Ieema journal november 2016 by IEEMA

From the President’s Desk

Dear Friends, It is a matter of great honour to interact with you through the IEEMA Journal. Before I took over this coveted post of President, IEEMA, I had the privilege of meeting some past Presidents at the IEEMA Mumbai office. They came up with some interesting and valuable suggestions for the benefit of our membership. The annual convention and 69th AGM of IEEMA was a great platform to interact with our members. Our Chief Guest Hon’ble Minister of State (IC) for Power, Coal, New Renewable Energy and Mines Shri Piyush Goyal while interacting with our members said “we have to fight the competition on economic terms; the Indian industry should be driven by innovation to provide cost-effective solutions. In this globalized era, we must engage with the world, but on our terms.” The minister has assured full support to our industry and urged to innovate and redesign electrical equipment that can use the abundant domestic coal which has high fly ash content so as to reduce dependence on imports. There is a need for us to become self-reliant and self-sufficient as we have to fight the competition on economic and fair terms. This year was full of many firsts for IEEMA, starting this year we instituted ‘IEEMA URJA NAVACHAR PURUSKAR’ and the newly instituted award was conferred to Ms Usha Kunwar the Sarpanch of village Silhegarh, District Jhalawar from the state of Rajasthan and is widely acknowledged as the person who has single handedly turned around the state of sanitation and contributed significantly towards eliminating power theft in her village. Taking the legacy ahead the new team will continue to make efforts for adding value to all stake holders of the association. I request your feedback on various issues that the association is taking up which will help us to make IEEMA more relevant to our members.

Sanjeev Sardana

November 2016

Samvaad...

Dear Members, Hon’ble Minister of State (IC) for Power, Coal, RE and Mines Shri Piyush Goyal duringthe annual convention of IEEMA emphasized on becoming self reliant and self-sufficient and to combat competition on economic and fair terms. He said “India currently imports USD 10 billion worth goods and equipment, so import substitution plan alone in this sector holds a huge manufacturing potential.” Imports, though decreased, the quantum continues to remain comparatively high. Major imports have been from China and EU, of which about 20% continues to be China alone. The Chinese government has been providing significant subsidies to its manufacturing industry along with export benefits to boost trade. Subsidies offered by the State has allowed Chinese manufacturers to keep cost of production low. Other factors aiding the low prices are low wages, cluster manufacturing, undervalued currency, low environmental, health & safety measures, FDI, etc. The decline in imports have created an optimistic scenario; moreover so, because of domestic and international reforms being made by the Government in recent past. While there is still an urgent need to improve availability of funds to the Power Sector and provide fuel linkages and faster regulatory clearances for timely completion of power projects in our country. About 20- 30% of Indian industry’s capacities are idle; underutilization of capacities has a direct impact on imports. In fact to keep up with current capacity utilization, Indian industry has increased its exports albeit insufficient exports’ incentives. Opportunities to domestic manufacturers should be given by reforming the tendering process to increase transparency and speed. This significant influx in imports had seriously damaged the indigenous electrical equipment industry. There has been a significant hike in the price of the imported raw materials which is making the finished product incompetitive and seriously bleeding the domestic industry. Our Industry also needs to focus on product innovation, technology, research and development, packaging and cost competitiveness. We as a Nation are the largest geography with growing need for energy equipment, the largest market of a nation which is hungry for development, aspiring for a better quality of life and in that situation, it’s really at that cusp where if we look at home grown newer technologies defining our future we can actually bring up cost-effective solutions and prepare ourselves for a brighter and better, more energized tomorrow. INTELECT 2017, being organized jointly organized with IEEE from 23rd to 25th of January 2017 at India Expo Centre, Greater Noida, NCR Delhi, has been shaping well and market interest is evolving. As in the previous edition, a concurrent exhibition “DistribuELEC” is being organized which will showcase the latest power distribution Equipment & Technology, products & services upto 33 KV. I urge for your participation as this will be an ideal opportunity to showcase new technology and also become an enabler for technology transfer, diversification and modernization of existing production lines.

Sunil Misra

November 2016

Contents

the leading electrical & electronics monthly

Volume 8 Issue No. 3 November 2016 CIN U99999MH970GAP014629 Official Organ of Indian Electrical & Electronics Manufacturers’ Association Member: Audit Bureau of Circulation & The Indian Newspaper Society

From the President’s Desk 7

Samvaad 24

Appointments This new space in the IEEMA Journal will incorporate recent important appointments in the power and related sectors.

Special Report

Expert speak

Cover story

Indian Electrical Equipment Industry

Development of Nuclear Power Projects in India Challenge’s

IEEMA Annual Convention 2016 & 69th AGM With Electrifying Prosperity being the theme of IEEMA’s Annual Convention 2016 held on September 30, 2016 at hotel ITC Maratha in Mumbai, the subject was highly appreciated by the dignitaries and industry leaders present on the occasion. The convention was followed by the 69th Annual General Meeting of IEEMA where the newly elected President of IEEMA Mr Sanjeev Sardana took over the post.

Intelec 2017 IEEMA the organiser of ELECRAMA, takes pleasure in bringing to you another focused show, “DistribuELEC”. 10

Financial Performance FY 2015- 16 The Indian electrical equipment industry comprises of two broad segments – generation equipment (boilers, turbines, generators) and transmission & distribution (T&D) and allied equipment like transformers, cables, transmission lines, switchgears, capacitors, energy meters, instrument transformers, surge arrestors, stamping and lamination, insulators, insulating material, industrial electronics, indicating instruments, winding wires, etc.

Nuclear power is the fourth-largest source of electricity in India after thermal, hydroelectric and renewable sources of electricity. Nuclear power plant (NPP) uses the sustained nuclear fission to generate heat & electricity. Nuclear power plant provide about 6% of the world’s energy and 14% of the world’s power, with the U.S., France & Japan together accounting for about 50% of nuclear generated power.

November 2016

Contents

Insight Paris Agreement Commitments and India’s Nuclear Energy Programme

The second period of the Kyoto Protocol on climate change mitigation is going to come to an end in December 2020. This protocol is going to be replaced by the Paris Agreement, provided the agreement is ratified by 55% percent of UN member countries generating at least 55% of Green House Gas emissions. Many countries including US, China have already ratified the agreement. India has also ratified it on 2nd October 2016.

Guest Article Power Quality Monitoring

Opinion

In depth

Forecasting and Scheduling framework for Renewable Energy Sources

Policy and Legal Framework for Renewable Energy

The share of renewable energy in India’s installed capacity increasing continuously. At present India has a total installed power capacity of 304 GW with renewable capacity comprises 44 GW. To achieve the target of 175 GW renewable energy capacities by 2022, the government is aiming to increase the share of renewable in the energy mix in the coming years. Wind and solar currently contribute 8.8 percent and 1.7 percent share respectively.

In focus ECONOMIC, SOCIAL & ENVIRONMENTAL ELEMENTS OF POWER PROJECTS

The term “Power Quality” has been used to describe the extent of variation of the voltage, current and frequency on the power system. Most power apparatus made over a decade back could operate normally with relatively wide variations of these parameters.

With a view to reduce Green House Gas emission, harnessing of renewable resources to the extent possible, promotion of hydro and nuclear generation, enhancing efficiency of the existing power plants and introduction of new technologies for power generation for enhancing efficiency and demand side management are being pursued. Since coal will continue to dominate power generation in future, Super Critical Technology has been introduced for reduction of green house gases. Government of India has taken a number of Initiatives to adopt a more pro-active, market oriented approach to rid the Power Sector and problems being faced by it.

November 2016

Guest Article Tracking systems and how efficiencies can be increased by tracking systems

A few years ago solar power was largely viewed as an unusual source of energy in the industry in India and elsewhere in the world. The overall cost of solar energy was higher compared to its renewable energy competitor, wind energy.

Contents

International Matters

International News

Lessons that India can learn from China in its pursuit of rapid socio - economic development

Editorial Board Advisory Committee Founder Chairman Mr R G Keswani

Chairman Mr Sanjeev Sardana

France’s power major EDF Energies Nouvelles’ calls off deal with Acme Cleantech

Members Mr Sunil Misra Mr Naveen Kumar Mr Mustafa Wajid Mr Vikram Gandotra

Sub Editor Ms Shalini Singh

US urges WTO to enforce report on Indias solar product policy

Advertisements Incharge Ms Vidya Chikhale

Circulation Incharge Ms Chitra Tamhankar

Statistics & Data Incharge Mr Ninad Ranade

National News

Tech Space Short circuit testing of circuit breakers to test their breaking capacity

PM Narendra Modi said to plan $3.1 billion boost for India’s solar factories Nuclear energy: Govt to push for JVs in light water reactor projects

Corporate News Inox Wind bags 40 MW power project from Malpani Group KEC International wins orders worth Rs 1,192 Crore

102 88

Tech Space Comparing Incremental Conductance and Perturb & Observe Methods to Integrate Solar Panel into Smart grids

Power Scenario Global Scenario Indian Scenario

106

IEEMA Database Basic Prices & Indices Production Statistics

110

ERDA News 112

Product Showcase 114

Index to Advertisers

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 Email: 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 Email: delhi@ieema.org Branch Office - Bengaluru 204, Swiss Complex, 33, Race Course Road, Bengaluru 560 001. Phones: +91 (0) 80 2220 1316 / 1318 Fax: +91 (0) 80 220 1317 Email: 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 Email: kolkata@ieema.org Website: www.ieema.in 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. Representatives: Guwahati (Assam) - Nilankha Chaliha Email: nilankha.chaliha@ieema.org Mobile: +91 9706389965 Raipur (Chhattisgarh) - Rakesh Ojha Email: rakesh.ojha@ieema.org Mobile:+91 9826855666 Lucknow (U.P. and Uttarakhand) Ajuj Kumar Chaturvedi Email: anuj.chaturvedi@ieema.org Mobile: +91 9839603195 Chandigarh (Punjab & Haryana) Bharti Bisht Email: bharti.bisht@ieema.org Mobile: +91 9888208880 Jaipur (Rajasthan) Devesh Vyas Email: devesh.vyas@ieema.org Mobile: +91 8955093854 Bhubaneshwar (Odisha) Smruti Ranjan Samantaray Email: smrutiranjan.samantaray@ieema.org Mobile: +91 9437189920 Hyderabad (Andhra Pradesh) Jesse A Inaparthi Email: jesse.inaparthi@ieema.org Mobile: +91 9949235153 Srinagar (Jammu & Kashmir) Mohammad Irfan Parray Email: irfan.parray@ieema.org Mobile: +91 9858455509

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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.

November 2016

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APPOINTMENTS Mr Roy appointed Directort (Technical-LWR), Mr SS Kshatrapathi Shivaji appointed Executive NPCIL Director, Asian Development Bank, Manila

Distinguished Scientist S Singha Roy has been appointed Mr Kshatrapathi Shivaji, IAS (MH:1986) hasNuclear been appointed as Director (Technical-LWR) of the Power as Executive Director, Asian Development Bank,the Manila Corporation of India Limited. He will be holding post vice Kumar, IAS (RJ:1983), a tenure of till theShri dateUmesh of his superannuation, or until for further orders. three years from the date of assumption of charge of the postSK or until orders, whichever Mr Jha further appointed Director (P is&earlier. M), MIDHANI The Appointments Committee of thebeen Cabinet (ACC) has Ms Arundhati Bhattacharya has nominated approved the proposal of the Department of Defence for the postforofappointment Managing of Director Chief Production Mr S K and Jha to the post of Operating Officer at the WorldinBank Director (Production & Marketing) Mishra Dhatu Nigam Limited (MIDHANI), for a COO period of five years. SBI Chief nominatedHyderabad for World Bank The UC Chairperson State BankDirector of India (Technical), Ms Arundhati Mr Muktibodhof appointed Bhattacharya has been nominated for the post of Managing NPCIL

Director and Chief Operating Officer at the World Bank, Distinguished Scientist UC Muktibodh has been according to reports. If she succeeds, Bhattacharya, appointed as Director (Technical) of the Nuclear Power 60, will be the first Indian to be holding an important Corporation of India Limited. managerial position in an international financial institution.

Mr Gangopadhyay selected as chairman Director of The Chinmoy closest was in 2001 when former deputy the Planning Commission Montek Singh Ahluwalia was (Project), PFC

appointedGangopadhyay as first directorhas of the independent evaluation Chinmoy been selected for the post office of the International Monetary Fund. of Director (Project) in the Power Finance Corporation Limited (PFC) by the Public Enterprises Selection Board Mulyani Indrawati, Finance Minister in July 2016 (PESB). The post of MD & COO fell vacant after Indonesian economist Mulyani returned to herofcountry as Arno Harris joins Indrawati Azure Power’s Board its Finance Minister in July 2016. Directors Azure Power, takes India’s leading solar NALCO power company, Mr B Samal charge of CVO, announced the appointment of Arno Harris, Former Mr Biswaranjan Samal, IAS (AM:92), has assumed the Founder, CEO and Chairman of Recurrent Energy, one charge of the Chief Vigilance of National Aluminium of North America’s leadingOfficer utility-scale solar project Company Limited. developers, as an independent director.

Mr Rajeev Sharma takes over as CMD, PFC Govt. announces several Additional SecretaryMr Rajeev Sharma has taken over the charge of Chairman level appointments and Managing Director of Power Finance Corporation Ltd. The Appointments of theonCabinet (ACC) Sharma succeeds MKCommittee Goel who retired September 30 has approved several Additional Secretary-level on attaining the age of superannuation. appointments, including that of Ms. Shalini Prasad as Additional Secretary, Ministry ofand Power. Sharma was the Chairman Managing

Ms. Prasad, an Indian Administrative ServiceLtd. (IAS) Director of Rural Electrification Corporation officer of the 1985 batch (Uttar Pradesh cadre), presently Prior joining PFC, Sharma wasNarain the Chairman in her to cadre, will succeed Mr. Badri Sharma, and IAS Managing Director of Rural Electrification Corporation Ltd. (RJ:1985) on his appointment as Additional Secretary, Under his dynamic leadership, Sharma helped REC scale Department of Revenue, Ministry of Finance. greater heights in excellence by doubling the revenue An press release said Sharma that Ms. Madhulikathe P and official profits in the last five years. is considered Sukul, IDAS (1982), presently in her cadre, has been architect of Government’s flagship schemes like DDUJY, appointed as Additional Secretary, Department of RGGVY and RAPDRP.

18 24

Consumer Affairs, Ministry of Consumer Affairs, Food Mr RK Sabharwal appointed Director and Public Distribution vice Mr. G. Gurucharan, IAS (Commercial), (KN:1982) on his EIL appointment as Secretary (Performance Management), Cabinet Secretariat. Mr RK Sabharwal, ED, EIL, has been appointed as Director

Mr. Rajani Ranjan Rashmi, (MN:1983), (Commercial), Engineers India IAS Limited (EIL). Additional Secretary, Department of Commerce, Ministry of Commerce and Bhalla Industry has been as Mr Ajay Kumar appointed newappointed DGFT Additional Secretary, Ministry of Environment, Forest Senior IAS officer Ajay Kumar Bhalla was appointed as the and Climate Change vice Mr. Hem Kumar Pande, IAS Director General of Foreign Trade (DGFT). Bhalla, a 1984 (WB:1982) on his appointment as Secretary, Department batch IAS Language, officer of Assam-Meghalaya of Official Ministry of Home cadre, Affairs.is presently additional secretary in the commerce ministry. He has Mr. Chandra IAS (GJ:1985), Additional beenGirish appointed to theMurmu, post in place of Anup Wadhawan, Secretary, Department of Expenditure, Ministry of who has been appointed as additional secretary in the Finance has been appointed as Additional Secretary, commerce ministry, an order issued by Department of Department of Financial Services, Ministry of Finance Personnel and Training said. vice Ms. Snehlata Shrivastava, IAS (MP:1982) on her appointment as Secretary, Department of Justice, Mr Subash Chnadra Khuntia appointed Karnataka Ministry of Law and Justice.

Chief Secretary

Ms. Amita Prasad, IAS (KN:1985), Joint Secretary, Karnatakaof government announced the appointment Ministry Water Resources, River Development and of senior IAS officer has Subhash as the Ganga Rejuvenation been Chandra appointedKhuntia as Additional Secretary, Ministry of Environment, and state’s Chief Secretary, effective fromForest October 1. Climate Khuntia Change vice Arvind Mr. Susheel on will succeed Jadhav,Kumar, who willIASbe(UP:1982) retiring from his appointment as Secretary (Border Management), service on superannuation, a government notification Ministry of Home Affairs. said. A 1981-batch officer, Khuntia has been appointed on repatriation from central Mr. Nikhilesh Jha, IAS deputation. (MN:1984), Additional Secretary, Ministry of Water Resources, River Development and Anjali Bansal, Vibhahas Padalkar, and Sanjay Ganga Rejuvenation been appointed as Additional Bhandarkar Power appoints three of Food and Secretary andTata Financial Adviser, Department Public Distribution, Ministry of Board Consumer Affairs, Food Independent Directors to its and Public Distribution vice Mr. Prabhas Kumar Jha, IAS Tata Power,onIndia’s largest integrated power Ministry company, (UP:1982) his appointment as Secretary, of announced the appointment of Anjali Bansal, Vibha Parliamentary Affairs. Padalkar, and Sanjay Bhandarkar as Independent Directors Mr. U P Singh, IAS (OR:1985), Additional Secretary, on the Board of the Company, effective from October 14, Ministry of Petroleum and Natural Gas as Additional 2016. The appointments of Independent Directors are in Secretary, Ministry of Water Resources, River Development terms of Regulation 30 of the SEBI (Listing Obligations and and Ganga Rejuvenation vice Mr. Nikhilesh Jha. Disclosure Requirements) Regulations, 2015.

Mr Ameising Luikham gets additional charge of VACANCIES

Secretary of Heavy Industries for one month Bureau of Energy Efficiency The Competent Authority has approved the assignment Post: Secretary of additional charge of the post of Secretary, Department

Bureau EnergyMinistry Efficiency (BEE) Industries is a statutory body of HeavyofIndustry, of Heavy and Public under the Ministry Power has invited applications from Enterprises to Mr ofAmeising Luikham, lAS (MN:1981), the officers Department of Central or of State Governments holding a post Secretary, Public Enterprises, Ministry of not below the rank of Deputy Secretary to from the Government Heavy Industriesand Public Enterprises 31.10.2016 of India in theduring parentthe cadre forofthe post ofonSecretary in to 08.11.2016 period absence leave of Mr Bureau of Energy Efficiency on deputation basis Girish Shankar, lAS (SH:1982).

June2016 2016 November

leading electrical and electronics monthly

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Cover Story Electrical Equipment Industry - Half Yearly Industry Review - FY15-16

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CoverStory

(From L to R) Mr Sunil Misra, Director General, IEEMA, Shri Anshu Prakash, Additional Secretary, Department of Heavy Industries, Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New Renewable Energy and Mines, Mr Sanjeev Sardana, President, IEEMA, Mr Babu Babel, Outgoing President, IEEMA, Mr Vijay Karia, Chairman, Organising Committee, ELECRAMA-2018 and Ms Indra Prem Menon, Vice President, IEEMA lighting the inaugural lamp of IEEMA annual convention 2016.

IEEMA Annual Convention 2016 & 69th AGM Electrifying Prosperity

ith Electrifying Prosperity being the theme of IEEMA’s Annual Convention 2016 held on September 30, 2016 at hotel ITC Maratha in Mumbai, the subject was highly appreciated by the dignitaries and industry leaders present on the occasion. The convention was followed by the 69th Annual General Meeting of IEEMA where the newly elected President of IEEMA Mr Sanjeev Sardana took over the post.

IEEMA Annual Convention

four recommendations. I am very pleased to inform you Mr. Minister and my fellow members that all the 4 recommendations are now being accepted by the Government in form of announced policy - In the shape of National Capital Goods Policy and an advisory of CEA. The industry is very thankful to have its voice heard and action taken. The CEA advisory to all Central and State Utilities says that in domestically funded projects, procurement of equipment and material should be from domestic (local) manufacturers through local competitive bidding and if at all ICB is to be resorted to, the quoted price should invariably be in INR.”

The annual convention was inaugurated by Union Minister of State for Power, Coal, New and Renewable Energy and Mines (Independent Charge) Shri Piyush Goyal. The Annual Convention was attended by more 300 delegates from across the Industry. Mr Babu Babel President, IEEMA gave the welcome speech where he mentioned that, he said, “Sir, we at IEEMA are delighted to have you again with us after you had inaugurated ELECRAMA at Bengaluru in February this year. We had a four point agenda, which we had presented to you at the Vigyan Bhawan at the launch of Make in India programme in September 2014. I recall you and the present ( From L to R) Shri Anshu Prakash, Additional Secretary, Department of Heavy Industries, cabinet secretary Shri P K Sinha Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New Renewable Energy and Mines, in principle had agreed to all the Mr Babu Babel, Outgoing President, IEEMA and Mr Sanjeev Sardana, President, IEEMA

November 2016

CoverStory

He further stated, “Under the National Capital Goods Policy, our recommendations accepted are: Procurement of electrical equipment under local competitive bidding and not under Internationally Competitive Bidding in domestically funded projects. Follow two-part bidding process / e-tendering hh Mandate testing of foreign equipment by CPRI and ERDA hh Foster collaborative R&D with application across the sector. hh Extend Phased Manufacturing Programme for another 3 years hh Cover higher percentage of incentives to electrical and mechanical power generation equipment under Merchandise Exports from India Scheme. hh Upgrade testing and calibrating infrastructure in the country. “We now seek your push in having this policy and CEA advisory formalized for implementation. Sir, your initiative to provide the country with economies of scale, better specifications and transparent procurement, is something which we support whole heartedly, and are available for any and all of your initiatives that will bring us closer in making 24 x 7 electricity for all a reality soon,” he opined. Union Minister of State for Power, Coal, New and Renewable Energy and Mines (Independent Charge) Shri Piyush Goyal addressed the industry on the occasion he said, “I had a number of occasions to interact with all of you. We have seen the sector come a long way in the last few years and in that I won’t talk of 2 years or 3 years I will say a number of years. Industry has moved on, the Indian industry has demonstrated its prowess, the Indian industry has shown our ability to innovate, to keep up with times. But I still think there is a huge possibility going forward to pick up bigger and bigger challenges of innovation because ultimately our future is going to be defined by the levels of innovation, by the way we think it to the future and by the way we prepare ourselves to

address the challenges from around the world. And those challenges are not small and simple, the challenges are, in fact, quite deep. For example, if one was to see the import basket of India and on more occasions than one I have discussed with several participants, in my sectors at least in Power, Coal, now mining that India will have to plan to become self-sufficient, India will have to stand on its own feet and fight the competition on economic terms, on fair terms and win the battle. But we will have to look for a future where we are not import dependent on any product whatsoever and it’s not only about my Swadeshi moorings and I am very proud about my Swadeshi moorings, let there be no doubt about it. It’s not only because I come from an ideology which believes that self sufficiency, self-reliance and the ability to take care of ourself, while in a globalised world we should engage with the world but that engagement should be on our terms not on somebody else’s terms. But going beyond that I also believe it’s a part of our overall security of the nation, energy security or for that matter equipment security is an integral part of our national security.” “Many of you, particularly, those who remember the earlier wars that India has fought and I am using that example in the context of the decisive action that we all just now applauded that happened barely 24 hours back. At one stage, our Indian army at the border was standing helpless because some country in the world decided not to give us the ammunition that the army needed at that critical juncture. And that’s an example none of us should ever forget. The fact that at any critical juncture if India becomes so dependent on any other country or any foreign power.” He further said, “I mean as I was reading the news yesterday and when this news came in I was 70 kms from the border of Pakistan, I was at Salaan, one of the hydro power projects of NHPC when the first news trickled in, and they were actually at that point telling me this Chenab river goes from here, at 70 kms away it enters the Pakistan territory. The point I wanted to make was, at that point of time, the first thought that came to my mind was we

Industry leaders present at IEEMA annual convention 2016

November 2016

CoverStory

Shri Anshu Prakash, Additional Secretary, Department of Heavy Industries, Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New Renewable Energy and Mines, with IEEMA Executive Council members for 2016-17

all know that we have inimical neighbors in and around our country and we also all know and recognize that a lot of equipment has come from a neighbouring country where tomorrow if we were to be dependent on spares, dependent on equipment to be supplied by companies from there, at any critical juncture, let’s say our industry, our power sector, our energy sector was to get crippled for lack of adequate spares or adequate equipment, are we as a nation prepared to handle that situation? And one of these things today security, national security is defined also by our cyber security, also by our energy security, also by our food security.” “National security is not in isolation of these other elements of human existence or human demand and, therefore, when we look at the import basket coming into this country and you still find $10 billion of electrical or electronic goods getting imported it’s a matter of deep concern. And if I may even venture to add, a matter of shame for all of us. I include myself, I am equally culpable and responsible for not having been able to, as yet, address this very serious issue. In fact, I am quite confident and hopeful that at least on the thermal coal side we will gradually come out of the import syndrome. We may need that, in fact, I requested BHEL and I hope Anshul ji (Mr Anshu Prakash, Additional Secretary, Department of Heavy Industries) will take this to BHEL, to see how we can re-design some of the boilers or thermal power plant equipment to have a larger intake of our high

fly ash coal rather than being dependent on maybe better or cleaner coal coming in from abroad for which these equipment were designed at one point of time when India never had the confidence that it could ever become selfsufficient in coal. It’s an unfortunate situation that rather than trying to address the problem of coal and having sufficient production or output of coal our solution was to design the equipment based on imported coal. It’s an unfortunate thinking. But I hope that going forward, we as a nation can define and determine, and decide, that we will plan our nation’s future, we will plan our equipment design, our equipment availability, our technology, our innovation, allow it becoming self-sufficient, becoming self-reliant. We should become the laboratory of the world on innovation and we should be taking our products to the rest of the world with cost-effective solutions.” “In fact, I was delighted when I saw the two MoUs that you are entering into. The one with NTPI on skill development clearly demonstrates that you recognize that skilling the Indian people to participate in the electrical and electronic sector is going to be very important if you are going to expand the frontiers of our production capability, our delivery capability, our capability to serve a billion people in the country with more and more modern outputs, modern gadgets. At the same time your other agreement with the… is equally gratifying. In fact, I didn’t even know a body like that exists; and for 90 years. Does that report to you Anshul ji, the body that has signed the

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MoU, CIBP, Is it my sector? It’s something like when I became a minister for the first three-four months I didn’t even know the Bureau of Energy Efficiency is under me. It’s only when a cabinet note came to me after that I first came to know that it comes under me, then we started looking at it and came up with EESL and you know what the story is after that. I didn’t even know nobody has ever met me from this. Centre for Irrigation and Power. Are you sure it’s under me or it’s under Water Resources? Whose under this come? So it’s with Water Resources now? No wonder I thought, because I am not that bad that if somebody is reporting to me and I don’t know.”

“I don’t know if I mentioned it at any of my earlier engagements with you but in one of the first few meetings that I had with the Prime Minister when I became the minister his direction to me was that India should start leading the world and stop only following the world. If there is a good idea it’s not that we have to be isolationist and say no now we will not follow any good idea from anywhere in the world. That is not what I am trying to suggest. But can we not start thinking how we will lead the path to the world, how we will come up with innovation or technology which is two steps ahead of what the world could think of.”

“But it’s good to see that the industry is willing to associate and engage with CBIP to see how we can collaborate and work together to look at new technologies coming up, new ideas getting firmed up. In fact, convergence of digital technology and lighting technology, to my mind, is going to be the way forward. I was reading somewhere about the next stage of Wi-Fi being Li-Fi, something to do with the Light Emitting Diodes being used also for transferring maybe mobile telephony or data and stuff like that. And I am given to understand that that can have ramifications in terms of the ability to transmit large amounts of date or large number of calls much much larger, transformationally bigger than what is being done at present. That is the kind of leapfrogging of technology that we in India should focus our energies on.”

“After all, we today, all of us, represent the world’s largest energy market, the largest market for energy equipment, the largest market of a nation which is hungry for development, aspiring for a better quality of life. And in that situation, it’s really at that cusp where if we look at newer technologies defining our future we can actually bring up cost-effective solutions and prepare ourselves for a brighter and better, more energized tomorrow.”

November 2016

“In fact, just as I was walking in when Babu Babel and your team talked about the motor which he also mentioned from the podium and my only question to him was are you asking for a subsidy or is it self-financing. Because I mentioned it before a subsidy can only be a restraint, can only be a restricting factor to any good program, whereas an economically viable solution will have no limits to its

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ability to grow and expand and be used just like our LED program. If it had been backed on subsidies we could never had achieved what we have with the support of all of you. Similarly, the motors, as he has pointed out to me, has the ability to almost give a one year, one and a half year payback. And maybe the economies of scale come in and as it becomes more competitive and is used in larger scale he says it could be even less than a year.” “Now this is the kind of ideas that excite me, that really make me feel that IEEMA is truly concerned with national good, concerned with the future of the energy sector in India. I compliment all of you. Please do let me know what the government needs to do as to create an enabling environment and I will be delighted at least as far as all the companies under me and we have some 35-40-50 companies which work directly under me. We will be delighted to look at a mass scale replacement of motors across the sectors; coal, power, renewable energy, whatever. In fact, that reminds me only yesterday at Salaal, the hydro power station, it’s about 30-35 years old. The control room of that station was half the size of this room, whereas a modern day new control room in a new plant is what, a 10 by 10 or 10 by 20 sq ft room. So when I visited Salal, two or three things came to my mind and I am just sharing it with you to reflect the changed thinking of the government of India and the Prime Minister Narendra Modi. The first thing that struck me as I was driving down towards Salal was the problem of silting, as we were driving down towards the power house I saw a large quantities of silt deposited on the plains on the side of the flowing river. So I said what are we doing to dispose off this silt. And they said no this is a 35-year old plant, it was designed on some American technology which never planned for de-silting or segregating the silt. And, therefore, from a reservoir of 22 kms then, the current reservoir is reduced to 2.5 kms over 35 years or 30 years. I was absolutely amazed and I had just visited Naptha Jhakri in Himachal Pradesh with the Prime Minister of Nepal a couple of weeks ago where we created, it’s a modern relatively newer hydro power plant.”

Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New Renewable Energy and Mines with Mr Sanjeev Sardana, President, IEEMA

“They have created an entire set up which segregates the silt before the water goes through the turbines and

flushes out the silt through a side pipe into the river after the power generating units. So even though we do not damage the ecology the slit goes back into the river and then flows along with the river water, whereas here we have allowed the slit to deposit over 30 odd years. So my first question to them was why don’t we immediately look at some solution, dredge the whole reservoir, look at a continuous dredging so that for the long haul this plant can continue to serve the nation and then I talked to the District Collector to see how that silt, whether it could be used for construction activity, build roads, to build newer infrastructure in the state and then maybe some of it could go back into the river post the power plant. Then I also recognize that India has a problem today to set up new hydro power plants – land acquisition, rehabilitation, the gestation period, the cost – all of these things are challenges for the hydro sector. So I said why don’t you try and see, it’s a 30- year old plant, if some new technologies can help us upgrade this plant and instead of 6x215 MW each, can we look at replacing them with higher capacity equipment, more modern equipment, something which can even expand the output, maybe 20%, 50%, maybe 100%, I don’t know, I am not a technical person in any case. But can we think like that. So that existing assets can be put to better use. Of course, infact the answer was, no no that depends on the head at the reservoir. I said fine maybe at one point of time there was a design

Ms Indra Prem Menon, Vice President, IEEMA with outgoing President Mr Babu Babel

Mr Sanjeev Sardana, President, IEEMA with Mr Harish Agarwal, Vice President, IEEMA

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( From L to R) Mr RK Chugh, VP & Head Smart Grid DivisionSouth Asia, Infrastructure & Cities Sector, Siemens Ltd with Mr R Krishna Kumar, Siemens Ltd

( From L to R) Mr Jeetendra Agarwal, Jt. Managing Director, Genus Power Infrastructures Ltd, Ms Indra Prem Menon and Mr Harish Agarwal

which restricted or determined this capacity. Let’s explore in Canada, in Australia, in America, wherever, Brazil, can we look at any new technologies which can help us, does this equipment need refurbishing or replacement and can, after all power from that plant, ladies and gentlemen, was at 94 paisa per unit. Because there is a Rs 1.25- 1.24 state government cess but that’s fine, government needs that cess to develop Jammu & Kashmir which is a very important part of India. But at 94 paisa per unit if we can expand power generation from that plant, would you not agree that would be true national service for the country. And then, of course, many other elements came out as we discussed - could we look at reducing the manpower, in fact, 900 people working there, can we relocate some of them to other plants because, to my mind, hydro plant doesn’t require 900 people in a 690 or whatever MW project. Can we look at expanding the tourism frontiers of that area?

see if Direct Current (DC) transmission into homes can be looked at as an alternative in the long run to cut down on transmission and distribution losses also to ensure that in the eventuality of any blackout also we can give at least enough power to run the lighting and basic needs through a brown out instead of a black out and we are investing nearly Rs 80 crores in that research program.

“The important thing which I am trying to convey is think out of the box and think beyond, that is the humble message that I wanted to share with all of you. The potential going forward is huge, we are looking at innovative and new ideas going forward. I don’t know if any of you are aware we have an experiment going on in Bodhgaya, also in one of the villages in Rajasthan to

“When Professor Jhunjhunwala gave me that concept on a flight from Delhi to Mumbai or Mumbai to Delhi rather, I said I would love to experiment on that and, by the way, that was just when I had become a minister so my mindset also at that time was one of shortages. It’s only now that when I see what we have done and what the regulations in India are I realized that literally everything we have done in the past and all our laws and regulations were of a mindset of shortages, probably, time to even look at now new paradigm of working where we will have to start planning for surpluses rather than shortages. And I am sure that’s a more delightful scenario to work in. Nobody, none of us wants to work or live in a country where you don’t know whether we have enough power to get 24x7 power for our homes, for the schools, hospitals, for our businesses. And it happens, you know, in power ministry, for example, we are all the time planning regulation around allocation of power and now they are getting used to the idea or the concept that hey there is no allocation, nobody wants your power, now plan how you are going to sell your power. Same thing is happening with coal. After two years of high growth today I am unable to grow because I am not able to get enough market for my coal even after meeting the expanded demand based on the usual growth trajectory.

(From L to R) Mr Ramesh Chandak, Past President, IEEMA, Mr Chaitanya Desai, MD, Apar Industries Ltd, Mr SC Bhargava, Sr. Vice President (Electrical & Automation), L&T, Mr Sanjeev Sharma, ABB

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“Now these are programs, look at our thrust that Mr Anshu Prasad and his team are working on, Mr Anshul Prakash’s Ministry is looking after the promotion of electric vehicles in the country, to my mind, that is going to be the single most transformational story in the mobility sector in the days and years to come. Can India leapfrog that and become the capital of the world for electrical vehicles

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(From L to R) Ms Indra Prem Menon, Mr SC Bhargava, Sr. Vice President (Electrical & Automation), L&T, Mr Sanjeev Sharma, ABB, Shri Anshu Prakash, Additional Secretary, Department of Heavy Industries, Mr Babu Babel and Mr Sanjeev Sardana

particularly since India’s demand is still a new demand. Our billion people still don’t own their own vehicles but as prosperity grows, as the economy improves we will have a more and more aspirational middle class looking to buy new vehicles, maybe initially a two-wheeler as the incomes improve a four-wheeler, maybe at some stage an SUV or a sedan. Simultaneously, we have electric buses as a potential going forward to bring down not only our dependence on oil imports but also the high degree of pollution. Now, other countries, particularly, the developed countries will have to replace their petroleumdriven cars with electric cars whereas we can make the first car or the first scooter or the first motorcycle owned by a person as an electric vehicle. Now imagine the huge opportunities that opens up for you, huge opportunities that it opens up for electric equipment for batteries, for newer designs of automotive components, motors. Now should we just follow the world and keep tom-toming what one company in California is doing or can we

create 50 companies in India which are better than that. That is the choice we as a nation have to make. And to my mind, there is nothing restricting this growth of this industry except our own limitations of our own thinking. After all, the two or three requirements that this sector has, to my mind, would be adequate availability of power and we in India have sufficient generating capacity today that we can even double our generation of power based on whatever capacity is on-ground, based on the plants which are in the pipeline and the huge amount of renewable energy plants that we are planning to set up. Just these three put together working at optimal capacity can help us double our power generation from a trillion units to two trillion units. “I don’t know if any of you have even bothered to find out that the government of India in the last budget, Finance Minister Mr Jaitley has created a special dispensation, a special window to encourage research and development

(From R to L) Shri Bipin Shrimali, IAS, Principal Secretary (Energy), Maharashtra and Chairman and Managing Director, MSPGCL with Shri Anshu Prakash, Additional Secretary, Department of Heavy Industries,

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and patents being registered in India. So now any patent which is registered in India, which comes out of R&D in India the tax on that on worldwide income is at 10%. So if all of us were to look at what we can introduce new in this business and there are so many things, the other day somebody came to me with a technology, I don’t know, I have not yet studied it fully. The Uniper power station in UK where a thermal power plant can be ramped up and down in one hour, now we have been struggling with as we expand our renewable energy, we have been struggling with peaking power and peaking loads and how we balance the grid and manage the grid frequency. But if this technology works or if some of you can come up with such a technology and my thermal plants can become peaking reserves or peaking plants I am sorted as I expand my renewable energy in India.” “When the desperation or the fears of the grid stability significantly get sorted out or resolved. And India has the capability, it’s not as if we don’t have the capability, after all, with the support of all of you and, in fact, if at all there is an example of public-private partnership and collaboration, the PGCIL effort in the 1200 KV substation, the HVDC substation. It’s truly an example of publicprivate partnership that PGCIL worked with BHEL, another wonderful company that the nation is very proud of with Crompton Greaves, with ADB, Toshiba, Siemens, number of companies, Indian, international, government, private; everybody worked in together. And I believe 1200 KV HVDC system is not common even internationally I think they went up to 1100 KV probably. That is what India should aspire for, that is what we need to do in India. Something significantly different, something new, something going beyond the frontiers of knowledge that exist in the world and as we develop these systems let’s also expand our frontiers internationally.” “ In fact, IEEMA I must compliment you for the effort you said you are doing in the states but now plan going internationally. Why should you not have your people and the government is willing to support you, tell me what you need from my Ministry, tell me what you need from the Ministry of External Affairs, ask me from our support from our trade missions internationally, tell me what EXIM bank can do for you, tell me if EXIM and the companies with me REC, PFC and IREDA can together do to support you to export your new technologies and new products to the world. Tell me how we can bring down this $10 billion imports, I am not asking for an overnight tomorrow that it should be zero but let’s have a trajectory, let’s have a plan, let’s study what are the products that are being imported, what you need from us to help you become competitive in that, what you are going to do as a group, one of my first requests when I took over the mines was to bring out the list of products that India imports, the mineral products because that will be my first focus area. Anything that India imports we have got to stop that import, if it is available in India, let’s try and find where it is available in India. So for you a twin track, what is being imported, how we can do an import substitution of that and what the world needs, how

November 2016

Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New Renewable Energy and Mines, addressing the delegates present at IEEMA annual Convention 2016

can we be export-competitive in that. This twin track and frankly over the years of this so called globalised world or global engagement, people have forgotten the word ‘import substitution’. I remember when I was young that used to be the buzzword of those times. An import substitution product was given a special importance. An import substitution company will get special licenses. To my mind, that’s equally relevant today. So a combination of import substitution and export competitiveness if we as a team between the private sector, public companies and the government of India and in the government of India include not necessarily only my ministry.” “And I have said this to you before, if I recall, this government does not work in silos. We walk up to each other to sort out issues. We talk to each other on mobile, we don’t wait for file movement to resolve issues. So if a product needs protection we can even discuss and sort it out over the phone with the honorable Finance Minister. If commerce needs something to be done from my Ministry, Mrs Nirmala Sitaraman doesn’t have to send me a letter or create a file Secretary to Secretary. The Secretaries talk on the phone, the Ministries talk on the phone and I have no hesitation if I have to talk to an Under Secretary also in a ministry to get anything resolved. There is no barrier. And I would urge all of you to use this opportunity, use this window of engagement with the government and between all of us to see what we can do faster and bigger. And I have no doubt in my mind that if we are looking to create a brighter and better future what we need in the present is more creativity and that creativity, ladies and gentlemen, is there amongst all of you, it’s there within all of you, we only need to foster that creativity, we only need to get that creativity out in the open, we only need to encourage our young engineers, many of them hidden stars we don’t even recognize.” “Let’s look at encouraging innovation in a big way, let’s look at becoming the harbingers of change not only for national needs but for the international world. I am delighted you have your next program coming up in Noida, ELECRAMA 2018. I am also delighted to support you to make that a grand success. Of course, I still hold

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my request I am not calling it a grouse as yet the promise that Mr Karia and you had made about helping us create a permanent Convention centre, somewhere where land could be available and we could work together and not be dependent on the crutches of government but look at how and I had suggested maybe FICCI, CII, ASOCHAM, PHD, ELECRAMA; all of you could get together and look at creating something which is of international scale.” “I agree with you when you mentioned to me outside that we want to take ELECRAMA 2018 to the level of an international conference never seen before. I know that when you do any of this, you will land up spending 100-200 crores probably if you are going to that level, on creating and dismantling the superstructure for that. Maybe when all of us put our heads together and my government companies will equally participate in any such endeavor. Let’s together and collectively see if we can create another Pragati Maidan somewhere or we can create another large huge facility which can rival the best in the world in terms of technology, in terms of facilities, in terms of planning well, planning right down to the last detail of pedestrians, of car parking, of the Divyangs go into that detail which certainly the private sector can do very well and efficiently.” “So my good wishes to ELECRAMA 2018, I do hope you can, we have enough time, we have 18 months, I do hope you can dovetail that with my expectation from you both on the facility front but also on the innovation front and we can have in that ELECRAMA 2018 a pavilion or a huge showcase of Indian strengths in innovation and technology. I wish IEEMA well, I wish Sanjeev Sardana glorious year in this service of the electrical and electronic industry and I wish all of you well in your business in the days and years to come.”

IEEMA signs MoUs with CBIP, NTPI and PSSC Indian Electrical & Electronics Manufacturers’ Association (IEEMA) signs Memorandum of Association with Central Board of Irrigation and Power (CBIP), Power Sector Skill Council (PSSC) and National Power Training Institute (NPTI) to deal comprehensively on the issues of skill development and integrated training in the Indian power sector during IEEMA Annual convention 2016. The MoUs

Signing of MoU between IEEMA, NPTI and PSSC: ( From L to R) Mr Sunil Misra, Director General, IEEMA with Prof (Dr.) Rajendra Kumar Pandey, Director General, NPTI and Mr Vinod Bihari, CEO, PSSC

were signed by Mr Sunil Misra, Director General, IEEMA, Mr VK Kanjlia, Secretary, CBIP, Prof (Dr.) Rajendra Kumar Pandey, Director General, NPTI and Mr Vinod Bihari, CEO, PSSC in the presence of Hon’ble Minister for Power, Coal, New & Renewable Energy and Mines Shri Piyush Goyal. Currently the Power Industry in India is facing a major problem in getting skilled and employable manpower which is technically competent and ready to be deployed. The industry thrives with ad-hoc sourcing of manpower and ad hoc training techniques. It is estimated that only 3%-5% of the total blue collared workforce employed by the sector has some formal training or are certified. Keeping in mind these concerns of the industry IEEMA is entering into an agreement with these parties. The skill gap is widening every year and impacting critical functions and quality of output. The shortage of skilled workforce may adversely impact the growth of this industry as the current sources of training are not scalable as per the required manpower. Mr Babu Babel, President, IEEMA opined, “There is an urgent need to identify the gaps, asses the demand, build skilled workforce in millions for which all the Stakeholders need to work collectively to enlarge the pool of skilled workforce. The MoU aims at providing scope for widespread collaboration between NTPI, PSSC and IEEMA in the matters of developing National Occupation Standards and Mr Babu Babel addressing conducting training programs the delegates in Indian Power Sector. While IEEMA and CBIP will work together in the area of Power Sector Research with special reference to Electrical Equipment and Utilities.” On signing the MoUs IEEMA Director General Mr Sunil Misra said, “The primary objective of signing a MoU with CBIP, NPTI and PSSC is to address the emergent needs of efficient power sector manpower requirements which can

Signing of MoU between IEEMA and CBIP: Mr Sunil Misra with Mr VK Kanjlia, Secretary, CBIP

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deliver the best to present requirements of Electrical and Electronics Manufacturing Industries of India to compete globally. The MoU will result in large scale skilling as IEEMA represents nearly 800 Member manufacturing organisations with huge no of existing employees, and furtherance of skilling with upcoming technological changes in industries to beat globally for getting order and contribute to national development effectively. Time and again, need is felt to make assessment of equipment in field conditions, their maintenance status in relation to failure rate. A case in point is distribution transformers and there could be many more such areas of collaborative research. This MoU between CBIP & IEEMA will bring together complementary strength of both the organisations to synergize for useful outcome.”

Ieema ‘Urja Navachar Puruskar’

Shri Piyush Goyal felicititating Ms Usha Kunwar of Rajasthan with the newly instituted IEEMA Urja Navachar Puraskar for eliminating power theft in Silhegarh Panchayat area of her state.

IEEMA is concerned about the power theft issue prevailing in the country which amounts to the losses of approximately Rs 1 Lakh crore. IEEMA believes that if this menace is addressed, all reforms and programmes will be negated. Taking this philosophy forward IEEMA

has instituted ‘IEEMA URJA NAVACHAR PURUSKAR’ and the newly instituted award has been conferred to Ms Usha Kunwar the sarparch of village Silhegarh, District Jhalawar from the state of Rajasthan and is widely acknowledged as the person who has single handedly turned around the state of sanitation and contributed significantly towards eliminating power theft in her village.

Smt Kunwar assumed responsibilities as Sarpanch of Silhegarh village in January 2015 and has since then, relentlessly committed herself to improving the conditions of sanitation and addressing the very high rate of power theft in her village. She was successful in overcoming the initial opposition from the community through tactful public awareness campaigns and achieving unanimous social opinion on these issues. In a short span of two years, Smt. Usha Kunwar has achieved what is considered, in many circles as difficult to attain. She has been instrumental in building over 1300 toilets and the village is on its way to be declared “Open defecation free”. She has also ensured through public awareness that no court cases of her village are pending in the SDM Court under the “Nyay Apke Dwaar” campaign of the Government of Rajasthan. Her village had a record power theft of 39% in 2015. Her dedication to the cause, supported by the Jaipur Vidyut Vitran Nigam Limited (JVVNL) and her husband has now ensured that village is completely electrified with legal connections and there are no instances of power theft through ‘katiya’. JVVNL has in turn improved the power supply to the village and is getting enhanced revenue.

Shri Piyush Goyal interacting with the industry during convention

Mr Vijay Karia, Chairman, Organising Committee, ELECRAMA-2018 making presentation on EL-18

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69th Annual General Meeting The 69th Annual General Meeting of the Indian Electrical and Electronics Manufacturersâ&#x20AC;&#x2122; Association started with a two minute silence on the sad demise of Mr KK Bhandari and Mr NC Nayak. The outgoing President Mr Babu Babel chaired the business session. He informed the council members that, the last 11 months have been significant with several new developments defining the power sector of the country. I would like to summarize a few of successes during my tenure as President of IEEMA. Last year saw 42 new members join the IEEMA family. IEEMA welcomes them and is now proud to have 770 members

on account of 68 members being terminated. It has always been our focus to meet the diverse needs of our members and to create sustainable value for them. He also gave the details of the various events and meetings which occurred during his tenure. In order to celebrate a prolonged association with our members IEEMA facilitated two members namely M/s. Otis Elevators Company (India) Limited and M/s GE T&D India Limited (earlier Alstom T&D India Ltd). â&#x2013;Ş - Shalini Singh, IEEMA

Mr Sunil Misra felcitating outgoing President Mr Babu Babel with portrait and a coffee table book

M/s. Otis Elevators Company (India) Limited being facilitated for completing its 50 years association with IEEMA

Ms Suja Varghese being fecilitated for completing 25 years of service in IEEMA

Posing for shutterbug: IEEMA Secretariat with Outgoing President, Mr Babu Babel during the closing of IEEMA annual convention and 69th AGM

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DistribuELEC

INTELECT2017

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DistribuELEC

INTELECT2017

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SpecialReport

he Indian electrical equipment industry comprises of two broad segments – generation equipment (boilers, turbines, generators) and transmission & distribution (T&D) and allied equipment like transformers, cables, transmission lines, switchgears, capacitors, energy meters, instrument transformers, surge arrestors, stamping and lamination, insulators, insulating material, industrial electronics, indicating instruments, winding wires, etc. The generation equipment sector stands for around 28 per cent while the T&D equipment sector accounts for close to 72 per cent of the total industry size. Power sector boasts of a diversified, matured and strong manufacturing base backed by a robust supply chain. Rugged performance design of equipment to meet tough network demand and presence of major foreign players, either directly or through technical collaborations with Indian manufacturers is a testimony of unique advantages India holds in this sector. Growth in power sector has increased and decreased intermittently over last decade. Recently, it declined in 2015- 16 from 8.43% (in 2014- 15) to 5.64%; however, growth has been constant. Further, power generation has kept pace with increasing demand to significant extent. Power Generation

(Billion Units)

1400.00 1200.00 1000.00 800.00

771.55

811.14

2009- 10

2010- 11

876.89

912.06

2011- 12

2012- 13

967.15

1048.67

1107.82

600.00 400.00 200.00 0.00

2013- 14

2014- 15

2015- 16

Power supply position has also remained robust, lowering the deficit to about (negative) 0.7% in current fiscal year. Until 2015- 16 it was about (negative) 3.2%. This growth has been supported well by Indian electrical equipment industry. However, its own growth has remained affected due to significant imports, which have increased over years. About 20- 30% of Indian industry’s capacities are idle; underutilization of capacities is a direct impact of imports. In fact to keep up with current capacity utilization Indian industry has increased its exports albeit insufficient exports’ incentives. Indian ~ Imports & Exports

(Rs. Crores)

80,000 70,000 60,000

53986

50,000 40,000

38500

30,000 20,000 10,000 2007- 08

2008- 09

2009- 10

2010- 11

2011- 12

Imports

2012- 13

2013- 14

2014- 15

2015- 16

Exports

Imports have though decreased, the quantum is still high. Major imports have been from China and EU; about 20% of total imports are from China alone. Chinese Govt. has been providing significant subsidies to its manufacturing industry along with exports benefits to boost exports. Subsidies offered by Govt. have allowed Chinese manufacturers to keep cost of production quiet low. At the same time China prices have remained low due to low wages, cluster manufacturing, undervalued currency, Low environmental, health & safety measures, FDI, etc.

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Decline in imports have created an optimistic scenario though; moreover so, because of domestic and international reforms being made by the Govt. in recent past.

China Price Drivers Parameter Wages Subsidies Clustering

% 35% 18% 18% 12% 4% 5% 8%

Undervalued Currency FDI Low Environmental, Health & Safety Measures Other Factors

Industry Performance In order to assess and study the growth achieved by Electrical & Industrial Electronics industry in FY16 as compared to FY15, performances of certain companies were considered.

Some of the Leading Companies in Electrical & Industrial Electronics Industry (Rs. Lakhs) Year Ended

Sales

Total Income

Operating Profit/ Loss

Ratio to Sales

dec,15

8,14,027

8,15,331

72,554

9,116

1.12%

15,979

47,459

5.83%

dec,14

7,73,327

7,75,055

57,297

10,495

1.36%

11,281

35,521

4.59%

Mar,16

5,00,995

5,01,272

41,039

15,979

3.19%

3,769

21,291

4.25%

Mar,15

5,01,097

5,01,934

24,936

15,009

3.00%

3,104

6,823

1.36%

Alstom T&D India Ltd

Mar,16

3,41,961

3,45,031

26,922

6,162

1.80%

8,573

12,187

3.56%

Mar,15

3,71,072

3,72,210

32,541

7,337

1.98%

8,186

17,018

4.59%

Ashoka Buidcon Ltd

Mar,16

1,93,583

2,02,458

34,451

18%

5,583

2.88%

6,485

22,384

11.56%

Mar,15

1,96,666

2,02,513

30,822

16%

5,902

3.00%

5,535

19,384

9.86%

Companies ABB Ltd APAR Industries Ltd

Bajaj Electricals Ltd Bharat Heavy Electricals Ltd Bharat Bijlee Ltd ECE Industries Ltd EMCO Ltd (4 Subsidiaries) Havells India Ltd Salzer Electronics Ltd Larsen And Turbo Ltd Siemens Ltd Finolex Cables Ltd KEI Industries Ltd Modison Metals Ltd

Finance Cost

Ratio to Depreciation Sales

PBT

Ratio to Sales

Mar,16

4,59,174

4,63,480

28,223

10,140

2.21%

2,724

15,358

3.34%

Mar,15

4,25,811

4,28,240

11,329

10,508

2.47%

2,903

-2,082

-0.49%

Mar,16

27,08,007

25,62,999

-51,425

-2%

2,682

0.10%

93,564

-1,47,671

-5.45%

Mar,15

30,18,298

31,40,343

3,30,898

11%

9,165

0.30%

1,07,732

2,14,001

7.09%

Mar,16

63,951

66,044

3,818

2,056

3.21%

1,027

735

1.15%

Mar,15

61,089

62,097

-254

1,995

3.27%

1,194

-3,443

-5.64%

Mar,16

15,530

17,989

353

197

1.27%

216

-60

-0.39%

Mar,15

17,883

18,916

528

216

1.21%

264

0.27%

Mar,16

83,799

83,858

6,523

8,231

9.82%

1,964

-3,671

-4.38%

Mar,15

91,223

91,243

9,254

10%

6,688

7.33%

1,959

607

0.67%

Mar,16

5,43,688

5,70,401

81,662

15%

1,260

0.23%

9,222

71,180

13.09%

Mar,15

5,23,869

5,29,090

75,113

14%

1,757

0.34%

8,751

64,425

12.30%

Mar,16

36,113

36,393

4,570

13%

1,314

3.64%

832

2,424

6.71%

Mar,15

28,330

28,430

3,646

13%

1,234

4.36%

714

1,697

5.99%

Mar,16

59,77,961

62,18,558

3,11,683

1,44,904 2.42%

99,888

6,68,910

1.12%

Mar,15

57,01,741

59,30,078

9,12,840

16%

1,41,903 2.49%

1,00,815

6,70,122

11.75%

sept,15

10,56,312

10,72,313

1,92,031

18%

936

0.09%

22,346

1,68,749

15.98%

sept,14

10,66,260

10,76,650

1,08,090

10%

820

0.08%

22,910

84,360

7.91%

Mar,16

2,46,109

2,52,517

40,314

16%

953

0.39%

5,723

33,638

13.67%

Mar,15

2,44,909

2,50,756

34,076

14%

1,365

0.56%

6,397

26,314

10.74%

Mar,16

2,32,558

2,33,093

24,760

11%

12,697

5.46%

2,529

9,534

4.10%

Mar,15

2,03,095

2,03,334

19,787

10%

12,040

5.93%

2,459

5,288

2.60%

Mar,16

16,818

16,921

2,690

16%

334

1.99%

637

1,719

10.22%

Mar,15

17,149

17,181

1,675

10%

347

2.02%

663

665

3.88%

November 2016

SpecialReport

(Rs. Lakhs) Year Ended

Sales

Total Income

Operating Profit/ Loss

Ratio to Sales

Finance Cost

Ratio to Depreciation Sales

Mar,16

84,348

84,509

5,348

1,112

1.32%

Mar,15

88,077

88,402

5,059

1,422

RTS Power Corporation Ltd

Mar,16

14,240

14,532

904

Mar,15

17,085

17,215

1,380

BGR Energy Systems Ltd

Mar,16

3,18,789

3,19,378

32,019

10%

Mar,15

3,36,500

31,040

Mar,16

71,904

72,075

Mar,15

74,091

74,322

Mar,16

4,22,784

Mar,15

Companies Precision Wires Ltd

Ram Ratna Wires Ltd Tata Projects Ltd

Delton Cables Ltd Andrew Yule And Company Ltd Easun Reyrolle Ltd

PBT

Ratio to Sales

1,577

2,659

3.15%

1.61%

1,959

1,678

1.91%

477

3.35%

157

270

1.90%

1,102

6.45%

153

125

0.73%

23,734

7.45%

2,274

6,011

1.89%

20,662

6.14%

2,508

7,870

2.34%

3,553

1,369

1.90%

737

1,447

2.01%

3,642

1,483

2.00%

651

1,508

2.04%

4,25,724

28,901

9,453

2.24%

8,368

11,080

2.62%

3,34,245

3,36,444

29,458

7,162

2.14%

7,942

14,354

4.29%

Mar,16

9,403

9,471

1,005

11%

917

9.75%

0.04%

Mar,15

13,130

13,212

916

857

6.53%

105

-46

-0.35%

Mar,16

35,955

38,997

2,549

955

2.66%

667

927

2.58%

Mar,15

37,764

40,124

3,088

1,073

2.84%

626

1,389

3.68%

Mar,16

3,503

4,173

7,950

227%

2,732

77.99%

731

4,487

128.09%

Mar,15

6,241

6,938

-826

-13%

2,599

41.64%

734

-4,159

-66.64%

Mar,16

9,606

9,699

747

301

3.13%

371

3.86%

Mar,15

11,049

11,125

719

349

3.16%

293

2.65%

Lakshmi Electrical Control Systems Ltd

Mar,16

18,703

18,927

1,545

0.24%

190

1,310

7.00%

Mar,15

18,209

18,598

1,380

0.18%

117

1,231

6.76%

Uttam Galva Steels Ltd

Mar,16

6,92,436

6,92,849

-72,381

-10%

50,533

7.30%

28,184

-1,51,098

-21.82%

Yamuna Power Infrastructure Ltd

Mar,15

6,97,702

6,96,656

54,141

26,213

3.76%

22,394

5,534

0.79%

Mar,16

7,101

7,185

-473

-7%

1,124

15.83%

162

-1,759

-24.77%

Mar,15

7,429

7,501

-204

-3%

1,063

14.31%

176

-1,443

-19.42%

Bharat Electronics Ltd

Mar,16

7,15,408

7,29,515

1,98,257

28%

450

0.06%

16,893

1,80,914

25.29%

Mar,15

6,67,554

6,84,266

1,62,203

24%

138

0.02%

15,396

1,46,669

21.97%

Rexnord Electronics And Controls Ltd

Mar,16

5,152

5,181

591

11%

154

2.99%

129

308

5.98%

Mar,15

5,260

5,282

652

12%

151

2.87%

127

374

7.11%

AMara Raja Batteries Ltd

Mar,16

4,69,067

4,73,635

86,254

18%

0.01%

13,987

72,219

15.40%

Mar,15

4,21,133

4,25,363

74,409

18%

0.01%

13,399

60,986

14.48%

Aplab Ltd

Mar,16

1,32,329

1,33,140

12,859

10%

3,050

2.30%

3,059

6,750

5.10%

Mar,15

1,27,892

1,28,283

12,758

10%

3,360

2.63%

3,198

6,200

4.85%

Mar,16

1,28,836

1,30,044

13,501

10%

5,265

4.09%

4,959

3,277

2.54%

Mar,15

1,33,007

1,34,668

14,702

11%

7,066

5.31%

5,104

2,532

1.90%

High Energy Batteries Ltd

Mar,16

2,278

2,295

-390

-17%

548

24.06%

122

-1,060

-46.53%

Mar,15

3,261

3,282

342

10%

617

18.92%

154

-429

-13.16%

Indo Tech Transformers Ltd

Mar,16

18,987

20,263

937

0.00%

535

402

2.12%

Mar,15

15,691

17,363

632

488

3.11%

518

-374

-2.38%

Mar,16

3,53,150

3,54,737

21,155

3,571

1.01%

5,428

12,156

3.44%

Mar,15

3,08,079

3,09,094

19,443

4,347

1.41%

3,934

11,162

3.62%

Eveready Industries India Ltd HBL Power Systems Ltd

Blue Star Ltd

November 2016

SpecialReport

(Rs. Lakhs) Year Ended

Sales

Total Income

Operating Profit/ Loss

Ratio to Sales

Finance Cost

Ratio to Depreciation Sales

Simplex Infrastructures Ltd

Mar,16

5,81,162

5,90,863

66,324

11%

42,933

7.39%

Mar,15

5,58,158

5,63,460

61,502

11%

38,433

Tarapur Transformers Ltd

Mar,16

2,200

2,537

343

16%

Mar,15

3,731

3,919

-88

Mar,16

57,637

58,141

Mar,15

54,169

Mar,16

Companies

Transformers And Rectifiers (India) Ltd Voltamp Transformers Ltd Jyoti Structures Ltd Kalapataru Power Transmission Ltd KEC International Ltd

PBT

Ratio to Sales

13,752

9,639

1.66%

6.89%

13,680

9,389

1.68%

1.91%

196

105

4.77%

-2%

1.07%

202

-330

-8.84%

3,375

3,281

5.69%

1,348

-1,254

-2.18%

54,519

3,006

2,767

5.11%

1,200

-961

-1.77%

56,330

59,160

6,567

12%

0.07%

598

5,929

10.53%

Mar,15

51,689

53,805

4,091

0.06%

722

3,339

6.46%

Mar,16

2,49,243

2,55,949

8,838

55,878

22.42%

3,084

-50,124

-20.11%

Mar,15

2,78,173

2,85,349

13,463

36,990

13.30%

3,440

-26,967

-9.69%

Mar,16

4,36,458

4,41,538

51,770

12%

12,750

2.92%

8,371

30,649

7.02%

Mar,15

4,42,225

4,47,448

47,897

11%

14,093

3.19%

8,518

25,286

5.72%

Mar,16

6,46,361

6,57,564

56,033

23,125

3.58%

6,996

25,912

4.01%

Mar,15

6,59,209

6,76,950

50,487

25,213

3.82%

7,040

18,234

2.77%

Mar,16

1,81,221

1,81,881

26,604

15%

15,792

8.71%

3,747

7,065

3.90%

Mar,15

1,60,114

1,60,553

21,196

13%

14,867

9.29%

2,820

3,509

2.19%

Mar,16

2,03,566

2,05,253

44,646

22%

9,229

4.53%

10,713

24,704

12.14%

Mar,15

3,03,010

3,07,491

38,604

13%

17,928

5.92%

10,774

9,902

3.27%

Mar,16

1,03,283

1,06,079

18,627

18%

2,081

2.01%

1,363

15,183

14.70%

Mar,15

68,912

71,314

13,351

19%

1,681

2.44%

1,350

10,320

14.98%

Mar,16

1,50,622

1,51,139

22,442

15%

5,700

3.78%

2,412

14,330

9.51%

Mar,15

1,31,280

1,31,445

21,682

17%

5,826

4.44%

2,199

13,657

10.40%

Mar,16

1,39,880

1,39,890

23,574

17%

25,796

18.44%

7,831

-10,053

-7.19%

Mar,15

2,11,832

2,11,906

25,924

12%

22,680

10.71%

2,741

503

0.24%

Shivalik Bimetal Controls Ltd

Mar,16

9,884

9,962

1,409

14%

390

3.95%

369

650

6.58%

Mar,15

9,522

9,571

1,480

16%

320

3.36%

317

843

8.85%

Goldstone Infratech Ltd

Mar,16

9,295

9,466

1,940

21%

574

6.18%

547

819

8.81%

Mar,15

9,215

9,349

1,786

19%

578

6.27%

565

643

6.98%

Savita Oil Technologies Ltd

Mar,16

1,50,187

1,50,962

9,716

2,550

1.70%

3,028

4,138

2.76%

Mar,15

1,84,891

1,85,769

7,051

4,061

2.20%

3,408

-418

-0.23%

Genus Power Infrastructures Ltd

Mar,16

85,765

87,179

14,078

16%

2,888

3.37%

1,400

9,790

11.41%

Mar,15

91,500

92,394

12,012

13%

3,324

3.63%

1,609

7,079

7.74%

Mar,16

67,280

68,412

9,936

15%

0.07%

2,382

7,507

11.16%

Mar,15

63,073

63,782

8,025

13%

0.00%

2,131

5,894

9.34%

Mar,16

4,728

4,750

334

101

2.14%

160

1.54%

Mar,15

5,496

5,578

519

135

2.46%

174

210

3.82%

Kulkarni Power Tools Ltd

Mar,16

6,505

6,565

452

6.95%

374

-757

-11.64%

Mar,15

8,572

8,636

828

10%

437

5.10%

375

0.19%

Hindalco Industries Ltd

Mar,16

34,31,766

35,38,387

4,38,437

13%

2,37,476

6.92%

1,27,700

73,261

2.13%

Mar,15

34,52,503

35,40,724

3,72,103

11%

1,63,709

4.74%

83,703

1,24,691

3.61%

Gayatri Projects Ltd Sterlite Technologies Ltd Techno Electric And Engineering Ltd Skipper Ltd Sujana Towers Ltd

Honda Seil Power Products Ltd JSL Industries Ltd

November 2016

SpecialReport

(Rs. Lakhs) Year Ended

Sales

Total Income

Operating Profit/ Loss

Ratio to Sales

Finance Cost

Mar,16

1,65,624

1,68,035

8,262

Mar,15

1,62,571

1,63,698

9,653

Mar,16

2,38,253

2,38,348

Mar,15

1,83,496

1,83,953

Lumax Industries Ltd

Mar,16

1,25,517

Mar,15

Vindhya Telelinks Ltd Pitti Laminations Ltd

Companies Kirloskar Brothers Ltd Lloyed Electric Ltd

Grand Total

Ratio to Depreciation Sales

PBT

Ratio to Sales

3,722

2.25%

3,894

646

0.39%

4,132

2.54%

4,968

553

0.34%

26,448

11%

10,467

4.39%

3,422

12,559

5.27%

22,982

13%

9,284

5.06%

3,396

10,302

5.61%

1,25,955

9,293

1,344

1.07%

3,790

4,159

3.31%

1,14,256

1,14,812

6,486

1,443

1.26%

3,616

1,427

1.25%

Mar,16

98,385

1,00,174

18,187

18%

5,288

5.37%

1,317

11,582

11.77%

Mar,15

65,153

66,177

10,886

17%

3,389

5.20%

1,005

6,492

9.96%

Mar,16

31,149

31,350

2,103

1,703

5.47%

1,542

-1,142

-3.67%

Mar,15

34,104

34,274

4,223

12%

1,127

3.30%

1,584

1,512

4.43%

Mar,16

240,36,866 243,94,526

20,34,354

7,92,031 3.30%

5,74,132 12,70,211

5.28%

Mar,15

238,72,072 244,29,584

28,26,661

12%

6,79,476 2.85%

5,25,676 16,21,327

6.79%

Study Methodology In order to present Electrical and Industrial Electronics industry’s performance (as per annual reports) 61 member companies of IEEMA have been considered. Established accounting standards have been followed to present industry’s performance. The sales figures are exclusive of excise duty and also do not include other income; total income has been shown separately. Operating profit is calculated before charging depreciation and interest paid whereas Profit Before Tax is shown excluding extraordinary income or expenses.

Overall Industry Performance As compared to FY16, following has been increase/ decrease w.r.t. certain crucial parameters.

Finance cost increased by 17%, which indicates that borrowing capacity of the industry increased

Profit Before Tax to Sales ratio decreased from 6.79% to 5.28%

Sales vs Imports vs Exports Overall industry sales increased, however, domestic sales remained stagnant; following demonstrates. FY15 to FY16 Sales

Imports

Exports

Demand

≈ 1% FY 16

Sales Turnover



Industry Market Share

≈

75%

Finance Cost



17%

Import Market Share

≈

25%

Profit Before Tax



22%

Imports declined due to Marginal decrease in demand and increase in sales by industry at lower Margins to compete with global Market prices

Due to sluggish demand and imports industry exported more in order to utilize capacities, which otherwise would have remained unutilized

Industry Market share in the country increased Marginally (but remained around 75%), and therefore, imports’ Market share decreased equally

Sales increased, while Margins were squeezed, thereby, a fall in operating cost

Conclusion Although total sales of the industry in FY16 grew up by around 1% from FY15, industry seemed to have had squeezed their Margins on account of low priced imports and tough competition in global Market. In order to utilize its capacities which were hit by imports, industry

November 2016

SpecialReport

depressed their prices and simultaneously increased exports (where also benefit was not high). Decline in PBT was therefore, inevitable; the same decreased by around 22% from FY15 to FY16. Based on established accounting standards, health of the industry can said to be “Good”, but significant potential of this industry still remains untapped. Also, industry needs to gear up in order to capture increasing global Market. Electrical Equipment Global Cumulative Demand of 7 years

(USD billion)

8000 6000 3369 4000 1071

1308 533 1180

2000 0

2390

2008- 15 Distribution

2016- 30 Transmission

Generation

Further, Govt. plans to increase the share of power generated from renewable sources. NWM (National Wind Energy Mission) will has set a target of raising wind power generation to 60,000 MW by 2022 with an investment of Rs 10,00,000 crore. It will aim to add further capacity through a mix of fiscal incentives to encourage adoption of new technologies and flow of global investments. JNNSM (Jawaharlal Nehru National Solar Mission) has set the ambitious target of deploying 20,000 MW of grid connected solar power by 2022. It has been envisaged to achieve grid tariff parity by 2022. Such growth in power sector will entail exponential demand for electrical equipments.

Future Growth Drivers hh

Capacity creation in sectors such as infrastructure, power, mining, oil and gas, refinery, steel, automotive and consumer durables are driving demand in the engineering sector Nuclear capacity expansion will provide significant business opportunities to the electrical machinery industry

Rapid increases in infrastructure investment and industrial production will fuel further growth

A comparative advantage in terms of manufacturing costs, Market knowledge, technology and creativity

The key Market drive supply side is Energy efficiency, Innovative solutions example: Product retrofitting, and online condition monitoring. While on the demand side it is power development programme, thrust on renewable, conclusive policy for innovation, skill development, minimize power theft and export push/ tapping opportunities

Expectations from the Government hh

Only domestic industry participation as regards tenders for domestically funded projects

November 2016

Price preference to domestic manufacturers should be given in ICBs

Domestic manufacturing set- up should be allowed in a given time frame against requirements as under tenders before bid closing

Development of Cluster manufacturing

Domestic manufacturers should be allowed to bid for low technology requirement (even if they have not produced the same) if they are producing high technology products of similar category and have earlier participated in tender for requirement of such technology

Testing of equipment from a foreign supplier be mandatorily done in Indian laboratories

Minimum procurement by any utility should be of “Made in India” products

Standardisation

Testing and calibration facilities should be upgraded

More funds for R&D

Domestic industry’s interest should be safeguarded under FTAs

Exports of products should be further incentivised

NTBs faced by exporters to be addressed

Encourage foreign investment in raw materials, parts and components

Export incentive to 100% “Made in India” products

Expectations from the Industry hh

New capacity and investment with change in technology

More focus on Research & Development w.r.t. product design, manufacturing and testing facilities. More investment in R&D, therefore

Tie- up with technology suppliers and enter into strategic alliances

Fresh investments to achieve Government’s renewable (Solar and Wind) energy mission. ▪

- IEEMA Research Group

ExpertSpeak

uclear power is the fourthlargest source of electricity in India after thermal, hydroelectric and renewable sources of electricity. Nuclear power plant (NPP) uses the sustained nuclear fission to generate heat & electricity. Nuclear power plant provide about 6% of the world’s energy and 14% of the world’s power, with the U.S., France & Japan together accounting for about 50% of nuclear generated power. Nuclear power plant accidents include the Chernobyl disaster (1986), Fukushima Daiichi nuclear disaster (2011) & the Three Mile Island accident (1979). There have also been some nuclear submarine mishaps. But the safety record of Nuclear power plants is good when compared with many other energy technologies. Research into safety improvements is continuing and nuclear fusion may be used in the future. China has 25 Nuclear reactors under construction, with plans to build many more, while in the US the licenses of almost half its reactors have been extended to 60 years, also plans to build another dozen are under serious consideration. But Japan’s 2011 Fukushima Daiichi nuclear-disaster prompted a rethink of nuclear energy policy in many countries. Germany decided to close all its reactors by 2022, and Italy has

banned Nuclear power projects. In October 2010, India drew up “an ambitious plan to reach a nuclear power capacity of 63,000 MW in 2032, but, after the 2011 Fukushima nuclear disaster in Japan, “populations around proposed Indian Nuclear Power Project sites have launched protests, raising questions about atomic energy as a clean and safe alternative to fossil fuels. There have been mass protests against the 9900 MW Jaitapur Nuclear Power Project in Maharashtra and the 2000 MW Kudankulam Nuclear Power Plant in Tamil Nadu. The state government of West Bengal has also refused permission to a proposed 6000 MW facility near the town of Haripur that intended to host six Russian reactors. A Public Interest Litigation has also been filed against the government’s civil nuclear programme at the Supreme Court. India’s and Asia’s first nuclear reactor was the Apsara research reactor commissioned on August 4, 1956. The agreement for India’s first nuclear power plant at Rajasthan, RAPP-1, was signed in 1963, followed by RAPP-2 in 1966. India is a major nuclear energy player in South Asia. The nuclear programme in India is conceived on a unique

November 2016

sequential three-stages essentially envisaged to use thorium, an abundantly available resource in the country. This sequential three-stage programme is based on a closed fuel cycle, where the spent fuel of one stage is reprocessed to produce fuel for the next stage. The closed fuel cycle thus multiplies manifold the energy potential of the fuel and greatly reduces the quantity of waste generated. Currently, India has an installed capacity of approximately 5780 MW from nuclear sources. Power Stations-wise details of are as given below:

Challenge’s Despite the strong rationale for reducing greenhouse gas emissions that contribute to global warming, for meeting increasing demand for electricity, and for improving the national security aspects of energy supply, the installation of nuclear power projects is slower than other projects. There is considerable antinuclear sentiment in the country. There are several reasons why nuclear power has not met the expectations for capacity growth projected several decades ago. One factor is that the public perception of nuclear energy is unfavorable, in part due to concern about effects of radiation that the public associates

ExpertSpeak

Plant

Unit No. Capacity (MWe) Date of Commercial Operation

Tarapur Atomic Power Station (TAPS), Maharashtra

160

28-Oct-1969

Tarapur Atomic Power Station (TAPS), Maharashtra

160

28-Oct-1969

Tarapur Atomic Power Station (TAPS), Maharashtra

540

18-Aug-2006

Tarapur Atomic Power Station (TAPS), Maharashtra

540

12-Sep-2005