered a growth of 7.24% as compared to 2013-14 but huge imports of EHV transformers, reactors, cables and insulators at alarmingly high value mainly from China, Sweden and Germany are worsening the situation.

We do not see much positive change visible for at least for 12 to 15 months due to lack of momentum in public private partnership.”

Speaking on a recently held IEEMA Transmission and Distribution Conclave, Dr. Ajit Ranade, Chief Economist, Aditya Birla Group, “The Reserve Bank of India’s policy on inflation control has helped.

Going ahead we can expect interest rates to come down. Internationally the commodity prices are falling. Even the coal prices have gone down by 35%. To benefit from lower prices and inflation, we need to boost capital spending. We have a triple bonus due to lower oil prices: lower fiscal deficit, lower current account deficit and lower inflation.

This bonus must now translate into higher growth.

The Manufacturing sector has been showing positive signal in terms of leading indicators but we await a sustained resurgence. Exports have not picked up as much as required.”

IEEMA recommends that restructuring of discoms and their financial turnaround is the need of the hour.

Apparently the addition to power generation has also slowed down mainly due to fuel linkage issues which will have an adverse effect on the growth of heavy electrical equipment industry overall.

Government plans to restart stalled power projects & create distribution infrastructure The government is planning to revive stalled power projects and build new infrastructure for electricity distribution in frontier regions like Jammu & Kashmir,

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which is in the midst of assembly elections, and also in the North East.

Power, coal and renewable energy minister Piyush Goyal told that the long-delayed Teesta Hydropower project in Sikkim, where over ` 8,000 crore of private and public money is invested, will be resuscitated and the Subansiri Hydropower project in Assam and Arunachal Pradesh, which is among the largest projects of the National Hydroelectric Power Company (NHPC), will also be revived.

“The Indian solar industry is visibly upbeat since the elections and especially after getting past the anti-dumping case,” commented Raj Prabhu, chief executive and cofounder of Mercom Capital.

The Ministry of New and Renewable Energy’s (MNRE) new target is to increase solar installations by fivefold to 15 GW by 2019 via solar parks - large areas and infrastructure set aside by states to accommodate installations of 500-1,000 MW.

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.

India’s solar power capacity addition to pick up after dismal 2014 India is expected to add solar power capacity at more than twice the speed of this year in 2015, after a disappointing 2014 when installations of photovoltaic cells have fallen short of previous year’s levels, a solar consultancy firm said. India’s total solar installations have crossed the 3-gigawatt capacity mark with addition of 734 megawatt so far this year, and the country is expected to end the year with total additions of 800 MW, as much as 20% less than in 2013.

Land acquisition delays due to elections and uncertainty caused by an anti-dumping issue contributed to the slowdown in installations. In its quarterly update on the Indian solar market, Mercom Capital Group forecast 2015 installations to reach about 1,800 MW by generation capacity. India earlier this year dropped plans to impose anti-dumping duty on solar panel imports. The duty, aimed at protecting local manufacturers, would have increased the import cost of local project developers who rely mostly on countries like the US, China and Taiwan for the photovoltaic cells.

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Maharashtra Tata Power commissions wind farm in Maharashtra Tata Power has announced commissioning of the remaining 8 MW of the 32 MW wind farm at Girijashankarwadi in Maharashtra. “With this commissioning, Tata Power’s total wind generation capacity stands at 470.6 MW,” the company said in a statement. The wind farm is expected to generate approximately 62 million units (MUs) per year which will be procured by Tata Power-Distribution towards fulfilment of its Renewable Purchase Obligations (RPO).

With this commissioning, Tata Power’s total generation capacity stands at 8623 MW. The company has wind farms located across five states - Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka. Tata Power has developed this project through its 100 per cent subsidiary, Tata Power Renewable Energy Limited (TPREL).

TPREL also has a further 300 MW of wind capacity under development and construction in the states of Maharashtra, Gujarat and Rajasthan.

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Northeast

the downstream level has been taking place under government sponsored schemes.

` 5,200 crore scheme for improving power network in Northeast

This shall increase the per capita power consumption of these states, which is lagging behind the average national consumption and shall contribute to the economic development of the North-Eastern Region.

The government has approved ` 5,200 crore scheme for strengthening power transmission and distribution network in six North-east states.

“The Cabinet has approved North Eastern Region Power System Improvement Project (NERPSlP) for Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland for strengthening of the intra state transmission and distribution system,” Union Minister Ravi Shankar Prasad told. The scheme has been approved at an estimated cost of ` 5,111.33 crore including capacity building expenditure of ` 89 crore.

The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power. The scheme is to be implemented with the assistance of World Bank loan and the budget of the Power Ministry.

The project will be funded on 50:50 basis (World Bank loan: Government) except the component of capacity building for ` 89 crore for which the centre will bear entirely.

As the Intra-State Transmission and Distribution systems in the North-Eastern States have remained very weak, the Central Electricity Authority (CEA) developed a comprehensive scheme for the North East Region in consultation with the Power Grid Corporation and State Governments concerned.

The project shall be implemented through Power Grid in association with the six states in 48 months from the date of release of funds to the company.

After commissioning, the project will be owned and maintained by the State Governments.

Presently, all the six states are connected to transmission network at 132 KV and below. The 33 KV system is the backbone of power distribution system in these states. In order to reduce the gap between the requirement and availability of the intra-state transmission and distribution system, it is necessary to provide 132 KV/ 220 KV connectivity to the states for proper voltage management and lower distribution losses. Similarly, the distribution system which mainly relies on 33 KV network would be strengthened substantially.

The project would also provide the required grid connectivity to such villages and towns of the States, where development of distribution system at

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Tripura Tripura emerges as only power surplus state in northeast Tripura, ravaged by insurgency for more than three decades, made considerable progress in the commercial sectors and emerged as the only power surplus state in the northeastern region in 2014.

After the inauguration of second unit of the 726 MW gas- based thermal power project by Prime Minister Narendra Modi at Palatana in Gomati district on December 1, another power plant at Monarchak in Sipahijala district of Tripura would start generation in January.

“With the commissioning of the Palatana project, Tripura is now a power surplus state and we told the central government that it could take 100 mw of power from our allocation and give it to Bangladesh, which allowed us to carry over dimensional machines of the project by using their roads and waterways,” state Power Minister Manik Dey said.

Seven northeastern states are being allocated their share from the project. Assam is getting 240 mw, Tripura 196 mw, Meghalaya 79 mw, Manipur 42 mw, Nagaland 27 mw, Arunachal Pradesh 22, Mizoram 22 mw and the balance on merchant sales by ONGC Tripura Power Company Ltd (OTPC).

Having a detailed discussion with ONGC officials on the sidelines of the inauguration of the second unit of the Palatana project was Dey, was assured of supplying natural gas to Monarchak plant by the first week of January.

Government may adopt satellite imaging for transmission projects Government is mulling adopting satellite technology for conducting studies to alleviate the impact of environment-related issues on power transmission projects.

The government, which has set a target of building 1,07,440 circuit kilometres of transmission lines by 2016-17, said that right of way and forest clearances are two major factors which hinder the execution of transmission projects.

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61850-compliant substation automation, power-line communication carriers (PLCC) and fiber-optic telecommunications systems.

"These orders demonstrate that ABB India is well positioned to cater to India's push for reliable power and enhanced focus on upgrading the transmission and distribution network," ABB India head of power systems N Venu said.

Aditya Birla

Corporate News

ABB Ltd ABB bags ` 334 crore transmission and distribution substations orders in Bihar and West Bengal ABB has bagged two orders valued at ` 334 crore to set up transmission and distribution substations in Bihar and West Bengal. The company has secured the orders from Bihar Grid Corporation Limited (BGCL) and West Bengal State Electricity Transmission Company Ltd (WBSETCL) to build new transmission and distribution substations that will boost power supplies in the regions, a release issued here said.

As part of a turnkey contract in Bihar, ABB will design, supply, install and commission 220/132/33 kV gas-insulated switchgear (GIS) substations across four locations.

These substations will deploy ABB's compact high-voltage GIS technology, which can reduce the substation footprint by up to 70 per cent compared with conventional air-insulated switchgear (AIS) substations. It will also supply IEC 61850-compliant protection and substation automation systems, as well as fiber-optic telecommunications systems, the release said.

In West Bengal, the company will design, supply, install and commission a 220/132/33 kV AIS substation to help meet the growing demand for electricity in the Sadaipur region of Birbhum district.

Other ABB product supplies include IEC

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Aditya Birla Group plans an entry into power sector Coal woes have dealt a double blow to Kumar Mangalam Birla's flagship company Hindalco, not only did the Supreme Court judgment cancel its coal blocks, the auction guidelines have reserved its mines for the power sector, leaving Aditya Birla Group high and dry.

This has spurred hectic re-strategising at the Aditya Birla Group. Sources with direct knowledge share that Kumar Mangalam Birla is contemplating an entry into the power sector, a plan he had shelved a few years back.

People familiar with the development say that the top strategy team at the Birla Centre met last week to deliberate on an entry into the power sector and it is expected to be through acquisitions. Sources share that JP Power's Nigrie and Bina thermal power projects are on Kumar Mangalam Birla's radar. This could be bad news for Sajjan Jindal's JSW Energy which is in talks to buy those units after announcing the deal to buy JP's hydro power assets.

Aditya Birla Group is evaluating the option of a foray into the power sector to aggressively bid for coal blocks in the upcoming auctions which will take care of the coal, electricity security of the Group, especially, its flagship firm, Hindalco. While Hindalco is expected to bid for coal blocks in the capacity of a Captive Power Producer, KM Birla is hoping to take the benefit of participating as an Independent Power Producer by buying a unit which is necessary as the auction which will take care of the coal, electricity security of the Group, especially, its flagship firm, Hindalco. While Hindalco is expected to bid for coal blocks in the capacity of a Captive Power Producer, KM Birla is hoping to take the benefit of participating as an Independent Power Producer by buying a unit which is necessary as the auction guidelines require the specifics on the end-use plant.

January 2015

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Alstom T&D

Coal India Ltd

Alstom T&D bags order from NTPC

Mr Sutirtha Bhattacharya appointed CMD, Coal India Ltd

Alstom T&D India has secured an order worth around euro 23 million (` 180 crore) from NTPC to supply a switchyard at the 2x800 MW Darlipalli Super Thermal Power Project (STPP) in Sundergarh, Odisha. The switchyard will facilitate evacuation of 1,600 MW of power produced by the plant to the state grid of Odisha. All equipment will be manufactured and supplied from Alstom T&D India’s manufacturing facilities located in Tamil Nadu (Padappai, Hosur and Pallavaram).

BHEL Ltd BHEL commissionins Hydro Power Plant in Rwanda Bharat Heavy Electricals Limited (BHEL) has achieved one more landmark in the African region by constructing and successfully commissioning a Hydro Power Project in Rwanda, on turnkey basis.

Significantly, the order for setting up the 28 MW Nyaborongo Hydro Electric Project (2×14 MW), was the first order received by BHEL from this East-African country. Prior to this, the company had already established its presence in a number of African nations like Sudan, Libya, Ethiopia, Egypt, Zambia, Tanzania, Uganda, Nigeria, etc.

Both the generating units of this power project were synchronized with the grid and with the commissioning of this project; the installed generating capacity of Republic of Rwanda has gone up by 24% from 119 MW to 147 MW. Nyaborongo Hydro Electric project is owned by the Government of Rwanda and has been financed under the Government of India’s Line of Credit. BHEL’s scope of work in the contract envisaged turnkey execution of the Hydro-mechanical and Electromechanical packages for the Nyaborongo Hydro Power Project comprising two Francis type hydro generating units of 14 MW each. Major equipment supplied for the project include hydro turbines, generators, transformers, controls, monitoring and protection systems and switchgear.

The project demanded the highest degree of competence in manufacturing and execution from BHEL’s own manufacturing units as well as the subvendors and contractors involved.

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The appointments committee of the Cabinet has appointed Sutirtha Bhattacharya, a 1985 Andhra Pradesh cadre Indian Administrative Service (IAS) officer, as chairman & managing director (CMD) of Coal India Ltd (CIL).

Last month, the Public Enterprise Selection Board (PSEB) chose Bhattacharya from a list of 12 candidates. Among the short-listed candidates were IAS officers working under the governments of Jharkhand, Madhya Pradesh and Manipur, as well as an executive of the Indian Railway Traffic Service, Ministry of Railways.

The government had advertised for the post aggressively, spending about Rs 1.5 crore on this.

It received a lukewarm response and negligible participation from the private sector.

Bhattacharya is currently on superannuation. Earlier, he was CMD of Singareni Collieries Company Ltd (SCCL), Hyderabad, the second-largest coal mining company, after CIL. He has also served in the urban development, power, agriculture and land revenue departments of the Andhra Pradesh government.

CIL has been without a full-time CMD for about six months, following S Narsing Rao resigning from the post in May this year.

GAIL (India) Ltd UP to constitute high power committee for GAIL’s Pipeline Giving a boost to the speedy implementation of GAIL (India) Limited’s Jagdishpur – Haldia natural gas pipeline project in Uttar Pradesh, the state Government has agreed to constitute a high power committee to provide Single Window Clearance for the pipeline construction activities.

During a presentation on the pipeline project, GAIL highlighted that the pipeline will bring growth in UP as the fertilizer plant of Fertilizer Corporation of India at Gorakhpur may be revived with Central Government support. Further, new City Gas Distribution networks are expected to come up in Varanasi, Allahabad, Azamgarh, Gorakhpur,etc., depending on the potential of the city. This will contribute in generating additional revenue for the state Government.

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The decision to set up the committee was taken at a meeting between senior state Government and GAIL officials held here which was presided over by Shri Alok Ranjan, IAS, Chief Secretary, Uttar Pradesh. Dr. Ashutosh Karnatak, Director (Projects), GAIL, who headed the GAIL team, apprised about existing as well as upcoming infrastructure of GAIL in UP. For timely execution of the project, GAIL requested for support from the UP Government and it was agreed to constitute the high power committee consisting of officials of various departments for Single Window Clearance. The committee will help in securing various statutory clearances like forest, environments, PWD, irrigation, industries, etc., and also give administrative support for the pipeline construction activities.

NTPC Ltd NTPC plans expansion of power plants in Telangana NTPC has approached the Ministry of Environment and Forest seeking amendments to Terms of Reference (TOR) for its proposed expansion of Telangana's Ramagundam power plant to 2x800 mw.

According to a senior official of the company, earlier the power producer was accorded permission for expanding the capacity to 2x660 mw. NTPC is presently operating a coal based 2600 MW (Stage-I, II & III) Thermal Power Station at Ramagundam in Karimnagar District of Telangana.

"This is part of the 4000 mw power plant proposed to be set up in Telangana state. 1600 mw power plant will be set up at the existing location in Ramagundam.

We are seeking land from the Telangana Government for the rest of the capacity," the official told. He said the cost of project would be between ` 5.5 crore to ` 6 crore per MW and the Board has already approved the proposal.

It is proposed to allocate 100 per cent power to Telangana state subject to approval by Ministry of Power. Considering the location and optimisation of available space at both locations to accommodate 4000 MW, 800 MW units have been proposed, the official added. Coal requirement for the project is estimated as 7.37 MTPA (20197 tonnes per day) to achieve 90 per cent PLF, a senior Government official said.

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POWERGRID POWERGRID Signs MoU with TERI for CSR Project Power Grid Corporation of India Limited (POWERGRID) signed a MoU with TERI for providing clean lighting solution to school children in Bihar, Jharkhand and Odisha under its CSR initiative. The MoU was signed

by Shri I.S. Jha Director (Projects), POWERGRID and Shri I.H. Rehman, Director (Social Transformation), TERI in the presence of Dr.R.K. Pachauri, Director General, TERI at TERI office, India Habitat Center, New Delhi.

Under the project 10,000 students will have the provision of reliable lighting facility through standalone solar lanterns. It will enable increase in, after dusk/post school, study hours for students to facilitate improved academic performance & commitment.

Tata Power Tata Power may not source coal from Indonesia for Mundra Tata Power may cut dependence on Indonesian coal and explore other geographies to source the fuel for expansion of its 4,000 MW Mundra ultra mega power project in Gujarat.

The company owns stake in KPC mining company in Indonesia which owns and operates coal blocks in the island nation. "It (import) could be from any market globally because after the HBA price regime was implemented in Indonesia, we get no advantage at all from ownership," Tata Power Managing Director Anil Sardana told.

He said the coal for Mundra project expansion can be sourced from any other country and any other mine because one gets it at the market-determined price.

HBA price of Indonesia is the monthly coal reference rate which is calculated on the monthly average of four international coal indices. "The expansion was on the assumption that the units will be linked to market phenomenon and we would be using imported coal," Sardana said. The company plans to expand the capacity of its Mundra project by 1,500 MW by adding two units.

As per the original plan layout prepared by the Central Electricity Authority (CEA) there is space for two additional units.

On whether the company would go ahead with the proposed expansion of the Mundra despite little

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clarity on the issue of compensatory tariff, Sardana said, "The compensatory tariff issue is only concerned with UMPP. As far as the two additional units are concerned, they will be at market prices, so therefore the two phases are completely different."

Central Electricity Regulatory Commission earlier this year asked the power procurers to pay ` 329.45 crore as compe nsatory tariff for the Mundra plant to partly offset escalation in the price of imported coal.

Tata Power Tata Power to acquire Maharashtra power plant Tata Power said it has signed a share purchase agreement (SPA) for acquisition of 100 percent shareholding in Nagpur-based Ideal Energy Projects Limited (IEPL).

“An agreement was reached between Tata Power and IEPL for sale of 100 percent stake in IEPL. The

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acquisition is subject to statutory approvals and certain conditions precedent,” the company said in a filing to BSE. Based on domestic coal, the 540 MW plant in Nagpur saw 270 MW commissioned on May 2013. IEPL had been looking to sell the project since 2011. With this acquisition, Tata Power’s total generating capacity will increase to 8,885 MW. “We are happy to announce our intent to acquire 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 MW by 2022 and presently has projects of about 3,000 MW capacity which are under various stages of execution.

IEPL is promoted by members of Mhaiskar family of IRB Infrastructure Developers Ltd, an infrastructure constructions company. IRB Infrastructure, which executed the country’s first build-operate-transfer road project, is one of the largest operators of such ventures.

January 2015

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Shocks&Sparks

a wheelchair accompanied by his granddaughter.

Frail and unable to speak. The consular saw him and asked for his form first. With the form in hand, he went to him and said ‘Sir from next year onwards, please do not come here for this certificate. Just go to your treating GP (Doctor), he will sign this certificate. After that please post it to us along with a photo copy of your passport. You will get it back in a day and if you desire we will also send it to your paying office All pensioners present the transformation.

Swachh Bharat Abhiyan was launched nationwide

to focus on sanitation, hygiene and waste management.

The aim of the movement is to make India a clean country by 2019, the 150th birth anniversary of Mahatma Gandhi.

Swatch Bharat campaign is joked off most of the time.

After sixty years of a dynastic rule a change took place.

Now let me tell you a recent Incidence (no story). I was traveling from Canberra to Sydney by train. At a small station there was a change of the engine driver which took a minute. The relived driver walked down the platform and came across an empty coke can on the side under a bench. He picked it up and put it in the bin nearby and moved on as usual. I thought to myself, would it happen in India. Why not?

On a more serious note, now let me tell you my experience I had at the Indian consulate in Sydney yesterday. I had gone their for the life certificate. I was amazed at seeing the transformation in that office since my last visit: The man at the reception asked me even before I could say anything ‘sir have you come for the life certificate’. I said ‘Yes’. He asked me to give him the documents, take coffee and have a seat Some guys were already sitting and some kept coming. After some time, the councillor came out (I was told later that he comes out every half hour), called out the names, made them sign the certificate, signed it himself and handed it over. I was off in half an hour when the web site says it will take one day As though this was not enough, there was an old Anglo Indian pensioner from Railways - William D Fransis on

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were

amazed

at

Being a bit curious, I stayed on and started asking the receptionist about this noticeable transformation.

He told me the following: We have to send to MEA, a monthly report highlighting the problems faced by visitors to the consulate and what actions have been taken to remove or reduce them? This is the result of that I asked him to tell me a few other improvements. He started off with a whole list. Let me tell you one of them. They have started a new emergency service.

Say after office hours one learns that one’s father has passed away. You SMS your visa request on a given number. If the officer on duty considers it to be an emergency request, he will call you back and speak to you and in all probability for such a case give you a visa the moment you are able to reach him with your passport. I remember my son’s tears when he pleaded for a visa to get home after my wife’s death. While the Indian embassy tried its best to delay it, his Australian boss in Canberra had to intervene. My eyes are flowing with tears as I remember it while trying to bring this transformation to you. Only one thing has changed since then in the consulate - the PM. Guys, this is a National Opportunity for us to redeem and rediscover ourselves. Let us contribute in the effort and not derail it. The least we can do is to have patience. Things are happening.

R G Keswani

January 2015