From the President’s Desk

Dear Friends,With an installed capacity of over 300GW of electricity generation and a peak demand of only 148 GW, more than a third of the generating capacity 104GW is lying idle. The utilisation of the capacity is just over 55%. Reduced capacity utilisation translates in to losses and inability of new power plants to recover even interest costs. This increases NPAs of the banks. There is scope to improve the overall utilisation and load factor. In a resource constrained country like ours, it is imperative that we sweat the assets as best as can be done. A 10% improvement in the load factor will liberate 30GW of additional power generation available. This will be more than adequate to provide electricity to all the rural household who do not have access to electricity at present. This poor performance cascades down the value chain and adversely impacts everyone.

The other area to exploit is to improve the usage efficiencies in all possible consumption. MoP’s initiatives in the LED lighting and use of energy efficiency pumps are commendable. Newer energy efficient technologies are available in all spheres and we need to promote and use them. We can liberate over 15 GW of wasteful consumption.

The question I ask myself is are we addressing all possible options to address the challenges of power sector. Are all stake holders thinking and acting in congruence.

Talking about usage, Electric motors convert electric power to useful mechanical energy and consume more electricity than any other end use in the world . The popularity of motors attests to their effectiveness: they provide more than three-fourth of the non-vehicular shaft power in the world, and use upwards of 48% of the global electricity as input.

Lighting is a distant second, consuming about 10-15%.

Motors are ubiquitous in every sector of the economy and are very reliable — a well-designed and well-maintained electric motor can convert over 90% of its input energy into useful shaft power, 24 hours a day, for decades. It is this ubiquity and often constant use that makes electric motor systems such an important potential source of energy savings. Because almost half of all electricity flows through them, even modest improvements in their design and operation can yield tremendous dividends.

This means that almost every second power plant is producing electricity for the sole purpose of running motors.

Thousands of words and column inches are devoted to topics such as nuclear power, renewable energy, and electric vehicles, but rarely do we discuss the fact that the majority of electric motors are inefficient, oversized, or running when they don’t need to be running.

IEEMA is delighted to begin a dialogue and join hands with Govt. of India to start work on designing high efficiency motors at affordable prices in India.

High AT&C losses of the discoms have been a much discussed subject and considered to be the single biggest pain point in improving the power sector’s performance.

There has been plenty of discussions around smart technologies over past few years. From an Indian perspective the use of appropriate technologies to address the above mentioned areas and reduction of losses will help.

Intelect-2017 will showcase many such smart technologies. I urge all IEEMA members and others to exhibit and participate.

Together we can.

Babu Babel

September 2016

Dear Members,

Corruption has a wide range of corrosive effects on Societies. It undermines democracy and the rule of law, distorts markets and erodes the quality of life. This phenomenon is present in all countries—big and small, rich and poor—but it is in the developing world where its effects are most destructive. Corruption hurts the poor disproportionately by diverting funds intended for development, undermining a Government’s ability to provide quality basic services

United Nations Convention against Corruption (UNCAC) is the most comprehensive anti-corruption convention, which had entered into force on December 14, 2005. It covers a wide-range of corruption offences, including domestic and foreign bribery, embezzlement, trading in influence and money laundering. The UNCAC provisions obligate State Parties to take anti-corruption measures in public and private sectors. These can include establishing anti-corruption bodies and enhancing transparency in political financing. States must take measures to ensure public services are subject to safeguards that promote transparency, efficiency and merit-based recruitment. Public servants should be subject to codes of conduct, financial disclosures and disciplinary measures. Transparency and accountability in public finance is promoted and specific anti-corruption requirements, especially in the judiciary and in public procurement, is established.

A total number of 165 countries have signed and ratified UNCAC. India is one of the late signatories of UNCAC, which it ratified on 9th May 2011.

We need to introspect and openly discuss this subject in the context of our sector and examine the possibility of creating a code for Ethical Conduct and Practices for our Industry to adopt voluntarily.

Sunil Misra

7September 2016

Samvaad...

Contents

10 September 2016

Volume 8 Issue No. 1 September 2016 CIN U99999MH970GAP014629

Official Organ of Indian Electrical & Electronics Manufacturers’ Association Member: Audit Bureau of Circulation & The Indian Newspaper Society

the leading electrical & electronics monthly

6

From the President’s Desk

7

Samvaad

16

INTELECT-2017 INTELECT 2017 exposition under the theme “Redefining Electricity for Smarter Living“ is being organized from January 23 – 25, 2017 at the India Expo Centre, Greater Noida, NCR Delhi. INTELECT 2017 is the first fully integrated intelligent electricity exhibition in India. This Exhibition cum Conference event is specially designed to demonstrate the New & Intelligent digital solutions from source to socket to manage the flow of electricity smartly. Its focus is towards the Convergence of electrical operation technology, Automation Devices in tandem with Information & Communication Technology.

20

Appointments

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

22

Cover story GST impact on the electrical equipment industry

India has finally taken the giant step towards a unified Goods and Services Tax (GST) regime with the Rajya Sabha granting approval for the implementation of the much-awaited tax reform measure that was first proposed three decades ago. The current Indirect tax regime in India provides for a complex tax environment due to multiplicity of taxes, elaborate compliance obligations and tax cascading. To address such problems, a comprehensive ‘consumption tax’ levied on the supply of all goods and services has been proposed which is known as GST. GST would subsume majority of Indirect taxes, thus, eliminating need for different Indirect tax legislations.

28

Guest article Smart Meters for improving the efficiency of Discom’s – “Challenges”

Electric Energy is a vital resource in everyday life and a backbone to the industry. Being limited sources, its proper use and measurement is very important. Restructuring of power system, penetration of distributed generation and power theft are going to be the key challenges in the near future. The operational information will be crucial for the functioning of the power distribution networks. One of the information sources is going to be the Advanced Metering Infrastructure (AMI).

22 Cover story

Contents

11September 2016

46

Insight

What is “SPECIAL” about successful SME entrepreneurs?

Seven differentiating attributes that gives them enduring success

50

SME Success Stories

Elektrolites (Power) Pvt Ltd

Manu Electricals

Lustre Engineering Corp

56

Tech Space

Integrate Waste energy in a steel plant co-generation unit

This is a case study of a coal fired power station and one co generation unit situated inside a steel plant of central

34

IEEMA Event

Workshop on “Sustainable Growth through SME empowerment”

IEEMA organized a workshop on “Sustainable Growth through SME empowerment” at Millennium Hall, Hotel Ramada, Navi Mumbai on August 6, 2016. The workshop was attended by more than 50 delegates from SMEs across Maharashtra. There were interesting sessions on creating a conducive Atmosphere for “Make in India”, Role of Policies, Capital Opportunities and Ease of Business and International Business Opportunities for SMEs: Marketing, Quality and Certifications. Mr Ajay Thakur, Head, BSE SME and Mr Rajesh Kumar, DGM, SIDBI were some of the eminent speakers of the workshop.

38

Interview

We are poised to achieve even bigger targets (1.5 GW) leveraging the experience gained in past:

Dr. Kazuhiro Imaie

40

InFocus

Electricity (Amendment) Bill, 2014, will give the real taste of Reform

India.The unit started it’s operation in year 1958. Co-generation plants having backpressure turbine and no condensate recovery consume huge quantity of make up water. As a result in order to keep drum water quality within control, blow down has to be given @ 7000kg/hr at 70 bar. This case study is a story of power plant where colossal heat waste is taking place–the solution will be discussed.

59

Tech Space

A case study on “operation of differential relay during stopping of mill motor”

In thermal power stations, coal pulverising mills are used to pulverise coal (in our case it is lignite) in order to improve the combustion efficiency of the burner. These mills are driven by MV induction motors with electro-dynamic deceleration (braking) system. Differential protection is adopted along with other motor protections for these motors. This article aims to analyse an interesting case of acting of the differential relay after the motor has got tripped or stopped.

Contents

12 September 2016

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.

IEEMA Members Helpline No. 022-66605754

Editorial BoardAdvisory Committee

Founder Chairman Mr R G Keswani

Chairman Mr Babu Babel

Members Mr Sunil Misra

Mr Naveen Kumar Mr Mustafa Wajid

Mr Vikram Gandotra

Sub Editor Ms Shalini Singh

Advertisements Incharge

Ms Vidya Chikhale

Circulation Incharge

Ms Chitra Tamhankar

Statistics & Data Incharge

Mr Ninad Ranade

Designed by: Reflections

Processed at: India Printing Works

Regd Office - Mumbai501, 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 DelhiRishyamook 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

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Branch Office - Kolkata503 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 ex-pressed 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 9706389965Raipur (Chhattisgarh) - Rakesh Ojha Email: rakesh.ojha@ieema.org Mobile:+91 9826855666Lucknow (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 9888208880Jaipur (Rajasthan) Devesh Vyas Email: devesh.vyas@ieema.org Mobile: +91 8955093854Bhubaneshwar (Odisha) Smruti Ranjan Samantaray Email: smrutiranjan.samantaray@ieema.org Mobile: +91 9437189920Hyderabad (Andhra Pradesh) Jesse A Inaparthi Email: jesse.inaparthi@ieema.org Mobile: +91 9949235153Srinagar (Jammu & Kashmir) Mohammad Irfan Parray Email: irfan.parray@ieema.org Mobile: +91 9858455509

64

Opinion

Trade & Industry Growth Crisis and Financial System Instability – An Outcome of Intellectual Limitations?

67

IEEMA activities

70

Power ScenarioGlobal ScenarioIndian Scenario

72

IEEMA DatabaseBasic Prices & IndicesProduction Statistics

75

International News India to get cross-border electricity trade policy soon

78

National News Haryana to generate power from

waste at Bandhwari plant

81

Corporate news BHEL commissions 40-mw hydro power unit in West Bengal

84

ERDA News

87

Seminars & Fairs

88

Product Showcase

90

Index to Advertisers

Gear up to witness the future of intelligent electricity at INTELECT 2017

INTELECT2017

16 September 2016

Gear up to witness the future of intelligent electricity at INTELECT 2017One of the major challenge faced by both consumer and Utility today is availability of “uninterrupted” power supply not only in rural areas but even in urban areas including in metro cities. Power interruptions are frequent phenomenon in distribution grid. More than 70% of time it is unscheduled outages caused by transient faults / tripping due to various reasons like passive electrical network, Phenomenal load increase beyond network limits, overloaded devices, temporary jumpers, theft and human errors. It is not easy to completely avoid such outage situations. Thus the Indian Power Sector need to push for convergence and adopt goodness of electrical operation technology, IT and Communication technologies to transform the conventional electricity into “Intelligent Electricity” for the entire value chain of Power System from Generation to consumption.

This is only possible when we provide innovative solutions & intelligent products to the Utilities & Consumers to help them overcome the challenges of availability, reliability & affordability through empowerment. INTELECT 2017 exposition under the theme “Redefining Electricity for Smarter Living“ is being organized from January 23 – 25, 2017 at the India Expo Centre, Greater Noida, NCR Delhi.

INTELECT 2017 is the first fully integrated intelligent electricity exhibition in India. This Exhibition cum Conference event is specially designed to demonstrate the New & Intelligent digital solutions from source to socket to manage the flow of electricity smartly. Its focus is towards the Convergence of

The energy industry is facing unprecedented, fundamental

change across the globe. Rapid advancements and widespread adoption of distributed generation, smart technologies and connected home products and services are just a few of the game changers affecting

energy providers and consumers. Besides 24/7 quality power availability, today’s knowledgeable customers expect affordable power, choice of utility, freedom from long outages, variable tariff options & sustainable renewable Power.

INTELECT2017

18 September 2016

electrical operation technology, Automation Devices in tandem with Information & Communication Technology.

This exhibition is aimed to provide a platform & to showcase advance technologies that can be deployed in full value chain of electricity system to make electricity truly intelligent for smarter living. INTELECT 2017 is organized by IEEMA in association with IEEE which the world’s largest body of Electrical and Electronics Engineers. Ministry of Power, Govt of India and TERI have so far confirmed their support.

INTELECT will help redefine electricity from the perspective of three key stakeholders viz.;

hh Utilities: 24x7 clean, reliable and affordable power through intelligent grid

hh IT: making flow of electricity visible for better management and control

hh Consumers: smart consumption resulting in energy efficiency upto 30%

Key benefits for a participant:

1. Showcase technological strength2. Announce to the world that you

are ready for future3. Sense of pride for being

associated with the best in the industry

4. An integrated platform to reach out to all your customers

5. Excellent industry networking platform

Clean & Affordable power for you 24 x 7 Flow of Electricity that you can see

Source to socket Adding intelligence in the flow of electricity

20 September 2016

Mr Urjit Patel appointed new Reserve Bank of India governorMr Urjit Patel, one of the four deputy governors of Reserve Bank of India (RBI), will be the new governor of the central bank and replace incumbent Raghuram Rajan when his term ends on September 4. Patel’s appointment ends all speculations since Rajan conveyed in June that he would not seek an extension to his three-year term.

Mr VS Nandakumar appointed Director General, CPRIMr V S Nandakumar has been appointed as Director General, Central Power Research Institute (CPRI), Bangalore.

Mr BP Sharma appointed Secretary, DOPTHealth secretary Bhanu Pratap Sharma has been appointed as new Secretary, Department of Personnel and Training (DoPT). The 1981 batch Bihar cadre IAS officer Sharma earlier served as Establishment Officer (EO) in the DoPT before he was elevated as secretary health in January 2015.

Ms Aruna Sharma appointed Secretary, Ministry of SteelInformation Technology and Electronics Secretary Aruna Sharma has been shifted to the Ministry of Steel as Secretary while incumbent from the ministry Aruna Sundararajan has been sent in the Ministry of Information Technology and Electronics. Both are from the 1982 batch, belonging to the Madhya Pradesh and the Kerala cadre respectively.

Dr JN Singh appointed new Chief Secretary of GujaratThe Gujarat government has appointed Dr. J.N. Singh, a 1983-batch Gujarat cadre IAS officer, as new Chief Secretary of the State in place of G.R. Aloria. Dr. Singh is currently Additional Chief Secretary (Finance) and also officiating as Managing Director of Gujarat State Petroleum Corporation (GSPC).

Mr K Sreekant appointed Director (Finance), PGCILMr K Sreekant has been appointed as Director (Finance) of Power Grid Corporation of India Limited for a period of five years, He was earlier the General Manager of the NTPC Ltd.

Ms Mamta Kochar, IRS, appointed CVO, EPILMs Mamta Kochar, IRS (1995), has been appointed as Chief Vigilance Officer in Engineering Projects India Limited (EPIL), New Delhi.

Mr Akhil Joshi appointed Director (Power), BHELMr Akhil Joshi, Executive Director, BHEL, has been appointed as Director (Power), Bharat Heavy Electricals Limited (BHEL) for a period of five years.

Mr AK Chaudhary gets extension as Director (Finance), SAILMr AK Chaudhary has been given an extension as Director (Finance), Steel Authority of India Ltd. beyond August 31, 2016 till December 31, 2020 i.e. the date of his superannuation, or until further orders, whichever is the earliest.

Mr M Nagaraj appointed CMD, Project & Equipment Corporation of IndiaM Nagaraj has been appointed as Chairman & Managing Director of the Project & Equipment Corporation of India (PEC) Limited.

Mr RR Sah gets extension as Director, Cabinet SecretariatRaja Ram Sah, IRS, has been given extension as Director of the Cabinet Secretariat.

Mr Ravindra Nath gets additional charge of Director (Finance),NSICMr Ravindra Nath has been entrusted with the additional charge of the post of Director (Finance) of the National Small Industries Corporation Limited (NSIC) for a period of three months.

Mr R Vyasan appointed Deputy Secretary, Department of Economic AffairsMr R Vyasan, IAS (NL:2007), who was recommended for Central deputation by the Nagaland Government, has been appointed as Deputy Secretary in the Department of Economic Affairs, Delhi.

28 IAS of 1999-batch empanelled as Joint SecretaryAs many as 28 lAS officers of the 1999-batch have been empanelled for holding the posts of Joint Secretary or equivalent at the Centre.

The officers are Sudhir Kumar (AGMUT), Ashutosh Agnihotri (AM), Guizar Natarajan (AP), Sonmoni Borah (CG), Ajay Bhadoo (GJ), Pushpendra Rajput (HP), Amandeep Garg (HP), M Beena (KL), Subodh Yadav (KN), Richa Bagla (MH), Kunal Kumar (MH), Atul Nilkantha Patne (MH), Anshu Sinha (MH), E Ramesh Kumar (MP), Pawan Kumar Sharma (MP), Shubha Sarma (OR), Bhaskar Jyoti Sarma (OR), Bhawna Garg (PB), Nilkanth S Avhad (PB), Ajoy Sharma (PB), Mugdha Sinha (RJ), V Sheshadri (TG), Syed Ali Murtaza Rizvi (TG), Brajendra Navnit (TN), Ashish Chatterjee (TN), Navdeep Rinwa (UP), P Guruprasad (UP) and Ravinder (UP).

18 June 2016

APPOINTMENTS

Mr SS Roy appointed Directort (Technical-LWR), NPCILDistinguished Scientist S Singha Roy has been appointed as Director (Technical-LWR) of the Nuclear Power Corporation of India Limited. He will be holding the post till the date of his superannuation, or until further orders.

Mr SK Jha appointed Director (P & M), MIDHANIThe Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Defence Production for appointment of Mr S K Jha to the post of Director (Production & Marketing) in Mishra Dhatu Nigam Limited (MIDHANI), Hyderabad for a period of five years.

Mr UC Muktibodh appointed Director (Technical), NPCILDistinguished Scientist UC Muktibodh has been appointed as Director (Technical) of the Nuclear Power Corporation of India Limited.

Mr Chinmoy Gangopadhyay selected as Director (Project), PFCChinmoy Gangopadhyay has been selected for the post of Director (Project) in the Power Finance Corporation Limited (PFC) by the Public Enterprises Selection Board (PESB).

Arno Harris joins Azure Power’s Board of DirectorsAzure Power, India’s leading solar power company, announced the appointment of Arno Harris, Former Founder, CEO and Chairman of Recurrent Energy, one of North America’s leading utility-scale solar project developers, as an independent director.

Govt. announces several Additional Secretary-level appointmentsThe Appointments Committee of the Cabinet (ACC) has approved several Additional Secretary-level appointments, including that of Ms. Shalini Prasad as Additional Secretary, Ministry of Power.

Ms. Prasad, an Indian Administrative Service (IAS) officer of the 1985 batch (Uttar Pradesh cadre), presently in her cadre, will succeed Mr. Badri Narain Sharma, IAS (RJ:1985) on his appointment as Additional Secretary, Department of Revenue, Ministry of Finance.

An official press release said that Ms. Madhulika P Sukul, IDAS (1982), presently in her cadre, has been appointed as Additional Secretary, Department of

Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution vice Mr. G. Gurucharan, IAS (KN:1982) on his appointment as Secretary (Performance Management), Cabinet Secretariat.

Mr. Rajani Ranjan Rashmi, IAS (MN:1983), Additional Secretary, Department of Commerce, Ministry of Commerce and Industry has been appointed as Additional Secretary, Ministry of Environment, Forest and Climate Change vice Mr. Hem Kumar Pande, IAS (WB:1982) on his appointment as Secretary, Department of Official Language, Ministry of Home Affairs.

Mr. Girish Chandra Murmu, IAS (GJ:1985), Additional Secretary, Department of Expenditure, Ministry of Finance has been appointed as Additional Secretary, Department of Financial Services, Ministry of Finance vice Ms. Snehlata Shrivastava, IAS (MP:1982) on her appointment as Secretary, Department of Justice, Ministry of Law and Justice.

Ms. Amita Prasad, IAS (KN:1985), Joint Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation has been appointed as Additional Secretary, Ministry of Environment, Forest and Climate Change vice Mr. Susheel Kumar, IAS (UP:1982) on his appointment as Secretary (Border Management), Ministry of Home Affairs.

Mr. Nikhilesh Jha, IAS (MN:1984), Additional Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation has been appointed as Additional Secretary and Financial Adviser, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution vice Mr. Prabhas Kumar Jha, IAS (UP:1982) on his appointment as Secretary, Ministry of Parliamentary Affairs.

Mr. U P Singh, IAS (OR:1985), Additional Secretary, Ministry of Petroleum and Natural Gas as Additional Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation vice Mr. Nikhilesh Jha.

VACANCIESBureau of Energy EfficiencyPost: SecretaryBureau of Energy Efficiency (BEE) is a statutory body under the Ministry of Power has invited applications from the officers of Central or State Governments holding a post not below the rank of Deputy Secretary to the Government of India in the parent cadre for the post of Secretary in Bureau of Energy Efficiency on deputation basis

CoverStory

22 September 2016

The current Indirect tax regime in India provides for a complex tax environment due to multiplicity of taxes,

elaborate compliance obligations and tax cascading. To address such problems, a comprehensive ‘consumption tax’ levied on the supply of all goods and services has been proposed which is known as GST. GST would subsume majority of Indirect taxes, thus, eliminating need for different Indirect tax legislations. Further, GST aims at providing a seamless credit chain by providing for cross utilization of credits (inter se goods and services) and minimal credit restrictions. GST is being touted as the single biggest Indirect Tax reform in India and aims at bringing a fundamental shift in the way business transactions are taxed in India The motto of the GST regime seems to be ‘One Tax One Market’ which aims at providing a cohesive tax approach across India. Besides simplifying the current system and lowering the costs of doing business, GST will call for a fundamental re-design of supply chains. It will affect how companies operate their businesses, making GST not just a tax reform but an overall business reform.

The GST law seeks to subsume all central and state levies and was debated in the upper house of Parliament Wednesday. The GST implementation will be one of the “most significant reforms” affecting all factors of production and economics, according to Morgan Stanley

Impact on electrical equipment The new GST regime is likely to benefit the lighting and electrical sector significantly through an overall

reduction in tax rates. Under the new tax structure, the overall incidence of effective indirect taxes on the companies in the sector will be lowered to around 18 per cent from the current 29-30 per cent, according to equity brokerage firm Motilal Oswal. “We believe GST will be more positive for the Light Electricals segment where companies may benefit from volume growth and margin expansion,” the firm said in a report. It added the benefits of this lower tax incidence will be passed on to customers, for the industrial capital goods, owing to the current weak demand scenario.

Mr Anil Chaudhry, Managing Director & Country President, Schneider Electric India

“GST is undoubtedly one of the biggest tax reforms in India ever. It will be a key component in improving ease of doing business as it will create a common market which will lend efficiency to the cost of production and competitiveness.

It is going to have a far-reaching impact on almost all aspects of business operations in the country right from pricing of products & services; supply chain optimization; IT, accounting & tax compliance systems.

CoverStory

24 September 2016

While the overall economy is definitely poised to get a boost from the implementation of GST, the power sector also stands to benefit, if it is included in the new tax regime. It will lead to lowering of bulk power and retail tariff. It will also support the Make in India initiative with manufacturing segment being one of the top beneficiaries. Further with GST, logistics costs are bound to reduce as there will be no difference between inter and intra state costs and with CST subsumed.

While GST has still sometime left before it finally gets implemented, it is a win-win for the government, industries as well as public at large. The expected uniformity and transparency will also curb tax evasion and boost GDP upto 2%.”

Dr Harish Ahuja, Founder & CEO, India Go Solar

“GST will affect different parts of solar industry value chain. Buying solar products will become expensive by 12-14% as VAT exemption & custom duty exemption available to solar equipment’s will be taken away.

GST will adversely affect customers buying online on solar market place like India Go Solar since zero VAT benefits available to solar products/projects will now be taken away. Further additional cost of managing tax receipt & payments of various vendors will increase the operation cost & will ultimately reflect in higher listed prices.

Constitution Amendment Bill

CoverStory

25September 2016

For solar developers, 10 year tax holiday will no more be available, which will increase the tariff by 30-45 Paise per unit.There is no clarity on how AD benefits presently available to solar IPPs will be affected by GST as these are special incentives given to promote solar industry and reviewed YoY basis in finance bill.

Mr Ratul Puri, Chairman, Hindustan Powerprojects “The intent and thought behind the implementation of GST is well appreciated. Although India is adopting dual GST, looking into the federal structure, it is still a good move towards a Unified GST which is regarded as the best method of Indirect Taxes.

However, as the execution of GST will be a mega exercise which will take time due to practical implementation issues. One thing is quite apparent; business will need to provide for a higher amount of working capital unless the tax refund / cenvat under the new regime is quick and simple. While the overall structure is definitely expected to provide an impetus to business, from the industry and trade standpoint, there are still a number of issues that need to be addressed. First, the GST rate itself needs to be reasonable. Further, there is a lot of ambiguity around the availability of accumulated cenvat going forward. Whether the stock transfer from one state to another would also invite GST leading to higher cash outflows is yet to be seen. Also, the cost of compliance by the business can be assessed only when the detailed rules are notified”.

Mr Babu Babel, President, IEEMA

“IEEMA members are pleased on the passage of GST Constitutional Amendment bill by the Rajya Sabha. This will improve ease of doing business and give a boost to “Make in India” efforts.

Elimination of the cascading effect of taxes will improve operational efficiencies, bring about cost savings and make products more competitive for domestic and global markets.”

Mr Sanjeev Sardana, President Elect

IEEMA said, “While in short term it may mean higher tax for certain smaller segment the overall economic benefit will help everyone.

This will bring transparency and make all states equally attractive for setting up new manufacturing facilities. IEEMA looks similar cooperation between central and state governments to address all power sector related issues.”

Mr Sunil Misra, Director General

IEEMA is of opinion that, “There is no dispute on the efficiency of GST, which is both scientific and self-policing. All the major Political parties agree on the fundamentals of adopting GST regime.

Still it is taking a very long time in implementation. The Nation started discussing this nearly 20 years back. We must enhance the speed of our reform in tune with the fast changing world. We all must also realize that Good Economics is Good Politics.”

Mr Kamal Goliya, CEO, MECO Instruments Ltd,

“Most Electrical Instru-ments manufactured in the country have an average 27- 30% indi-rect taxes component. If the proposed stand-ard rate of 22% is im-plemented, the final prices of these goods will come down.

At present, manufactured goods attract 12.50% CED and 12.50% VAT and in case of inter-state sales, a CST of 2%. Besides, some states also impose Entry Tax and Octroi of up to 5 – 15%. With GST, all these taxes would be merged and a standard rate would be applicable across the country. More and more business would come into tax brackets and a level playing field would be created. The work of filing various tax returns by various deadlines would be eased and finance and accounts teams would have more time to do better financial management rather than just completing compliance activities. On long term it will benefit the economy, though initially there could be few hurdles in implementing the system.”

CoverStory

26 September 2016

Impact on RenewablesOne of the main energy sub-sectors to be impacted post the implementation of GST is renewables. The sector currently enjoys various fiscal incentives like 100 per cent tax holiday on earnings for 10 years, concessional excise and custom duties and so on. These incentives will come to an end in the new GST regime. The indirect tax reform through the GST could, therefore, hike renewable energy costs and pricing and hit investors.The Ministry of New and Renewable Energy (MNRE) has already worked out a possible scenario of these impacts. The GST’s effect on cost of setting up of renewable projects would vary across segments, MNRE said in a recent report.The impact includes a 16-20 per cent rise in Solar Off Grid costs; 12-16 per cent rise in Solar PV Grid installations and a 11-15 per cent jump in the cost of setting up wind energy projects. Also, biomass projects could see their costs rising by 11-14 per cent while setting up small hydro projects could become costlier by upto 11 per cent.

HiccupsIn a note prepared earlier this year, the ministry of new and renewable energy estimated that with the implementation of GST, the cost of setting up grid connected solar plants would rise by 12-16% and that of off grid solar plants by 16-20%. It said building wind farms would cost 11-15% more, while wind-solar hybrids (which the country

has barely begun trying out) would need 11-17% more investment. Small hydro project costs could increase by 1-11%, while that of bio mass projects by 11-14%. “The only way cost escalation can be avoided is if renewable energy equipment is listed among the exemptions that will continue under GST or if it is characterized as ‘deemed export’, under which taxes paid can be refunded to the developer,” said Tarun Kapoor, joint secretary, ministry of new and renewable energy. He expected another 10,000-15,000 MW of solar energy projects to be auctioned or tendered out by April 2017, when the GST regime is scheduled to start. “Those bidding should take ever thing into account and bid accordingly.” Some alarmed solar developers have suggested that all auctions and tendering of future solar projects (by NTPC SECI and various state governments) should be stalled until there is complete clarity on just how much solar manufacturing costs will rise. “It makes sense if auctions don’t happen for some time, say for the next six months,” said Sumant Sinha, chairman of leading wind and solar developer ReNew Power. “But I doubt they will stop. There will always be developers who will take a risk and bid. All we want is clarity on how GST will affect us and quick upward revision of tariffs by the state regulatory commissions. If the capex is going to be higher, we must be compensated for it. Discoms will have to agree.”

September 2016 27

28

GuestArticle

September 2016

Electric Energy is a vital resource in everyday life and a backbone to the industry. Being limited sources,

its proper use and measurement is very important. Restructuring of power system, penetration of distributed generation and power theft are going to be the key challenges in the near future. The operational information will be crucial for the functioning of the power distribution networks. One of the information sources is going to be the Advanced Metering Infrastructure (AMI). Smart meter is an advanced energy meter that measures electrical energy consumption and provides additional information as compared to a conventional energy meter. It aims to improve the reliability, quality and security of supply. The use of smart meters involves various challenges to consumers as well as distribution companies.

Governments and power companies across the world have recognized that the traditional grid, which has not significantly changed in 100 years, must be replaced by more efficient, flexible and intelligent energy-distribution networks, called smart grids. These are digitally monitored, self-healing energy systems that deliver electricity from generation sources, including distributed renewable sources, to points of consumption. They optimize power delivery and facilitate two-way communication across the grid, enabling end-user energy management, minimizing power disruptions and transporting only the required amount of power. The result is a lower cost to the utility and the customer, more reliable power, and reduced carbon emissions.

With regard to power theft, India losses billions of Rupees because of unbilled consumption and unlawful usages of electricity. If the unpaid bill add in this loss, then the electricity supply companies losses are huge. To combat the problem and avoid violent encounters, utilities need to turn into smart meters. The devices including hardware and communication software. The smart meters can detect unusually heavy demand, which may signal an

illegal hookup. They can also be used to shut off service to households and businesses that don’t pay their bills. The devices remove the human factor from the equation, so customers can no longer collude with dishonest meter readers to cheat the power company.

The development of smart meters is a key component of grid modernization. Smart meters are used for monitoring the energy usages of consumers by recording time-differentiated energy consumption. It serves as a single point of access both for consumers and utilities for real-time usage, price and alert information, etc. Smart meters not only help consumers in managing their power demand but also assist distributing companies in detecting and locating outages and ensuring fast restoration of systems, monitoring the quality of electricity supply, and identifying meter tampering among other things. Owing to these functionalities, smart meters also form a vital component of advanced metering infrastructure.

Advanced Metering Infrastructure (AMI) is an integration of technologies, which enables a two-way flow of information between consumers and utilities. Integration of AMI into electricity grid needs implementation of a variety of techniques, controls and software, depending on the required features. AMI comprises home display, advanced electricity meters, and provides an essential link between the grid, consumers, generation, storage resources, etc. Through the detailed monitoring of a consumer’s energy usage, utilities can implement demand response, dynamic pricing, critical peak pricing, real-time pricing, emergency demand response, economic demand response, etc. and also execute load control in real time with specific demand response request sent to consumers automatically. This significantly helps in improving the quality and accessibility of power. On the other hand, automated meter reading focuses entirely on data collection. This is primarily used for consumer billing, and reduces cost of meter reading. An automated meter reading system typically comprises

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static meters fitted with communication devices, a communication network as well as supporting software to manage the data.

The desired outcomes from smart metering are an important consideration while choosing a meter. Depending on the requirement, meter data can be recorded on an hourly basis, half-hourly basis, etc. It is essential to ensure that the smart metering technology is compatible with the existing infrastructure and is scalable and amenable. The cost of smart metering infrastructure and technology are other important factors. Smart meters basically consist of two units, the metering device which is in the custody of distribution or utility company and a display unit that is at consumer’s place. For the distribution firms, the meters can detect unusually heavy demand which may point to tapping of wires. This is particularly relevant where petty theft of power is rampant and manual detection is difficult.

The beauty of the smart meter’s strategy is that it eliminates contact between the customer and a utility employee, which is often a factor in collusion. In many cases, and in an approach, high use customers are targeted first. Customers using a lot of energy also generally will stop stealing it once they realize the utility has the tools to detect and record theft. Smart metering essentially involves an electronic power meter supplemented by full remote control, diagnostics, power peak and consumption analysis, anti-tampering mechanisms, fault alert, time-variable tariffs, and many more possibilities. Using power-line communication or other wired and wireless technologies to connect the meter to the service provider enables all of the above features to be feasible and compatible with future smart-grid protocols.

A smart meter measures the actual energy used by the consumers and shows that how much it costs and pence on smart meter display. It also sends the energy usage information at intervals chosen by the consumers so the distribution companies can send the accurate bills instead of estimated ones. Smart Metering technologies consist of several different technical components which may vary according to the specific market conditions. They give accurate insight in the quality of power supply and any disturbances in electricity networks. Fraud and leakages can be detected easily, so the cost of economical energy losses decreases.

Characteristics of Smart MetersPricing is the key functionalities and controls offered by a smart meter. At present, India has two extreme pricing models one is time-of-day pricing and other is real time pricing. However, other pricing options like critical peak pricing and hybrid are available as well. Smart metering is a prerequisite for the adoption of these pricing models. Smart meters aid in enhancing the role of the power exchanges, which have not matured fully in India.

Utilities must strive towards smart meters from a design perspective as one of their basic benefits is the enhancement of system efficiency. Smart Metering systems feature a number of innovations: digital technology, communications, control and better operation of networks. They provide customers with much more information on how they use energy and

enable those customers to reduce their usage.

A Smart Meter provides additional features over those of the traditional electromechanical electricity meters that most people will have seen in a home. There are many different designs of Smart Meters – and the most common characteristics of a smart meter are as follows:

hh It records consumption of electricity during short time periods (for example every 15 minutes rather than about two months between meter reads).

hh It can distinguish between and record the import and export of electricity.

hh There is electronic communication between a central control location and each Smart Meter that allows readings to be transmitted without the need for a visit by a meter reader or the consumer to submit a meter reading.

hh At present the majority of electricity customers pay a flat rate for their electricity. They pay the same for a unit of electricity regardless of when they use it. Under time-varying pricing, the price per unit of electricity varies according to the time of the day or night.

Cost Benefit AnalysisSmart Metering offers consumers, suppliers, network operators, generators and regulators a wide range of useful tools and services enabling ultimately a smarter energy world. A utility looks at the cost of smart meters against the cost of procuring costlier power in meeting peak loads and addressing the consumer dissatisfaction resulting in costumer churn, among other things. Typically the cost of smart metering entails the cost of the meter as well as back end infrastructure like communication technology and data analytics. Often the back-end set-up cost more than the meter alone. However, with the adequate standardization of meters and metering infrastructure, its cost is likely to plummet. The functional specifications of smart meter must be accorded priority over technical specifications.

The end consumer considers the cost of smart meters against the cost incurred for backup power through power generation from other sources, losses from load shedding, etc. All consumer categories will not drive equal benefits from a smart meter. Certain consumers specially those relying on diesel based power as a back-up source, will accrue disproportionate savings. Therefore, the overall benefit must be looked as form a societal point of view. Smart meters are likely to yield better results in Indian than developed countries as consumers in the country are more sensitive to savings in electricity costs.

Smart Metering TechnologiesThe newer electric meters are digital and have an added feature to them. These devices are actually read from the utility companies office by way of signal sent down the line from the electric meter to the utility company that identifies particular meter. A smart meter can digitally send meter readings to the energy supplier. This can ensure more accurate energy bills. Smart meters also

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come with monitors, so consumer can better understand its energy usage.

Smart meters are a next generation meter for electricity. They are a replacement of existing meters, which still use technology created decades ago. Smart meters use a secure national communication network to automatically and wirelessly send the actual energy usage to electricity supplier. This means households will no longer rely on estimated energy bills, have to provide their own regular readings, or have meter readers come into their homes to read the meter. Smart meters will also come with an in-home display.

A smart meter is an electronic device that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing. Smart meters enable two-way communication between the meter and the central system. Unlike home energy monitors, smart meters can gather data for remote reporting. Such an advanced metering infrastructure (AMI) differs from traditional automatic meter reading (AMR) in that it enables two-way communications with the meter.

Automatic meter reading, or AMR, is the technology of automatically collecting consumption, diagnostic, and status data from energy metering devices and transferring that data to a central database for billing, troubleshooting, and analyzing. This technology mainly saves utility providers the expense of periodic trips to each physical location to read a meter. Another advantage is that billing can be based on near real-time consumption rather than on estimates based on past or predicted consumption. This timely information coupled with analysis can help both utility providers and customers better control the use and production of electric energy consumption. AMR technologies include handheld, mobile and network technologies based on telephony platforms (wired and wireless), radio frequency, or powerline transmission.

Benefits of Smart MetersBenefits to ConsumerThe overall benefit of Smart meters to consumers is that it will help to minimise the price to consumers pay for electricity and also help to reduce carbon emissions associated with the electricity they use. This will be achieved by:

hh Allowing consumers have access to greater levels of information on their electricity use, and facilitate their efforts in managing electricity more efficiently. This can be implemented with informative in-home display devices, on-line billing information and more detailed paper bills. Smart meters mean the end of estimated bills

hh Allowing consumers to adjust their usage, to take advantage of the most cost effective renewable generation sources, and encourage consumers to transfer some of their electricity usage away from times of the day when demand for electricity is at its peak. and enabling them to adjust their habits to lower electric bills.

hh Helping the companies that own the generators and the grid infrastructure to use their equipment more efficiently and thereby minimise the costs involved. These costs are ultimately passed onto the consumers.

hh Offering more detailed feedback on energy use and enabling them to adjust their habits to lower electric bills

hh There will be no more estimated readings. It also facilitates pre-payment schemes.

hh The Smart Meter will report back electricity issues (such as periods of low voltage) to deliver better quality of supply.

hh It will enable ways in which consumers can manage their electrical use remotely.

Benefit to the electric company byhh Eliminating manual meter reading and reducing

the burden on meter operators collecting meter readings manually.

hh Monitoring the electric system more quickly.hh Making it possible to use power resources more

efficiently.hh Providing real-time data useful for balancing electric

loads and reducing power outages. hh Enabling dynamic pricing (raising or lowering the

cost of electricity based on demand)hh Avoiding the capital expense of building new power

plantshh Helping to optimize income with existing resourceshh Influence the energy consumption of their usershh Stop Electricity Theft and recognized solution for

controlling the Commercial Loss.hh Using the data collected on when and how

households are using energy, suppliers can create more competitive time-of-use tariffs with cheaper prices for off-peak use.

Benefit to the environment byWith advanced control and communications, the smart meters can reduce unnecessary energy consumption and proportionate reduction in CO2 emissions. Smart metering will also aid in effectively integrating renewable energy sources such as solar panels and windmills.It will support the environment by;

hh Preventing the need for new power plants that would produce pollution

hh Curbing greenhouse gas emissions from existing power plants

hh Reducing pollution from vehicles driven by meter readers

hh Tool to entire consumers to manage their consumption better and reduce usage.

hh Help governments implement liberalisation of energy markets

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ChallengesOne of the primary factors that influence a utilitie’s decision while choosing a smart meter is its cost. This is one of the biggest determinants to the adoption of smart meters for smart grids. The cost of the smart meter is contingent on the functionality desired by the utility. If the utility wants to resolve complex issues using a smart meters, the cost invariable escalates. However, lowering the cost of the meters often compromises the quality of the components used.

The other biggest challenge to roll out smart meters is managing the static meters that have already been installed. The regulator is unlikely to approve the expenses of smart meters in case the static meters have recently been replaced. Existing static meters can not be through away as waste. For obtaining the regulator’s approval, a utility is required to prepared a detailed roll out plan and state the cost that would not be incorporated in the annual revenue requirement.

To obtain the full benefit of smart meters, it is critical to ensure that end-consumers have proper awareness of their operations. Smart meters can also be equipped with in-house displays, web portals, smart phone applications, etc. to facilitate this. Another issue pertains to the mindset of consumers and utilities. In addition, stakeholders must attach realistic expectations with the model. Dealing with the lack of political will and inadequate trained personnel are other challenges.

The concept of smart metering in India is now at nascent stage. From the perspective of meter manufacturers, standardization is highly desirable. If each utility were to specify its own meter requirements, the investment made by the manufacturers in developing new meter designs would be difficult. On the flip side, one type of meters can not suit the requirements of every utility. It will create a great challenge for the manufacturers. A base standard need to be specified and utility may add their specifications as per their need. It would thus be beneficial both for buyers and sellers of smart meters. In order to provide state of the art technology to consumers, manufacturers often acquire technology from overseas. In such cases, it is imperative to customize the technology to suit domestic requirements and conform to Indian standards. However, while adopting a new technology, it is important to undertake skill development so as to achieve the desired results.

Another key consideration while adopting a new technology is to ensure its scalability. While a technology may yield desirable results during a pilot study, it may fail when its scope is expended. On the communication technology front, radio frequency identification is best suited for congested areas, while global positioning system technology perform better in scattered areas. It is recommended that utilities should adopt a combination of the two for best results.

Introducing smart meters is making the electricity grid increasingly electronic, which saves time and money for utilities since they don’t have to send a person to read the meter. But this increasing ‘digitalisation’ also adds a lot more opportunities for tampering with the meters in some way, resulting in security vulnerabilities. These

vulnerabilities obviously need to be considered before introduction of the smart meters to make sure everyone is paying their way when it comes to electricity.

In view of the above, the challenges to the electric company, consumers and environment are summarised as follows:

Challenges to consumershh Transitioning to new technology and processes

hh Managing public reaction and customer acceptance of the new meters

hh Making a long-term financial commitment to the new metering technology

hh Managing and storing vast quantities of metering data

hh Ensuring the security of metering data

hh Smart grids and smart metering need substantial capital investment.

Challenges to consumers:hh Verifying that the new meter is accurate

hh Protecting the privacy of their personal data

hh Paying additional fees for the new meter

hh Another concern is that the use of smart meters can lead to data misuse, as it discloses the behavior of citizens inside their residences, and this can be exploited by unauthorized users.

hh Need to develop understanding about the voluminous information displayed.

Challenges to the environment...hh If consumers continue to use more and more

electricity, it would negate the projected environmental benefits

hh Disposal of the old meters

hh There are health hazards that are caused by wireless radiation,

ConclusionSmart meters not only help consumers in managing their power demand but also assist discoms in locating outages and ensuring fast restoration of systems, monitoring the quality of supply, and identifying meter tampering. The manufacturers are continuously upgrading designs of smart meters and adding advanced features. However, steps need to be taken to ensure uniformity in the system in order to ensure successful implementation of smart metering system. The quality of meters should be given priority and utilities must consider the total cost of ownership in the long run as opposed to just taking the one-time cost into account.

Ashok UpadhyayBE (Electrical), M Tech. (Ind. Engg.) M. Phil (Ren. Energy)

Dy. Director (Generation)M.P. Electricity Regulatory Commission Bhopal (M.P.)

34 September 2016

Workshop on “Sustainable Growth through SME empowerment”

The inaugural address was given by Mr Ajay Thakur who emphasized on the need and benefits of listing a company at the BSE. He said, “We as an exchange understand the importance of SMEs contribution to the growth of Indian economy. Hence, we continue to hold seminars and conferences along with industrial associations Besides this we also conduct meetings with SMEs on a one to one basis to make them aware about the benefits of listing on SME Platform. we have been conducting seminars and events to create awareness

IEEMA organized a workshop on “Sustainable Growth through SME empowerment” at Millennium

Hall, Hotel Ramada, Navi Mumbai on August 6, 2016. The workshop was attended by more than 50 delegates from SMEs across Maharashtra. There were interesting sessions on creating a conducive Atmosphere for “Make in India”, Role of Policies, Capital Opportunities and Ease of Business and International Business Opportunities for SMEs: Marketing, Quality and Certifications. Mr Ajay Thakur, Head, BSE SME and Mr Rajesh Kumar, DGM, SIDBI were some of the eminent speakers of the workshop.

The event proved to be a platform to discuss key strategies, identify industry-first solutions and deliberate on methods and standards to adapt, develop, build, optimize and leverage on the latest available resources from Government Bodies, Investment agencies, Technology firms, etc. in order to bridge the gap and fast-track the SMEs growth towards an enhanced future.

Dr Nitin Parab, CEO & Evangelist, Crosslink International, Mr Jayant Ghate, Advisor, WTC Navi Mumbai, Mr Jayant Kulkarni, Chairman, IEEMA SME Division, Mr Pranav Parikh Head of Section - Business Development, ERDA

IEEMAEvent

36 September 2016

among SMEs. These initiatives helped us stay ahead of the curve.”

Mr Rajesh Kumar, DGM, Small Industries Development Bank of India (SIDBI) briefed the members about the schemes available for the sector he opined, “Development of Micro, Small and Medium Industry is the sole reason for our being. We focus on Industrial as well as Service Sector Funding needs of the MSME sector. Ask us how our schemes for Industrial as well as Service Sectors can help you achieve your business objectives.”

While Mr. Shivaji Patil, Dy. Director, MSME Development Institute spoke on providing support/services for the prospective and existing entrepreneurs at the state level for promotion and development of small-scale industries. MSME-DI, Mumbai provides various types of extension services and assistance in setting up of units, promoting and developing products and Services for the MSME.”

There were panel discussions on numerous topics concerning the MSME sector. The workshop was appreciated by the delegates. More such workshops are planned across the country in near future.

Mr Ajay Thakur, BSE

Mr Rajesh Kumar, SIDBI

Delegates at the Workshop

Mr Madhav Digraskar, MD & CEO, Cable Corporation of India Ltd, Mr Shivaji Patil, Dy. Director, MSME Development Institute, MSME Development Institute, Mr Sunil Arora, DGM - SME Business Unit, State Bank of India, Mr Yusuf Contractor, Vice President – Corporate Finance, Choice Capital Advisors Pvt. Ltd

Interview

38 September 2016

Please describe in brief about yourself and association with Hitachi.I have taken over the responsibility of Managing Director of Hitachi Hi-Rel Power Electronics, India in April 2016. Having strong Power Electronics background (Ph.D. in Power Electronics), I have been associated with Hitachi Japan for more than 26 years and worked in different roles, be in Technology or Business. I am happy to be at the helm of Hitachi Hi-Rel Power Electronics (HHPE), which is now a 100% Hitachi Group Company and is recognized as a Pioneer in Power Electronics, and is on its way to the next level of success.

Please share how Hitachi made Hitachi Hi-Rel in India a Wholly-Owned Subsidiary of Hitachi.The demand for power electronics products is expected to increase in keeping with the development of various industries in India and Southeast Asia as well as the recent rapid growth of renewable energy market worldwide. In this market background, Hitachi has decided to take direct control of Hitachi Hi-Rel operations by acquiring 100% stake in Oct 2015, after having major stake in way back in 2011. This was done mainly to reinforce power electronics business through increasing product competitiveness and expanding application fields by enhancing Hitachi Hi-Rel’s R&D, design, and manufacturing structures with making full use of the Hitachi Group’s sales/service network.By further expanding power electronics business, Hitachi will contribute to the development of industry in India and throughout the world.

Please describe in brief about your company, its vision and product range.Having more than 3 decades of experience as Hi-Rel Electronics Pvt. Ltd, we have garnered a significant level of trust in our market segment and now with direct control of Hitachi management, we continue to offer world class power electronics products, value added services & customized solutions at Hitachi Quality.Our vision is to be recognized as the most trusted power electronics company by supplying superior products and services. We target to lead all our current market segment be it grid tied solar inverters, UPS for industrial (non-IT) and enterprise (IT & commercial) applications, medium & low voltage variable frequency drives and other product domain.

Please describe your Establishments in India.I am particularly pleased with the fact that we are contributing to the “Make in India” initiative of the Govt. of India since 2011, much before its launch.

We are poised to achieve even bigger targets (1.5 GW) leveraging the experience gained in past: Dr. Kazuhiro Imaie

I am proud to note that HHPE has been a strong contender in the market for the last 33 years with state-of-the-art manufacturing facilities, both at Sanand & Gandhinagar, to manufacture power electronics products conforming to global standards to cater to the Indian and global market. Our ultra-modern Sanand Manufacturing Works Spread over 26,000 Sq mtr. is modelled on Hitachi’s Omika Works in Japan and is one of the most modern power electronics manufacturing facilities in India. This Company is a key hub, for both “Manufacturing” as well as “Research & Development”, within the Power Electronics division of Hitachi Group and we will leverage it to drive Innovation and Growth. This geographical advantage, value added solutions and technological leadership help us in serving the customers in India and across the globe – USA, Africa, Middle East, South East Asia and Australia. For Solar, presently, we are operating on our maximum manufacturing capacity (150 MW / month). We have expansion plan in place and our production capacity for both Center Inverters and Variable Drives would be double in next year.

Kindly brief about your offerings in Solar Industry.We are offering highly optimized energy solutions based on Hitachi technology. For Solar, we offer grid tied solar Inverters (HIVERTER NP 201i) which is available from 250 kW to 1.25 MW capacities. With 3 level IGBT technology and wider MPPT range, HHPE inverters are delivering considerably high reliability and maximum power generation.

Dr. Kazuhiro Imaie, Managing Director of Hitachi Hi-Rel. speaks to IEEMA Journal on his different roles at Hitachi

Interview

39September 2016

Hitachi 1.25 MW Solar Inverter is among the most popular grid tied Solar Inverters currently in India for its various technical advantages and major saving in EBOP. We offer highly reliable after sale support from dedicated & decentralized after-sales-service centres located at strategic locations across the country.

Present some noteworthy projects, case studies of solar plants built using your solar InvertersI proud to inform you that we have been chosen as Inverter partner for world largest Solar power plant in India (648 MW) by leading business group and we have supplied 360 MW worth of Inverters in record time of 3 months. In last financial year, we have worked on one more mile stone project in country and supplied Inverters for 150 MW NTPC Ananthpur project through EPCs & successfully commissioned within time frame. This was the first solar plant of NTPC under UMPP scheme.

What are your plans for India, your view on the Indian Government aggressive target of 100 GW Solar Power by 2022?Looking ahead, we are expecting a historically strong year in Indian solar market be a State Policies, UMPP or SECI

projects. I am confident that, with our leading technology, strong brand name & superior products, we will further solidify our market leading position. HHPE experienced truly unique achievement – a much deserved entry into 1000 WM Club. We are poised to achieve even bigger targets (1.5 GW) leveraging the experience gained in past. We are confident to meet industry demands looking forward to consolidate & fortify our brand for promising future in coming years.

What is your vision and future plans for Hitachi Hi-Rel Power Electronics?As the Managing Director of Hitachi Hi-Rel Power Electronics, my vision is to take Hitachi Hi-Rel to a new height, to position our organization as one of the most admired company in the world, number 1 power electronics company in India, and as one of the top performing of Hitachi group companies with power electronics business at the centre contributing significant growth in revenue and profit.With expertise, experience and an efficient product line, we will always try to be a leader in power electronics sector. One of our values – Customer Delight, encourages us to realize our customer’s expectations and to serve them better - All Time, Every Time.

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Re-structuring of power sector is the Unbundling and structural separation of generation, transmission,

and distribution into separate services to be provided by separate companies. Prior to 1991, the electricity sector was a government monopoly, which performed all the functions of generation, transmission, distribution and trading through a vertically integrated setup. Reform in power sector mainly started from 1991 when “Policy on Private Participation in the Power Sector, 1991” issued by the Government of India. Through this policy the Govt, encourage greater participation by private sector in the generation field and invite 100% foreign equity.

Till the enactment of Electricity Act 2003, the power sector of the nation was governed by three major acts namely “The Indian Electricity Act (IEA), 1910”, “The Electricity Supply Act (ESA), 1948” and the Electricity Regulatory Commissions (ERC) Act, 1998”. The IEA, 1910 deals with the functioning & regulation of the licensees whereas the ESA, 1948 mainly deals with the establishment and functioning of the state govt. owned integrated monopoly utilities called as State Electricity Board’s (SEB’s). The state owned SEBs were formed in the 1960’s respective states. SEB’s were integrated utilities with monopoly over the generation, transmission and distribution processes within the state. The ERC Act, 1998 provides for the establishment of the state & central level Electricity Regulatory Commission’s for the proper functioning with the regulation of the SEBs as well as the private players present in the sector.

The Government of India enacted the Electricity Act, 2003, repealing the Indian Electricity Act, 1910, the Electricity Supply Act, 1948 and the Electricity Regulatory

Commission Act, 1998. The need for the new legislation, the Electricity Act, 2003, arose when the Government of India considered and address the following issues on policy framework and introduction of electricity markets in India.

i. Uniformity of regulatory approach throughout the Country to facilitate private equity investors in the sector, to choose any State of their choice;

ii. To make generation of electricity free from licensing and introduce competition to enhance the efficiency and economy in production of electricity and its availability to consumers at affordable prices;

iii. To introduce Open Access in the Transmission and Distribution of Electricity for facilitating trading in electricity and to create electricity market to provide choice to the electricity consumers;

iv. To create a National Grid and National Load Dispatch Centre integrating all five regional grids to facilitate electricity traders and Power Exchanges at National level.

v. Energy shortage & peaking shortage to be overcome by providing adequate spinning reserves.

The Indian electricity sector has seen major changes with regard to implementation of regulation, competition and the perceived role of the private sector. Separate regulatory bodies have been set up at the federal as well as at the provincial levels. One of the key objectives of reforms was to promote a competitive electricity market to ensure affordable and reliable power supply to consumers. Yet, effective competition still remains a

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distant goal. There are number of constraints faced in introducing competition and implementing regulatory regime in electricity sector in India including different possibilities of introducing retail competition in Indian electricity sector and problems and prospects that might be encountered; and assessing the nature of regulatory capabilities at the Federal and State regulatory commissions. It also draws attention to the need for regulatory independence for effective power sector reform in India.

The incompleteness of structural and regulatory reforms implies that the unsatisfactory performance of the Indian electricity sector continues. The functioning of the sector is still characterised by major problems like:

hh High technical and commercial losses such as theft of power due to unprofessional management;

hh Unsustainable measures to subsidies one sector segment at the expense of another (cross subsidisation); and

hh Inadequacy in distribution networks leading to poor quality of power supply.

hh Regulatory delays and inefficient regulatory frame-work due to lack of accountability.

In order to rectify the problems, regulatory reforms were implemented in the sector with the motive of improving economic efficiency and ensuring provision of affordable and quality service to the consumer. Electricity Regulatory Commissions were constituted both at the Central as well as state level and were assigned important responsibilities such as promotion of competition as well as consumer protection. These bodies were supposed to function independently and take decisions on the basis of balanced consideration of various interests represented by suppliers of services, consumers etc. But, for all practical purposes, these bodies are still not truly independent and face continuous intervention in their day-to-day functioning from the vested interest groups. However, many problems in implementation exist. Professionals, notably engineers, economists, accountants, lawyers, etc who support the commission are need their capacity building. The postulated arm’s length relationship of the SERCs with the government might not exist in practice. The practice of using staff from the government implies that there is no time or room to build up long-term core capabilities. The working of the commissions is hampered by persisting vacancies. Temporary consultants are often used to meet the dearth of regular staff, which interferes with continuity in working.

After examining the challenges in the Power Sector which emerged during the past 8-10 years, the Government feels to amend the Electricity Act, 2003 to further strengthen some of the concepts and also make changes to enable smoother implementation of the Act.

Electricity Amendment Bill, 2014The Electricity (Amendment) Bill, 2014 was introduced in the Lok Sabha on 19th December, 2014. and referred on 22nd December, 2014 to the Standing Committee on Energy for Examination. The Bill seeks to amend the

Electricity Act, 2003. Primarily, it seeks to segregate the distribution network from the electricity supply business. It also seeks to introduce multiple supply licensees in the market. Undoubtedly, there is an imperative need that the third generation reforms/improvements in the electricity/energy sector be initiated. It is felt that now concentration is required to be given on Separation of commercial losses, more transparency, affectivity and accountability in the regulatory system and separation of carriage and content in phases. The amendment also seeks energy efficiency, promotion of Renewable Energy, choice to customer to select the supplier, Grid Security, open access, Rationalization of Tariff determination process, Strengthening of Regulatory Commissions, and enabling provisions for self certification of Electrical Installations. The Bill provides provision for multiple supply licences in the markets to enable electricity consumers choose their service providers among many. It provides that the States will prepare a roadmap for segregation of power distribution network business and the electricity supply business in a particular time.

The amendments to the Electricity Act, 2003 have been proposed to segregate the carriage (distribution sector/network) from the content (electricity supply business) in the power sector by introducing multiple supply licensees in the content based on market principles and continuing with the carriage as a regulated activity. The proposed amendments also provide for recovery of revenue by licensees without any revenue gap, timely filing of tariff petitions by utilities and disposal of the same by the Appropriate Commission within a specified time period and empowering the Appropriate Commissions for initiating suo-motu proceedings for determination of tariff in case the utility or generating companies do not file their petitions in time. Timely filing of tariff petitions and issuance of tariff orders will strengthen the financial position of distribution companies.

Moreover, it is felt necessary to improve accountability and transparency in the working of the appropriate Commissions without affecting their functional autonomy and to bring clarity in the provisions pertaining to the Central Electricity Authority. Further, granting deemed licensee status to companies notified by the Central Government, the provision of composite electricity bills, installation of smart meters beyond a consumption level to be prescribed by the Central Government, dedicated transmission lines and modifications in the composition of the Selection Committees at Central and State level for selection of the Chairperson and Members of the regulatory Commissions are some of the other amendments proposed in the Electricity amendment Bill.

Purpose of Electricity Amendment Bill, 2014The main purpose of Electricity Amendment Bill is separation of carriage and content in power distribution. The Bill also seeks to provide multiple supply licensees in the markets to enable electricity consumers choose their service providers among many. The states are empowered to prepare a roadmap for segregation of power distribution network business and the electricity supply business. The main purpose of the Electricity Amendment Bill, 2014:

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hh Need to review the functioning of Regulatory commissions and ensure their accountability for smooth and unhindered development of Power Sector.

hh Rationalization of Tariff and making Tariff fixation process more certain and effective;

hh Separation of Carriage and Content in the distribution sector; Segregate the distribution network business and the electricity supply business, and introduce multiple supply licensees in the market.

hh Performance Monitoring and strengthening of Regulatory Commissions including their financial autonomy;

hh Effective implementation of ‘Open Access’.

hh Promotion of Renewable Energy

hh Initiatives to minimize the commercial losses throughout the Country.

hh Production of energy and the environmental hazards.

hh Provision for a National Renewable Energy Policy.

hh Mandate the coal and lignite based thermal generators required to produce certain percentage of thermal power installed capacity as renewable energy.

Main Contants of the Electricity Amendment Bill, 2014Segregation of Carriage and Contents

In distribution sector, competition was envisaged through the concepts of Open Access and Multiple licensees in the same area of supply. There has been very limited progress in introducing competition through either of these routes. While open access at inter-State level is operational, there are issues around implementation of open access at distribution level. In order to create more competition and to give choice to the end consumer, it is proposed in the amendment to segregate carriage and content businesses. In other words, the entity which will own, operate and maintain the distribution system right up to the consumers‘ premises should be separated from the entity or entities which will be supplying electricity to the consumers. As in the case of a transmission licensee, the distribution licensee will only operate and maintain the distribution system (wire business) and will not be concerned with the commercial supply of electricity.

The Amendment Bill creates a supply licensee who would be authorised to supply electricity to consumers. The distribution licensee will distribute electricity and enable the supply of electricity. The Bill also provides for the transfer of the supply license from the distribution licensee to the supply licensee. Segregation of Carriage and Content is a workable proposition and will also provide opportunity for open access to ordinary consumers. Segregation of Carriage and Content is expected to bring about competitiveness in the content business. The carriage denotes the network business and the content denotes supply business. Segregation of

carriage and content is plausible in the wake of the high AT&C losses, segregation of carriage and content will help identify clearly the technical and commercial losses.

Grid security

In the light of the major Grid disturbance occurred in July, 2012 resulting into complete black out in four regions of the country and fast growing development of Power Sector, integration of Regional Grids to form the National Grid, the Government felt the need to strengthen the Grid Security. It is of utmost important that absolute discipline is maintained in the grid and there should be no violation on the part of any person dealing with the grid. Accordingly, the penalties provided in the relevant provisions are significantly increased to act as a proper deterrent. Further, the generating stations shall be required to maintain a specified capacity of spinning reserve for the grid safety and security. The dedicated transmission lines are also covered under the regulations relevant to transmission lines for compliance and Appropriate Government can issue directions for Grid Security and Safety.

Renewable energy

The Bill provides for an additional National Renewable Energy policy. The Bill seeks to promote generation of renewable energy through tax rebates, generation linked incentives, etc. The Bill provides that any generating company, establishing a coal and lignite based thermal generating station will be required to establish a renewable energy generation capacity as prescribed by the central government. Any generating company establishing a coal and lignite based thermal station will be required to establish a renewable energy generation capacity, which will be at least 10% of the thermal power installed capacity. A National Renewable Energy Policy will be prepared by the central government, in consultation with state governments. The Policy will provide for the development of the power system based on optimal utilisation of hydro and renewable sources of energy.

Conditions of service of SERC’s members

Electricity (Amendment) Bill, 2014 proposed structural changes in the regulatory framework. The Bill reduces the term of office for the chairperson or other members of the Central or State Regulatory Commission from five years to three years. The Bill also allows for re-appointment of the chairperson and members for one more term in the same capacity in which they had earlier held office. Provisions also made to make the regulators accountable for their role.

Smart Grid

The Bill defines a Smart Grid as an electricity network that uses information and communication technology to generate, transmit and distribute electricity efficiently. It seeks to promote provision of electricity through Smart Grid. The Bill also provides for the installation of smart meters for proper accounting and measurement of the consumption and metering of electricity.

InFocus

4444 September 2016

Open access

The 2003 Act sought to introduce more competition in the power sector by enabling private sector participation. While the generation segment has seen some private participation, competition in the transmission and distribution segments has been limited. The Act allows for open access only for consumers of 1 MW and above. Open access enables consumers to buy power from any source through non-discriminatory access to the transmission and distribution lines. The Amendment Bill proposes to allow open access for consumers below 1 MW as well. Open access transactions should be monitored to ensure that it is an attractive option for customers.

Tariff determination

The SERC’s or CERC will determine the tariff for: supply of electricity by a generating company to a supply licensee, purchase of electricity by the supply licensee from the intermediary company, transmission of electricity, wheeling of electricity, and the retail sale of electricity to the end consumer. The tariff for retail sale of electricity will be subject to a ceiling price to be determined by the SERC’s. The tariff determined by the SERC’s for a licensee must provide for recovery of all prudent costs of the licensee through an appropriate price adjustment formula. With regard to the guiding principles for the determination of tariff, the Bill states that the revenue deficit, if any, prior to the commencement of the Bill, will be recovered.

Observations And Recommendationsi. The Bill provides for separate licensees for

maintaining the distribution system and for the supply of electricity. More clarity should be provided about the level and manner of implementing such segregation. Broad guidelines should also be framed giving the states due scope to align these guidelines as per their conditions.

ii. Under the Bill, the Central or State Regulatory Commissions may grant multiple supply licenses within the same area of supply and consumers can choose their supplier. Some well defined parameters should also divide the consumers for supply on the basis of their status, cross-subsidies paid to them, and nature of technical and commercial losses.

iii. The choice of selecting the area of supply should not be left entirely to the private supply licensee. It should be assign in consultation with all concerned stakeholders.

iv. There is risk of serving an uncertain number of customers with uncertain electricity loads. If the majority of consumer base are agricultural or a poor record of payments, the supply licensee may face an additional financial burden. Further, in the absence consumer profile and consumer base, a supply licensee may find it difficult to anticipate the additional financial burden it may incur.

v. The Bill requires that one of the supply licensees in a given area of supply must be a government owned company. Mandating the presence of a government owned company may adversely affect the competition in the sector, if that company does not work on market principles.

vi. Due to the intermittent nature of renewable energy, making the renewable energy generation obligation mandatory to a certain percentage may lead to problems. However, there must be a certain limit to promote renewable energy but this limit should be at lower side due to grid security and survival of thermal generators.

vii. The Act mandates state governments to compensate discoms for subsidies provided to agricultural and/or household users. However, state governments have lagged in timely payments of such subsidies. This has resulted in state discoms relaying more on short-term loans to fund their operations at higher interest.

viii. Power sector employees are opposing the amendment and expressed their concerns about the segregation of the content and carriage business in electricity distribution saying that it could lead to cherry picking by the private sector.

ix. Regarding the interest of government owned utilities employees, the amendment bill lacks clarity. The interest of existing utilities employees should be protected and ensure their job security.

x. The Bill does not envisage any financial support for the supply licensees. There should be some financial support for the initial phase.

ConclusionThe establishment of state electricity regulators was intended to reduce government control over the power sector and to de-link it from electoral politics. The incompleteness of structural and regulatory reforms implies that the unsatisfactory performance of the Indian electricity sector continues. It is felt necessary to improve accountability and transparency in the working of the Appropriate Commissions without affecting their functional autonomy. Further, after more than a decade of initiation of power sector reforms, power distribution is still the weakest link in the Indian power sector. In order to improve the health of Indian power sector, there is urgent need to implement provisions of the Electricity Amendment Bill, 2014 by the Government. The state government’s and State Regulators should come up with positive mind set to implement all the provisions and promote competition in the power sector to ensure cheap and quality power to the consumer’s.

Ashok UpadhyayBE (Electrical), M Tech. (Ind. Engg.) M. Phil (Ren. Energy)

PHD Scholar, MANIT, Bhopal (M.P.)Dy. Director (Generation)

M.P. Electricity Regulatory Commission Bhopal (M.P.)

Insight

4646 September 2016

After a long 35 years stint with a multinational Company in India and

currently as Chairman IEEMA SME Division. I met several successful entrepreneurs running SMEs who have demonstrated their ability to face extreme challenges imposed by uncertain and ambiguous economic scenario compounded by obstacles created by Customers buying pattern, Government policies, Bankers attitude and many more constraining factors.

While I have seen them struggling and adopting an approach which I call “If you can’t cure, endure”. At the same time, not to undermine their situation, I also admire their talent, skill and courage to face the reality and rock the boat in troubled water or pilot the flight with strong head winds hoping for a better future. Every SME entrepreneur is successful to a degree to reach the inflection point in their business where they may show a sign of “Give Up” or look for external help from Government, customers or bankers to support their business. In the same scenario many have shown healthy business growth with strong financial performance and are able to discover vision of creating a growing, enduring and sustainable institution from a small business setup. How they could do it was my area of interest and the only way to get inputs on this was to ask them a question “Why are you what you are you today ?”

Accumulating all inputs, distilling and organizing it in a simplistic model was the task I was on for long time. Finally I found it and defined it as SPECIAL

(Shifting your role, Prioritizing growth lever, Engaging & empowering employees, Choosing your customer base, Inspirational visioning, Action oriented culture and Leveraging knowledge, skill, education and experience) which has provided traction to their success. This is my learning and may provide you some insightful inputs for reflection on managing SME’s for success . Let me expand it in detail.)

1. Shifting your role

“Business men go down with their business because they like the old way so well they cannot bring themselves to change ”

- Henry Ford

The birth of an enterprise takes place first in the mind of an entrepreneur and then he single handedly initiates actions to create it in a physical form overcoming all obstacles and hurdles. He works strenuously for getting funds, creating customers, design and process establishment, recruiting talent, training employees, managing complete process of order to cash, planning

Seven differentiating attributes that gives them enduring success

J G Kulkarni Chairman of SME Division of IEEMA

Insight

47September 2016 47

and procurement, labor issues and many such activities on daily basis which are known as “Daily Management”. This is vital and is a must to kick-off the business and run it smoothly. The beginning made like this, over the time stabilizes the business and reaches to a point beyond where saturation is experienced and new avenues are required to reach the next level. Unfortunately, habit of daily management has a flip side as it cultivates micromanagement of all daily activities what I call it as “ working in the business”.

So what is required for additional dimension or avenue for his enterprise? The simple answer is “ time and focus”. An entrepreneur’s time is an important aspect for highly focused activities which can keep enterprise on success path sustained over time.

This may involve many strategic actions like remodeling of current business model to the one most apt for changed business environment, development of new products, new markets, organizational development, processes & systems, operational effectiveness, IT enablement and many more.

These are enabling activities and are important but are not urgent in nature and hence it shifts to “will do it later”. I call this as “working for the business”. Now we see a dilemma, if I work more in this business , I have no time for working for my other business or if I focus more on working for this business , how will my current business run ?. Both on extreme limits are not effective nor I am proposing to view this as a binary activity like either or but a complementary activity and recommend a balanced ratio. This can be called as shifting role from fully working in the business to 80 % working in the business and 20 % working for the business and gradually shift to 50: 50 ratio. I know it is simple to say but most challenging to do but for sure all the successful SME entrepreneurs do it to some degree knowingly or unknowingly.

2. Prioritizing growth levers

“Revenue is vanity, margin is sanity while cash is reality”

- Anonymous

The business has to grow with time is the mantra of every business be it a small , medium or big enterprise . We all know that Stagnant or de-growth in a business is a sign of sickness. Many talk “profitable growth” as a management jargon but understand little about how to put it in practice. I have seen successful entrepreneur focusing on growth through a disciplined approach. We all measure growth in revenue as indicator of success. This is not wrong but needs little refinement. There are three levels of growth; growth in revenue (Top line), growth in profit (Bottom line) and growth in cash. All three are interlinked and impact on one can affect other and hence prioritizing these levels are critical for success.

If market is bullish with demand exceeding supplies and cash is freely flowing through the system, your strategy for growth can be focus on “top line growth” as top priority followed by “margins” as second priority

and “cash” as third priority”. Unfortunately market and economy go hand in hand and is cyclic in nature. It is favourable or conducive for few years and tough for next few years. As these dynamics change, your prioritization should also change.

Look at the situation of power sector business in the last few years for some of the products: capacity is in excess of demand, drying order pipe line, inflow of imports, eroding margins and uncertain cash. Result is, most SME’s experience wide-spread delayed payments and growing cases of defaults in the inter-firm credit or trade credit network. Disruptions in cash flow across trade and industries has become a problem of systemic in nature and reaching to a critical threshold point. In this situation, going after topline growth as your top priority, ignoring it’s negative effect on cash can be suicidal. This is the point where successful entrepreneurs proactively change the priority level to “Cash” as first priority followed by “margin” as second priority and the “top line growth” as third priority. Actions to support “cash as priority” have to be concurrent internally and externally. Again, simple to say and most difficult to practice.

3. Engaging & Empowering Employees

“Always treat your employees exactly as you want them to treat your best customers.”

- Stephen R. Covey

This subject has gained vital importance in today’s business scenario and is discussed in depth and detail in all the HR forums. Everyone believes it but few are able to practice it. In contrast, I came across a study by management consulting firm Hay Group which revealed that 73 % of manufacturing industry leaders in India are creating demotivating work environment in their organizations. Those in manufacturing show stronger preference for taking quick decisions without consulting others. The study reports low self awareness, along with lack of inspirational leadership and directive leadership style are recipes for inefficiency and low productivity in the organizations compounded by low moral and disengaged employees.

It is known that empowerment without engagement is not effective and without empowerment you can’t shift your role from working in the business to working for the business. Those who could successfully do it in their

Insight

4848 September 2016

enterprise have worked on basic paradigm of “whole person in whole job” for body, mind and heart of their employees. In turn they have found way to address unstated engagement conditions of employees viz. 1. Pay me fairly 2. Use me creatively 3. Treat me kindly.

I believe that employee engagement and empowerment are the key differentiator for success and sustainability of enterprise as attracting and retaining younger generation employees will be the biggest challenge for MSME Sector in future.

4. Choosing your customer base

“There is a big difference between a satisfied customer and a loyal customer. Never settle for’satisfied’.”

- Shep Hyken

I have seen the initial phase of a SME business with a single customer/company and single product/component. Gradually with time, you gain confidence of customer who is satisfied with your company and he asks for more products/components and you happily agree to do it. The business grows and become self-sustaining with ease. In some cases, you are called as “Strategic Vendor Partner” and motivated to invest big bucks for capacity for future growth.

All is well till the grass is green. You get a sense of Win-Win thinking which creates synergy and you enjoy fruits of the supreme state of interdependence. This is an excellent business model with underlying assumption that nothing is going to change with time. Unfortunately this assumption has limited validity as change being constant, will adversely affect the SME vendor. Just to amplify the point, Customer organization are also venerable to market and economic disruptions. Do you see it happening in India ? Yes, this is happening across the globe and India is not an exception. Things do change in customer organization because of M&A, Company Policy changes, Change in leadership, Technology disruptions, commoditizing, financial distress, Product portfolio and market mix changes and so on. This changes can negatively impact a SME vendor in a big way. In customer’s mind you are fully dependent and they can change or force any thing at their will without consulting you. You have no choice but to accept and have sleepless nights. In this situation, do you have power to confront? Can you insist for changes in payment terms to protect your cash flow ? No way, if you are dependent, you will have to do what they tell you to do or else close the business.

Successful entrepreneurs know this and always have multi customer multi product business model with strong internal system to priorities their business pie with a chosen customer base.

Same hypothesis can be extended to doing business in single state, single region and in a country which can lead to a very fragile and venerable business model. If you are looking for a successful enterprise, choose multi-customer, multi-region and multi-country approach in

your business strategy and model. My recommendation to have market mix/country mix optimally designed to suit your needs. Once you are convinced of “Why to do it ?” You will discover how, what ,when and where to do it. A caution, do not try to do it abruptly but slowly and steadily as an ongoing continuous us process with checks and balances can be the most exciting and interesting initiative for the enterprise.

5. Inspirational visioning

“ Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world.”

- Joel A. Barker

I came across a very thoughtful statement by Helen Keller( An American author, political activist, lecturer and first deaf-blind person to earn a bachelor of arts degree.)

Helen Keller was once asked if she could think of anything worse than being blind. “ Yes “, She said. “ Being able to see but having no vision “

Is vision for an enterprise an invention or a discovery ? I believe it is a discovery because every entrepreneur begins his business journey with some dream or vision in his mind. As the business grew, he feels satisfied of realizing the initial dream what he conceived in his mind creating a small or medium enterprise. This is great, but question to ponder, have your enterprise reached to the highest potential ? Surely not. Believe it or not, every enterprise small or medium has strength to become an institution lasting for many years for serving the need of society across the world. Every large organization we see today happens to be a small start-up many years back. This is where organization’s positive vision plays enabling role and a forceful motivator for the change. Therefore, it is essential that we think about it, dream about it and envision future of an enterprise. I encourage all of you to view a thirty minute video “ The Power Of Vision” by Joel Barker which is so insightful for dreaming for a big picture of the enterprise. Let me repeat, “the positive vision of the future is a forceful motivator for change “ in good or tough times.

It may be worth for all of us to learn from successful entrepreneurs ; how they created a shared vision ? and how they realized through execution of every element of action plan time and again not ignoring the fact that :

6. Action Oriented culture

“ One of the marks of successful people is they are action oriented One of the marks of average people is they are talk oriented.”

- Brian Tracy

The culture of ‘meaningful action orientation’ in an enterprise makes all the difference in terms of achieving success. This is driven by deep personal commitment to the goal/task that cuts out distraction and overcomes difficulties. It is determined, persistent and relentless

Insight

49September 2016 49

action-taking to achieve a purpose with undivided resolve becomes DNA of every employee.

The employees exhibit two special characteristics one their personnel involvement and second their conscious commitment to achieve a particular task resulting in employees who spring into action when they see problem or opportunities, which doesn’t wait to be told, who are aren’t bound by job description and are instinctively proactive. Here employees who show up everyday and follow all the prescribed rules and procedures, who work hard,who stay till work is done and take personal responsibility for delivering great results.

7. Leveraging Knowledge, Skill, Education and Experience

“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world”

-Archimedes

Leverage is the process of maximizing the resources that are available with us , in order to increase effectiveness. Successful entrepreneurs leverage their knowledge, skill, experience and education for achieving “Time and again, more from same”. They keep reading technical

and business books, magazines, write articles, share success stories to leverage the experience and wisdom of theirs and others. As known to them ‘Leaders are readers’, more they read, more effectively they lead. If they don’t have education or experience required for success, they overcome learning curve by working with a mentor, attending training courses, seminars etc. You can also leverage your education and experience by being a mentor to someone who is in dire need of your experiential know-how.

ConclusionI believe, all the SME entrepreneurs are gifted with potential and unique ability to make a difference for creating a successful Institution delivering value to all the stack holders, most significantly and service to nation by creating jobs for younger generation.

J G Kulkarni Chairman of SME Division of IEEMA,

Past President of IEEMA and Past EVP & President of Power BU,

Crompton Greaves Ltd. jgk@hariniwas.com

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SMETalks Success story

50 September 2016

“Where innovation is life and to remain in business keep on innovating solutions for customer” has been the mantra of success which became part of DNA of every employee at Elektrolites, This gave traction for profitable growth for the company enabling global vision for the future.

Starting Phase for the company

The manufacturing of 11kV Isolators were started by young Engineer Mr Anil Saboo immediately after graduation without any experience with financial loan of Rs. 1.80 Lakh from Rajasthan Financial Corporation (RFC) at Jaipur.As soon as the unit launched this product, RSEB, local Electricity Board who was potential major buyer stopped buying the products till September 1987 due to ill financial health. The unit could not get orders and declared sick by RFC as could not start repayment for next 5 years for loan as well as interest there on. The bank refused to give working capital loan without collateral and as survival strategy for short term, the company started with fabrication for Tubular trusses on even Job work basis worth 5 Lakh to reduce losses.The revival of unit was only possible only if Elektrolites could get bulk orders with good margins against more than 10 competitors who were already past suppliers since many years from outside Rajasthan to RSEB.

Game changing Innovation Trigger

Mr Anil Saboo collected data from the field & analyzed the critical failure mode of frequent burning of fixed and moving contacts of 11kV Isolator over many years of different makes/designs. Taking these inputs, he developed new design which successfully passed all the type tests in the year1987 just before opening of new tender of 11kV Isolator in RSEB. The firm secured 75% order valuing more than 80 Lakh for 1700 sets of Isolators on the strength of innovative design which became differentiator with other bidders.Innovational financing was done to execute the order. To get the payment in one month, Elektrolites agreed only to supply material by RAIL only to Electricity Board instead of their terms of direct supply on 6 months payment basis. They agreed only for this innovative design of Isolator.The products were delivered ahead of delivery schedule within 4 months with the help of Job-workers and

Innovative approach of product Design for customers in Domestic & International Markets for profitable business growth : Anil Saboo, Elektrolites (Power) Pvt Ltd

suppliers credit. In March 1988, the entire loan of RFC along with penal interest @ 24% amount to Rs. 12.00 Lakh paid at a time and firm became debt free.

Success started breeding success

Now with this success, profits and cash flow, company decided its policy to go for innovative designs as well to go for products in which only big companies are operating.The Banker’s also gave adequate working capital after this turn around and firm start investing on type test as well new designs for 33kV, 132kV and 220kV Isolators, Hardware’s, Connectors etc. The firm was converted into Private Limited Company

in 1994 with 100% share holding of family of Mr Anil Saboo.

Going beyond India

In 1997, Italian Trade Commission and IEEMA took 20 CEO of various companies to participate in Intel 1997 at Milan for which entire expenses were reimbursed by Italian Government. Elektrolites was chosen to be part of such delegation and Mr Anil Saboo got opportunity to visit the world class manufacturing system and MV/HV products.After the visit company decided to upgrade its building and Manufacturing infrastructure to enhance the quality and systems to achieve further growth. The company also hired management consultant in 2001 to organize and implement new management systems.The company secured 3 World Bank orders for 11kV to 220kV Isolators during 2001 to 2004 being qualified bidders based on volume as well type tested designs. These orders helped company’s growth by 250% in 2004/2005.The company also upgraded press shop setup, new hot dip Galvanizing plant, fabrication shop and casting shop to get competitive edge for quality/cost & deliveries.

New Product Diversification Strategy

The Company launched new product design and manufacturing of 11kV & 33kV Lightning Arrester (LA) and 400kV Isolators in 2003 with in-house R&D team.R&D team studied application of LA and found that these products were not connected in circuit due to

Anil Saboo

SMETalks Success story

51September 2016

frequent failures. The root cause of failure was specification of LA’s for 9kV, 5kA which does not have capability to withstand Switching Impulse. The R&D team designed and developed new 12kV, 10kA LA and educated customers to use them to optimize use/purpose.As per company’s policy for innovation, the company incorporated Surge Arrester and DO Fuse along with the Switch Isolator as single product (SFU) which saved the one third cost and better performance in field.The company could win orders worth Rs. 100 Crore for this new patented 11kV Switch Fuse Unit (SFU) and also achieved the sales of new products 12kV LA during 2005 to 2007.

Expanding in Export Market

In 2008, the company decided to explore the export market in addition to all India market for MV and HV Switchgears products up to 400kV. For entering the export market the company decided to build world class infrastructure and R&D Lab in next two to three years with own funds and future surplus.The company also started participation in various prominent Electrical Exhibitions at different Countries for exposure to FOREIGN market requirement.The production started at new Unit-2 at Bagru (JAIPUR) in 2010 having 2,00,000 Sq. ft. covered area which is 12 times bigger than first Unit-1.The company got its breakthrough in 2010 for export by securing major orders from Nigeria against their various power development projects.The company got recognition from Govt. of India, Department of Scientific and Industrial Research in Nov 2012 for Switchgears based on past innovations done

and latest R&D Lab development. The R&D Lab has unique testing equipments up to 1200kV for testing of LA & Switchgear which helps to judge the equipment as per field condition.The foreign customers/buyers are happy & satisfied to witness all test at factory itself.In 2012, the company started focus on development of smart grid products like LBS, FPI, Sectionaliser etc. and developed eco friendly Air break LBS instead of imported SF-6 type products. The company successfully introduced smart grid products in AVVNL, JVVNL & to various private customers.The company’s 30 to 35% turnover comes from export and now looking forward for having technical collaborations with companies from world over for development of new solutions.Over the years due to consistent good innovative design and quality, Elektrolites gained the confidence and trust of customers. The company commands premium in market and known for its standard and quality products & services.The company compete in both design & quality with global manufacturers as an example for a order worth Rs 8.00 Crore in KPLC, Nairobi, Kenya ,Customer appreciated for exceptionally good design, workmanship & packing.Company is also engaged in CSR activity with NGO – JAGRITI, Jaipur for providing free quality education to 2500 slum children’s in 12 schools in Jaipur since 2010.

Conclusion

Innovation is the culture of company in its products, system, finance, management, participation in exhibitions etc. and for this company’s dedicated team tries to look forward for new ideas/programs.

- Anil SabooElektrolites (Power) Pvt Ltd

SMETalks Success story

52 September 2016

The electrical contracting company in the name of Lustre

Engineering Corporation was established by Mr B. L. Patharkar in the year 1951. The main activity was providing specialized electrical contracting & emergency services to 22 kV Industrial consumers.

In the year 1981 the present Managing Partner Mr Vikas B Patharkar graduated from VJTI. He worked for Bharat Bijlee Ltd in R&D Department on Solar Energy. Subsequently he joined M/S AFCO Ltd a subsidiary of Bombay Burma group in R&D. for development of a frequency converter with Static Switch change over facility.

Initial Product Diversification

In the year 1984 anticipating the need of UPS for Desk Top Computers new product was launched as mini UPS System for Desk Top computers with Switch Over from Mains to batteries in less than 20 msec in case of power failure. In those days Maintenance Free batteries were not available in India. The UPS was designed to accommodate the Batteries inside the cabinet. The clients were informed about the necessity of maintaining the Acid Batteries. However it was a noticed that hardly any client would

Moving up the value chain for SME from repair to system to manufacturing of EHV products: Vikas B. Patharkar, Lustre Engineering Corporation

do periodic maintenance of these batteries. The result was obvious. Failure of UPS in emergency was inevitable. The economics didn’t work and the manufacturing activity was closed down.

In the year 1984 along with UPS manufacturing, Distribution Transformer oil filtration machines were purchased to provide distribution transformer maintenance work at site. After gaining the knowledge of Site Maintenance of Distribution Transformer in the year 1986 Distribution Transformer repairing activity was started. The company undertook repairing of about 500 distribution transformers.

Diversification in repairs

In the year 1992 company invested for a MIDC plot at Rabale Navi-Mumbai with a intention of repairing of Power Transformers. During that time, company was approached by a leading Mumbai based Instrument Transformer manufacturing company who contracted us to refurbish/repair their burnt EHV CTs ( Current transformers ) supplied to MSEB ( Maharashtra State Electricity Board ) and GEB ( Gujarat Electricity Board). The work involved was almost like manufacturing a new CT

Vikas B. Patharkar

SMETalks Success story

53September 2016

and hence complete design to manufacturing know-how was transferred to the company with an understanding that Lustre will not enter manufacturing activity till know-how providing company was in business line of Instrument Transformers. Company could successfully repair/refurbish around 1100 nos CTs from 66 kV to 400 kV in a span of six years of all the available manufacturers in India . This gave deep and detailed insight of EHV CT from design to manufacturing

As the company had expertise of Distribution Transformer maintenance/repair at site, using this capability company could venture in to maintenance of Power Transformers at Site. Company has done repairing/refurbishing of around 500 numbers of Power Transformers ranging from 10 MVA -100 kV, to 404 MVA- 420 kV class including winding replacement of some of these Power Transformers.

Diversification in Systems

Due extensive work in EHV sub-stations, company could sense the need of Hot-Line maintenance or Live Line Maintenance work as till 1998 no agency was active in this field in India. Company developed knowledge /skills in-house for Live Line Maintenance work and in the year 1998 company successfully completed first order of Hot Line washing of 220 kV Sub-Station. In due course we trained about 120 personnel for Hot-Line maintenance work. We procured special equipment for undertaking works of Hot-Line maintenance up to 600 kV DC / 400 kV AC. As we know, we were the only agency in India to do on such

a large scale Hot-Line maintenance work. Company has provided services to PGCIL, NTPC, GEB, MSEB, TSEB and many more.

Gradually we stated undertaking small size EPC contracts. We have successfully commissioned 3 X 200 MVA, 400 kV extension bay for MSETCL at Padghe Sub-Station including SCADA. Along side of this, company undertook some 220 kV transmission line & sub station works..

Diversification in EHV CT manufacturing

The company which provided us the know-how of EHV CTs decided to come out of the business and hence company was permitted for manufacturing of EHV CTs which was done in year 2012.

Knowing the capability of the company , we were considered for providing grounding system for power transformer test field for one of the manufacturers of EHV Power Transformer.. This experience of earthing mat which is the critical aspect of EHV testing laboratory, helped us in construction & commissioning 800 kV PD free laboratory in the company.

The company undertook new product development for the range of CTs from 145 kV to 420 kV and i launched in the market in the year 2015. Currently the company is developing EHV IVTs and focusing for export market.

- Vikas B PatharkarLustre Engineering Corporation

SMETalks Success story

54 September 2016

Manu Electr icals was established in 2008 as a

Proprietary firm at waluj MIDC in Aurangabad with activity of manufacturing active parts for Current Transformers for M/s Crompton Greaves Ltd. After a series of discussions to start this product with representatives of M/s CGL, and after thinking about the consequences of leaving the existing job as DGM, Kenstar a reputed Appliances company. I took this risk and jumped from safe shell of service to unknown field of business, a field of uncertainty.

To start up with a business two things are very important. One is financial strength and the other is market condition. The rest areas can be managed by our experience and support. With no family background of Business and very limited financial saving we started discussions with M/s CGL Mr J G Kulkarni, Mr Pramod Rao and Mr U S Mohanpurkar to be associated as OEM.

I am post graduated from Government Engineering college Aurangabad in Electrical Engineering with MBA and Ph.D in Management. During my Interview in 1991 at CGL, Mr V D Erende General Manager asked me What is ISO 9000?, I had not heard this word before, but when

Multi Products for Multi Segment SME Business Model: A success story of Manu Electricals : Dr V S Deolankar, Manu Electricals

I left CGL in 1997, I was Registered Lead Assessor with IRCA London, with Empanelment on Certification Body. Till 2008, guided 25 Companies and audited more than 100 companies. My vision was supported by efforts and hard work. This was the real experience to understand various Technology, Products, Process, People, Management and Business. With 22 years of Industrial Experience at M/s Garware Polyster, M/s Crompton Greaves Ltd, and Kenstar. The values, working ethics, decision abilities, fast actions for work completions despite of many hurdles, consistency and speed of work, calculated risk, ability to get work done, were habituated and learned

from my colleagues specially from Mr V D Erande, Dr P K Naik, Mr Rahul Sethi. I had jumped in ocean with no idea of depth and gravity in 2008 only based upon my experience.

We started our manufacturing activities with one Torroidal winding machine and Test set up for 145 kV Current transformers for M/s CGL. The very first challenge for this product was to maintain Quality to the satisfaction of Customer. With appropriate process control, we increased confidence of the customer with satisfying

Dr V S Deolankar

SMETalks Success story

55September 2016

stated needs and delighting them with implied needs. Our daily interaction with end user of our product, Process control, Integrity and Transparency resulted in increase of quantity and quantum of work. Till date we have supplied more than10,000 Current Transformers Active parts. To achieve success, patience with dedication, hard work, involvement needs to be the inner attributes besides technology and finance.

With one Business model set to the satisfaction, we immediately searched for another activity in 2009 with M/s Wipro Lighting. Started assembling of electronic PCB for CFL lamps. We started our daily production of PCB from 100 nos/day. The productivity increased with all management techniques such as JIT, TQM, Value Engineering, Kaizen etc. Mr Anil Raina, Mr Dilip Bharadkar Mentor for this project enhanced productivity by adding mass manufacturing SMT and AI line. Later we increased the production of PCB increased to 40,000nos/day. We also created quantum employment especially for women. We gave emphasis on innovation in products considering the need of customers in consumer market, started manufacturing Driver and Assembling of LED products. But the main challenge for us was of managing optimum costing for being competitive in market. As we thought we grew. The dream of manufacturing in mass was planned, studied, calculated and implemented thus success is assured.

In 2010 an opportunity emerged with M/s Endress Hauser Flowtech India Pvt Ltd. It is a reputed organisation in manufacturing Flow meters worldwide. We started developed Magnetic coils and Pole shoes under the guidance of Mr N S kulkarni, Mr Atul Bachal, Mr Keshav Nalawade. The molds for Plastic components, Dies for pressed parts were developed with in-house winding facilities. Our products are developed as per International Quality parameters. We are now exporting our products

worldwide but we had to face many hurdles to achieve the current position.

Later In 2011 we started product Cook stove for M/s Envirofit India Pvt Ltd, a US based company of Shell Group. It was a special product for ladies which aimed at saving deterioration of health by avoiding smoke and increased fuel efficiency. With brilliant strategies and efforts of Mr Harish Anchan and Mr Atul Joshi we sold more than 2 lakh Cook stoves across the country. With special welding Machines we increased our production of cook stoves to 1000 nos per day. Application of engineering to the benefit of common people, which can change life style in society was the challenge for this project.

The experience of the Appliances Industry compelled us to foray into one more venture. Air coolers luxury of the common man, besides local Market we were successful in exporting with SASO certification to Saudi Arabia, Sudan, Egypt. Mixer Grinder Kitchen product range was also added in our list with plan of manufacturing Universal Motor. We are expecting substantial growth in these product lines in the near future.

Over and above we have participated in Emerging Deogiri Electronic Cluster to be set up in shendra MIDC Aurangabad by June 2017 to set up Design Centre, Manufacturing PCB, PCB assembly, Cabinet, Training and Innovation Centre.

I still remember my decision taken in 2008 to quit my peaceful job has given lot of turbulences’ but lastly I am satisfied to be associated with more than 200 people. I got an opportunity to unfold various aspects of Business in Engineering, Industrial Products to Home Appliances.

- Dr V S Deolankar,Manu Electricals

56

Techspace

September 2016

The lashing of hurricane, cyclone to different parts of world, huge rainfall deficiency in north India, melting

of iceberg in north as well as south pole exposed mankind in front of big question-will our next generation exist for another century?

Leading climate experts have put forward a series of practical solution to tackle climate change –all leading bodies like intergovernmental panel on climate change (IPCC) equivocally blamed the high liberation rate of CO2 and other greenhouse gas liberation as cause of climatic catastrophie to fight with co2 demon –all developing and develop countriesare going for clean energy and retrofitting appropriate technology.

This is a case study of a coal fired power station and one co generation unit situated inside a steel plant of central India.The unit started it’s operation in year 1958. Co generation plants having back pressure turbine and no condensate recovery consume huge quantity of make up water. As a result in order to keep drum water quality within control, blow down has to be given @ 7000kg/hr at 70 bar. This case study is a story of power plant where colossal heat waste is taking place –the solution will be discussed.

IntroductionCondensing turbine along with back pressure type is a common example of integrated steel plants. In this type of plants (fig F-1) superheated steam is distributed to turbine stop valve through a common bus, similarly feed water to boiler is also supplied through a common bus, similarly feed water is also supplied through a common bus table shows salient parameters.

Sl No

Details Temperature and pressure

1 Stem pressure at turbine stop valve

60.618 bar

2 Steam temperature at turbine stop valve

4820c

3 Power generation capacity for condensing turbine

30MW

4 Power generation capacity for backpressure turbine

13MW

5 Bled steam pressure at 5th stage

18bar

6 Bled steam pressure at 8th stage

10bar

7 Bled steam pressure at 11th stage

5.4bar

8 Bled steam pressure at 13th stage

3.23bar

9 Bled steam pressure at 16th stage

0.635bar

10 Extraction pressure 18bar and 8bar

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September 2016

Average plant parameters for 13MW backpressure turbine

hh Installed capacity :13MW

hh Boiler capacity :150T/H

hh Turbine back pressure with single extraction

hh Monthly unit generated :8MU

hh Plant load factor :87.54%

hh Boiler MCR loading :102.24%

hh Makeup water consumption :12000MTmonth

hh Steam export month to different process areas :18kgsq cm :48021MT/month, 8kg/sq cm =45136 MT/month

hh Total steam export rate to different process areas :130ton/hr

hh Condensate return :nil

hh Heat rate :4302 kcal/kwh

The steam export at 18 kg/sq cm was 48021 MT/month and at 8kg/sq cm, this steam is directly used in steel plant .One alternative is to use thermo compressor to inject steam to 8bar header. The thermo compressor is a simple equipment with a nozzle where HP steam is acclerated into high velocity fluid .This entrains the LP steam by momentum transfer and then recompressesin adivergent ventury-evaporator. Ultimately this HP steam Affects turbine work output.

Techno economics of using blow down waterIt is proposed to use motive steam of 7970 kg/hr for using to thermocompressor .The flash steam at 8.0 kg/sq cm will be partially used to –DEAREATOR, which will reduce steam load –PRV at this place will reduce 6kg/sq cm steam to 3 kg/sq cm to thermocompressor (see figure F-2) .The economics of one suggested option is presented .

figure - Thermocompessor to generate LP steam

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Techspace

September 2016

1 Available steam properties at 60kg/sq cm,

T:4820c

758.15 kcalkg, Tsat :4820c

2 Desired motive steam pressure

25kg/sq cm,

Saturated steam temperature 224.990c

Steam flow rate 7970kg/hr

Steam enthalpy 669kcalkg

3 By heat balance desuperheating required

88.85 kcal/kg

4 Amount of desuperheating water/.kg steam

0.1372kg/kg

5 Since flow of 25kg/sq cm steam is specified as 7970 kg/hr amount of water to be injected

1058kg/hr

6 Thus actual flow of 60kg/sq cm superheated steam

6911.98kg/hr

Estimation of workloss : The expected work loss on the basis of 6911 kg/hr and 60kg /sq cm .482 c will be 1218 kwh, this was calculated on the basis of prevailing heat rate as4320kcalkwh, sale value of this energy is Rs2923/h

STEAM COST :In most of the stations reported cost of steam is the average cost of generation at a particular production rate ., This is given by fuel, water, chemical labour, maintenance, depreciation, interest, overheads are divided by the total amount produced for steam used for power generation . fuel cost is dominant cost .This is given by

Cf = af x (Hs –hw)/efficiency of boiler

Where, af=fuel cost in Rs/million kilocalorie=357.98, Hs =Enthalpy of steam in kcal/kg=758.15, hw=Enthalpy of boiler feed water, Efficiency boiler =85.62%, computing this data Cf is Rs 233.36 /MT.

Thus total steam cost will be 233.36(1+0.3) or, 303.36/MT

Expected cost of 7970 kg/hr steam flow at 25 barg is Rs 2417 /hr.

Utilization of motive high pressure steam for thermocompressor application costs both I, e wastes power generation potential, apart from l steam cost .In nut shell financial loss/hr will be Rs 2923 +Rs 2417 or, Rs 5340 or, Rs 467 lakhs /annum.

Total steam cost and fuel cost is is related by the relationship, Cg=Cf(1+0.3) where 0.3 represents typical value of the sum of cost components like raw water supply cost, feed water treatment cost, feed water pumping power, combustion air air fan, sewage charge for boiler blowdown, ash disposal cost, maintenance and labour

Benefit :Total a/c load in uniy control roon =UCB is 5OTR.Replacement of present conventionl vapor compression by vapour absorption chiller will save power,

capacity

Vapour compression Refrigeration

system

Vpour absorption absorption

system

50TR 55kw 1.5kw

100TR 110TR 2.4kw

500TR 400TR 7.75KW

1000TR 800TR 11.25KW

As per flash steam energy balance total 2112kghr steam at 3kg/sq cm will be available at flash vessel stop valve, .

Energy Savings –New Area This case study brought a technological gap which exists for this type of cogeneration unit where in absence of proper energy recovery technology, 4.63x106kcl/hr heat. This gap can be fulfilled by utilizing waste steam by installing a 50TR absorption chiller.-at UCB.

Cost benefit for a 50TR chiller

type Vapour compression unit

Absorption chiller

Power 55kw 1.5kw

Cost kwh 2.40 2.40

Annual unit consumption @24hr/day and 330day/year

435600 11880

Running cost Rs 10.45lakh Rs0.28lakh

Investment for a new absorption chiller unit

- Rs 30 lakhs

Yearly savings Rs 10.17 lakhs

This shows that by recovering this waste steam, unit control room can be cooled for no cost, and investment will be recovered within 3 years.

- Shivaji Biswas

59

Techspace

September 2016

In thermal power stations, coal pulverising mills are used to pulverise coal (in our case it is lignite)

in order to improve the combustion efficiency of the burner. These mills are driven by MV induction motors with electro-dynamic deceleration (braking) system. Differential protection is adopted along with other motor protections for these motors. This article aims to analyse an interesting case of acting of the differential relay after the motor has got tripped or stopped.

Lignite firing system The Lignite Firing system is capable of providing pulverized coal (lignite) to the burners as main fuel. Raw coal, stored into the bunker is conveyed to the Ventilation Mills (in the following called V.M.) via coal feeders and belt conveyors where it is ground to the right grain size to be burnt into the burners.

Hot flue gases, cold flue gases and hot air, mixed together upstream the V.M. inlet, are used into the V.M. for coal transportation and coal drying. There are six independent firing units in the boiler and each firing unit comprises of a boiler bunker, three plate feeders, one or two conveyor belt feeders (depending on the location), a Circular resuction duct, a beater wheel mill, a Circular pulverized fuel duct and two pulverized fuel burners. The mills are located all around the furnace and the pulverized fuel burners are mounted on all the four sides of furnace wall at two elevations so that the p.f burners axes form tangents to an imaginary circle of 1.8 m diameter in the centre of furnace like “ a vertical cylinder fire ball “.

Beater Wheel MillsLignite from the bunker (via feeder conveyors) is discharged through the resuction duct into the beater

wheel mill which acts as a centrifugal fan, creates suction for drawl of flue gas and discharges pulverized fuel, air and gas mixture at the rate of 55 m /sec. The beater wheel has an over hung type rotor arrangement.

Mill is designed for grinding the lignite to pulverized state with simultaneous drying and transportation of dust-gas mixture in coal-pulverization systems of boiler. It is designed for continuous operation in coal-pulverization system with the maximum rating. The whole coal-

Fig.1: Typical schematic arrangement of Mill motor feeder.

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Techspace

September 2016

pulverization system operation should be performed in accordance with ‘Burner Management system’ (BMS) operation sequence rules for boiler plants working on pulverized coal.

Mill MotorA M.V. (6.6kV) induction motor of 1000kW capacity is used to rotate the beater wheel at a constant speed of around 750 rpm. in either clockwise or anti-clockwise direction as per the design configuration of beater wheel. A numerical motor protection relay is provided to protect the motor against all possible faults; viz., Thermal overload, Stalling, Negative sequence, Earth fault & Short circuit, Restart inhibit. A differential protection relay is also provided for the motor as the rating of the drive is 1000kW. The three line diagram of a typical outgoing motor feeder with above protections is shown below.

Electro-dynamic deceleration of mill motorsElectro-dynamic deceleration Device is provided to all mill motors. Its favourable operation regime makes it possible to control the value of deceleration moment and deceleration intensity. Braking essentially helps in minimising beater wheel damage during inadvertent trippings due to falling of foreign objects such as wear plates inside the mill.

Principle of Electro-dynamic brakingWhenever the motor is switched off, two phases (Y&B) of the stator winding are connected to an independent

TORQUE

DC source. DC current Iexc (excitation current), drawn by stator winding, produces a stationary and practically sinusoidal magnetic field with a number of pole pairs of the stator winding. The rotor rotates relative to the stationary winding, and hence to the stationary magnetic field. The electromotive force E2 is thus induced in the rotor winding resulting current I2 in the rotor winding. The interaction of rotor current I2 and stationary magnetic field produces rotating (deceleration) moment Mb opposing the normal rotation. During deceleration the current frequency is reduced from nominal Fn to zero. In this case the curve of the deceleration moment Mb(S) is close to the torque curve of the motor Mn(S).

The principle of Electro-dynamic braking (figure-2) and Speed-Torque characteristics of a typical motor with electro-dynamic braking (figure3) are represented below.

Heating of the rotor winding during dynamic deceleration is obviously lower than during start-up. This is due to the fact that, the energy released in the rotor winding Ws during motor start-up is higher and during dynamic deceleration, the same is less than the stored kinetic energy Wk of rotating masses.

Coasting time for the motor with electro-dynamic braking is much lower (4 minutes) than the normal coasting time without braking (≈20 minutes)

Electro-dynamic braking unit consists of a Step-down power transformer, three phase bridge rectifier along with a set of components such as a Start timer, Stop timer, DC contactor etc. Three phase 415V; AC supply is stepped down and rectified by the bridge rectifier to 65V DC. Tripping or Stopping of mill motor sends an initiation signal to ‘Start’ timer which is set at 2 Sec. After the time delay, the DC contactor closes and hence DC supply is connected to the two terminals of the motor. A steady of current of about 200A is admitted into the stator winding. After a time lapse of 4 minutes (by the time rotor Fig.2: Principle of Electro-dynamic braking

Fig.3 Speed-Torque Characteristics

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Techspace

September 2016

of mill motor comes nearer to stand still) the ‘Stop’ timer sends an opening signal to the DC contactor thus de-energising the stator. This completes one cycle of Start-Stop operation of Electro-dynamic deceleration device. The initial time delay of 2 sec. ensures no DC supply is extended to stator before the back emf is nullified.

Acting of Differential relay and case analysis Differential relay is installed in order to act on an occurrence of electrical fault inside the protected zone. In such cases, the tripped equipment will be tested for winding faults. In our case, following a tripping of a mill, differential relay acted with flag indication on two elements prompting the testing department to carry out all necessary tests on motor, cable, CTs and relay. Test results showed that all the devices involved were healthy and intact. Hence a decision was made to release the equipment for service. Finally the cause for tripping was found to be malfunction of a vibration instrument. The same pattern of tripping repeated on another occasion leading us to do brainstorming for the cause of acting differential relay.

First clue came from the relay flags. The same Y & B elements had acted as in the previous occasion. Astonishingly we found that the windings in which the differential relay detected current were the windings to which the Electro-dynamic deceleration device is connected. So our attention shifted from the main equipment to the deceleration device. Checking up the control circuit devices, we found that the ‘Start’ timer had failed but operated without time delay. Further checking revealed that the Diodes used in the bridge rectifier also failed and conducting bidirectionally. Failure of all diodes was not a surprise because of the presence of back emf being back-fed to the rectifier circuit as the ‘start’ delay was absent also there was no surge suppressor for protecting the rectifiers from high voltages.

Following was the sequence of operation that had taken place after tripping of mill motor due to vibration.

hhTripping of mill motor

hh Initiation signal for Start timer

hhStart timer operating without time delay due to defect

hhEnergisation of DC contactor

hhDeceleration device connected to the two terminals of Motor

hhBack feeding of stored energy in the form of back emf to the rectifier

hhFailure of rectifiers leading to AC current flow from deceleration device

hh AC current flows into two phase windings of the stator and neutral

hh Neutral CTs alone sense the current flow

hh Acting of differential relay on the two elements

Electro-dynamic braking system was put back into service after replacing ‘Start’ timer, Bridge rectifiers and the power transformer. Introduction of surge suppressor was taken into consideration for prevention such failure of rectifiers in future.

ConclusionMost of the modern power plants are equipped with variety of devices to improve the system performance and minimise the failure & equipment outage. With the introduction of electrodynamic braking for the pulverising mills the equipment outage has been substantially minimised. With increasing complexity in electrical system such as electro-dynamic braking for mill motor presents much more interesting and challenging tasks before protection and maintenance engineers.

REFERENCES:

1. Testing, Commissioning, operation and maintenance of Electrical equipments by S.Rao.

2. Electric machines by Fitzgerald Kingsly.3. Operation and Maintenance manual of Thermal power

station-1 Expansion by M/s. Ansaldo energia.

N. RengarajanAdditional Chief Manager/Elect. Mtce.

Thermal power station – I ExpansionNeyveli Lignite Corporation Ltd.

E. SachindrakumarChief Manager/Elect. Mtce.

Thermal power station – I ExpansionNeyveli Lignite Corporation Ltd.

Fig.4: Electro dynamic deceleration of Mill motor.

Opinion

64 September 2016

Extraordinary and prolonged deceleration in IIP growth, steady

fall in exports, muted industrial credit growth, rundown in credit confidence, spurt in NPAs, slowdown in capex, corporate distress, low capacity utilisation, growing vulnerability of financial system, worsening of employment situation, etc; are loud and clear manifestation of the fact that trade, industry and financial system are entrapped in major systemic financial and growth crisis. Dysfunctional trade credit [TC] is central to this crisis. Decadence of credit culture and growing fragility of TC’s informal institutional environment are undermining transactional and environmental trust and confidence in TC network. Its credit intermediation function, credit creation capacity, credit allocation and multiplier roles are systemically impacted. These severely impact microscopic TC flows and micro liquidity. Volume, quality, tenure and general availability of TC are on slide.

General experience and reality across trade and industry is that unexpected/unpredicted and inordinate delays and defaults in TC repayment cycle across businesses have seriously impacted trust and confidence channels in TC. Loss of confidence and trust can unleash liquidity fear which encourages

liquidity holdback. Rotation/circulation of working capital fund is impacted. When velocity of credit circulation declines, it becomes difficult to sustain high growth trajectory. Payment delays/default in interconnected world lead to liquidity logjam just like a speed deceleration/breakdown of some vehicles on a highway lead to traffic slowdown/jam. Uncertainty, heightened counterparty credit risk due to growing liquidity crisis, slowdown and fear of delay/default/opportunistic play by a trade debtor have escalated the risk aversion of lenders. These have reached critical mass resulting in chain reaction which has taken the form of TC contagion. World Bank opines that TC can be a potential source of credit/liquidity amplification shocks. Firms prefer keeping cash or invest in sideline activities than to invest in business or extend TC. There is acute market liquidity and funding liquidity crises across trade and industry. Uncertainty about availability/roll back of credit and future cash flows have heightened precautionary demand for liquidity in general. Liquidity holdback by the high-end corporates [high cash and bank balances], high level of financial investment, deceleration in their credit redistribution via TC, their strong preference for cash sales and

credit purchase have worsened the illiquidity conditions. Normal functioning of short-term funding market is severely affected. Liquidity mismatch is increasing. Illiquidity propagates faster during slowdown and uncertainty. It compounds growth risks even when economic fundamentals are sound. The severity and reality of acute business liquidity crisis is epitomized when one hears in market place that there is no money even to take poison.

Collective Unawareness The fact of acute credit, liquidity and recessionary crisis facing the trade and industry is realized very little by policy makers and academia. They are aware of macros and theoretical world which look better but have a very limited relevance to this unprecedented crisis. As a simile, one can compare an irrigation dam engineer monitoring water level and water flows to irrigation system with policy makers’/academia’s understanding of macros. He knows how much water the dam is holding and how much water is necessary to release in the irrigation system for optimum farm output. However, he may not be aware of about microscopic distribution of water to farm fields. Fragility of last mile distribution channels connecting to the fields will not give optimum output

Opinion

65September 2016

despite adequate water release from the dam. Similarly, policy makers know well about macro liquidity, bank credit outstanding, national savings but have very limited understanding/data on TC’s role as last mile links in microscopic credit creation/distribution/circulation and generation of micro liquidity. Macro liquidity does not necessarily imply micro liquidity which is a function of level of trust and confidence in TC channel. This contrast between the macro and micro liquidity pattern was evident in the Japanese economy during the 1990s. While the Bank of Japan injected significant volumes of funds into the financial system to try to facilitate transactions activity and access to credit, the debt-laden financial sector was reluctant to make new loans to the household and corporate sector. Instead, much of this liquidity ended into government bonds. So, while macro liquidity was ample, firms and households experienced a credit crunch. Secondly, policy makers’ and academia’s understanding is basically confined to banking and capital markets which form a small part of total financial resource base of the country. It may be noted that in terms of volume, activity, reach and inclusiveness and supply chain financing, TC is far-far bigger and inclusive than bank credit network. It is the single largest source of business credit in the world. Its growth effect is several times larger than the growth effect of bank credit flows. Further, irrational exuberance of India Growth Story, lack of data and research on working of TC and very limited/little practical understanding of dynamics of TC working have made academia/policy makers oblivious about the credit and liquidity contagion triggered by disruptions in working of TC network. This lingering growth crisis goes well beyond textbook-based understanding. Sometimes, a ounce of practical wisdom is more relevant than a ton of textbook based knowledge. There is a contrasting/different understanding, view and belief about the state of trade and industry, their growth prospects, liquidity, NPAs; etc. between policy makers and businesses including my research findings.

Academia/Policy Makers View/ Understanding

Business View/Understanding & Research Findings

India is in a sweet spot. With sound fundamentals, policy reforms and capital inflows, economic growth optimism is high. India Growth Story is intact.

Businesses feel they are in sour spot. How long we can believe India Growth Story ? We are clueless about this prolonged and unusual growth crisis. Fundamental problem is not lack of capital or policy reforms, it is lack of trust and confidence in TC channel. India Growth Story has not worked so far.

Economy is on revival mode. Industrial growth will pick up. Economy has the inherent strength to heal itself. Optimistic about growth.

Businesses are in sliding into deeper recession. Collective growth pessimism persist. A recession caused by financial crisis can be prolonged and very painful. There is no automatic mechanism to overcome such slowdown.

Low capex due to slowdown and under utilization of capacity.

TC triggered adverse developments in financial system which have created perverse incentives and opportunities which encourage consumption/ trading/ import vs. capex/production credit. Volume of Capex is also directly related to availability of TC.

NPA is mostly an appraisal and recovery problem. Understanding of NPAs is limited to banking sector.

It is a systemic problem triggered by fault lines in TC network. NPA is not only a banking problem but equally bad for private credit channels like TC. With low credit confidence, concentration on recovery, disruptions in credit based payment system, acute micro liquidity crisis will further aggravate NPA in days to come. Financial instability may increase. Facilitating higher cash flows and liquidity are critical for recovery. Emphasis only on recovery is like taking out blood from an anemic person without transfusing fresh blood. This will aggravate fund availability and consequently NPA problem.

Monetary policy affects interest rate and volume of credit.

Aggregate volume of credit and market rate of interest are greatly influenced by businesses’ demand and supply of TC. Bank credit forms a small part of total resource base of trade and industry. It has very little effect for MSMEs as only 5% of them are covered by bank credit.

Rising currency to GDP and currency to deposit ratio explained in vague terms.

Dysfunctional TC impels firms to hold higher cash volume to safeguard them against : risks of late payments by debtors, loss of opportunity to reap high returns from cash purchases given the inordinately high cash discount [CD], impairment of credit rating, hedge against fluctuation in cash flows and risk of availability of TC or its rollover. Inordinately high CD rates have redefined the rules of business transactions. It has made credit-based deals uncompetitive and thereby incentivizing cash-and-carry system. All these have resulted into higher volume of currency circulation despite rapid spread of core banking. This also undermines saving-investment-growth nexus.

Mr B L CHANDAK,Ex-DGM, SIDBI

IEEMAActivities

67September 2016

Readers are requested to send their feedback about content of the Journal at editor@ieema.org

On 18th August 2016, Mr. Vikas Khosla, Vice-Chairman, IEEMA Public Policy Cell, Mr. Chaitanya Desai, Member, IEEMA Executive Council, Mr. Manish Agarwal, Chairman, IEEMA Conductor Division, Mr. Kalpesh Shah, Vice-Chairman, IEEMA, Conductor Division, Mr. J. Pande, Senior Director, IEEMA, Mr. Naveen Upreti, Executive Officer, IEEMA and other

members of the industry had a meeting with Shri Piyush Goyal, Hon’ble Minister of State (IC) for Power, Coal, New and Renewable Energy and Mines. The discussions were broadly on initiation of safeguard duty on primary aluminum, issues with respect to Chapter 98, issues with funding organisations such as KFW/JICA, implementation of CEA advisory for domestically funded projects, mismatch in specifications being tendered by utilities wrt Powergrid under DDUGJY scheme and so on..

A one Day Workshop on “Good Manufacturing Practices at Shop Floor” was conducted at India Habitat Centre (IHC), New Delhi on 29th July, 2016 (Friday). It was attended by 29 participants from various member companies. The workshop primarily focused on implementation of best manufacturing practices to achieve manufacturing

Meeting with Shri Piyush Goyal, Hon’ble Minister of State (IC) for Power, Coal, New and Renewable Energy and Mines

IEEMA – EEPC meeting for developing world class motor

A Joint meeting was organised by IEEMA and EEPC on August 12 in Bengaluru . Mr Ravi Capoor, gave the key note address indicating the purpose of this meeting to be to develop a Game Changing Motor. Mr Ashok Kulkarni, on behalf of IEEMA along with Mr Chattopadhyay gave the presentation about the proposal for “The Development of an AIMERS Motor”.

Each of the Institutions gave a small presentation of their capabilities and how they can contribute to this in-terms of Design, Electro Magnetic Analysis,

Vibration Analysis, Testing, Validation, Balancing, etc. An Interactive Session was held at the completion of the presentations, where-in Shri Capoor indicated that the Industry and Institutions should collaborate together and prepare a small project work where-in it should be clearly mentioned whose is responsible for which activity / area.

Mr Capoor mentioned that Funding would not be an issue once this project starts. He further mentioned that the IPR of this motor / project would be owned by the Funding Agency but will be available for all. During the brainstorming session post Lunch with the Instituions, it was proposed that Mr Kulkarni should come out with names from the Industry side.

excellence at the shop floor. The key takeaways from this workshop were: (i) Best Quality Systems followed in manufacturing and 7 QC tools; (ii) Just In Time approach; (iii) How facilities and equipment system being managed and handled with safety for the workers; (iv) How material management is managed through effective supply chain management; (v) Norms for packaging and Labeling Systems

Workshop on Good Manufacturing Practices at Shop Floor

IEEM

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IEEMAActivities

68 September 2016

Workshop on “Excellence in Vendor Management & Contract Negotiations”

IEEMA conducted one day’s Workshop on “Excellence in Vendor Management & Contract Negotiations” for its members on 29th July 2016 at Sanghatan-1 Banquet, Hotel Atithi, Vile-Parle East, Mumbai. The workshop was conducted by Faculty Mr.Arun Chaudhari, Pune who has experience of more than 40 years in the field of Supply Chain Management. Delegates from Member companies

like Siemens, Suzlon Power Infra, KONE Elevators, Toshiba T&D Systems, Associated Cables, Kryfs Power Components, Cyan Technology, Greatwhite Global, Pragati Electricals, TMEIC Industrial Systems, High Volt Electricals, Dol Motors, Fine Finish Organics attended the workshop. Delegates from two non-member companies and IEEMA Secretariat also attended the workshop.

Second meeting of IEEMA Chandigarh Chapter

ISO 9001:2015 QMS Awareness Programme was conducted at IEEMA Mumbai office on 17th August, 2016 due to revision in standard 9001:2008. Mr. Narendra Vazirani from Bureau Veritas Certification (India) Pvt. Ltd. 17 IEEMA staff whose activities are under ISO purview attended the programme.

Mr. Vazirani highlighted the significant changes : •Emphasis on active involvement of top management (Presence of MR not necessary) •Focus on risk

management – identify potential risks and take action to address the same, risk proofing procedures •Emphasis on measurable and result oriented objectives •Fewer prescriptive requirements •Simplified clauses •Easy application of standard to all sizes of industries •Emphasis on communication and awareness – internal and external communication of QMS to internal and external stakeholders

On 6th August 2016, Saturday, Chandigarh Chapter had its 2nd Chapter meeting at Hartek Power Pvt. Ltd, with was chaired by Mr Hartek Singh, CMD of Hartek Power Pvt. Ltd. This was the 2nd meeting after the formation of the Chandigarh Chapter. There were 10 member

companies who participated in the meeting. Chapter discussed the upcoming events of IEEMA. Chapter also discussed the regional forthcoming activities. Presentation for Trafotech 2016 and E3 - Calcutta was given to the members who were present.

ISO 9001:2015 QMS Awareness Programme

Interface with Government and Agencies

On 1st July 2016, Shri Sanjeev Sardana, President Elect and Shri Sudeep Sarkar, Deputy Director, IEEMA, participated in a meeting regarding boosting of exports in African continent. The meeting was chaired by Shri Manoj Dwivedi, Joint Secretary, in presence of other senior officials of Department of Commerce, Government of India. IEEMA recommended on strategizing barter arrangements for emerging markets in Africa, specialised lines of credit for power projects, facilitation by Indian missions and removal of non-tariff barriers as some of the measures for promotion of exporters in Africa.

A delegation of IEEMA SME Division Members, led by Shri J G Kulkarni, Chairman, SME Division and Past President, IEEMA, had a meeting with Shri S N Tripathy, Additional Secretary and Development Commissioner, Ministry of Micro, Small and Medium Enterprises, Government of India, on 8th July 2016. IEEMA made a presentation to Shri Tripathy on the financial, procedural and technical problems faced by Small and Medium Enterprises in electrical equipment industry in dealing with power utilities/discoms.

IEEMAActivities

69September 2016

On 5th July 2016, Shri Gopal Krishna Mallik, Head HR, IEEMA, attended a meeting chaired by the Joint Secretary, Ministry of Skill Development and Entrepreneurship. Standardisation of infrastructure, machineries and equipment in it is, under both government and private sector, was discussed in the meeting.

On 5th July 2016, Smt. Anita Gupta, Deputy Director and Shri Vivek Arora, Executive Officer, IEEMA, had a meeting Shri Arvind Kumar, Senior Director, STQC, Department of Electronics and Information Technology (DeitY), Government of India. The composition of advisory board of DeitY and its activities were discussed in the meeting. DeitY agreed to include IEEMA as a regular member of a special invitee in the advisory board of DeitY.

On 15th July 2016, Shri Pawan Jain, Chairman, Transformer Division and Shri Sunil Misra, Director General, IEEMA, called on Shri R P Sasmal, Director (Projects & Operations), Powergrid. Amongst other issues, bidding procedures under Deen Dayal Upadhyaya Gram Jyoti Yojana was discussed in the meeting.

On 15th July 2016, Shri Sunil Misra, Director General, Shri Sudeep Sarkar, Deputy Director and Shri Maneesh Anand, Senior Executive, IEEMA, called on Shri Ravi Capoor, Joint Secretary, Department of Commerce, Government of India, and formally handed over a Post Show / Outcome Report of ChangeXChange 2016 – 3rd Reverse Buyer-Seller Meet (RBSM), organised by IEEMA, during ELECRAMA-2016 at Bangalore. The event was organised with support of Department of Commerce, under the Market Access Initiative (MAI) Scheme. ChangeXchange 2016 was attended by 581 buyers from 37 countries of AFRICA, ASEAN, SAARC, CIS and IRAN, who met Indian sellers exhibiting in ELECRAMA-2016.

On 20th July 2016, a delegation of senior members of IEEMA, led by Shri Vikas Khosla, Vice Chairman, Public Policy Cell; called on Shri S D Dubey, Chairman, Central Electricity Authority. IEEMA discussed on statutory compliance of the guidelines issued by Central Electricity Authority on domestic competitive bidding for domestically funded projects and the matter of L1 pricing under tariff based competitive bidding without considering the product life cycle cost. IEEMA also invited Shri Dubey to be on the advisory committee of !ntelect 2017, on which he agreed.

On 29th July 2016, Shri Sudeep Sarkar, Deputy Director, IEEMA, participated in the meeting called by Smt. Anice Joseph Chandra, Director, Department of Commerce, Government of India, on Rules of Origin criteria under Regional Comprehensive Economic Partnership (RCEP)

agreement. The Rules of Origin under RCEP was discussed in the meeting.

On 1st August 2016 Shri Babu Babel, President, Shri Prakash Chandrakar, Chairman-Organising Committee, intellect 2017 and Shri Sunil Misra, Director General, IEEMA, met Shri Piyush Goyal, Hon’ble Minister of State (IC) for Power, Coal, New and Renewable Energy and Mines. IEEMA officials briefed the Hon’ble minister on !ntellect 2017 exhibition and also invited him to be the Chief Guest of 69th Annual General Meeting of IEEMA, scheduled on 30th September 2016.

On 3rd August 2016, a few Conductor manufacturing members and Shri Sudeep Sarkar, Deputy Director, IEEMA, had a meeting with senior officials of Tariff Commission, Ministry of Commerce & Industry, regarding inverted duties and anomalies in manufacturing of electrical conductors. IEEMA had earlier represented to the Tariff Commission and the department of Industrial Policy and Promotion a few instances of inverted duties and anomalies in the electrical equipment manufacturing industry.

On 5th August 2016, Smt. Anita Gupta, Deputy Director, IEEMA attended a preparatory meeting of Inter-Ministerial Standing Committee set up on Capital Goods by Department of Heavy Industry, Government of India. The meeting was chaired by Shri Vishwajit Sahay, Joint Secretary, Department of Heavy Industry. The terms of reference of the Standing Committee were deliberated upon at the meeting.

On 18th August 2016, Shri Manish Agarwal, Chairman, Shri Kalpesh Shah, Vice-Chairman, Conductor Division, Shri Vikas Khosla, Vice-Chairman, Public Policy Cell, Shri Chaitanya Desai, Member, Executive Council, along with other senior members of IEEMA and Secretariat officials had a meeting with Shri Piyush Goyal, Hon’ble Minister of State (IC) for Power, Coal, New and Renewable Energy and Mines. The discussions were broadly on initiation of safeguard duty on primary aluminum, concessional duty imports under Chapter 98, issues with funding organisations, such as KFW/JICA, implementation of CEA advisory for domestically funded projects, and mismatch in specifications being tendered by utilities, such as, Powergrid under Dayal Upadhyaya Gram Jyoti Yojana.

On 23rd August 2016, Shri Sudeep Sarkar, Deputy Director, IEEMA, attended a meeting on promotion of Intellectual Property Rights Policy at Department of Industrial Policy and Promotion, Government of India. Shri Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion, chaired the meeting.

IEEMA Representations

IEEMA submitted a representation to the Department of Commerce, Department of Heavy Industry and Department of Industrial Policy and Promotion, Government of India, on 6th July 2016, regarding India-MERCOSUR Preferential Trade Agreement.

IEEMA submitted a representation to the Directorate General of Taxpayer Services, Ministry of Finance,

Government of India, on 15th July 2016, giving industry feedback on initiatives taken by Central Board of Excise & Customs on indirect tax reforms.

IEEMA submitted a representation to the Department of Commerce, Government of India, on 26th July 2016, regarding rules of origin in India’s on-going Regional Comprehensive Economic Partnership negotiations.

Primary Energy Consumption 2015

PowerStatistics

70 September 2016

Source - BP Statistical Review

World Primary energy: Consumption by fuel*

Million tonnes oil equivalent Year Oil Natural

Gas Coal Nuclear Energy

Hydro electric

Renew- ables Total

North America2014 1026.6 864.6 487.9 216.3 154.5 76.1 2826.0

1036.3 880.7 429.0 216.1 150.9 82.6 2795.5

S. & Cent. America2014 329.8 152.6 36.7 4.8 154.4 19.9 698.2

2015 322.7 157.3 37.1 5.0 152.9 24.2 699.3

Europe & Eurasia2014 858.6 905.8 481.0 266.2 196.7 124.1 2832.3

2015 862.2 903.1 467.9 264.0 194.4 142.8 2834.4

Middle East2014 417.1 415.3 10.7 1.0 4.8 0.4 849.2

2015 425.7 441.2 10.5 0.8 5.9 0.5 884.7

Africa2014 177.2 115.6 102.4 3.3 27.0 2.7 428.2

2015 183.0 121.9 96.9 2.4 27.0 3.8 435.0

Asia Pacific2014 1442.2 627.7 2792.5 83.9 346.9 93.4 5386.6

2015 1501.4 631.0 2798.5 94.9 361.9 110.9 5498.5

Total World2014 4251.6 3081.5 3911.2 575.5 884.3 316.6 13020.6

4331.3 3135.2 3839.9 583.1 892.9 364.9 13147.3

Oil 33%

Natural Gas 24%

Coal 29% Nuclear

Energy 4%

Hydro electric

7%

Renew- ables

3%

2015

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

NorthAmerica

S. & Cent.America

Europe &Eurasia

MiddleEast

Africa Asia Pacific

Oil Natural Gas

Coal Nuclear Energy

Hydro electric Renew- ables

2015

PowerStatistics

71September 2016

Installed Capacity Power Station

Source – CEA

All India Installed Capacity (In MW) of Power Stations

Utilities (as on 30.06.2016)

Region Ownership/Sector

Modewise breakup

Thermal Nuclear Hydro RES (MNRE)

Grand Total

Northern Region

Coal Gas Diesel TotalState 16598 2879 0 19477 0 7568 662 27707

Private 17266 108 0 17374 0 2478 7969 27821Central 12000 2344 0 14344 1620 8266 0 24230

Sub Total 45864 5331 0 51195 1620 18312 8631 79758

Western Region

State 23050 2994 0 26044 0 5481 311 31836Private 36425 4288 0 40713 0 447 15004 56164Central 12898 3534 0 16432 1840 1520 0 19792

Sub Total 72373 10816 0 83189 1840 7448 15315 107792

Southern Region

State 16883 792 288 17963 0 11558 506 30027Private 8270 5322 555 14147 0 0 17648 31795Central 11890 360 0 12250 2320 0 0 14570

Sub Total 37043 6474 843 44360 2320 11558 18154 76392

Eastern Region

State 7540 100 0 7640 0 3169 225 11034Private 8731 0 0 8731 0 195 250 9176Central 14352 90 0 14442 0 925 0 15367

Sub Total 30623 190 0 30813 0 4289 475 35577

North Eastern Region

State 60 446 36 542 0 382 254 1178Private 0 25 0 25 0 0 9 34Central 250 1228 0 1478 0 860 0 2338

Sub Total 310 1699 36 2045 0 1242 263 3550

Islands

State 0 0 40 40 0 0 5 45Private 0 0 0 0 0 6 6Central 0 0 0 0 0 0 0

Sub Total 0 0 40 40 0 0 11 51

ALL INDIA

State 47533 4332 364 52229 0 20590 1301 74120Private 53426 9635 555 63616 0 642 32917 97175Central 39390 5212 0 44602 4160 3305 0 52067

Sub Total 140349 19179 919 160447 4160 24537 34218 223362

Break up of RES all India as on 30.03.2016 (in MW)Small Hydro Power

Wind Power Bio Power Solar Power Total Capacity

4273 26867 4946 6763 42849

Capacity Addition Targets and Achievements in the 12th Plan

Type/sector Central State Private Total

Target Achievement Target Achievement Target Achievement Target Achievement

Thermal 14878 12638 13922 18829 43540 50223 72340 81690

Hydro 6004 2504 1608 777 3285 595 10897 3876

Nuclear 5300 1000 0 0 0 0 5300 1000

Total 26182 16142 15530 19606 46825 50818 88537 86566

62% 126% 109% 98%

Rs/MTBASIC PRICES AND INDEX NUMBERS

# Estimated, NA: Not available

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.

IRON, STEEL & STEEL PRODUCTS

BLOOMS(SBL) 150mmX150mm

`/MT 24856

BILLETS(SBI) 100MM `/MT 24940

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

`/MT54000

CRGO ELECTRICAL STEEL SHEETS

a) For Transformers of rating up to 10MVA and voltage up to 33 KV

`/MT243250

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

`/MT310500

NON-FERROUS METALS

Electrolytic High Grade Zinc `/MT 153500

Lead (99.97%) `/MT 138500

Copper Wire Bars `/MT 340259

Copper Wire Rods `/MT 351065

Aluminium Ingots - EC Grade (IS 4026-1987)

`/MT 123884

Aluminuium Properzi Rods - EC Grade (IS5484 1978)

`/MT 130198

Aluminium Busbar (IS 5082 1998)

`/MT193800

OTHER RAW MATERIALS

Epoxy Resin CT - 5900 `/Kg 380

Phenolic Moulding Powder `/Kg 86

PVC Compound - Grade CW - 22

`/MT 126750

PVC Compound Grade HR - 11

`/MT 127750

Transformer Oil Base Stock (TOBS)

`/KLitre 54939

OTHER IEEMA INDEX NUMBERS

IN-BUSDUCTS (Base June 2000=100) for the month April 2016

204.9

IN - BTR - CHRG (Base June 2000=100) 271.6

IN - WT (Base June 2000=100 211.2

IN-INSLR (Base: Jan 2003 = 100) 223.6

Wholesale price index number for ‘Ferrous Metals (Base 2004-05 = 100) for the month April 2016

140.0

Wholesale price index number for’ Fuel & Power (Base 2004-05 = 100) for the month April 2016

175.4

All India Average Consumer Price Index Number for Industrial Workers (Base 2001=100) April 2016

271.0

Unit as on 01.06.16 Unit as on

01.06.16

45000

50000

55000

60000

65000

70000

75000

80000

07

-14

08

-14

09

-14

10

-14

11

-14

12

-14

01

-15

02

-15

03

-15

04

-15

05

-15

06

-15

07

-15

08

-15

09

-15

10

-15

11

-15

12

-15

01

-16

02

-16

03

-16

04

-16

05

-16

06

-16

Transformer Oil Base Stock (TOBS) Rs./KLtr.

(Rs.

/KLt

r.)

July 2014 - June 2016

IEEMADatabase

72 September 2016

Name of ProductAccounting

Unit

Production

For the Month From May 15 to Highest Annual

May 2016 May16 Production

Electric Motors*

AC Motors - LT 000' KW 830 9782 11580

AC Motors - HT 000' KW 193 3542 5091

DC Motors 000' KW 33 399 618

AC Generators 000' KVA 993 11051 11261

Switchgears*

Contactors 000' Nos. 771 8727 8527

Motor Starters 000' Nos. 153 1675 1909

Switch Fuse & Fuse Switch Units Nos. 47552 660518 947878

Miniature Circuit Breakers 000' Poles 13605 116008 136979

Circuit Breakers - LT Nos. 227211 1868986 1932964

Circuit Breakers - HT Nos. 5942 72506 72156

Custom-Build Products Rs. Lakhs 16095 204840 265267

HRC Fuses & Overload Relays 000' Nos. 945 11334 16875

Power Cables* KM 43352 526562 507486

Power Capacitors - LT & HT* 000' KVAR 3909 49771 53417

Transformers

Distribution Transformers 000' KVA 3534 47020 46761

Power Transformers 000' KVA 11720 174960 178782

Instrument Transformers

Current Transformers 000' Nos. 50 688 705

Voltage Transformers Nos. 8181 96246 114488

Energy Meters* 000' Nos. 2063 24497 29317

Transmission Line Towers* 000' MT 87 1011 1250

* Weighted Production

10000

20000

30000

40000

50000

60000

70000

80000

4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4

MW

April 10 - May 16

CABLES

IEEMADatabase

73September 2016

InternationalNews

75September 2016

India to get cross-border electricity trade policy soonIndia has taken the lead in integrating the electricity grids of countries in South Asia, as in the case of European and South African nations. The government is finalising a draft cross-border electricity trade policy to enable Indian producers seamlessly exchange power with neighbouring nations.

Once finalised, it will be sent to the Union Cabinet for approval. The move follows a meeting of Saarc energy ministers in September 2014 that decided to set up a cross-border transmission interconnection for the member countries.

As per the draft policy, Indian developers of overseas projects will require a one-time single-window clearance for trade of electricity between Saarc nations, sources said. “The policy will immediately enable domestic firms in setting up power plants in Nepal and Bhutan to sell electricity in India.

Likewise, it will enable export of excess power from India,” a senior government official said. Power plants of Tata Power, GMR Energy and Satluj Jal Vidyut Nigam totaling 5,000 mw are under construction in neighbouring countries.

Kokam wins 36 MW Energy Storage System contract from KEPCO Kokam announced that South Korea’s largest utility, Korea Electric Power Corporation (KEPCO), has awarded it a contract to develop a 36-megawatt (MW) Energy Storage System (ESS) for the Non-Gong substation in South Korea.

Work on the project began in June 2016 and is scheduled to be completed by December of 2016.In March Kokam announced that it has successfully deployed for KEPCO two Lithium Nickel Manganese Cobalt (NMC) Oxide ESSs – a 24-megawatt (MW) system / 9-megawatt hour (MWh) and a 16 MW / 6 MWh system – for frequency regulation on the South Korean electricity grid. The 24 MW system is the largest capacity Lithium NMC ESS used for frequency regulation in the world. When the new 36 MW ESS project is completed, Kokam will have deployed 92 MW of energy storage capacity for frequency regulation

for KEPCO, and the total worldwide capacity of ESSs using Kokam batteries will total 132 MW.

Emerson to sell Network Power to Platinum Equity at $4 bn Emerson announced an agreement to sell Network Power business to Platinum Equity and a group of co-investors at $4 billion.The Columbus, Ohio-based Network Power provides thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries. The company reported revenue of approximately $4.4 billion in fiscal 2015.

In pursuant to the transaction, Emerson will retain a subordinated interest in Network Power. The sale of Network Power is expected to close by December 31, 2016, subject to customary regulatory approvals.

“This agreement marks a major milestone in the strategic portfolio repositioning we announced last June,” said David N. Farr, chairman and chief executive officer of Emerson. “By selling Network Power to Platinum Equity, we have achieved a successful result for our shareholders as part of our plan to streamline Emerson to create a more focused company with significant opportunities for growth and profitability in our core served markets.”

Farr further said Network Power has a bright future ahead and Platinum Equity is well-positioned to help the company continue to thrive and realize its full potential.

Platinum Equity chairman and CEO Tom Gores, said, “Emerson is a world class company that we know shares our commitment to creating value, and this is an important investment in a business that will be a cornerstone in our portfolio. It plays to our core strengths. In addition to our capital resources, we will deploy our global operations skills to build on the foundation Emerson created and take this business to another level.”

Pattern Energy to acquire interest in Armow Wind power facility Pattern Energy Group announced plans to acquire 90 MW interest in the 180 MW Armow Wind power facility in Ontario from Pattern Energy Group. Pattern Energy

INTERNATIONALNEWS

InternationalNews

76 September 2016

intends to fund the acquisition with available liquidity from its recent equity offering.

The transaction is expected to close within the next 30 to 45 days. “With the successful completion of the equity offering we have entered discussions with Pattern Development to acquire Armow,” said Mike Garland, president and CEO of Pattern Energy.

“Armow will expand our portfolio to 17 operating projects and one project we have committed to acquire which is under construction. Our identified ROFO list provides clear visibility to 36% growth on our existing portfolio, after the acquisition of Armow. We expect to drop down another acquisition from our identified ROFO list before the end of the year.”

The Armow Wind power facility, located near Kincardine, Ontario, is jointly owned by Pattern Development and Samsung Renewable Energy. The facility reached commercial operation in December 2015 and operates under a 20-year power purchase agreement with the Independent Electricity System Operator (IESO).

Gamesa signs 40 MW wind power project with KCT Renewable EnergyGamesa, an Indian renewable energy firmannounced a 40 MW wind power project from KCT Renewable Energy. The project will be commissioned in Molagavalli site in Andhra Pradesh.

The project essentially comprises 20 units of G114-2.0 MW T106 turbines which are due to be commissioned by March 2017. Gamesa will be responsible for the supply, erection and commissioning of the wind farm. This order forms part of the 460 MW consolidated orders announced for India recently.

Commenting on the deal, Varun Thapar, vice chairman & executive director, KCT group said, “We decided to partner Gamesa on this project because of their strong project execution and O&M capability, and also because of the new generation G114 turbine, which I believe will enable greatest capture of the wind resource on this site and hence maximize the project PLF. “

“This product represents the latest technology offering in the market and I am looking forward to seeing the performance of the turbine,” Thapar further said.

Global battery energy storage system (BESS) capacity to cross 14 GW by 2020Global battery energy storage system (BESS) installed capacity is set to grow from 1.5 GW in 2015 to over 14 GW by 2020, says the latest research from GlobalData. The market is driven by increasing renewable installations and focus on grid stability across the globe.

The introduction of BESS in the power sector covers a vast range of applications, resolving concerns such as energy time shift (energy storage when electricity prices are low and energy discharge when prices are high), load

following and frequency regulation (balancing electric supply and end-user demand), renewable capacity continuity, transmission congestions relief, and energy tariff cost management.

Swati Gupta, GlobalData’s Analyst covering Power, explains, “Climate change concerns, government initiatives including renewable portfolio standards, and consumer efforts are resulting in increased deployment of solar and wind resources. However, the variability of solar and wind power makes it hard for electricity providers to integrate them into the electricity grid. To achieve this, BESS are being installed into electricity grids to make the power supply from renewable energy sources smoother and more reliable.”

Technological innovation, improvement in manufacturing processes, and growing competitiveness have already driven down BESS prices, which are expected to fall by almost half from 2015 to 2020. The component costs for BESS have also witnessed significant decline, mainly due to technological advancements.

In terms of regional BESS markets, the US has the largest market, valued at more than $750 million in 2015. The US is expected to continue to lead the BESS market over the next five years, reaching a market value of approximately $1.7 billion by 2020.

SunLink PowerCare team expans to NortheastThe PowerCare team from SunLink Corporation has expanded its installation services into the Northeastern United States. PowerCare recently completed installation services on a GeoPro project in Sheffield, Mass, is currently installing at a second GeoPro project across the state in Plymouth and is gearing up for 10 more projects in Massachusetts and Vermont in 2016.

Simultaneously, the PowerCare team is also executing solar project services in North Carolina, Nevada and California, the company said. “The mid-range tracker and fixed tilt ground-mount market is frequently neglected as mid-range projects tend to be beyond the capabilities of small or residential installers yet not large enough to attract the interest of most large EPCs,” said Keith Beisner, head of SunLink’s PowerCare program.

“By taking on installation and O&M of our fixed tilt and tracker products, our goal is to help our customers efficiently and successfully add projects in that range to their portfolio. In essence, we want to help them do more MWs,” Beisne said.

NationalNews

78 September 2016

Haryana to generate power from waste at Bandhwari plantAbout 10 megawatt of power can be generated everyday with 1500 tonnes of municipal waste received by Gurgaon and Faridabad at the Bandhwari plant. This was announced by the urban local bodies department that instructed the power discom to buy electricity as per norms.

For the purpose, a new solid waste treatment plant will be also set up. According to an estimate, the plant will receive 2,200 tonnes of waste everyday by 2035 and thus power generation can be increased. “Department of urban local bodies, Haryana, has proposed to set up cluster-based integrated solid waste management facilities in the ULBs of Haryana in PPP (private-public partnership) mode. 15 cluster-based municipal solid waste (MSW) treatment plants have been proposed in the state,” says a letter (a copy of which is with TOI) written by the chief engineer of Haryana Power Purchase Centre (HPPC), Panchkula, to the chief engineer (planning), Haryana Vidyut Prasaran Nigam Limited (HVPNL), Panchkula.

The discom has said it will purchase power generated from waste. “As per recent tariff policy of the Union ministry of power, it is mandatory for us to purchase power generated from waste to energy plant. We will purchase the power as per the norms set by the ministry,” said a discom official.

MNRE blacklists 2 firms for malpractices in NTPC solar tendersThe Ministry of New and Renewable Energy has blacklisted Emami Power Ltd and Oriental Sales Agencies (India) Pvt Ltd that debars them from participating in all its schemes for a period of three years.

Last month, state-run NTPC has informed the Ministry of New and Renewable Energy that Emami Power Ltd and Oriental Sales Agencies (India) Pvt Ltd were indulged in malpractices in the tenders for solar power projects by it under Phase-II of National Solar Mission, MNRE said in a statement.

Taking a note of this, the Ministry decided to blacklist the two companies for three years, the statement said. This means that the firms have been debarred from

participating in any schemes or programmes of the Ministry during the said period, it said, adding that a copy of this order has been sent to Indian Renewable Energy Development Agency (IREDA), Solar Energy Corporation of India (SECI) and NTPC Ltd.

IREDA and SECI are implementing various solar energy initiatives of the government which has envisaged adding 100 GW of solar power generation capacity by 2022.

The statement also said that the action clearly indicates that government does not allow any malpractices by vendors to ensure quality of supplies.

NTPC has drafted its business plan of capacity addition of about 1,000 MW through renewable resources by 2017. In this endeavour, NTPC has already commissioned 360 MW solar PV projects.

Himachal Government signs MoU with NTPC, NHPC for hydro engineering college in Bilaspur

The establishment of the first hydro engineering college in Himachal Pradesh will boost regional development and provide more job opportunities, Union Health Minister J P Nadda. He was speaking at an event where an MoU was signed between the Himachal Pradesh government and National Thermal Power Corporation (NTPC) and National Hydel Power Corporation (NHPC) for setting up of the hydro engineering college in Bilaspur.

“Setting of the first hydro engineering college will boost regional development and provide more job opportunities for local educated youths and make available specialised work force to NTPC and NHPC. It is indeed a historic moment,” Nadda said.

NATIONALNEWS

NationalNews

80 September 2016

He said the institution will help in generation of a technical human resource specialised for specific requirement of hydro power projects. “This initiative of a specialised engineering college dedicated to hydro engineering would be unique not only to our country but perhaps globally as well,” he said.

The Health Minister noted that hydro power generation, particularly in Himalayan region, requires a combination of technical skills spanning different fields of engineering – civil, hydrology, mechanical and electrical engineering, among others.

Infrastructure deficit biggest hurdle for ‘MAKE IN INDIA’: S&PThe country’s poor infrastructure is the “biggest hurdle” to Government’s flagship Make in India programme, S&P Global Ratings said. “Infrastructure is the biggest hurdle to the ambitious Make in India programme of the government,” S&P Global Ratings Credit Analyst Abhishek Dangra told reporters.

The infrastructure deficit is costing up to 5 per cent of the GDP and an improvement will boost export competitiveness, according to some estimates. However, he was quick to add that the export powerhouse of China also faces problems on the infrastructure front.

Every rupee invested in infrastructure development has a ripple effect and helps the GDP by `2, he added. The passage of the Goods and Services Tax, billed as the country’s biggest indirect taxation reform, will give a fillip to the logistics and manufacturing sectors, he said.

Dangra said there are problems in the country’s transportation sector with capacity constraints and underlined the need for better regulation. “India’s transportation infrastructure sector could significantly benefit from a stable regulatory environment that has an independent regulator, appropriate dispute-resolution mechanisms and supportive, comprehensive policies,” he said.

Surplus power may cause Rs 8,000 cr loss to discoms in FY’17 State power distribution companies (discoms) are staring at a net loss of Rs 8,000 crore in the current fiscal owing to purchase agreements in excess of power demand, according to India Ratings and Research (Ind-Ra). Ind-Ra’s expectation is based on the assumption that discoms will surrender the power purchase agreements (PPAs) with the highest variable cost by paying the fixed costs based on the agreement, it said in a statement. According to the statement, 18 out of 36 states/UTs are expected to be power surplus in FY2016-17, as per the Central Electricity Authority’s (CEA) Load Generation Balance Report 2016-17. It said that these discoms are likely to surrender some of the excess power they have tied-up in past five to seven years at a loss, thereby further weakening their financial position.

The discoms in the western and southern regions are expected to be the worst hit due to PPA tie-ups in excess of the power demand in the region. Ind-Ra estimates losses of around Rs 4,000 crore by discoms in the western region and Rs 2,450 crore in the southern region due to the maximum amount of long term PPA with a provision of fixed tariff in the past. The long-term commitments at a fixed cost in PPAs are preventing some state power distribution companies (discoms) from procuring low cost merchant power traded on the power exchanges. The Punjab State Electricity Regulatory Commission has recently revealed that the losses due to the surrendering of excess power for FY2016-17 is expected at Rs 2,075 crore. The commission has directed the Punjab State Power Corporation Ltd to look at ways to reduce this fiscal burden by selling surplus power outside the state.

The Karnataka Electricity Regulatory Commission (KERC) also recently ended the earlier rule of the state government that power producers must generate at 100 percent capacity and supply only within the state. Generators can now apply for a no objection certificate from the KERC to sell their surplus power outside the state, it said. Many of the long term PPAs have provisioned for Rs 1.25 to Rs 1.75 fixed prices per unit of electricity compared to an all-inclusive cost of around Rs 2.5 per unit (based on actual power rates on power exchanges for FY2015-16.

India pioneers ultra supercritical tech for power units by 2020A pioneering indigenous technology for coal-fired power plants, which requires less fuel, delivers greater efficiency and is a tad cleaner, will be ready in four years — possibly ahead of other countries in the race.

Revealing this to IANS in an interview, Indira Gandhi Centre for Atomic Research (IGCAR) Director Arun Kumar Bhaduri said: “The research, development and design phases of the 800 MW advanced ultra supercritical (AUSC) boiler for coal power plant will be ready by 2019-2020.”

The timeline for the construction of an actual 800 MW power plant with AUSC boiler would depend on the regulatory approvals for the plant design and the funding of the plant construction, he added.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a proposal for the research and development of AUSC technology for thermal power plants at an estimated cost of Rs 1,554 crore (over $230 million).

The central government will provide one-time budgetary support — by the Department of Heavy Industry (DHI) — of Rs 900 crore spread over three years, commencing from 2017-18, to power equipment major Bharat Heavy Electricals Ltd (BHEL) to implement the R&D project.

There will be contributions of Rs 270 crore from BHEL, Rs 50 crore from power generating company NTPC Ltd, Rs 234 crore from IGCAR and Rs 100 crore from the Department of Science and Technology (DST).

CorporateNews

81September 2016

BHEL commissions 40-mw hydro power unit in West Bengal State-run power equipment maker BHEL has commissioned a 40-mw unit of a hydro power plant in West Bengal. Just a month after the commissioning of the first 40-mw hydro electric generating unit at the Teesta Low Dam Hydro Electric Project (HEP) Stage-IV in West Bengal, Bharat Heavy Electricals Ltd (BHEL) has successfully commissioned the second unit of the same rating at the project,” the company said in a statement.

A run-of-the-river project located in Darjeeling district of West Bengal, Teesta HEP is being set up by National Hydroelectric Power Corporation (NHPC), on the River Teesta, it said. The remaining two units of the project are also in the advanced stage of execution. In West Bengal, BHEL is also executing the 3x40 mw Rammam Stage-III hydro-electric project of NTPC.

The estimated annual energy generation of 720 million units from the project will result in significant reduction of green-house gas emissions and help in achieving a low carbon development path.

GAIL, Bloom Energy join hands to bring clean energy to IndiaState-run GAIL(India) and US-based Bloom Energy inked a pact to deploy natural gas-based fuel cell technology to generate electricity with lower emission levels. The technology is being used by over 100 of the Fortune 500 companies that are diversified majors in FMCG, IT, telecom, retailing and e-commerce.

Speaking on the occasion, Oil Minister Dharmendra Pradhan said he would soon send a proposal to Lok Sabha Speaker to do a pilot project in Parliament building where human and other biowaste would be converted into gas or fuel. The minister said initially this technology will help in providing cleaner power in the urban areas.

The solid oxide fuel cell (SOFC) technology of Bloom Energy Servers convert fuel into electricity using natural gas as the base fuel to generate reliable and resilient power in a highly efficient non-combustible process that reduces emissions of greenhouse gas and harmful air pollutants, with minimal use of water.

IMP Powers Ltd. ventures into an exciting new business - Exclusive Marketing of “Kinetic energy turbines” IMP Powers Ltd. (India) (“IMP”) announced that it has entered into an Exclusive Marketing & Sales agreement with Smart Hydro Power GmbH Ltd. (Germany) (“SHP”) to strengthen the solutions for renewable energy source in India. As per the Exclusive Marketing & Sales agreement, IMP Powers Ltd. will exclusively market 5kw kinetic energy turbines initially in India. This arrangement will then be extended for marketing in other select countries also. This smart solution is “India’s First Kinetic Energy Turbine” leading to Energy Saving & Serving the Nation. The Ministry of New & Renewable Energy (MNRE) encourages and supports the use of kinetic turbine technology as an important source of renewable energy in India.

This path-breaking technology of SHP focuses on the application of the Free Stream Turbine in India along with its world-wide presence. The Free Stream Turbines also known as zero head or in-stream turbines are powered by kinetic energy instead of the conventional hydro power project which uses Potential energy. They can be installed in canals, tail races of conventional hydropower plants, rivers & free-flowing streams. This is a breakthrough technology as it doesn’t require construction of dams and head differentials are not necessary for the operation of hydro power plant. This technology is proven to be the best alternative for decentralized electrification along the rivers.

L&T Power Wins ` 3,860 Crore Order from Neyveli Uttar Pradesh Power LimitedThe Power Business of Larsen & Toubro Limited (L&T) through its joint venture company L&T-MHPS Boilers Private Limited (LMB) has secured an order of ` 3,860 crore from Neyveli Uttar Pradesh Power Limited (NUPPL).

The LMB contract includes design, engineering, manufacture, supply, erection and commissioning of 3x660 MW Ghatampur Thermal Power Project - Steam Generator and Auxiliaries package for NUPPL at Ghatampur Tehsil, Uttar Pradesh.

Commenting on the order, Mr. Shailendra Roy, CEO and Managing Director-L&T Power, and Whole-Time Director-

CORPORATENEWS

CorporateNews

82 September 2016

L&T, said “This is a prestigious order from NUPPL for supercritical steam generators, with state-of-the-art equipment meeting new emission norms. LMB will meet the project schedule with best endeavours and resources conforming to international quality standards.”

LMB is currently executing nine units of Steam Generator packages for similar large capacity steam generators (660 MW) in India totalling 5,940 MW. In addition, six supercritical units (660/700 MW) have already achieved commercial operation.

LMB is also executing nine export orders for the supply of Pulverisers and Pressure Parts for various MHPS projects in Japan and Indonesia. It has already executed eight MHPS export orders with the supply of pressure parts, pulverisers and engineering services to Middle East, Africa and South East Asia.

NTPC plans to become biggest renewable energy company in 10 yearsNTPC, India’s largest electricity generator, is tweaking its expansion plan to become the biggest renewable energy company in the next 10 years. The state owned company’s Rs 5 lakh crore capital expenditure plan will be skewed towards adding renewable energy capacity instead of setting up more thermal units.

NTPC has targeted generation capacity of 128,000 megawatts by 2030 from the present level of over 47,000 MW. “Keeping the total capacity addition constant, we are recasting the the expansion plan to increase the mix of renewable power capacity and reduce the share of thermal power,” a senior NTPC official said.

The utility had earlier decided to set up renewable energy capacity of about 10,000 MW in the next four years. This figure is likely to be revised upwards as part of the plan to enhance renewable power generation. Its current renewable energy portfolio consists of nine solar power plants with 360 MW of capacity.

SCADA-DMS Project Control Centre implemented by Schneider Electric India in Bihar Benefits include: 24/7 power, no voltage fluctuations, efficient services, indexing of consumers, quick fault identification and more...The SCADA-DMS Project for Patna City undertaken by Schneider Electric (SE) – the global specialist in energy management and automation – was inaugurated by the Hon’ble Chief Minister of Bihar Shri Nitish Kumar. The SCADA-DMS Project is undertaking Power Monitoring, Control and Modernization of the Patna Electric distribution network. The project’s scope includes the Data Centre, DMS Control Centre (Distribution Management System), Grid Modernization, automation of existing and new substation, RMU’s automation, Telecom Network, integration of GIS Mapping, efficient exchange of data from and to Customer Care and Billing.

The Project funding has been done via Power Finance Corporation under the Government of India’s R-APDRP initiative (Restructured Accelerated Power Development and Reforms Programme). The Project will benefit all stakeholders in Bihar: citizens, the Bihar DISCOM (BSEB) and the Bihar State.

Elaborating on the Project Mr. Prakash Chandraker, VP and MD, energy business, Schneider Electric India, said: “Power has been identified as a primary sector in Bihar and the state government has taken multiple initiatives to achieve self reliance and ‘Power for all’ by 2018-19 through power capacity addition and strengthening the Transmission & Distribution network. We are happy to be partnering with the state Government and the commissioning of the SCADA-DMS Project in Patna by Schneider Electric India will help contribute towards the power sector commitments of the state”.

For residents of Patna, the benefits include: quality power and 24/7 availability in line with Govt Of India vision ; no voltage fluctuations; safety and reliability to ensure no accidents; efficient services and billing; modern customer care and billing centre integration; enablement to manage distributed energy resources (rooftop solar/net metering) and enabling customers to participate in demand response.

TATA Power achieves commercial operations of its wind farm Tata Power joint venture Cennergi (Pty) Ltd, Tata Power’s 50:50 with Exxaro Resources in South Africa, achieved commercial operations for its 134 MW Amakhala Emoyeni Wind Farm Project. Cennergi was selected as the preferred bidder for two wind projects under the second window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by the South African government. Cennergi’s second wind project is also expected to go into commercial operations shortly.

Cennergi will focus on the investigation of feasibility, development, ownership, operation, maintenance, acquisition and management of electricity generation projects in South Africa, Botswana and Namibia. The initial project pipeline focuses on renewable energy projects in South Africa and Cennergi’ s strategy is to create a balanced portfolio of generation assets.

Speaking on achieving this milestone, Anil Sardana, CEO & managing director, Tata Power, said, “Tata Power has been pursuing growth opportunities in India and overseas. Our successful partnership with Exxaro represented a significant move towards augmenting our global footprint and resulted in Cennergi becoming preferred bidder for two wind projects. The commissioning of Amakhala Wind farm, Tata Power’s first wind project outside India, marks the company’s continued progress on its objectives of enhancing non-fossil based generation portfolio up to 30-40 per cent of its total generating capacity and thereby creating value for its stakeholders”.

ERDANews

84 September 2016

u Special 35 kV high frequency spark discharge test – accepted by all utilities & manufacturers

Major Field Services Provided

u Independent third party inspection agency for disputed energy meters

u Approved independent third party inspection agency for GERC, RERC, MPERC, DERC &JSERC

u Third party services for inspection of energy meters for bulk purchase by utilities

u Calibration of energy meters at site/mobile laboratory up to 0.02 class reference meters

Major Expert Services Available

u Technical services such as review of tender specifications for energy meters for improvement in design and quality of energy meters.

u Technical support to manufacturers for developmental testing of energy meter test equipment such as impulse generators, voltage dip and interruption test setups, short time over current test setups, 3rd and 5th harmonic generators, surge testing generators, etc.

u Services for carrying out testing for improvement in design and quality of energy meters.

Sr. No. Programme title Date1 Calibration of High Voltage

Parameters 8 Sept. 2016

2 Residual Life Assessment, Mechanical Vibration Diagnostics & Failure Investigations

22-23 Sept. 2016

3 Safety & Performance Evaluation of Cables & Accessories 6-7 Oct.2016

4 High Voltage Evaluation Techniques

20-21 Oct. 2016

5 EMI/EMC Evaluation Techniques for Electronic Equipment & Machinery

10-11 Nov. 2016

6 Condition Monitoring of Motors, Generators, Pumps & Turbines

24-25 Nov. 2016

7 Uncertainty Measurement in Electrical Discipline 8-9 Dec.2016

ERDA’s State-of-the-Art Laboratory for Evaluation of Energy Meters

IntroductionERDA’s Laboratory for Energy Meters offers technical services under three business verticals of “Testing & Evaluation”, “Field Services”, and R&D and Expert Services”. The laboratory is accredited by NABL – Government of India as per ISO 17025 and recognized by BIS. Capability profile of the energy meter evaluation laboratory is summarized below:

Testing & Evaluation

BIS approved facility for evaluation of smart meters u NABL accredited and BIS approved facility for

Prepayment energy meters u Load switch test for utilization category UC1, UC2

and UC3 u Bi-Directional energy meter testing as per utility

requirements u Communication protocol verification as per IS 15959

(part-2) by using Conformance Test Tool from DLMS user Association

u Type testing of energy meters as per Indian and International Standards (up to 200 A) for energy meters (accredited by NABL - First in India)

u Calibration of 0.02 class reference energy meters u Special and all required tamper tests according to

requirements of utilities u Evaluation of energy meters as per the requirements

of electricity boards for ranking meters according to quality

u Durability & accelerated reliability testing of energy meters as per IEC/EN standards

u Short time overcurrent testing up to 10kA for half cycle as well 0.5 sec.

Dr G S GrewalDy. Director & Head Mechanical & Insulating Materials Division Phone: 0265-3048027, Mobile: 9978940951 E-mail: gurpreet.grewal@erda.org, Website: www.erda.org

Six Position Automated Test Bench for Energy Meters for 200 Amperes

Apparatus for Vibration Testing

Radiated Emission Test-30 MHz to 1000 MHz

Low Voltage Impulse Generator

Short Time Overcurrent (STOC) Test Setup

DLMS Protocol Verification Test under Progress using CTT Version 3.0

Seminars&Fairs

86 September 2016

Power Week Conference, Singapore Dates: 7 - 11 November, 2016Venue: PARKROYAL on Beach Road Hotel, Singapore

Designed for the global electric power & energy industry, POWER WEEK provides 5 days of networking opportunities, consisting of 2-day conference as the focal event, 3 workshops, 2 supplementary masterclasses, multiple case studies, expert views, and valuable insights on market outlook.

With valuable insights on policy & regulations, technology innovations for generation / transmission / distribution, environmental impacts, fuel supply sources, renewable / hydro / nuclear / gas to power developments, power trading, IPP projects, investment & financing, power contracts & negotiations and many more from C-level expert speakers & attendees, POWER WEEK is certainly an event not to be missed.

Asia-Pacific Biomass Energy Exhibition, China Dates: 26-28 September, 2016

Asia-Pacific Biomass Energy Technology & Equipment Exhibition (APBE), formerly the China Guangzhou Int’l Biomass Energy Exhibition (CNIBEE), is generally known

as one of the three world class events of biomass energy along with EUBCE and Expo Biomasa.Since its establishment, APBE has attracted Kingwood, Huantai Biological Energy and Hengmei Better as its gold sponsor, silver sponsor and special sponsor respectively and over 500 renowned brands globally, providing services to nearly 100 thousands of professional visitors at home and abroad.

With its rapid development and globalization strategy, the strong impact of APBE in biomass energy industry will be more and more obvious.

Renewable Energy India Expo 2016Dates : 7-9 September, 2016

Venue: Greater Noida

The 10th Renewable Energy India Expo 2016 is a global platform to jointly address policy initiatives and innovative finance models to accelerate development of collaborative R&D and technology transfers to India in the field of renewable energy. The show will be held on 07-09 Sept 2016 in Greater Noida, India. It brings together professionals and industry experts to share valuable experienced knowledge and innovative ideas to make advanced this respective sector in the global market.

E3-Largest Energy Convention in Eastern India- An IEEMA Eastern Region InitiativeDates 18th – 20th Nov, 2016

Venue: Milan Mela Ground, Kolkata, West Bengal, India

IEEMA Eastern Region is organizing a three day summit “E3” in Kolkata form 18th Nov – 20th Nov’16 at Milan Mela ground to showcase the abundant potential of the eastern region in the power sector. The show would be bringing stakeholders from across all the verticals from the power sector. Not only it would gather the meaningful domestic audience but it will also witness the presence of neighboring countries from South-East Asia.

ProductShowcase

88 September 2016

Multifunction Power & Energy Monitor - TRMS Model “MFM-96AF”

“MECO” Multifunction Power & Energy Monitor, Model : “MFM-96AF” Microcontroller based with MODBUS RTU Protocol is indigenously designed, tooled and manufactured by the R & D Department of MECO and Competitively Priced. “MFM-96AF” TRMS is 23 Parameters on 46 pages, 4 Rows of 4 Super Bright Red LED Displays, 3 Phase 3 Wire / 3 Phase 4 Wire System (User Selectable) Programmable CTR, PTR, Instrument Address, Password & MD Period are main features.

OMS 605 for temporary on-line PD monitoringOMICRON’s OMS 605 is designed for temporary on-line PD monitoring of a variety of high-voltage assets, including motors and generators. The system is contained within a rugged, waterproof trolley-style case for easy transport. The simple-to-use, pre-wired plug-and-play modules enable fast system setup. A notebook PC can be attached to the OMS 605 for display and analysis of monitoring data.

FLIR Thermal Imaging CameraFLIR Thermal Imaging Camera is a core predictive maintenance tool for the inspection of critical electrical installation like Transformers, Circuit Breakers, Switches, Transmission lines, Circuit boards, Bus bar, Distribution Lines etc. For example, a bad connection on a transmission line shows a clear hot spot in the thermal image. A bad connection results in increased resistance and the current flow

generates excessive temperature that can easily be detected with FLIR thermal Cameras. For this purpose, FLIR Systems has launched its T-Series Thermal Imaging Cameras that come with Ultramax and MSX Technology. Ithelps to improve the efficiency and accuracy. It goes up to 2000 °C in temperature range and it come with an accuracy of +/-1°C or +/-1% of reading and resolution up to 307,200 pixels which gives the clear hotspot.

Easy9 – ‘Green’ range of MCBs, RCCBs and Isolators

Schneider Electric, the global specialist in energy management and automation launched its Easy9 range of MCBs, RCCBs and Isolators for the retail market. Apart from offering reliable protection and safety, the products comply with the highest global standards on green certification and also provide savings through low energy utilization. The MCBs, RCCBs and Isolators will be manufactured at the company’s state-of-the-art IGBC (India Green Buildings Council) and ISO certified facility in Chennai which will cater to the pan-India market through the company’s channel network. The Chennai facility is a NAMC (National Award for Manufacturing Competitiveness) Gold Certified global plant of Schneider Electric – supplying products to more than 100 countries across the globe in addition to fulfilling the demands of the Indian market.

A New IPM With Cip Topology – Better, Faster in; Smaller, Cheaper out

Slashing costs and shrinking footprints with the flowIPM 1B CIP 600 VUnterhaching, Germany, August 22, 2016. Vincotech, a supplier of module-based solutions for power electronics, today announced the launch of a new, deeply integrated Intelligent Power Module for 600 V applications. The flowIPM 1B CIP 600 V features the powerful combination of a high-speed F5 IGBT with the switching performance of a MOSFET and a silicon carbide boost diode in the PFC circuit optimized for frequencies up to 150 kHz.The high-speed F5 IGBT, paired with the silicon carbide boost diode in the PFC circuit, not only delivers impressive performance, it also drives down the cost of external passive components. The current rating of this new CIP (converter + inverter + power factor correction) topology housed in an integrated power module is also impressive: 10 A @ 80° C heat sink temperature.The deeply integrated flowIPM 1B CIP 600 V module enables manufacturers to slash their overall system's size, cost, and time to market. It also features an inverter gate drive with a bootstrap circuit for high-side power supply, as well as emitter shunts (30 mΩ) for vastly improved motion control.

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