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A n I S O 9 0 0 1 : 2 0 0 8 C e r t i f i e d A s s o c i a t i o n

Issue 7 April - May 2013

www.aiema.net

ISO 9001 : 2008 Certified Associations

Mr. S. Shanmugavel, Joint Commissioner of

Police - West Zone, Chennai, inauguratingthe blood camp at ATC

Mr. S. Rajarathinam, Director - Autotech

Industries India (P) Ltd., honouring the

chief guest Mr. Vidyut Shivaramakrishnan,

Ranji Trophy Player at the Valedictory

function of Cricket Tournament.


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THIRUKKURAL

BIBLE

QURAN

SRI MATH BHAGAVAD GITA

AIEMA NEWS

3IIApr-May 13

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Think, and dare a proper deed

Dared and think is bad in need.

The one who controls the senses by the trained and purified mind and

intellect, and engages the organs of action to selfless service isconsidered superior. (3.07)

"For whatsoever things were written afore time were written for our

learning, that we through patience and comfort of the Scriptures might

have hope." Rom. 15:4.

Who made the earth a resting-place for you and the heaven a structure,

and sends down rain from the clouds then brings forth with it fruits for

your sustenance; so do not set up rivals to Allah while you know.


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CONTENTSIssue 7 April - May 2013I

AIEMA NEWS

4 I IApr-May 13

Industry

ADVERTISERS INDEX

Editors Page 5

AIEMA Hall Booking 6

President's page 7

AIEMA Diary 8

From ATC Chairmans Desk 9

AIEMA Membership Tariff 10

Advertisement Tarrif 10

ATC Membership Tariff 10

CAAIIUC List of Directors 44

AIEMA Executive Committee Members 45

ATC Executive Committee Members 46

Empowering Indian SMEs

Why Europe's Carbon Woes

Matter to the Whole World 13

EPF grievance management:

All you need to know 15

Wind Energy Basics 16

Free German Senior Expert

assistance available through SES. 23

11 Creating the Best Workplace on Earth 25

The Unmanageable Star Performer 32

Indian Infrastructure Icons 37

The Virtual Option 42

10 Tips for Public Speaking 43

Blood Donation Camp Held at ATC 47

Cricket Tournament 2013 -

Autotech Trophy 48

Eye Camp at ATC 50

CNC Training Courses -

100% Govt Subsidy 50

AIEMA Fraternity Congratulates

M/s Vanjax Sales Pvt Ltd 51

Events

Technology

Expert Services

Finance

Regular

S & T ENGINEERS PVT LTD. 54

HAAS AUTOMATION 55

ACMEE 2014 56

UNITECH ASSOCIATES PVT.LTD. 02

CHENNAI INSTITUTE OF TECHNOLOGY 52

CRYSTAL ESTATES 53

Management

Development

General


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Greetings from the Editorial Board of AIEMA News...

We have pleasure in covering various events in AIEMA's golden jubilee year. We have

also covered the 5th Annual Cricket Tournament, which was held in a great way. This

year's tournament had the maximum number of registrations. Total number of team

registrations for the tournament was more than 100. Meetings with TANSIDCO officials

were also held to get their affirmations on the drainage and other maintenance

activities within the scope of TANSIDCO. We congratulate AIEMA / ATC in organising

various medical camps for the benefit of the employees of the association and the

general public.

We have also published other selected articles of interest from various publications to

benefit our members. Please mail us your suggestions for improvement.

Thanks & Regards,

Hon. Editor - AIEMA News

R. Ramchander

Published by: AIEMA for and on behalf of Ambattur Industrial Estate Manufacturers' Association, Industrial Estate,

SIDCO AIEMA TOWER, 1st Main Road, Ambattur Industrial Estate,

Chennai - 600 058. Phone: 2625 0245, 2625 0489 Fax: 2625 0489 URL: www.aiema.net Email: [email protected]

Printed by: K. Dhamodharan at Print Zone, Chennai - 600 024. Phone: 2481 2001 / 2002 Email: [email protected]

Views expressed in this magazine are the personal views of the authors and do not necessarily reflect view of editorial team of AIEMA / ATC / CAAIIUC

THOMAS K. VARGHESE

Editor Page's Editorial Board

V.RAMAN

L. VENUGOPAL

S. SHANMUGAM

S. SRINIVASAN

Message

GIRISH GUPTA

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available at

for

Halls available for 2 Hrs. - 4 Hrs. - 8 Hrs.

Can accommodate 50 to 150 members

AIEMA TECHNOLOGY CENTRE

TRAINING / SEMINARS / PRODUCT PROMOTION

Tariff Hall

AIEMA TECHNOLOGY CENTREFor further details contact :

First cross Road, Ambattur Industrial Estate, Chennai 600 058.

Tel: 044 - 2625 8731 / 8619 Email: [email protected] Web: www.aiema.net


Amenities : Fully equipped halls with chairs, lightings, podium mikes,hand mikes, collar mike and white board.

Service tax as applicable

Spl.disco

unt

for

ATCMem

bers

CONFERENCE HALL FACILITYCONFERENCE HALL FACILITY

AIEMA NEWS

6 I IApr-May 13


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President's Page

Greetings and hope this finds your business in the pink of health.

A lot of HEALTH CLINICS from leading consultancy firms have approached to organize health checkups for firms.

Many banks have approached us to address the members.

The new MSME policy was unveiled by the State Government.After many years the policy has something for the small

industries.It has also subtly nailed the first nail in the coffin of AMBATTUR INDUSTRIAL ESTATE.The policy also gives

clearance for our much awaited GOLDEN JUBLIEE TOWER.

The economic revival is still awaited especially for the automobile industry.

A lot of time is being spent to chase payments.

When talking so much about the health of the company,AiEMA thought that the health of the employees should also be

given a flip up,so a string of health check ups are being organized.

Wishing you a lot of health and happiness.

Best Regards,

President

P.S. Ramesh

Many attempts to communicate are nullified by saying too much. - Robert Greenleaf, ATT

Message

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AIEMA Diary19.04.2013 - Met Mr. Karthikeyan, IAS, CMD Sidco, Guindy

08.05.2013 - Met Mr. Hansraj Varma, IAS, CMD of TIDCO regarding IIU scheme

13.05.2013 - Met Mr. Veera Raghavan Roa, IAS regarding issuing Patta

14.05.2013 - Met Mr. K. Dhanavel, IAS, MSME Secretary and Mr. Karthikeyan, IAS, CMD, Sidco regarding MSME Policy.

Regards,

Hon. Gen. Secretary

T. Nalangilli

Message

The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem.

19.04.2013

20.04.2013

- Eye camp held at ATC for the welfare of Members (1st Batch)

- Eye camp held at ATC for the welfare of Members (2nd Batch)6.05.2013 to

8.05.2013

AIEMA NEWS

8 I IApr-May 13


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Dear Friends,

Greetings from Aiema Technology Centre.

The training programmes organized during the past 2 months viz., Waste Elimination at Shop Floor and Total Productive Maintenance

were attended by 64 participants. Other programmes were organized with MSME viz., TN VAT Audit, Letter of Credit, Purchase & Stores

Management.

Our CNC Training Centre has been approved by the Department of Employment & Training for conducting CNC courses under the Govt's.

Scheme of SDI-MES sanctioned upto 31.3.2017. MES courses are covered under 6 modules of 240 hours each viz., Turning, AdvanceTurning, Milling, Advance Milling, CNC Turning and CNC Milling under 100% Govt. Subsidy. The same was inaugurated on 16th May by

Mr.S.Ravi Basker, Regional Jt. Director Chennai, Department of Employment Training. We expect to have 100 candidates per batch

which is to commence shortly. Members are requested to utilize this opportunity in getting your employees trained in CNC field.

Membership card has been issued to ATC members. The card can be utilized at the Restaurant in our premises for which a loyalty

discount of 5% on the catering bill is being offered.

Cricket tournament 2013 'AUTOTECH TROPHY' held from 12th April to 15th May, 2013 was a mega success with participation from 100

teams. Valedictory function was presided by Chief Guest Mr.VidyutSivaramakrishnan, Ranji Trophy Player. The Trophy was won by ACL-

A Team, Runner-upM/s.Alkraft Thermo Technologies and Second Runner-up M/s.Mercury Fittings. We wish to place on record our

sincere thanks and gratitude to the Trophy Sponsor Mr.K.S.Jeyaraman & Mr.S.Rajarathinam and Mr.Dilip Kumbhat for arranging the

Chief Guest.Due to the overwhelming response, interest and enthusiasm shown by all the employers and the players in the recently concluded

Cricket Tournament we are representing two tournaments on behalf of AIEMA/ATC viz., CII Yi Tennis Ball Cricket Tournament which

will be conducted at ATC grounds during June 2013 and Lucas TVS TDCA Cricket Ball Tournament 2013-14 organized by the

Thiruvallur District Cricket Association.

The Annual Sports Meet 2013 has been scheduled from 12th June to 22nd June 2013. Members are requested to depute their

employees for the various events.

The Blood Donation Camp held on 27.04.2013 which was inaugurated by Sri.K. Shanmugavel IPS, Jt.Commissioner of Police was a

grand success with blood donors from 511 good-hearted employees.

ENT Camp has been planned from 10th to 12thJune, 2013 at ATC in association with M/s.Hitone Hearing.ILO Score Project for productivity enhancement for SMEs with the first module of 11 Companies has been completed and the award

function was held on 15th May at ATC. An interaction meeting was held with Mr. ThoralfStenvold, Counsellor, Head of Political Affairs

Royal Norwegian Embassy in India on 23rd May at ATC alongwith a Press Meet.

Best regards,

Chairman

K. Sai Sathya Kumar

FromATCChairmans Desk

Sticks in a bundle are unbreakable. ~Kenyan Proverb

Message

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*Advertisement Tariff with effect from November 01, 2012 is asbelow:

Only colour advertisements accepted. Advertisements supported by positives

should be given by the advertiser on or before 15th for insertion in the issue for

the same month.Advertisement design to be approved by AIEMA.

Advertisement charges to be paid in favour of "AIEMA" along with the advt material.

Sl. No Particulars Tariff (Rs.)

1. Wrapper Back (Colour) 15,000.00

2. Wrapper Inner Front & Back (Colour) 12,000.00

3. Inside Full Page (Colour) 5,000.00

4. Inside Centre Spread (Colour) 18,000.00

Note:

~ Service Tax at 12.36% extra.

~

~

~

Rebate:

10% for 6 issues, pre-payment

15% for 12 issues, pre-payment

ADVERTISEMENT TARIFF

IN AIEMA NEWSAIEMA

MEMBERSHIP

The current membership tariff is as follows :

MEMBERSHIP CATEGORY

1. LIFE MEMBER - NEW

2. LIFE MEMBER - UPGRADATION

3. CORPORATE MEMBER

Note: a) The membership fee as above is one-time payment to AIEMA.

b ) Entrance Fee is Rs.5,000.00

c) Service Tax @ 12.36% payable.

d) For Ordinary members, the annual subscription is Rs.1,500.00,

w.e.f. 01.04.2010.

* includes the Entrance Fee.

TARIFFRs. 20,000.00*

Rs. 15,000.00

Rs. 1,00,000.00

For details and application form,

contact AIEMA Tel: 2625 0245 / 2625 0489

AIEMA TECHNOLOGY CENTREMEMBERSHIP


MEMBERSHIP

This is to request the members of AIEMA who are non-

members of ATC to enroll themselves as a member of

AIEMA Technology Centre. The membership tariff follows:

Note: a) The membership fee is a one-time payment to ATC

b) Only members of AIEMA are eligible for the categories 1 to 3

Service Tax 12.36%

For details and application formcontact ATC at 26258731 / 26258619

For details and application form

contact ATC at 26258731 / 26258619

TARIFF

1. LIFE Rs. 5,000.00

2. PATRON Rs. 10,000.00

3. DONOR Rs. 15,000.00

4. CORPORATE Rs. 40,000.00

5. CORPORATE SPECIAL Rs. 1,00,000.00

MEMBERSHIP CATEGORY

* Service Tax as applicable

SPORTS GROUND BOOKINGSPORTS GROUND BOOKING

PRODUCT DISPLAY FACILITYPRODUCT DISPLAY FACILITY~ Rs. 400/- for ATC Members & Rs. 500/- for Non-Members

~ 10% discount for 6 months booking & 20% discount for 1 Year & Above

PRODUCT DISPLAY SPACE ON MONTHLY RENTAL BASIS

For booking contact ATC office

at 2625 8731 / 2625 8619

DURATION TARIFF

Half-a-day Rs. 1,000/- for ATC Members

(4 hrs. between 7.00 am & 6.00 pm) Rs. 2,000/- for AIEMA Members

Full day Rs. 1,500/- for ATC Members

(8 hrs. between 7.00 am & 6.00 pm) Rs. 3,000/- for AIEMA Members

Evening hours(between 6.00 pm & 10.00 pm) Rs. 3,000/- for ATC Members

with flood lights Rs. 5,500/- for AIEMA Members

AIEMA NEWS

I IApr-May 1310


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magine a scenario wherein you can easily procure the

best price for the raw material required to manufactureIautomotive OEM parts, for construction needs or forprecision engineering. Examples include chemicals ec.

additives, inks, paints, polymers, cement and so on. Whatever

be your requirement, buying clubs that bring buyers andsuppliers on the same platform can help manufacturers find

solutions to several problems at the same time. This includes

the acute problem of economical and quality supply of raw

material for the manufacturing sector, putting in place a

consistent and sustainable supply chain and eliminating the

constant worry of ensuring constant and timely supply of raw

material.

GROWTH MATTERS

According to a research report by Zinnov ManagementConsulting, a frequently asked question is how buying dubs

will help the overall SME sector to grow. First, let's take a

quick look at where the SME sector currently stands. Today,

there are an estimated 35 million SMEs in India. Together,

they employ 42 million people and contribute to a stunning

45% of the industrial input and 4096 of India's total

manufactured exports, informs a report by SME Chamber of

India. These figures make for a sector that contributes up to

8% of India's GDP (Source: SME India. net). However, thissector is far from realising its real potential, as compared to

other countries. China, in comparison, provides employment

to 94 million people with a network of 37 million units.

Further, India is aspiring to achieve an economic growth of

9% or more over the next decade. To achieve this level of

overall GDP growth, assuming a steady growth of 15% and

8% in the agriculture and manufacturingsectors,

With approximately 35 million SMEs in India, it is highly assential to ensure timely delivery,

quantity conformance and a steady supply of raw material. Heres taking look at the role played by

clubs and how group procument of manufacturing supplies can provide an added Impetus to the

growth of the SME sector in India.

Empowering Indian SMEs

respectively, the SIV1E sector (both existing and new

enterprises) would need to quadruple its GDP contribution

from the current level of US$200 billion. This would mean

that both existing and newly created enterprises would

contribute as much as 28% of India's GDP by the year 2020,

when the overall economy is expected to reach US$2.8trillion. With the current downward revision of the projected

GDP growth rates in the range of 5.7% to 5.996 in 2012

2013, from the earlier estimate of 7.6%, its becomes

extremely essential to find solutions that would reduce the

problems faced by the SME sector in India. To help turn the

vision of economic growth rates into reality, SMEs must be in

a position to unlock their manufacturing potential and grow

consistently.

BUYING CLUBSComing back to how buying clubs can help in this scenario,

let's first look at how buying clubs can work to improve the

manufacturing process supply chain. The SME sector is highly

fragmented as an industry and this is a major problem at the

supply end of the chain. Although there are several

organisations and forums that cater to the needs of SMEs,

they are scattered. In this environment, SMEs have been left

to fend for themselves, which is a great stumbling block in

their growth and development An online buying club, usingcollaborative software, can work to solve all the procurement

needs of SMEs; this is a bold initiative that has been

introduced at the right time. This concept can turn all the

challenges faced by the SME sector into opportunities. How

does this work? Buying clubs bring buyers and sellers at one

platform and take on the job of negotiating bulk prices and

doorstep delivery. This allows SMEs to focus on their core

Whenever you are asked if you can do a job, tell 'em, 'Certainly, I can!' Then get busy and find out how to do it. - Theodore Roosevelt

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IIApr-May 13 11

Industry


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A good garden may have some weeds. ~Thomas Fuller, Gnomologia, 1732

Industry

AIEMA NEWS

I IApr-May 1312

business of driving growth and expansion, rather than

dealing with daily operational issues of supply and delivery

of raw material.

The SME sector needs a one- stop platform for their

procurement needs that can be quickly scaled up and spread

across not only various manufacturing verticals but also the

country. In this situation, the customer is truly the king as

online platforms help SME buyers to come together in order

to negotiate the best prices and. services. Online buying

clubs act as sourcing & purchase aggregators and turn the

constraints faced by SMEs into opportunities. These buying

clubs arc not the regular e-commerce sites; they are much

more than that. With low inventory business models, SMEs

will only incur the cost of in-transit inventory risk. End-to-end

logistics arc essential to ensure that doorstep delivery of rawmaterial is outsourced to a third party, further reducing risk

and costs.

ONLINE TRACKING

Buyers can also track their order online through a service

portal, which is available to them all days throughout the

year. Special procurement software also allows for push

notification reminders about procurement that provide

critical business information about the last purchase, most

frequent purchase and so on. Moreover, as everything isavailable online, buyers can quickly compare the best

available prices and view their billing and reconciliation in a

transparent manner. As this platform is online, buyers and

sellers can take advantage of the Internet to further expand

the network through focused search solutions and use of

online platforms to discuss the procurement challenges

faced by the SME sector. With over 120 million Internet users,

this model can also spread to Tier 2 and Tier 3 cities, helping

businesses to deploy national networks that are notconstrained by the local availability of manufacturing raw

materials.

MONEY MATTERS

This model will -also help solve one of the biggest problems

faced by the SME sectorrising costs of raw material. Input

costs have been steadily rising in the SME sector and this

affects its ability to compete effectively not only in the

domestic market but also internationally. Buying clubs help

reduce the rising costs of raw material by connecting the

buyer directly to the seller and offering them lower,

negotiated prices. This results in lower margins, better profits

and cash flow for SMEs. The SME sector is also a highly

undercapitalised sector in the country. Experts assess thatlarge Indian firms raised 47% of their total funding from

internal sources, 19% from banks and financial institutions

and 5% from capital markets. The remaining 2.9% came

from alternative sources. For S/VIEs, the financing pattern

was radically different. Half of their total annual

funding came from alternative sources, including family and

friends and credit. Only 15% came from internal sources,

2596 from banks 8c. financial institutions and 10% from

capital markets. In addition, the smaller the firm, the more is

its dependence on alternate sources of finance.

MEASURES UNDERTAKEN

The government is implementing a slew of measures to ease

the pressure on cash, including directed credit programmes

where the government requires banks to provide loans on

preferential terms and conditions to SIVIEs for the

development of the sector. As a policy, banks, especially

public sector undertakings, have numerous SME

development schemes, which financially help theseinstitutions, but these measures will take long to bridge the

credit gap. The industry can help itself to solve some of its

problems by making use of the technologies that allow

buyers and sellers to assemble online and help them achieve

a national manufacturing demand and supply network at the

fraction of a cost of a brick and mortar buying dub.

All over the world, the SME sector is the cradle of

entrepreneurial spirit and fortitude and has the potential to

lift people out of poverty by creating jobs nationally. The SNIE

sector is the backbone of India's manufacturing sector and ishandling the twin pressures of high and inconsistent

procurement costs &- processes and undercapitalisation. It is

time for the sector to network and take advantage of the

advancement in technology to solve these challenges. Only

then will the sector be truly free to bring about an economic

miracle for India.

Source: Search


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"Prosperity depends more on wanting what you have than having what you want." Geoffrey F. Abert

IndustryIndustry

AIEMA NEWS

IIApr-May 13 13

ere's a very strange thing: Europe's decades-longeffort to reduce carbon emissions has been thrownHinto a shambles because utilities and manufacturers

are exceeding their carbon-reduction targets.

That's right. Exceeding them. It almost sounds like a joke, butit's not.

Europe's $100 billion carbon market, an innovative force in

the powerful carbon-reduction approach known as cap andtrade, has ceased to function the way it's supposed to. Theresulting chaos in Europe's energy and environmentalpolicies is threatening carbon-reduction initiatives inAustralia, Asia, and elsewhere.

And it's all because of a failure of political will in Europe tooverride the market's built-in lack of flexibility and fix theimbalance between supply and demand.

Cap-and-trade systems are based on government-imposed

targets for reducing greenhouse-gas emissions. In Europe,the emissions-reduction targets were set prior to the 2008financial crisis, which as we all know presaged a deeprecession and a eurozone debt crisis. Because of theeconomic slowdown, industrial activity has dropped morethan 20% in certain sectors of the Continent's economy, andmost industrial companies are using much less energy thanthey were a few years ago. In fact, they're operating at such acomparatively low level that as things stand now, many ofthem, including utilities, will be able to emit as much carbon

as they want for the next decade without hitting their limits.

This has drastically reduced the incentives for them to investin or deploy clean-energy technologies or to modernize theirenergy-infrastructure assets. Utilities are already planning tobuild new coal plants and are burning more coal, which inEurope is a lot cheaper than natural gas but emits twice asmuch carbon (as well as emitting other pollutants such asmercury and particulates).

Because so many companies are below their emissions caps,they don't need to buy the pollution permits, aka carboncredits, that would allow them to exceed their allotted limits the market is awash in unwanted credits. Marketsfundamentally don't work when they are "long" that is,flooded with things no one wants. A tension between supplyand demand is a necessity.

So the European carbon market clearly has a design flaw.Unlike other markets, it has no mechanism for correctionwhen supply and demand are severely misaligned. Thesupply of carbon credits is fixed through 2020 not by aregulator or a committee, but by law. A change requiresapproval by the European Parliament and a majority of the27 country governments.

European policy makers have proposed a multistep processto correct the immediate imbalance caused by the weakeconomy. But a few weeks ago, the proposal's first step,

which would have delayed a scheduled auction of nearly abillion new carbon credits, ran smack into European politics.Swayed by arguments, particularly from coal-reliant EasternEurope, that restoring proper market pricing would increaseenergy costs and possibly hinder growth during a time ofdeep recession, the European Parliament said no.

There's no way to determine precisely how much effect thepostponement would have had on carbon prices. But itcertainly would have demonstrated the EU's willingness toserve as a steward of a critically important market andreaffirm the importance of having a stable and progressiveenergy-regulatory environment for the private sector. Bysaying no, the parliament signaled that it had made a U-turnafter decades of being the world's strongest and mostconsistent political force on climate and the environment.

The effects were immediate: Carbon credits crashed,dropping more than 35%. Prices have risen a bit sinceGerman Chancellor Angela Merkel said recently that

Why Europe's Carbon Woes

Matter to the Whole World


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"Even if you're on the right track, you'll get run over if you just sit there." ~ Will Rogers

Industry

AIEMA NEWS

I IApr-May 1314

learned an important lesson from Europe about the necessity

of establishing a floor price for carbon credits). China, the

world's largest carbon emitter, is developing a series of

regional carbon-trading systems that are expected to grow

into a national carbon market toward the end of this decade.

Will the European debacle affect China's plans? It's unclear,but Europe's market failure certainly doesn't help.

Carbon prices in Europe may remain depressed for years. But

carbon markets will eventually recover. Pricing carbon

remains the only scalable, long-term solution to providing

incentives for shifting the global economy to a more

sustainable energy mix. Even though European companies

are currently below their emission caps, the world still needs

to be making constant progress in developing and

implementing low-carbon energy sources. With greenhouse-gas concentrations in the atmosphere having just now

reached an ominous milestone at 400 parts per million, a

weak economy can be no excuse for delaying action to

reduce greenhouse-gas emissions.

There is evidence that dysfunctional cap-and-trade markets

can improve: The Regional Greenhouse Gas Initiative (RGGI),

a northeast U.S. cap-and-trade system that was oversupplied

from the start, is showing signs of life now that there's

political traction to recalibrate its emissions targets andrestore supply-and-demand balance.

Even in Europe, there's hope: Now that they've had a few

weeks to consider the potential consequences of their

inaction, lawmakers may be willing to revisit their opposition

to intervening in the market. The remedy for the market's

problem is perfectly clear: Regulatory authorities must be

empowered to repair supply-and-demand imbalances and

restore proper price tension. As Merkel put it, it shouldn't be

taboo to revise a system that's based on a set of growthassumptions that have proved false. The only question is

whether European legislators can summon the political will

to put the obvious remedy into place.

ALEX RAU

Alex Rau is a founder and the director of Climate Wedge LLC, an

investment firm focused on clean-energy technologies, carbon

finance, and environmental commodities.

Courtesy: HBR

something must be done to fix the market, but they'll remaindepressed as long as no specifics are forthcoming. Thatmeans future carbon-credit auctions, which help fund clean-energy initiatives, will yield lower revenue. Share prices forEuropean utilities and industrial companies have fallen too,

threatening a wave of credit downgrades and increasingcompanies' cost of capital.

But the worst effect of the vote is the uncertainty it injects

into global carbon-reduction initiatives. Suddenly, doubt has

been cast on major initiatives such as building a Continent-

wide fleet of natural-gas power plants to phase out coal

generation, let alone much more futuristic schemes such as

the Desertec project (exporting solar power from the desert

countries of North Africa). And it will be much harder to

attract private capital to infrastructure projects throughpublic-private partnerships.

There's even a possibility that each of the EU nations will

pursue its own energy and climate policies. A patchwork of

27 sets of regulations would further hurt the energy-

investment climate and lead to a less stable, less efficient,

and more costly energy system in Europe.

Numerous other carbon markets and national regulatory

regimes are directly or indirectly tied to Europe's. For

example, Australia's newly implemented carbon tax, which isset to become a traded carbon market in a few years, is

directly linked to the EU's market, meaning that Australia's

much smaller market could be flooded with cheap EU carbon

permits, as has happened with New Zealand's market.

The disarray in Europe could even slow the momentum of

strong new cap-and-trade initiatives that aren't linked to the

Continent, such as California's AB32 program (which has


15/56

"The greatest test of courage on earth is to bear defeat without losing heart." ~ Robert G. Ingersoll

AIEMA NEWS

IIApr-May 13 15

~ The online complaint registration form allows the

complainant to search the establishment code, if not readily

available, by entering the name and city of the

establishment.~ The EPFiGMS system also offers facility for account

holders to check their provident fund account balance

status.

Source : Economic Times

EPF grievance management:

All you need to knowrievance or complaint with respect to employee'sprovident fund such as provident fund contribution,Gwithdrawal or transfer can be initiated with the help

of this system.

The Employees Provident Fund Organisation ( EPFO) has an

online grievance management system (EPFiGMS). Grievance

or complaint with respect to employee's provident fund such

as provident fund contribution, withdrawal or transfer can beinitiated with the help of this system.

Employees who have failed to transfer their EPF balances

when they moved their jobs, or have applied for a transfer

and have not got it, can use this system. Withdrawals, loans

and maturity proceeds can also be tracked.

Online form

To register a grievance, the complainant needs to click on the

tab 'Register Grievance'. This tab opens a form that needs tobe filled by the complainant, who has to select the category

under which the complaint falls and describe the issue.

Supporting documents can be uploaded to clarify the

complaint.

Process:

Once the complaint form is filled by the applicant and

submitted online, the complainant is allotted a unique

registration number to track the status of his complaint. The

complaint is scrutinised and if it is found valid, the same isforwarded to the relevant party for resolution.

Complaint tracking Complaint status can be tracked online

and reminders can be sent using the registration number.

Points to note

~ The complaint registration number must be retained for

future reference and correspondence.

Finance

~ 11% of people are left handed

~ August has the highest percentage of births~ unless food is mixed with saliva you can't taste it

~ the average person falls asleep in 7 minutes

~ a bear has 42 teeth

~ an ostrich's eye is bigger than it's brain

~ most lipsticks contain fish scales

~ no two corn flakes look the same

~ lemons contain more sugar than strawberries

~ 8% of people have an extra rib

~ 85% of plant life is found in the ocean

~ Ralph Lauren's original name was Ralph Lifshitz~ rabbits like licorice

~ the Hawaiian alphabet has 12 letters

~ 'Topolino' is the name for Mickey Mouse Italy

~ a lobsters blood is colorless but when exposed tooxygen it turns blue

~ armadillos have 4 babies at a time and are all thesame sex

Did you know


16/56

Fall seven times, stand up eight. ~Japanese Proverb

AIEMA NEWS

I IApr-May 1316

Technology

~ a drive train, usually including a gearbox and a generator;

~ a tower that supports the rotor and drive train; and

~ other equipment, including controls, electrical cables,

ground support equipment, and interconnection equipment.

Turbine Configurations

Wind turbines are often grouped together into a single windpower plant, also known as a wind farm, and generate bulk

electrical power. Electricity from these turbines is fed into a

utility grid and distributed to customers, just as with

conventional power plants.

See Wind Energy Photos page for wind farm photographs.

Wind Turbine Size and Power Ratings

Wind turbines are available in a variety of sizes, and therefore

power ratings. The largest machine has blades that span more

than the length of a football field, stands 20 building stories

high, and produces enough electricity to power 1,400 homes. A

small home-sized wind machine has rotors between 8 and 25

feet in diameter and stands upwards of 30 feet and can supply

the power needs of an all-electric home or small business.

Utility-scale turbines range in size from 50 to 750 kilowatts.

Single small turbines, below 50 kilowatts, are used for homes,

telecommunications dishes, or water pumping.

Basic information on wind energy and wind power

technology, resources, and issues of concern.Wind Energy and Wind Power

Wind is a form of solar energy. Winds are caused by the uneven

heating of the atmosphere by the sun, the irregularities of the

earth's surface, and rotation of the earth. Wind flow patterns

are modified by the earth's terrain, bodies of water, and

vegetative cover. This wind flow, or motion energy, when

"harvested" by modern wind turbines, can be used to generate

electricity.

How Wind Power Is GeneratedThe terms "wind energy" or "wind power" describe the

process by which the wind is used to generate mechanical

power or electricity. Wind turbines convert the kinetic energy in

the wind into mechanical power. This mechanical power can be

used for specific tasks (such as grinding grain or pumping

water) or a generator can convert this mechanical power into

electricity to power homes, businesses, schools, and the like.

Wind Turbines

Wind turbines, like aircraft propeller blades, turn in the moving

air and power an electric generator that supplies an electric

current. Simply stated, a wind turbine is the opposite of a fan.

Instead of using electricity to make wind, like a fan, wind

turbines use wind to make electricity. The wind turns the blades,

which spin a shaft, which connects to a generator and makes

electricity.

Wind Turbine Types

Modern wind turbines fall into two basic groups; the

horizontal-axis variety, like the traditional farm windmills used

for pumping water, and the vertical-axis design, like theeggbeater-style Darrieus model, named after its French

inventor. Most large modern wind turbines are horizontal-axis

turbines.

Turbine Components

Horizontal turbine components include:

~ blade or rotor, which converts the energy in the wind to

rotational shaft energy;

Wind Energy Basics


17/56

Life is a shipwreck but we must not forget to sing in the lifeboats. ~Voltaire

AIEMA NEWS

IIApr-May 13 17

Technology

Wind Energy Resources in the United States

Wind energy is very abundant in many parts of the United

States. Wind resources are characterized by wind-power

density classes, ranging from class 1 (the lowest) to class 7 (the

highest). Good wind resources (e.g., class 3 and above, which

have an average annual wind speed of at least 13 miles perhour) are found in many locations (see United States Wind

Energy Resource Map). Wind speed is a critical feature of wind

resources, because the energy in wind is proportional to the

cube of the wind speed. In other words, a stronger wind means

a lot more power.

Advantages and Disadvantages of Wind-Generated

Electricity

A Renewable Non-Polluting Resource

Wind energy is a free, renewable resource, so no matter howmuch is used today, there will still be the same supply in the

future. Wind energy is also a source of clean, non-polluting,

electricity. Unlike conventional power plants, wind plants emit

no air pollutants or greenhouse gases. According to the U.S.

Department of Energy, in 1990, California's wind power plants

offset the emission of more than 2.5 billion pounds of carbon

dioxide, and 15 million pounds of other pollutants that would

have otherwise been produced. It would take a forest of 90

million to 175 million trees to provide the same air quality.

Cost IssuesEven though the cost of wind power has decreased dramatically

in the past 10 years, the technology requires a higher initial

investment than fossil-fueled generators. Roughly 80% of the

cost is the machinery, with the balance being site preparation

and installation. If wind generating systems are compared with

fossil-fueled systems on a "life-cycle" cost basis (counting fuel

and operating expenses for the life of the generator), however,

wind costs are much more competitive with other generating

technologies because there is no fuel to purchase and minimal

operating expenses.

Environmental Concerns

Although wind power plants have relatively little impact on the

environment compared to fossil fuel power plants, there is

some concern over the noise produced by the rotor blades,

aesthetic (visual) impacts, and birds and bats having been killed

(avian/bat mortality) by flying into the rotors. Most of these

problems have been resolved or greatly reduced through

technological development or by properly siting wind plants.

Supply and Transport Issues

The major challenge to using wind as a source of power is that it

is intermittent and does not always blow when electricity is

needed. Wind cannot be stored (although wind-generated

electricity can be stored, if batteries are used), and not all winds

can be harnessed to meet the timing of electricity demands.

Further, good wind sites are often located in remote locations

far from areas of electric power demand (such as cities). Finally,

wind resource development may compete with other uses for

the land, and those alternative uses may be more highly valued

than electricity generation. However, wind turbines can be

located on land that is also used for grazing or even farming.

Wind power capacity and production

Worldwide wind generation up to 2010

Worldwide there are now over two hundred thousand wind

turbines operating, with a

total nameplate capacity of

282,482 MW as of end

2012. The European Union

alone passed some 100,000

MW nameplate capacity in

September 2012, while the

United States surpassed

50,000 MW in August 2012

and China passed 50,000

MW the same month.

World wind generation

c a p a c i t y m o r e t h a n

quadrupled between 2000

and 2006, doubling about every three years. The United States

pioneered wind farms and led the world in installed capacity in

the 1980s and into the 1990s. In 1997 German installed

capacity surpassed the U.S. and led until once again overtakenby the U.S. in 2008. China has been rapidly expanding its wind

installations in the late 2000s and passed the U.S. in 2010 to

become the world leader.

At the end of 2012, worldwide nameplate capacity of wind-

powered generators was 282 gigawatts (GW), growing by 44

GW over the preceding year. According to the World Wind

Energy Association, an industry organization, in 2010 wind


18/56

I don't like that man. I must get to know him better. ~Abraham Lincoln

AIEMA NEWS

I IApr-May 1318

Technology

Worldwide installed wind power capacity forecast (Source:

Global Wind Energy Council)

In 2010, more than half of all new wind power was added

outside of the traditional markets in Europe and North America.

This was largely from new construction in China, which

accounted for nearly half the new wind installations (16.5 GW).

Global Wind Energy Council (GWEC) figures show that 2007

recorded an increase of installed capacity of 20 GW, taking the

total installed wind energy capacity to 94 GW, up from 74 GW

in 2006. Despite constraints facing supply chains for wind

turbines, the annual market for wind continued to increase at

an estimated rate of 37%, following 32% growth in 2006. In

terms of economic value, the wind energy sector has become

one of the important players in the energy markets, with the

total value of new generating equipment installed in 2007

reaching 25 billion, or US$36 billion.

Although the wind power industry was affected by the global

financial crisis in 2009 and 2010, a BTM Consult five-yearforecast up to 2013 projects substantial growth. Over the past

five years the average growth in new installations has been

27.6 percent each year. In the forecast to 2013 the expected

average annual growth rate is 15.7 percent. More than 200 GW

of new wind power capacity could come on line before the end

of 2013. Wind power market penetration is expected to reach

3.35 percent by 2013 and 8 percent by 2018.

Capacity factor

Worldwide installed wind power capacity (Source: GWEC)

power generated 430 TWh or about 2.5% of worldwide

electricity usage, up from 1.5% in 2008 and 0.1% in 1997.

Between 2005 and 2010 the average annual growth in new

installations was 27.6 percent. Wind power market penetration is

expected to reach 3.35 percent by 2013 and 8 percent by 2018.

Several countries have already achieved relatively high levels ofpenetration, such as 28% of stationary (grid) electricity

production in Denmark (2011), 19% in Portugal (2011) 16% in

Spain (2011), 14% in Ireland (2010) and 8% in Germany

(2011). As of 2011, 83 countries around the world were using

wind power on a commercial basis. Europe accounted for 48%

of the world total wind power generation capacity in 2009. In

2010, Spain became Europe's leading producer of wind energy,

achieving 42,976 GWh. Germany held the top spot in Europe in

terms of installed capacity, with a total of 27,215 MW as of 31

December 2010.

Top 10 countriesby nameplate windpower capacity

(2012 year-end)

Growth trends

Worldwide installed

capacity 19972020

[MW], developments

and prognosis. Data

source: WWEA

China 12,960 75,324 26.7

United States 13,124 60,007 21.2

Germany 2,145 31,308 11.1

Spain 1,122 22,796 8.1India 2,336 18,421 6.5

UK 1,897 8,845 3.0

Italy 1,273 8,144 2.9

France 757 7,564 2.7

Canada 935 6,200 2.2

Portugal 145 4,525 1.6

(rest of world) 6,737 39,853 14.1

World total 44,799 MW 282,587 MW 100%

CountryNew 2012

capacity (MW)% world

total

Windpower total

capacity (MW)


19/56

A successful person is one who can lay a firm foundation with the bricks that others throw at him or her. ~David Brinkley

AIEMA NEWS

IIApr-May 13 19

Technology

Since wind speed is not constant, a wind farm's annual energy

production is never as much as the sum of the generator

nameplate ratings multiplied by the total hours in a year. The

ratio of actual productivity in a year to this theoretical maximum

is called the capacity factor. Typical capacity factors are

1550%, with values at the upper end of the range infavourable sites and are due to wind turbine improvements.

Online data is available for some locations and the capacity

factor can be calculated from the yearly output. For example,

the German nation-wide average wind power capacity factor

over all of 2012 was just under 17.5% (45867 GWh/yr / (29.9

GW 24 366) = 0.1746) and the capacity factor for Scottish

wind farms averaged 24% between 2008 and 2010.

Unlike fueled generating plants the capacity factor is affected

by several parameters, including the variability of the wind at

the site but also the generator size. A small generator would be

cheaper and achieve a higher capacity factor but would

produce less electricity (and thus less profit) in high winds.

Conversely, a large generator would cost more but generate

little extra power and, depending on the type, may stall out at

low wind speed. Thus an optimum capacity factor would be

aimed for, of around 4050%.

In a 2008 study released by the U.S. Department of Energy's

Office of Energy Efficiency and Renewable Energy, the capacity

factor achieved by the U.S. wind turbine fleet is shown to beincreasing as the technology improves. The capacity factor

achieved by new wind turbines in 2010 reached almost 40%.

Penetration

Wind energy penetration refers to the fraction of energy

produced by wind compared with the total available generation

capacity. There is no generally accepted maximum level of wind

penetration. The limit for a particular grid will depend on the

existing generating plants, pricing mechanisms, capacity for

energy storage, demand management and other factors. An

interconnected electricity grid will already include reserve

generating and transmission capacity to allow for equipment

failures. This reserve capacity can also serve to compensate for

the varying power generation produced by wind plants. Studies

have indicated that 20% of the total annual electrical energy

consumption may be incorporated with minimal difficulty.

These studies have been for locations with geographically

dispersed wind farms, some degree of dispatchable energy or

hydropower with storage capacity, demand management, and

interconnected to a large grid area enabling the export of

electricity when needed. Beyond the 20% level, there are few

technical limits, but the economic implications become more

significant. Electrical utilities continue to study the effects of

large scale penetration of wind generation on system stabilityand economics.

A wind energy penetration figure can be specified for different

durations of time. On an annual basis, as of 2011, few grid

systems have penetration levels above five percent: Denmark

26%, Portugal 17%, Spain 15%, Ireland 14%, and

Germany 9%.For the U.S. in 2011, the penetration level was

estimated at 2.9%.To obtain 100% from wind annually

requires substantial long term storage. On a monthly, weekly,

daily, or hourly basisor lesswind can supply as much as or

more than 100% of current use, with the rest stored orexported. Seasonal industry can take advantage of high wind

and low usage times such as at night when wind output can

exceed normal demand. Such industry can include production

of silicon, aluminum, steel, or of natural gas, and hydrogen,

which allow long term storage, facilitating 100% energy from

variable renewable energy. Homes can also be programmed to

accept extra electricity on demand, for example by remotely

turning up water heater thermostats.

VariabilityWindmills are typically installed in favourable windy locations.

Electricity generated from wind power can be highly variable at

several different timescales: hourly, daily, or seasonally. Annual

variation also exists, but is not as significant.

Because instantaneous electrical generation and consumption

must remain in balance to maintain grid stability, this variability

can present substantial challenges to incorporating large

amounts of wind power into a grid system. Intermittency and

the non-dispatchable nature of wind energy production canraise costs for regulation, incremental operating reserve, and

(at high penetration levels) could require an increase in the

already existing energy demand management, load shedding,

storage solutions or system interconnection with HVDC cables.

Fluctuations in load and allowance for failure of large fossil-fuel

generating units require reserve capacity that can also

compensate for variability of wind generation.


20/56

Knock the "t" off the "can't." ~Samuel Johnson

AIEMA NEWS

I IApr-May 1320

Increase in system operation costs, Euros per MWh, for 10% &

20% wind share

Country 10% 20%

Germany 2.5 3.2

Denmark 0.4 0.8

Finland 0.3 1.5

Norway 0.1 0.3

Sweden 0.3 0.7

Wind power is however, variable, but during low wind periods it

can be replaced by other power sources. Transmission networks

presently cope with outages of other generation plants and

daily changes in electrical demand, but the capacity factor of

intermittent power sources such as wind power, are unlike

those of conventional power generation plants, being on

average 70-90%,[citation needed] higher than winds, thusoffering a challenge to the prospect of large wind power grid

penetration. Presently, grid systems with large wind

penetration require an increase in the frequency of usage of

natural gas spinning reserve power plants to prevent a total

loss of electricity in the event that conditions are not favorable

for power production from the wind. At low wind power grid

penetration, this is less of an issue.

A report on Denmark's wind power noted that their wind power

network provided less than 1% of average demand on 54 days

during the year 2002. Wind power advocates argue that theseperiods of low wind can be dealt with by simply restarting

existing power stations that have been held in readiness, or

interlinking with HVDC. Electrical grids with slow-responding

thermal power plants and without ties to networks with

hydroelectric generation may have to limit the use of wind

power. According to a 2007 Stanford University study published

in the Journal of Applied Meteorology and Climatology,

interconnecting ten or more wind farms can allow an average

of 33% of the total energy produced to be used as reliable,

baseload electric power, as long as minimum criteria are met forwind speed and turbine height.

Conversely, on particularly windy days, even with penetration

levels of 16%, wind power generation can surpass all other

electricity sources in a country. In Spain, on 16 April 2012 wind

power production reached the highest percentage of electricity

production till then, with wind farms covering 60.46% of the

total demand.

A 2006 International Energy Agency forum presented costs for

managing intermittency as a function of wind-energy's share of

total capacity for several countries, as shown in the table on the

right. Three reports on the wind variability in the UK issued in

2009, generally agree that variability of wind needs to be taken

into account, but it does not make the grid unmanageable. Theadditional costs, which are modest, can be quantified.

Solar power tends to be complementary to wind. On daily to

weekly timescales, high pressure areas tend to bring clear skies

and low surface winds, whereas low pressure areas tend to be

windier and cloudier. On seasonal timescales, solar energy

peaks in summer, whereas in many areas wind energy is lower

in summer and higher in winter. Thus the intermittencies of

wind and solar power tend to cancel each other somewhat. In

2007 the Institute for Solar Energy Supply Technology of the

University of Kassel pilot-tested a combined power plantlinking solar, wind, biogas and hydrostorage to provide load-

following power around the clock and throughout the year,

entirely from renewable sources.[95]

Predictability

Wind power forecasting methods are used, but predictability of

any particular wind farm is low for short-term operation. For

any particular generator there is an 80% chance that wind

output will change less than 10% in an hour and a 40% chance

that it will change 10% or more in 5 hours.However, studies by Graham Sinden (2009) suggest that, in

practice, the variations in thousands of wind turbines, spread

out over several different sites and wind regimes, are

smoothed. As the distance between sites increases, the

correlation between wind speeds measured at those sites,

decreases.

Thus, while the output from a single turbine can vary greatly

and rapidly as local wind speeds vary, as more turbines are

connected over larger and larger areas the average power

output becomes less variable and more predictable.

Wind speeds can be accurately forecast over large areas, and

hence wind is a predictable source of power for feeding into an

electrical grid. However, due to the variability, although

predictable, wind energy availability must be scheduled.

Reliability

Wind power hardly ever suffers major technical failures, since

Technology


21/56

Confidence comes not from always being right but from not fearing to be wrong. ~Peter T. Mcintyre

AIEMA NEWS

IIApr-May 13 21

Technology

failures of individual wind turbines have hardly any effect on

overall power, so that the distributed wind power is highly

reliable and predictable,whereas conventional generators,

while far less variable, can suffer major unpredictable outages.

Integration with other sources

The combination of diversifying variable renewables by typeand location, forecasting their variation, and integrating them

with dispatchable renewables, flexible fueled generators, and

demand response can create a power system that has the

potential to meet power supply needs reliably. Integrating ever-

higher levels of renewables is being successfully demonstrated

in the real world:

In 2009, eight American and three European authorities,

writing in the leading electrical engineers' professional journal,

didn't find "a credible and firm technical limit to the amount of

wind energy that can be accommodated by electricity grids". In

fact, not one of more than 200 international studies, nor official

studies for the eastern and western U.S. regions, nor the

International Energy Agency, has found major costs or technical

barriers to reliably integrating up to 30% variable renewable

supplies into the grid, and in some studies much more.

Reinventing Fire

Energy storage

In general, hydroelectricity complements wind power very well.

When the wind is blowing strongly, nearby hydroelectric plantscan temporarily hold back their water, and when the wind drops

they can rapidly increase production again giving a very even

power supply.

Pumped-storage hydroelectricity or other forms of grid energy

storage can store energy developed by high-wind periods and

release it when needed. The type of storage needed depends on

the wind penetration level low penetration requires daily

storage, and high penetration requires both short and long term

storage as long as a month or more. Stored energy increasesthe economic value of wind energy since it can be shifted to

displace higher cost generation during peak demand periods.

The potential revenue from this arbitrage can offset the cost

and losses of storage; the cost of storage may add 25% to the

cost of any wind energy stored but it is not envisaged that this

would apply to a large proportion of wind energy generated.

For example, in the UK, the 1.7 GW Dinorwig pumped storage

plant evens out electrical demand peaks, and allows base-load

suppliers to run their plants more efficiently. Although pumped

storage power systems are only about 75% efficient, and have

high installation costs, their low running costs and ability to

reduce the required electrical base-load can save both fuel and

total electrical generation costs.[102][103]

In particular geographic regions, peak wind speeds may notcoincide with peak demand for electrical power. In the US states

of California and Texas, for example, hot days in summer may

have low wind speed and high electrical demand due to the use

of air conditioning. Some utilities subsidize the purchase of

geothermal heat pumps by their customers, to reduce electricity

demand during the summer months by making air conditioning

up to 70% more efficient; widespread adoption of this

technology would better match electricity demand to wind

availability in areas with hot summers and low summer winds.

Another option is to interconnect widely dispersed geographicareas with an HVDC "Super grid". In the U.S. it is estimated that

to upgrade the transmission system to take in planned or

potential renewables would cost at least $60 billion.

Germany has an installed capacity of wind and solar that

exceeds daily demand, and has been exporting peak power to

neighboring countries. A more practical solution is the

installation of thirty days storage capacity able to supply 80%

of demand, which will become necessary when most of

Europe's energy is obtained from wind power and solar power.

Just as the EU requires member countries to maintain 90 daysstrategic reserves of oil it can be expected that countries will

provide electricity storage, instead of expecting to use their

neighbors for net metering.

Capacity credit and fuel savings

The capacity credit of wind is estimated by determining the

capacity of conventional plants displaced by wind power, whilst

maintaining the same degree of system security,.] However, the

precise value is irrelevant since the main value of wind is its fuel

and CO2 savings, and wind is not expected to be constantlyavailable.

Economics

Wind turbines reached grid parity (the point at which the cost of

wind power matches traditional sources) in some areas of

Europe in the mid-2000s, and in the US around the same time.

Falling prices continue to drive the levelized cost down and it

has been suggested that it has reached general grid parity in


22/56

I may not be there yet, but I'm closer than I was yesterday. ~Author Unknown

AIEMA NEWS

I IApr-May 1322

Technology

also deliver products in the same year that they are ordered

instead of waiting up to three years as was the case in previouscycles.... 5,600 MW of new installed capacity is under

construction in the United States, more than double the numberat this point in 2010. Thirty-five percent of all new power

generation built in the United States since 2005 has come fromwind, more than new gas and coal plants combined, as powerproviders are increasingly enticed to wind as a convenient

hedge against unpredictable commodity price moves."

A British Wind Energy Association report gives an averagegeneration cost of onshore wind power of around 3.2 pence(between US 5 and 6 cents) per kWh (2005). Cost per unit ofenergy produced was estimated in 2006 to be comparable tothe cost of new generating capacity in the US for coal andnatural gas: wind cost was estimated at $55.80 per MWh, coalat $53.10/MWh and natural gas at $52.50. Similarcomparative results with natural gas were obtained in agovernmental study in the UK in 2011. A 2009 study on windpower in Spain by Gabriel Calzada Alvarez of King Juan CarlosUniversity concluded that each installed MW of wind power ledto the loss of 4.27 jobs, by raising energy costs and driving awayelectricity-intensive businesses. The U.S. Department of Energyfound the study to be seriously flawed, and the conclusionunsupported. The presence of wind energy, even whensubsidised, can reduce costs for consumers (5 billion/yr inGermany) by reducing the marginal price, by minimising the use

of expensive peaking power plants.

In February 2013 Bloomberg New Energy Finance reported thatthe cost of generating electricity from new wind farms ischeaper than new coal or new baseload gas plants. Whenincluding the current Australian federal government carbonpricing scheme their modeling gives costs (in Australian dollars)of $80/MWh for new wind farms, $143/MWh for new coalplants and $116/MWh for new baseload gas plants. Themodeling also shows that "even without a carbon price (themost efficient way to reduce economy-wide emissions) wind

energy is 14% cheaper than new coal and 18% cheaper thannew gas." Part of the higher costs for new coal plants is due tohigh financial lending costs because of "the reputationaldamage of emissions-intensive investments". The expense ofgas fired plants is partly due to "export market" effects on localprices. Costs of production from coal fired plants built in "the1970s and 1980s" are cheaper than renewable energy sourcesbecause of depreciation.

Source : Wikipedia

Europe in 2010, and will reach the same point in the US around

2016 due to an expected reduction in capital costs of about

12%.Nevertheless, a significant amount of the wind power

resource in North America remains above grid parity due to the

long transmission distances involved.

Cost trends

Estimated cost per MWh for

wind power in Denmark

The National Renewable

Energy Laboratory projects

that the levelized cost of

wind power in the U.S. will

decline about 25% from

2012 to 2030.

Wind power has low ongoing costs, but a moderate capital

cost. The marginal cost of wind energy once a plant is

constructed is usually less than 1-cent per kWh. This cost has

reduced as wind turbine technology improved. There are now

longer and lighter wind turbine blades, improvements in

turbine performance and increased power generation

efficiency. Also, wind project capital and maintenance costs

have continued to decline.

The estimated average cost per unit incorporates the cost ofconstruction of the turbine and transmission facilities,borrowed funds, return to investors (including cost of risk),estimated annual production, and other components, averaged

over the projected useful life of the equipment, which may be inexcess of twenty years. Energy cost estimates are highly

dependent on these assumptions so published cost figures candiffer substantially. In 2004, wind energy cost a fifth of what it

did in the 1980s, and some expected that downward trend tocontinue as larger multi-megawatt turbines were mass-produced. As of 2012 capital costs for wind turbines are

substantially lower than 20082010 but are still above 2002levels. A 2011 report from the American Wind Energy

Association stated, "Wind's costs have dropped over the pasttwo years, in the range of 5 to 6 cents per kilowatt-hour

recently.... about 2 cents cheaper than coal-fired electricity, andmore projects were financed through debt arrangements thantax equity structures last year.... winning more mainstream

acceptance from Wall Street's banks.... Equipment makers can


23/56

A wise man will make more opportunities than he finds. ~Francis Bacon, Essays, 1625

AIEMA NEWS

IIApr-May 13 23

Expert Services

Free German Senior Expertassistance available through S E S.

m a r k e t i n g s t r a t e g i e s /Strengthening of your market position

~ Solution of pressing problems /Workflow optimisation

~ Improvement of environmentalprotection and occupational safetymeasures

~ Quality management

~ Modernisation

~ Involvement of the Clients infinancing project-handling costsand much more

Their focus is to Help towards self-help.

The main attraction is that the knowhowyou receive is Made in Germany

Clients

The services of SES are mainly aimed atsmall and medium-sized enterprises,public authorities, professional bodiesand business associations, social andmedical institutions, and schools andvocational training institutions. Largerinstitutions may also apply.

The general spread of clients based onpast experience is Industry 43%,Education and training 19%,

Infrastructure 15% , services 7%,skilled trades and crafts 6%,Agriculture 5%, and commerce -5%.

Funding

Clients fund the lion's share of the costsassociated with SES assignments particularly those incurred at theassignment location. The amounts

involved are :

1. Board, lodging, local transport, at theassignment location plus a dailyallowance of 450 RS/day

2. International travel

expenses appr.1000

3. Ancillary costs 670

4. Project-handling costs: 3150

The costs at the site (1) above ismandatory and has to be borne by allclients. The small enterprises bear onlythis cost.

The other costs are shared with client onan increasing scale based on thefinancial strength of the client. Whereverthe foreign clients are unable to meetthe costs of international travel and

administrative expenses, BMZ providesfunds on case to case basis. In specificcases, public funds of the GermanFederal Government also can be madeavailable.

Request for help

Clients who would like to avail this helpneed to apply through the localrepresentative Mr S.Krishnaswamy,whose contact details are provided

below. The Client has to go to S E Swebsite www.ses-bonn.de and choosethe English version at the top. Click onclients at the top bar. Click 'How torequest an assignment'. In this new pageyou will find the procedure, and underAssignment head at the bottom half,against 'Do you wish to request a seniorexpert', click on 'here'

This is to introduce to you, S E S, aGerman non profit organization, whohave been act ive ly support ingbusinesses all over the world, tomodernize and grow, for the past 30years, by sending their seniorexperienced experts, who give their timeand advice free ,as a service to business.In the past 30 years they have done over25000 such projects in 160 countries

around the world.

SES is a German non profit organization,formed in 1983, by the Association ofChambers of Industry and Commerce(DIHK). The activities of SES abroad arefunded partly by the Federal Ministry forE c o n o m i c C o o p e r a t i o n a n dDevelopment (BMZ), Germany. Manyother German business organizationssupport S E S in its worldwide activities.

Senior Experts

Most of the S E S experts have retiredfrom active service, and the average ageof the senior experts of is 66. Thus SESExperts draw on their own many years ofprofessional experience They pass ontheir knowledge on a voluntary basis andtrain fellow workers in their subject fieldsall over the world. They come equippedwith diverse knowhow from around 50branches of business and industry, (seelist at the end), along with good socialskills, and readiness to adapt to theconditions prevailing in the assignmentcountry. Their visit could be for aminimum of 3 weeks to 3 months. Thetype of assistance extended is in

~ D ev e lo p me n t of s al e s an d


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Never look down on anybody unless you're helping him up. ~Jesse Jackson

Expert Services

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I IApr-May 1324

The request for Assistance form- RFA, willopen. The first 3 pages are the mainapplication, and one must fill the 3rdpage precisely to highlight the problems,and the type of expert required. In caseyou are willing to bear only partialexpenses, fill up the 5th page 'Annex toRFA', which will highlight your financialstatus. In case you have difficulty indownloading the RFA, please contact MrS.Krishnaswamy, and he will send youthe RFA ,through mail, as a soft copy.

These forms can be filled on thecomputer itself and then e mailed to MrS.Krishnaswamy, at his e [email protected] ,for hispreliminary clearance. Once he conveyshis acceptance, the forms can be e

and send alternate C V for acceptance.The visit is planned for a minimum periodof 3 weeks and can extend up to 3months.

The client can request for repeat visits of

the same expert, or different expertss u b s e q u e n t l y b a s e d o n t h e i rrequirements.

For any further details contact

S E S India Representative:

Mr S.Krishnaswamy,

A-1-C, Regal Palm Gardens,

No 10, Velachery Tambaram Main Rd,

Velachery, Chennai 600042.

Phone: 9840154340

E mail: [email protected]

mailed to the Project coordinator, S E S,to her e mail address [email protected] with cc to Mr S Krishnaswamy. IMPORTANT- The last page with theclient's signature, must be scanned and emailed to both of them along with theRFA..

S E S will then locate a suitable expert forthe assignment, and send the C V to theclient for their acceptance. If the C V isaccepted, then a brief client's agreementis made and the expert's details are givento client to enable them to get in touchwith him/her to provide more details.Once the agreement is accepted andreturned the expert's visit is organised. Ifthe client rejects the c v , and providesreasons for non acceptance, S E S will try

Sector of economy Number of experts

Agriculture 474

Automotive engineering 695

Banks and insurances 305

Building industry 860

Charitable institutions 350

Chemistry 626

Communication technology 276

Economic and professional organisations 228

Education 1632

Electrical engineering 577

Energy 330

Environment/waste disposal 295

Food and animal feeding 430

Foundry and forging 183

Glass/Ceramics 123Hydraulics/Pneumatics 64

Information technology 489

Law and taxes 65

Leather processing 45

Measuring & automatic control engineering 280

Mechanical engineering 408

Media, arts, culture 291

Number of experts in the following areas of activity

Sector of economy Number of experts

Metallurgy 85

Metalworking 280

Mining 136

Optics 57

Packaging for final consumers 75

Pharmaceutics /Cosmetics 283

Plant and apparatus engineering 207

Plastic products: manufacture and processing 230

Precision mechanics 63

Printing and graphics 122

Public health 1117

Public sector 1125

Pulp and Paper 90

Rubber processing 75

Sciences 227Services 975

Textiles 272

Tool and machine tool manufacture 212

Top management 385

Trade 393

Traffic and tourism 504

Wood processing 205


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Every tomorrow has two handles. We can take hold of it by the handle of anxiety, or by the handle of faith. ~Author Unknown

AIEMA NEWS

IIApr-May 13 25

Creating the

Best Workplaceon Earthuppose you want to design the best company on earth

to work for. What would it be like? For three yearsSwe've been investigating this question by askinghundreds of executives in surveys and in seminars all over theworld to describe their ideal organization. This mission arose

from our research into the relationship between authenticity

and effective leadership. Simply put, people will not follow a

leader they feel is inauthentic. But the executives we

questioned made it clear that to be authentic, they needed to

work for an authentic organization.

What did they mean? Many of their answers were highly

specific, of course. But underlying the differences of

circumstance, industry, and individual ambition we found six

common imperatives. Together they describe an

organization that operates at its fullest potential by allowing

people to do their best work.

We call this the organization of your dreams. In a nutshell,

it's a company where individual differences are nurtured;

information is not suppressed or spun; the company adds value

to employees, rather than merely extracting it from them; the

organization stands for something meaningful; the work

itself is intrinsically rewarding; and there are no stupid rules.

These principles might all sound commonsensical. Who

wouldn't want to work in a place that follows them?

Executives are certainly aware of the benefits, which many

studies have confirmed. Take these two examples: Research

from the Hay Group finds that highly engaged employees

are, on average, 50% more likely to exceed expectations

than the least-engaged workers. And companies with highly

engaged people outperform firms with the most disengaged

folksby 54% in employee retention, by 89% in customer

satisfaction, and by fourfold in revenue growth. Recent

research by our London Business School colleague Dan

Cable shows that employees who feel welcome to express

their authentic selves at work exhibit higher levels of

organizational commitment, individual performance, andpropensity to help others.

Yet, few, if any, organizations possess all six virtues. Severalof the attributes run counter to traditional practices andingrained habits. Others are, frankly, complicated and can becostly to implement. Some conflict with one another. Almostall require leaders to carefully balance competing interestsand to rethink how they allocate their time and attention.

So the company of your dreams remains largely aspirational

We offer our findings, therefore, as a challenge: an agendafor leaders and organizations that aim to create the mostproductive and rewarding working environment possible.

Let People Be Themselves

When companies try to accommodate differences, they toooften confine themselves to traditional diversitycategoriesgender, race, age, ethnicity, and the like. Theseefforts are laudable, but the executives we interviewed wereafter something more subtledifferences in perspectives,

habits of mind, and core assumptions.The vice chancellor at one of the world's leading universitiesfor instance, would walk around campus late at night tolocate the research hot spots. A tough-minded physicist, heexpected to find them in the science labs. But much to hissurprise, he discovered them in all kinds of academicdisciplinesancient history, drama, the Spanishdepartment.

The ideal organization is aware of dominant currents in itsculture, work habits, dress code, traditions, and governingassumptions but, like the chancellor, makes explicit efforts totranscend them. We are talking not just about the buttoned-down financial services company that embraces the IT guysin shorts and sandals, but also the hipster organization thatdoesn't look askance when someone wears a suit. Or theplace where nearly everyone comes in at odd hours but thataccommodates the one or two people who prefer a 9-to-5schedule.

~ by Rob Goffee and Gareth Jones

Management


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Kindness is the language which the deaf can hear and the blind can see. ~Mark Twain

Management

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I IApr-May 1326

For example, at LVMH, the world's largest luxury-goodscompany (and growing rapidly), you'd expect to find brilliant,creative innovators like Marc Jacobs and Phoebe Philo. Andyou do. But alongside them you also encounter a higher-than-expected proportion of executives and specialists who

monitor and assess ideas with an analytical business focus.One of the ingredients in LVMH's success is having a culturewhere opposite types can thrive and work cooperatively.Careful selection is part of the secret: LVMH looks for creativepeople who want their designs to be marketable and who, inturn, are more likely to appreciate monitors who are skilled atspotting commercial potential.

The benefits of tapping the full range of people's knowledgeand talents may be obvious, yet it's not surprising that so fewcompanies do it. For one thing, uncovering biases isn't easy.

(Consider the assumption the diligent chancellor made whenhe equated research intensity with late-night lab work.)More fundamentally, though, efforts to nurture individualityrun up against countervailing efforts to increase organizationaleffectiveness by forging clear incentive systems and careerpaths. Competence models, appraisal systems, managementby objectives, and tightly defined recruitment policies allnarrow the range of acceptable behaviour.

Companies that succeed in nurturing individuality, therefore,

may have to forgo some degree of organizational orderliness.Take Arup, perhaps the world's most creative engineeringand design company. Many iconic buildings bear the mark ofArup's distinctive imprintfrom the Sydney Opera House tothe Centre Pompidou to the Beijing Water Cube.

Arup approaches its work holistically. When the firm builds asuspension bridge, for example, it looks beyond the concernsof the immediate client to the region that relies on the bridge.To do so, Arup's people collaborate with mathematicians,economists, artists, and politicians alike. Accordingly, Arup

considers the capacity to absorb different skill sets andpersonalities as key to its strategy. We want there to beinteresting parts that don't quite fit in...that take us placeswhere we didn't expect to get to, says chairman PhilipDilley. That's part of my job nowto prevent it frombecoming totally orderly.

Conventional appraisal systems don't work in such a world,so Arup doesn't use quantitative performance-measurement

systems or articulate a corporate policy on how employeesshould progress. Managers make their expectations clear,but individuals decide how to meet them. Self-determination means setting your own path and beingaccountable for your success, a senior HR official explains.

Development and progression is your own business, withour support.

If this sounds too chaotic for a more conventional company,

consider Waitrose, one of Britain's most successful food

retailers, according to measures as diverse as market share,

profitability, and customer and staff loyalty. In an industry

that necessarily focuses on executing processes efficiently,

Waitrose sees its competitive edge in nurturing the small

sparks of creativity that make a big difference to the

customer experience.

Waitrose is a cooperative: Every employee is a co-owner who

shares in the company's annual profits. So the source of staff

loyalty is not much of a mystery. But even so, the company

goes to great lengths to draw out and support people's

personal interests. If you want to learn piano, Waitrose will

pay half the cost of the lessons. There's a thriving club

culturecooking, crafts, swimming, and so on. We have a

friend whose father learned to sail because he worked for

this organization. In that way, Waitrose strives to create an

atmosphere where people feel comfortable beingthemselves. We were struck when a senior executive told us,

Friends and family would recognize me at work.

Great retail businesses depend on characters who do things a

bit differently, another executive explained. Over the years

we have had lots of them. We must be careful to cherish them

and make sure our systems don't squeeze them out.

Pursuit of predictability leads to a culture of conformity, what

Emile Durkheim called mechanical solidarity. But

companies like LVMH, Arup, and Waitrose are forged out oforganic solidaritywhich, Durkheim argued, rests on the

productive exploitation of differences. Why go to all the

trouble? We think Ted Mathas, head of the mutual insurance

company New York Life, explains it best: When I was

appointed CEO, my biggest concern was, would this [job]

allow me to truly say what I think? I needed to be myself to

do a good job. Everybody does.


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Management is nothing more than motivating other people. ~Lee Iacocca

Management

AIEMA NEWS

IIApr-May 13 27

Unleash the Flow of Information

The organization of your dreams does not deceive, stonewall,

distort, or spin. It recognizes that in the age of Facebook,

WikiLeaks, and Twitter, you're better off telling people the

truth before someone else does. It respects its employees'

need to know what's really going on so that they can do theirjobs, particularly in volatile environments where it's already

difficult to keep everyone aligned and where workers at all

levels are being asked to think more strategically. You'd

imagine that would be self-evident to managers everywhere.

In reality, the barriers to what we call radical

honestythat is, entirely candid, complete, clear, and

timely communicationare legion.

Some managers see parceling out information on a need-to-

know basis as important to maintaining efficiency. Otherspractice a seemingly benign type of paternalism, reluctant to

worry staff with certain information or to identify a problem

before having a solution. Some feel an obligation to put a

positive spin on even the most negative situations out of a

best-foot-forward sense of loyalty to the organization.

The reluctance to be the bearer of bad news is deeply human,

and many top executives well know that this tendency can

strangle the flow of critical information. Take Novo Nordisk's

Mads vlisen, who was CEO in the 1990s, when violations of

FDA regulations at the company's Danish insulin-production

facilities became so serious that U.S. regulators nearly

banned the insulin from the U.S. market. Incredible as it

seems in hindsight, no one told vlisen about the situation.

That's because Novo Nordisk operated under a culture in

which the executive management board was never

supposed to receive bad news.

The company took formal steps to rectify the situation,

redesigning the company's entire quality-management

systemits processes, procedures, and training of allinvolved personnel. Eventually, those practices were

extended to new-product development, manufacturing,

distribution, sales, and support systems. More generally, a

vision, core values, and a set of management principles were

explicitly articulated as the Novo Nordisk Way. To get at the

root cause of the crisis, vlisen also set out to create a new

culture of honesty through a process he called

organizational facilitationthat is, facilitation of the flow

of honest information.

A core team of facilitators (internal management auditors)

with long organizational experience now regularly visit all of

the company's worldwide affiliates. They interview randomly

selected employees and managers to assess whether theNovo Nordisk Way is being practiced. Employees know, for

instance, that they must inform all stakeholders both within

and outside the organization of what's happening, even

when something goes wrong, as quickly as possible. Does this really

happen? Many employees have told us that they appreciate

these site visits because they foster honest conversations

about fundamental business values and processes.

Radical honesty is not easy to implement. It requires opening

many different communication channels, which can be time-consuming to maintain. And for previously insulated top

managers, it can be somewhat ego-bruising. Witness what

ensued when Novo Nordisk recently banned soda from all its

buildings. PeopleCom, the company's internal news site, was

flooded with hundreds of passionate responses. Some

people saw it as an attack on personal freedom. (I wonder

what will be the next thing NN will 'help' me not to do,

wrote one exasperated employee. Ban fresh fruit in an

effort to reduce sugar consumption?) Others defended the

policy as a logical extension of the company's focus ondiabetes. (We can still purchase our own sugary soft

drinks...Novo Nordisk shouldn't be a 7-Eleven.) That all

these comments were signed indicates how much honesty

has infused Novo Nordisk's culture.

Trade secrets will always require confidentiality. And we

don't want to suggest that honesty will necessarily stop

problems from arising, particularly in h

aiema news aprmay2013

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