t&d india (january 2017): intelect 2017 special

The Ujjwal Discom Assurance Yojana has undoubtedly been the biggest reforms measure aimed at bringing in much need technical and commercial efficiency to the power distribu-

tion sector. The UDAY scheme was approved by the Union Cabinet in November 2015 and the first state to participate in the scheme, Jharkhand, did so in early January 2016. During the past one year, UDAY’s progress has been quite encouraging, at least in terms of number of states enrolling for the scheme. Very recently, Tamil Nadu, Telangana and Assam joined in, taking the total number of participant states to twenty-one. It is estimated that now over 90 per cent of the combined outstanding debt of state power utilities has come under the UDAY ambit.

Meanwhile, the power ministry recently launched a web portal and a mobile app to enable regular monitoring of various states under the UDAY scheme. This is a very good move forward and bodes well for all stakeholders, including electricity consumers.

It is also encouraging to note that the power ministry is contemplating a few schemes to reward states that are showing signs of improvement under UDAY. Haryana, for instance, has shown considerable progress. The northern state has achieved metering of 32,195 rural distribution transformers during the six-month period ending December 2016. This was more than the cumulative achievement up to March 2016. Haryana discoms that were saddled with annual losses of over Rs.15,000 crore are actually expected to enter the profit territory in the next 2-3 years.

Continuous monitoring on one side and recognizing achievements on the other should be an excellent combination to ensure that states are continually incentivized to reach the desired goals envisaged under UDAY.

Currently, the gap between ACS (average cost of supply) and ARR (average revenue realized) is Rs.0.63 per unit, which means that at the national level money is being actually being lost for every unit of electricity generated. This metric has to be reversed, and this is the ultimate objective of UDAY.

Power discoms have been given several opportunities in the past to revive themselves. All of these have been in the form of one-time bailout packages. They have proved rather ineffective as these bailouts were not linked to any commitments on part of the utilities to perform and reform. In this context, UDAY has a better bidirectional approach. The scheme has definitely made an enthusiastic start and it is hoped that it delivers on its promise.

January 20174T&D India

Edit pagE

UDAY making good progress

Coming together is a beginning; keeping together is progress; working together is success.

— Henry Ford

Printed by Abhishek Mishra, published by Abhishek Mishra on behalf of Amber Media LLP and printed at M/s Sanmitra Offset Printers, Gala No.219/B, Sussex Industrial Estate Premises Co-op Society Ltd, D.K. Cross Marg, Byculla (East), Mumbai 400027 and published at 412, Veena Chambers, Clive Road No.4, Masjid (E), Mumbai 400009. Editor: Venugopal Pillai

EditorVenugopal Pillai

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contents


8 NEWS l Haryana transmission project reaches financial closure l Tata Power DDL empanels Omron Smart Grid solutionsl Energy efficiency market in India

14 iNtErviEW l We are committed to the ‘Make in india’ campaign Mr Yoshiaki inayama, Managing Director, Toshiba JSW Power Systems Pvt Ltd

Also: l Orders & Contracts (28) l Global Snippets (43) l Short Takes (46)

33 viEWPoiNt l Clean power is the need for data centres Sanjay Jadhav, President of Sterling and Wilson Powergen Pvt Ltd

34

36

Q+A

fACE-to-fACE

l india is gearing up to world-class levels Anil Saboo, Chairman, International Business Division, IEEMA and Organising Member, IEEMA

l We are proud to be in the most challenging area of power t&D Hartek Singh, Chairman & Managing Director, Hartek Power Pvt Ltd

39 NEW lAuNCHESl Energy efficient elevator from otisl retrofit lED lamp by Ntl lemnis

43 rENEWAblES l Mercom forecasts 9 GW solar in 2017 l NlC invites bids for solar plants

20 iNtErviEW l We can help power t&D companies in managing their high-ticket spends vinaya varma, CEO, mjunction services limited

24 lEAD StorYl China dominates supercritical power equipment in Xii Plan Chinese suppliers are set to dominate proceedings with respect to supply of main plant equipment for super-

critical power generation plants in the XII Plan period. notes venugopal Pillai.

29 SPECiAl rEPort l foreign investment in the indian transformer industry

30 iNtErviEW l our focus is on india’s growing EHv transformers market Dr beatrix Natter, CEO Power Transformers, Siemens Energy, Siemens AG

44 iNtErviEW l DElP has made mass lED consumption a reality in india Arun Gupta, Managing Director, NTL Group

Cover Photo: Alstom (now, GE)

News

terlite Power Transmission Ltd (Sterlite Power) has achieved financial closure

for its transmission project that will increase electricity supply to residential, commercial and industrial establishments in parts of Haryana. In a release, Sterlite Power said that the transmission project will increase power supply by 2,000-3,000 mw to the energy-starved region and strengthen the transmission network. The financial closure was achieved by YES Bank by underwriting project finance facility of Rs.800 crore for a period of 15 years for the project.

“We are confident of commissioning

the project ahead of schedule, as we have done in our other projects. It will ensure quality power for ever expanding areas of Haryana. We are extremely happy to partner with YES Bank on this highly critical project and are further delighted with the confidence expressed by YES Bank in

our project and abilities to execute the same,” said Sterlite Power Chairman Pravin Agarwal, in the release.

The project to be commissioned by a special purpose vehicle Gurgaon-Palwal Transmission Ltd entails 170 km transmission line and three high-power substations aiming to raise wheeling capacity to get rid of generators and power cuts besides strengthening the grid network.

Sterlite Power, a private developer of independent transmission networks, is currently executing 10 transmission projects in 15 states spanning nearly 7,000 ckm with a capital commitment of around $2 billion. n

Haryana transmission project reaches financial closureS

KEI extends agreement with Brugg

in a communication to stock exchanges, KEI Industries has announced that it has extended its technical collaboration with Switzerland-based Brugg Kabel AG. The collaboration relates to manufacture of extra high voltage (EHV) cables in the range of 220kV to 400kV. The duration of the extension was not communicated. It may be recalled that in December 2009, KEI had entered into a five-year agreement with Brugg Kabel for EHV cables in the range of 66kV to 220kV. This agreement was extended by another period of five years in November 2014.

In another development, KEI Industries expected that a new production line of extra high voltage cables at its Chopanki plant would be operational by the end of December 2016. This new plant located at Chopanki Industrial Area, Alwar, Rajasthan will produce EHV cables in the range of 66kV to 400kV. The existing plant, inaugurated in 2007, manufactures cables in the range 66kV to 220kV.

T&D India January 20178

he Street Lighting National Programme (SLNP) currently running in the South Delhi Municipal Corporation (SDMC) command area was recently

dedicated the nation. Energy Efficiency Services Ltd, a joint venture of power PSUs is the nodal agency for implementation of this programme.

SLNP is the world’s largest street light replacement programme, as close to 14.8 lakh streetlights have already been replaced nationally, with SDMC alone accounting for over 2 lakh replacements. The cumulative annual energy savings in SDMC through this programme is 2.65 crore kWh which has helped to avoid capacity addition of 6.6 mw, resulting in a daily reduction of 22,000 tonnes of greenhouse gases. Additionally in Delhi, under Phase II of the street lighting programme, EESL has signed a tripartite agreement with BSES and SDMC to install 75,000 more street lights with more focus on installation in parks, a release from EESL said.

A social audit of about 4,500 people was conducted by an independent third party agency in the SDMC area which showcased that at an average 99.5 per cent people feel that the LED street lights have contributed in enhancing the security of the vulnerable groups during nights, the release said.

The SLNP programme is presently running in Punjab, Himachal Pradesh, Uttar Pradesh, Assam, Tripura, Jharkhand, Chhattisgarh, Telangana, Andhra Pradesh, Kerala, Goa, Maharashtra, Gujarat and Rajasthan. A total of 15.36 lakh LED street lights have already been replaced in the country which is resulting in an annual energy savings of 20.35 crore kWh, capacity avoidance of 50.71 mw and CO2 reduction of 1.68 lakh tonnes. n

SLNP dedicated to the nation

T

News


MRON has announced the empanelment of its Smart Energy Management

solutions with Tata Power Delhi Distribution Ltd (Tata Power-DDL). The solutions have been displayed in the Smart Grid Lab of Tata Power-DDL .

Inaugurated earlier this year at New Delhi, the lab is a pioneering initiative to contribute towards implementing latest smart grid technologies for power distribution utilities and has hands-on demonstration of many technologies of key organisations working in the field of grid modernization.

OMRON’s showcase at the lab endeavors to enable utilities with varied advanced solutions so that they are able to manage perennial critical issues affecting the availability and distribution of electricity across the country.

It comprises:Solutions making the smart meters •tamper-evident: OMRON Tamper Detection sensor and AC Latching Relay underline the pressing need of finding a long term solution to the perpetual challenge of power theft caused by tampering in the electricity meters. OMRON’s solutions empower the utilities to not only detect & track all key types of tampering, in homes & commercial buildings, but also disconnect the power supply

remotely and appropriately if tampering or non-payment is observed.Technology to efficiently manage •the behaviour of distribution lines: This section showcases the utility of OMRON Wireless Power Sensor for the distribution companies facing the issue of power theft at the distribution lines. The sensor detects hooking and other means of tampering as well as harmonics and load balancing on the distribution lines.Smart solutions for asset •management at the sub-stations: Here the visitors get acquainted with an interesting demonstration of OMRON Photo Electric & Fence Sensors depicting their ability to detect and indicate unauthorised access to sensitive areas to manage and monitor the safety and security of valuable assets. n

Tata Power DDL empanels Omron Smart Grid solutionsO

Shilpi board approves acquisition

shilpi Cable Technologies has informed stock exchanges that its board of directors, in a recent meeting, has approved the acquisition of 100 per cent shareholding in Gulf Aglow LED Lighting FZCO, a UAE-based company incorporated under the laws of UAE. The overseas company is engaged in the manufacturing of LED lighting products, Shilpi Cable said.

According to information available, Gulf Aglow LED Lighting FZCO (GAL) was incorporated in 1994 and is engaged in domestic, industrial and professional lighting. With manufacturing facilities in Dubai, GAL caters to 70 countries worldwide. GAL owns the “Galux” brand and also possesses a licence from Westinghouse Lighting Corp, USA to manufacture and market the “Westinghouse” branded products in Middle East and Africa.

n a landmark judgment delivered recently, the Supreme Court has ruled that no prior consent

of landowners was required to lay overhead power transmission lines and erect towers to support these lines.

Through the judgment, the SC settled the issue which gave rise to conflicting judgments from various HCs. The SC’s top priority was to enable the government and its agencies to get electricity to the last household in the remotest areas, a reliable news report said.

A bench of Justices A K Sikri and R Banumathi said, “It is well known that India is an energy deficient country. There are many households where lighting even an electric bulb is a dream,” the report quoted.

The issue was filed by a cement manufacturer from Chhattisgarh and Power Grid Corporation. The

cement manufacturer challenged Power Grid’s decision to erect towers for transmission lines on its limestone mine lease area without its consent. The bench said, “As per the provisions of the Indian Telegraph Act, unobstructed access to lay down telegraph and/or electricity transmission lines is an imperative in the larger public interest.” n

No prior consent for power linesI

News


ccording to information recently tabled in Parliament, a World Bank

study has pegged India’s energy efficiency market at Rs.1.6 trillion. The study titled, ‘Utility Scale DSM Opportunities and Business Models in India’, notes that the renewed Demand Side Management (DSM) market potential is estimated to be 178 billion kwh of energy savings per annum. This figure roughly translates into 18-20 per cent of the current levels of all India annual electricity consumption and 150 million tonnes of annual CO2 emissions reduction potential.

The study has placed five states, namely, Andhra Pradesh, Rajasthan, Karnataka, Maharashtra, and Kerala, in terms of their overall energy

efficiency implementation readiness. The Union power ministry has fixed energy savings targets for XII Plan period (2012-17) as 60.5 billion kwh through various energy efficiency interventions. n

epal Electricity Authority is expected to complete the 320 MVA Dhalbekar substation by February 2017, enabling more electricity imports from

India. It is expected that once the substation is completed, NEA will be able to import 120 mw of additional power from India.

The Dhalkebar-Muzaffarpur transmission line is currently being operated at 132KVA capacity. After the completion of the substation, the power line can be operated at 220KVA.

On the Indian side too, Power Grid Corporation of India has installed a 220/132kV, 100 MVA transformer at the Muzaffarpur substation in Bihar, augmenting transfer capacity of the Dhalkebar-Muzaffarpur transmission line. Meanwhile, India was expected to supply an additional 80 mw through the Dhalkebar-Muzaffarpur line, effective January 1, 2017, taking the total to 160 mw.

The supply of the additional electricity from India would enable Nepal Electricity Authority to make the Kathmandu Valley a load shedding-free zone.

In order to make up for its domestic shortfall, NEA currently imports 345 mw from India. These imports are carried out through four major transmission lines.

Of the total imports, 80 mw is received through Dhalkebar-Muzaffarpur, 120 mw through Kataiya-Kushhawa, 30 mw through Tanakpur-Mahendranagar and 25 mw through the Ramnagar-Gandak transmission line. n

Energy efficiency market in IndiaA

NIndustricals.com to soon

expand presence industricals.com, a B2B commerce portal, which is currently operating in Maharashtra expects to start its operations in Goa and Karnataka by February this year, an official release said.

The main objective of Industricals.com is to bring together all electrical products used in manufacturing, construction, maintenance, services and commercial operations, under one roof. Launched in July 2016, Industricals.com would soon cater to the industrial products segment as well.

The business is targeted at, but not limited to, small, medium and large-scale businesses, contractors, professionals (architects, interior designers, electricians, etc) traders, retailers and individuals.

The current B2B market scenario in India is dynamic and invigorating. For the e-commerce players, the greater assortment of products, reduced search costs, and ability to offer hyper-competitive prices works as an advantage. For the offline players, the ability to be a high-touch service point, trust, credit options and instant gratification work as benefits. The business that can seamlessly bring together the best of these two worlds and can result in powerful customer propositions, creating markets of the type that have never been seen before..

Industricals.com was formed with the coming together of Shree NM Electricals, India’s largest distributor of electrical supplies and Unilog, a global technology company specializing in e-commerce software and product data management in the B2B marketplace.

‘‘We expect the Indian economy to recover in Q1 of FY18. As far as the wire and cable sector is concerned we expect solar, defence, cement and power domains to provide growth momentum to the sector. With the slowdown in the real estate sector, we would imagine that there would be muted demand for the domestic segment. Smart city projects are seeing some traction and 2017-18 is expected to see the projects really taking off, this will provide demand to niche and highly specialized cables.”

— Amit Jain, Managing Director, CMI Ltd

Dhalkebar substation to boost supplies to Nepal

Expecting recovery in Q1 of FY18

LED lighting is an important agent for achieving energy efficiency through

demand side management.


interview

What is the current capacity of the Chennai turbine-generator plant?Toshiba JSW Power Systems Pvt Ltd (TJPS) state-of-art manufacturing facility at Chennai was set up with an annual production capacity of 3000 mw, to manufacture subcritical, supercritical and ultra supercritical turbine and generator with unit capacities in the range of 250 mw to 1,000 mw.

We understand that capacity is expanded.Based on the demand from the domestic and export market, TJPS would enhance its production capacity. We are also developing a strong vendor base where TJPS can outsource some of the machining operations to other parties. This will also help us to consolidate our utilization capacity.

What is the extent of localization in terms of design, manufacture and testing?

TJPS has already localized all manufacturing and testing processes by introducing facilities and technical transfer from Toshiba Japan including manpower training.

With regard to design, our state-of-the-art products are developed by Toshiba Japan and basic design is also done by them utilizing their capabilities and experiences. TJPS is executing production engineering and design.

Given the Chennai unit is Toshiba JSW’s only manufacturing unit for supercritical power equipment outside Japan, what were the main challenges encountered and surpassed? In particular, how was the experience in establishing the supply chain of vendors and suppliers?Yes, TJPS Chennai Factory is Toshiba’s only one factory for steam turbines and generators manufacturing outside of Japan.

Set up in 2008, Toshiba JSW Power Systems Pvt Ltd is a joint venture between Toshiba Corporation, Japan and JSW Group, India, for the manufacture and marketing of supercritical steam turbines and generators for thermal power plants. The JV has an ultra modern manufacturing facility near Chennai from where it recently flagged off its first “Made in India” supercritical steam turbine generator. Yoshiaki Inayama, in this interaction with Venugopal Pillai gives exhaustive details of the Chennai plant and discusses how it fits snugly in the nation’s “Make in India” campaign.

We are committed to the ‘Make in India’ campaign

— Mr Yoshiaki Inayama, Managing Director, Toshiba JSW Power Systems Pvt Ltd

IntervIew


IntervIew

We can enjoy cost advantage of indigenous raw materials and parts in case when we make proper quality assessment and supplier management of suppliers. Quality is absolute prerequisite for our products and we have been developing suppliers which can meet our quality requirement. Our manufacturing and inspection engineers frequently visit suppliers’ factories to monitor their processes. If there would be some problems, our engineers collaborate with suppliers to solve those problems and improve their processes to ensure their quality level.

Well-trained engineers and operators are also one of most important factor of quality of our products. We dispatched our key members to Toshiba’s factory in Japan to train them and technical advisors of Toshiba Japan visited our factory to train our members at the timing of starting up of all manufacturing, inspection and testing processes.

Please discuss the operational role of JSW in the JV.As I mentioned above, TJPS has Toshiba’s first and only manufacturing factory for steam turbine and generators. We didn’t have the experience for operate this kind of company in India and JSW gave TJPS great contribution especially in our starting up period. They have been giving us good suggestions about Indian economy

and power sector. All this has been helping us manage the company better.

What is your view on the evolving competition in the supercritical power generation equipment space with several private sector suppliers emerging, apart from BHEL?Electricity is driver of growth and India’s current vision and focus is on purposeful growth and electric power plays very important part. In addition to this, India is located in the middle of emerging countries and Indian government has been promoting to manufacture in India by Phased Manufacturing Program and “Make in India” campaign. That is the reason why many world top level companies have entered into Indian market and the competition has become tough.

Considering carbon dioxide emission reduction, it is important to enhance renewable energy. At the same time, renewable energy has weakness of its uncertainty and coal thermal will remain as one of important power source with indigenous resource for main grid. Therefore, it is very important to improve the efficiency of coal thermal power station and the competition among world class companies will benefit the Indian society.

TJPS can contribute to this area utilizing Toshiba’s state of the art supercritical, ultra supercritical

and advanced-ultra supercritical technologies. And we can also provide solution for improving existing power plant efficiency by proper maintenance and modernization with Toshiba’s technologies and experience.

What are some major projects that Toshiba-JSW has bid for in India? What is the present order book position?TJPS had bid mainly for several NTPC, state government owned companies. TJPS is currently executing 3x800-mw STGs for NTPC’s Kudgi ultra supercritical thermal power project and 2x800-mw Darlipalli super thermal power project, MUNPL’s 2x660-mw Meja thermal power project. In 2015, Toshiba was also awarded a full EPC (Engineering, Procurement, Construction) contract by UPRVUNL, to carry out EPC of the entire 1x660-mw Harduaganj, ultra supercritical thermal power plant, including civil, and boiler and BOP island packages.

TJPS has already established itself as a dominant player in the supercritical steam turbines and generators (STG) in the 800-mw category in India, having won orders for ten sets in all.

To successfully deliver our existing and new orders, we have been aggressively consolidating our ‘Make-in-India’ strategy and developing a strong local vendor base.

toshIba Jsw Power systems Pvt Ltd

IntervIew


Which countries will you service from the Chennai plant, apart from India? Have you so far booked overseas orders that will be serviced from the Chennai plant?Currently, we export key components of steam turbines and generators to North America, Japan and South-East Asian markets. In the coming years, plans are on to export the entire steam turbine generator sets to Africa, Gulf countries, United States and South-East Asian markets. In the last fiscal year, the contribution of exports to the sales revenue was in single digits and we aim to achieve about 30 per cent by 2020.

Given that power plant equipment is over-dimensional and could pose transport-related challenges, how do you assess the logistical support provided by the Tamil Nadu government?Tamil Nadu government is continuing to create conducive business environment for sustainable infrastructure growth and various reforms have been introduced to modernize the manufacturing ecosystem in the state. India being a key manufacturing hub and export base for us, construction of the new access road agreed under the memorandum between Toshiba and Tamil Nadu state government is very significant for us, and it will be

fruitful for many companies based in the vicinity.

The new access road connecting to Kamarajar port is about 15 km long and bears a strong structure for transportation of heavy products like large-scale generator stator. Tamil Nadu state government has also constructed four new strong bridges on the road including Attipattu Rail Over Bridge.

I express my heartfelt appreciation to all the support received from Tamil Nadu state government and the parties concerned.

Please discuss how the Chennai plant fits into the “Make in India” aspirations of the Indian government?Today, TJPS is a leading manufacturer for thermal power generation equipment in India, established with an aim to offer one-stop solution for engineering,

manufacturing, procurement, construction and services (EMPCS) of thermal power plants in India and our aim is to become World’s No. 1 EMPCS company.

On August 19, 2016, TJPS marked a significant milestone in its endeavour to offer customers state-of-the-art power generations solutions with shipment of its first ‘Made-in-India’ steam turbine generator. The 800-mw STG for Unit 2 of the Kudgi ultra supercritical thermal power station in Karnataka was Toshiba’s first large-scale generation system to be manufactured and assembled with locally procured parts and systems, and tested in India.

With this shipment we embarked on our local manufacturing – from procurement to testing and shipping, for customers in India and the neighbouring countries. We are determined to continue to deliver excellent products under our commitment to the Indian Government’s ‘Make-in-India’ campaign. With the manufacturing and supply of turbines and generators, we will continue to contribute to the growth of industries for the NEXT INDIA. n

The interviewer was recently on a visit to Toshiba JSW Power Systems Pvt Ltd’s

Chennai factory on invitation.

toshIba Jsw Power systems Pvt Ltd

ower Grid Corporation of India has announced that its wholly-owned subsidiary Powergrid Warora

Transmission Ltd has completed the LILO of the existing 765kV single-circuit Seoni-Bina line at NTPC’s Gadarwara power project in Madhya Pradesh. Commercial production of this element was achieved on November 30, 2016.

Powergrid Warora Transmission Ltd, formerly known as Gadarwara (A) Transco Ltd, had won the project, officially called “Transmission Scheme Associated with Gadarwara STPS (2x800-mw) of NTPC Ltd (Part A),” on tariff-based competitive bidding in April 2016. The aforementioned LILO is one element the overall scheme. The scheme,

in its entirety, involves setting up of evacuation infrastructure related to NTPC’s 2x800-mw Gadarwara super thermal power project coming up in Narsinghpur district of Madhya Pradesh. NTPC has been granted long term access (LTA) corresponding to around 1,587 mw. Major beneficiary states include Madhya Pradesh, Maharashtra, Gujarat and Chhattisgarh.

The newly completed LILO element of the existing 765kV Seoni-Bina line is in fact an interim arrangement. At a later date, this LILO element will be delinked restoring 765kV Seoni-Bina to its single-circuit direct line status. This LILO portion will be extended to the 765/400kV Jabalpur pooling station, thereby forming the 765kV Gadarwara

STPS—Jabalpur Pool double-circuit line. Other elements of the transmissions scheme

include a 765kV double-circuit line from Gadarwara STPS to a new pooling station at Warora in Maharashtra. This 765/400kV pooling station, also part of the project, will have transformation capacity of 2x1,500 MVA. The scheme also involves LILO of both circuits of PGCIL’s existing 400kV Wardha-Parli double-circuit quad line, at the Warora pooling station discussed above.

The entire project is scheduled to commission by November 2017. This project is being complemented by a similar project, known as “Part B” with the same description, which is being implemented concurrently by PGCIL. n

PGCIL completes first element of Gadarwara transmission scheme

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interview

We understand that mjunction now offers services for procurement of power. Tell us how this works. mjunction assists the power distribution companies to finalize medium term-power purchase agreement (PPA). The key benefits received by our clients through this service include: on boarding prime power producer, increasing the bidder participation and minimizing control of the middle-man traders. They attain a transparent discovery of market driven price through reverse auction leading to better price realization. The contract finalization time is reduced. The sourcing plan is de-risked through transparent price matching event with multiple bidders.

Is it that mjunction will be most helpful if there is a contractual agreement for a fixed procurement of power at a fixed interval of time?

Yes, by virtue of seasonal/cyclic demand, it should be for a fixed quantity of buy in a fixed interval of time.

How does power procurement on mjunction differ from purchases over energy exchanges?mjunction’s service is focused on medium term requirements as against short term requirements of energy exchanges.

We understand that mjunction assisted a West Bengal power utility in its power procurement. Tell us more. Yes, mjunction designed an electronic reverse auction platform for the purchase of power for West Bengal Electricity Distribution Company Ltd in December 2015. The platform helped the latter buy 500 mw of power every month through this route to meet a peak load supply shortfall, which it needed to bridge

Founded in February 2001, mjunction is India’s largest e-commerce company and a pioneer in reverse auction. Leveraging the power of digital technology, mjunction adds value to Indian power companies not only by aiding procurement of power, but also helping them to save time, money and hassle through e-procurement of a wide range of goods and services. We have Vinaya Varma telling us how mjunction has resulted in improved efficiency and cost savings for its clientele, which also includes power utilities. An interview by Venugopal Pillai.

We can help power T&D companies in managing their high-ticket spends

— Vinaya Varma, CEO, mjunction services limited

Inside view of an mjunction office

Photo: mjunction

interview


interview

in advance through contracted short term supply of power. From the tedious offline process, mjunction’s online solution brought in complete transparency and efficiency, ensured optimum turnaround time and generated savings of around Rs.88 crore for WBSEDCL.

Disposal of spent assets of power utilities, we understand, is also an area that mjunction has entered recently. Tell us more.mjunction, by leveraging technology and experience, has revolutionized the disposal process for idle assets and hazardous scrap for power utilities. The erstwhile manual system was time consuming, constrained by location and most often did not fetch the right price as the plant would not know the right credible buyers and right market price. We help in the disposal of idle assets and all other types of scrap including byproducts hazardous and non-hazardous, by process-driven services. Post thorough inspection of the idle assets at site (e.g. decommissioned thermal power plants with accessories and spares) providing a detailed valuation report with clear demarcation of items in reusable condition, based on which the client is given a fair price estimation of the assets on sale and what price can be expected from the market. Identifying credible

buyers with capacity to adhering to the safety requirements is also very critical and mjunction has significant number of empanelled buyers. These buyers from any part of the world could participate in the e-auction, which is logistically next to impossible in a physical auction.

For a state-owned utility in West Bengal, we sold assets for Rs 105 crore, at a premium of 23.5 per cent over its expected price. Also for a power utility in Madhya Pradesh, mjunction achieved Rs.2.75 crore higher than the reserved price. We have also sold a captive power plant for a large private sector group within three months

mjunction’s services are also being used by several power companies all over India for all kinds of scrap. It is critical to identify and qualify only buyers with necessary valid certificates for disposal of hazardous items.

We conduct regular online sale events to sell the regular generation of scrap (both ferrous and non-ferrous) and hazardous wastes, which helps the power plants to run their core process operations smoothly and follow all environmental-related policies.

Apart from power procurement, which is applicable mainly to power distribution utilities, how else could power T&D utilities

benefit from mjunction’s services?We can help power T&D companies in managing their entire spend of high-value strategic items. Our Sourcing Advisory Solution supports purchase managers to set-up purchase contracts by providing them critical inputs in the sourcing decision making (e.g. supplier discovery, market analytics report, RFQ benchmarking, cost models etc.) and optimum price discovery through online / offline mechanism for strategic items. The e-auction process also leads to reduction in lead time of finalization of tenders, generating outstanding savings. Along with this our managed sourcing service can be essential for managing the spends of all project locations spread across pan India through a shared service center model.

mjunction, as the strategic business partner of PGCIL, has assisted the utility in the procurement of tower reactions, transmission line, transformers and reactors, insulators, conductor packages, through reverse auctions. Substations packages and various civil works packages also comes under the plethora of our services rendered. Our services have generated value and notable savings of more than Rs.20,000 crore for PGCIL who have leveraged our reverse auction services more than 350 times since 2013. n

mjunction services limited

mjunction helps in the disposal of idle assets and all other types of scrap

File photo of mjunction officials conducting estimation ser-vices at a power plant

Photos: mjunction

T


he Draft Electricity Plan 2016, recently unveiled by Central Electricity Authority,

gives a comprehensive picture of India’s power sector in the ongoing XII Plan period and the years ahead. One key highlight brought about in the report is that India is expected to add 86,250 mw of coal-fired capacity during the Plan period. This includes capacity added up to end-March 2016, and that expected to commission by end-March 2017, the extremity of the XII Plan period. Out of this 86,250 mw, a total of 33,490 mw of capacity will be in the form of energy-efficient supercritical

generation units. Thus, 38.8 per cent of all coal-fired power capacity will be based on supercritical parameters. In all 49 BTG (boiler and turbine-generator) sets, comprising units of various ratings like 660 mw, 685 mw, 700 mw and 800 mw, will be installed.

T&D India analyzed these 49 power generation units in terms of their suppliers of equipment and found that Chinese suppliers will be involved in a total capacity of 14,520 mw, implying that their share in the total supercritical power equipment installed in the XII Plan period would be 43.4 per cent. In terms

of number of BTG sets, Chinese entities would be involved in 22 out of the 49 power generation units. It is interesting to note that the entire 14,520 mw of Chinese supercritical power equipment will be installed for independent power producers. Some of the important Chinese suppliers would be SEPCO-1, SEPCO-3, Dong Fang and Harbin. The private players that Chinese suppliers would cater to include GMR Group, Reliance (ADAG) Group, Adani Power, Lanco, Nagarjuna Power, Vedanta Group, etc. Interestingly, all Chinese suppliers would be dealing only with 660-mw rating

Chinese suppliers are set to dominate proceedings with

respect to supply of main plant equipment (boilers and turbine-generators) for supercritical power

generation plants in the XII Plan period (FY13 to FY17). However, as one

moves forward into the XIII Plan period and beyond, the

share of Chinese suppliers is poised to recede

significantly, leading to a resurgence in market share

of BHEL, notes Venugopal Pillai.

Lead story

China dominates supercritical power equipment in XII Plan

equipment. In the XII Plan period, private power producers are expected to install 22,710 mw of supercritical technology-based power generation capacity. Out of this, the share of Chinese equipment would be roughly 64 per cent. In other words, there would still be around 36 per cent of private supercritical power generation capacity that would be equipped with non-Chinese equipment.

It is equally pertinent to note that no government (Central or state) power generation plant, commissioned in the XII Plan period, will be have Chinese equipment. It may be recalled that there have been cases in the XI Plan period (FY07 to FY12) where government utilities have sourced equipment, including supercritical units, from Chinese vendors.

The absence of China’s role in government-backed supercritical power generation capacity can be explained by a policy development. In February 2010, with a view to encouraging domestic supercritical power equipment, it was decided that Central and state power generation utilities will impose a condition of indigenous equipment during their bulk procurement process. This condition meant that suppliers should have domestic equipment manufacturing in place at the time of tendering or should have firm plans of starting the same in phases. Chinese manufacturers were thus automatically eliminated as they did not qualify even in terms of having future plans of setting up domestic manufacturing capacity of supercritical power equipment. The period of this advisory expired in October 2012 but was later extended to October 2015. The government is reliably learnt to be in favour of extending the period by another three years. Thus, Chinese supercritical power generation equipment for government-owned power generation plans is clearly ruled out in the years ahead.

At this juncture, it is worth

observing that China is not completely averse to setting up shop in India when it comes to the power equipment at large. Even if not in power generation, Chinese entities have aggressively pursued their plans of setting up manufacturing facilities in India for high-voltage power transformers. India’s focus in the power sector is clearly moving from generation to transmission & distribution (T&D), and Chinese entities are obviously in clear recognition of this phenomenon. Leading Chinese power transformer makers like TBEA and BTW have already put up their manufacturing plants in India.

The IndIan supplIersWhen it comes to Indian supercritical power generation equipment, BHEL has led the pack. With technical collaboration from Alstom (now GE)

for boilers and with Siemens for turbine-generators, the public sector engineering giant now has a total manufacturing capacity of 20,000 mw per year, including 13,500 mw for large (including supercritical) power generation equipment. In the XII Plan period, out of the total 33,490 mw of supercritical power generation capacity envisaged, BHEL would have an average market share of around 27 per cent [See Box: Computation of market share.] When it comes to BHEL, its diversity of equipment is noteworthy. The PSU firm will be supplying both boilers and turbine-generator sets, and that too across various ratings like 660 mw, 700 mw and even 800 mw. Its clientele is not restricted to government entities. Even private power producers—like Jaypee Group and Bajaj Hindusthan—have gone in for BHEL-made equipment


Lead story

Table 1: SupercriTical coal-baSed uniTS in Xii plan periodunit Size

(MW)no. of units Total capacity

(MW)% of

total*central State private Total

800 2 4 1 7 5,600 6.5

700 0 1 2 3 2,100 2.4

685 0 0 2 2 1,370 1.6

660 5 3 29 37 24,420 28.3

Total 7 8 34 49 33,490 38.8

*total coal-based capacity addition, estimated at 86,250 MW

Inside view of the Chennai plant of Toshiba JSW Power Systems Pvt LtdPhoto: Toshiba JSW Power Systems Pvt Ltd

for their supercritical power plants.The joint venture of Larsen &

Tourbo Ltd and Hitachi-Mitsubishi Power Systems (MHPS) is coming up as a leading force for supercritical BTG sets. [The partnership manifests through separate joint ventures for boilers and TG sets, respectively. However, the partnership is taken as one entity in the context of this story.] Out of the total 33,490 mw of supercritical BTG sets to be installed during the XII Plan period, L&T-MHPS is catering to 4,700 mw of boilers and 6,300 mw of turbine-generator sets, implying an average market share of 16.4 per cent. Like BHEL, L&T-MHPS has its equipment distributed over

different ownership groups and capacity ratings. Toshiba Group of Japan would be supplying 1,600 mw worth of supercritical TG sets during the XII Plan period. The Japanese group entered India, initially with equipment sourced from its home country, but has now set up a JV with the JSW Group. The combine has a modern manufacturing plant in Chennai to make supercritical turbine-generator sets with an annual capacity of 3,000 mw.

Some other joint ventures between Indians and multinationals include those of BGR Energy with Mitsubishi (Japan), Bharat Forge with Alstom (France), Gammon with Ansaldo (Spain), Thermax with Babcock &

Wilcox (USA). Besides, Doosan of Korea is in the process of setting up a wholly-owned subsidiary in India that will manufacture boilers (both sub- and supercritical) with an annual capacity of 2,200 mw. It is estimated that multinationals operating in India, either independently as in the case of Doosan, or as joint ventures, currently have a total annual manufacturing capacity of 16,200 mw of boilers and 14,000 mw of turbine generators.

Speaking of the aforementioned JVs, a few recent developments are worth mentioning. The JV between Bharat Forge and Alstom has undergone significant change.

Alstom’s power business has been taken over by General Electric (GE), globally. Secondly, Bharat Forge is exiting the joint venture, as per its decision communicated to the stock exchanges, recently. In another significant development, Mitsubishi and Hitachi have merged their fossil-based businesses worldwide. This merger covers the power generation equipment business as well. Interestingly, Mitsubishi and Hitachi had independent joint ventures in India for supercritical boilers and turbine-generators, with L&T and BGR Energy, respectively. The JV with L&T now incorporates the merged entity Mitsubishi Hitachi Power Systems as the joint venture partner. BGR Energy, it is learnt has reached separate agreements with Mitsubishi and Hitachi by which the orders placed on erstwhile BGR-Hitachi will be fulfilled. The agreements

In the computation of market share for supercritical equipment, only the main plant package (boilers and turbine-generators) has been considered. The share has been worked out in terms of capacity of boiler and TG sets supplied, and not merely the number of units. Both boiler and TG sets have been given equal weight, though the value of the equipment might be different. In the XII Plan period, 33,490 mw worth of supercritical power generation capacity is expected to become operational. This would mean the supply of 33,490 mw of boilers and 33,490 mw of TG sets. BHEL, for instance, will be supplying 9,840 mw of boiler sets and 8,240 mw of TG sets. Thus, BHEL’s share in the boiler component is 29.38 per cent and that in the TG set component is 24.60 per cent. This results in an average share of 27 per cent. Also note that all the three statistical tables in this story pertain to the 33,490 mw of supercritical power generation capacity expected to be installed during the XII Plan period.

Computation of market share

Lead story


Table 2: role of SupplierSSupplier % share

Chinese Vendors 43.4

Bharat Heavy Electricals 27.0

L&T-MHPS 16.4

Doosan 8.7

Others 4.5

Total 100.0

Inside view of the Chennai plant of Toshiba JSW Power Systems Pvt LtdPhoto: Toshiba JSW Power Systems Pvt Ltd

also provide for reworking BGR Energy’s collaboration with Hitachi and Mitsubishi. BGR-Hitachi has unfinished orders on hand, all placed by NTPC, of four 660-mw supercritical boilers (two each for Solapur and Meja projects) and two 800-mw turbine-generators for the Lara project. Of all these orders, only one—the first 800-mw unit of the Lara project in Chhattisgarh—is scheduled to commission in the XII Plan period.

The FuTure oF CoalIndia’s reliance on coal-fired power plants to meet its base load will continue for the years ahead. However, supercritical technology will be in vogue with a view to mitigating the adverse environmental impact of conventional (subcritical) coal-fired power plants. It is expected that in the XIII Plan period (FY18 to FY22), the entire coal-based power generation capacity added will be based on supercritical and even advanced (ultra) supercritical technology. It is also expected that private sector will be responsible for a larger share of new capacity added. The aforementioned line of thought has, over the past 3-4 years, has undergone a paradigm shift. Much of this has been because of systemic changes surrounding coal, as a subject. Firstly, there has been a drastic improvement in coal supplies over the past 3-4 years. Matters have come to such a pass that coal-fired power plants, which were always on the brink of shutdown due to lack of coal supplies, are now equipped with ample stocks. Coal India Ltd, which had targeted to produce 1 billion tonnes of coal by FY20, is now rolling back its target because it is anticipating weaker demand from the power industry. A large base of idle coal-fired power capacity has come on stream, thanks to the resuscitation in coal supplies. Furthermore, due to implementation of demand side management measures like LED lighting, the base load itself is gradually reducing.

Effective power generation capacity of old plants is also being uprated through renovation and life-extension measures. All this is leading to lesser anticipated need of new power generation capacity. More importantly, there has been an unanticipated surge in renewable energy sources, mainly solar. With the proportion of electricity consumption through renewable sources destined to only grow, India’s need for newer coal-fired power plants is definitely ebbing.

In the XII Plan period, India is expected to add 1,01,645 mw of power generation capacity from conventional sources including coal, gas, hydro and nuclear. This would be in excess of the target by as much as 15 per cent. The Draft Electricity Plan 2016 has gone to the extent of estimating that India could need no new coal-fired power capacity during the XIII Plan period (FY18 to FY22). This anticipation is based on some interesting facts. In the XIII Plan period, nearly 1,40,000 mw of new power generation capacity is expected to come online through sources other than coal. These would include gas, hydropower, nuclear and renewable energy. For

a frame of reference, this would be 60 per cent more than the coal-fired power capacity likely to be added in the XII Plan period. Over and above this, around 50,000 mw of coal-fired power generation is currently under construction and this is expected to commission during the XIII Plan period. Hence, the total power generation capacity in the XIII Plan would be in the region of 190,000 mw. This would be more than sufficient to fulfill the projected demand then.

In summary, there will be no wave of fresh coal-fired power projects in the foreseeable future. In fact, in the years to come, coal-fired projects that are today in the planning stage might be scrapped. Those that are under construction are feared to operate at suboptimal plant load factor.

ConClusIonThe share of Chinese equipment in supercritical power plants, which is the topic of discussion here, is likely to fall in the XIII Plan period. Chinese players have found favour only with private power producers and for reasons discussed earlier, it is very likely that private power producers will not pursue their power projects even if they have currently crossed the planning stage. According to statistics compiled by T&D India, an estimated 41,420 mw of supercritical coal-fired power plants are under various stages of development, with commissioning likely in the XIII Plan period and beyond. Out of these, orders placed on Chinese suppliers amount to 9,240 mw implying a share of 22 per cent. BHEL has a predominant share of 36 per cent with the remaining 42 per cent of the market distributed thinly amongst the remaining suppliers, mainly constituted by Indian companies in joint venture with multinationals. BHEL, which had lost out to Chinese equipment vendors during the X and XI Plan periods, is well poised to stage a comeback during the two subsequent Plan periods, statistics strongly suggest. n


Table 3: diSTribuTion of oWnerShip

MW % share

Central 4,900 14.6

State 5,880 17.6

Private 22,710 67.8

Total 33,490 100.0

The 6x660-mw Sasan UMPP in Madhya Pradesh is equipped with main plant equipment sourced from Chinese

suppliers.


Doosan Power Systems India, the Indian arm of Korean engineering firm Doosan Heavy Industries, has reportedly received a major order valued at $2.3 billion (around Rs.15,600 crore) to build two supercriti-cal power plants in Uttar Pradesh. Doosan Heavy is expected to build two 660-mw su-percritical power units at the Obra-C coal-fired power plant in Sonebhadra district and another two similar units at the Jawaharpur coal-fired electrical power plant in Etah. The Obra-C operation is expected to be com-pleted by October 2020 and the Jawaharpur site by February 2021.

GE Power India Ltd has been awarded con-tracts worth $40 million (around Rs.270 crore) by Bharat Heavy Electricals Ltd (BHEL) to supply components and ser-vices for the supercritical steam generator island packages for 2x800-mw coal-based Uppur Thermal Power Project and 1x800-mw coal-based North Chennai supercritical thermal power project Stage-III. As part of the scope, GEPIL will partner with BHEL to supply identified pressure parts of the boil-ers. It will also provide BHEL with technical advisors during the erection and commis-sioning of the units related to Boiler. Key components for both the projects will be manufactured in GE’s manufacturing facility in Durgapur, West Bengal.

The power transmission and distribution business of Larsen & Toubro has won orders worth Rs.1,036 crore for rural electrifica-tion works in Bihar, as part of the Centrally-sponsored Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJ). The projects have been awarded by Bihar power distribu-tion utilities North Bihar Power Distribution Ltd and South Bihar Power Distribution Ltd. The projects involve village electrification in locations Muzaffarpur, Madhubani, Vaishali, Nalanda and west Patna, L&T said in a stock exchange filing.

Bharat Heavy Electricals Ltd has bagged a major order for the supply of 118 sets of IGBT-based traction converters for 3-phase 6,000 HP electric locomotives.Valued at Rs.200 Crore, the order has been placed on BHEL by Chittaranjan Locomotive Works (CLW). The traction converters shall be manufactured and supplied by BHEL’s

Electronics Division, Bengaluru. BHEL, in a statement said that it has already supplied 225 such IGBT-based traction converters, which are under operation with Indian Rail-ways.

Transformers & Rectifiers (India) Ltd has been awarded the order for 40 units of 15MVA and 40 units of 20MVA power transformers, of 66kV class, with natural/synthetic ester oil. Placed by Gujarat Energy Transmission Corporation Ltd (GETCO), the order is valued at Rs.92 crore. This order has taken TRIL’s order book, as of Decem-ber 30, 2016, to Rs.960 crore, the company said in a stock exchange filing.

Salzer Electronics has secured a letter of intent worth Rs.18.70 crore from Energy Efficiency Services Ltd (EESL) for design-ing, manufacturing, supplying, installing, commissioning, testing and maintaining of lighting controls for installed LED street lights for urban local bodies of Varanasi in Uttar Pradesh, Jalna in Maharashtra, and in Jharkhand.

Renewables

Inox Wind has announced that it has won a turnkey order for a 50-mw wind power proj-ect for NTPC, to be deployed in Gujarat. As part of the order, to be commissioned in the first quarter of FY18, Inox Wind will supply and install 25 units of its 2-mw DFIG 100m rotor diameter wind turbines. Inox Wind had earlier received an order of similar magni-tude from SJVNL Ltd.

Suzlon Group has announced a joint ven-ture with the AMP Solar for development of a 15-mw solar photovoltaic project located at Achampet, Mahaboobnagar district, Te-langana. According to the contract signed between Suzlon Group and the AMP Solar on December 21, 2016, the AMP Solar shall acquire a 49 per cent stake in Rudra Solar-

farms Ltd, a special purpose vehicle set-up by Suzlon for the project. AMP Solar has the option to acquire the balance of the 51 per cent stake in the SPV in future. The off-taker of the SPV project will be Telangana State Southern Power Distribution Company Ltd. Suzlon will be responsible for project com-missioning and to provide comprehensive O&M services for a 25-year period. The project is expected to be commissioned in FY17. Suzlon has won solar projects of 210 mw in Telangana through a competi-tive bidding process and the PPAs for the same were signed in February, 2016. These include one project of 100 mw, one of 50 mw and four 15-mw projects.

Sterling and Wilson has signed agreement with a consortium led by ACWA Power to construct a 170-mw photovoltaic (PV) facil-ity in Morocco. The NOOR PV I Program will consist of three projects: NOOR Ouarzazate IV, with a capacity of around 70 mw, NOOR Laayoune, 80 mw and NOOR Boujdour, 20 mw. This is the first solar PV phase of the NOOR Solar Plan, which has already seen three major concentrated solar power proj-ects in Ouarzazate, a statement by Sterling and Wilson said.

Ujaas Energy Ltd has received a letter of intent from MOIL Ltd for design, engineer-ing, procurement and supply, construction, erection, testing and commissioning of a 5-mw solar photovoltaic plant with tracker system in Maharashtra. Ujaas announced this in a stock exchange filing.

Windar Photonics plc, a Danish star t-up supplying LiDAR wind sensors for wind turbines, has repor ted a contract for five units of LiDAR sensors from an unnamed independent power producer in India. Windar has also won a tender to supply a multi-beam LiDAR system for the Indian National Institute of Wind Energy (NIWE). Installation is planned for the first quar ter of 2017 on a wind turbine produced by an Indian firm, with the LiDAR systems to serve for turbine optimisation. Windar Photonics explained that the LiDAR en-ables the wind turbine to yaw and pitch according to the oncoming wind, thus boosting the annual power output by be-tween 1 per cent and 4 per cent, and en-hancing the life span of the machine. n

Orders & COntraCts

Special report


ver the past few years, there has been significant interest shown by multinationals in

the Indian transformer business, especially the high-voltage segment. There have been cases where foreign companies (including Chinese) have set up greenfield units—some in collaboration with Indian companies and others independently. There have also been instances of multinationals picking up stake (minority or controlling) in existing Indian companies. Here are some instances:

BTW (China): Baoding Tianwei Baobian Electric Co Ltd, an entity owned by the Chinese government, has entered into a joint venture agreement with Gujarat-based Atlanta Electricals Pvt Ltd to set up a greenfield plant for the manufacture of power transformers of rating 220kV and above. The joint venture, called BTW-Atlanta Transformers Pvt Ltd, is expected to start commercial production by the middle of next year. According to current plans, the JV will also have facilities to produce 1,200kV transformers.

TBEA (China): Another Chinese

company Tebian Electric Apparatus (TBEA) has already set up its wholly-owned Indian subsidiary TBEA Energy (India) Pvt Ltd. The Indian outfit commissioned its plant, located at Karjan in Vadodara, Gujarat, in November 2015. The plant current has capacity of 20 million KVA per year and will also cater to other south Asian markets.

Meidensha (Japan): In June this year, Meidensha Corporation (Meiden) took full control of Prime Meiden Ltd raising its equity stake to 100 per cent from the earlier 23 per cent. Prime Meiden before the involvement of Meiden in March 2014 was known as Prime Electric Ltd. Prime Meiden has a modern transformer manufacturing unit at Nellore in Andhra Pradesh that is capable of manufacturing and testing transformers up to 765kV.

Toshiba Group (Japan): In January 2014, Toshiba completed the acquisition of the transmission and distribution business of Hyderabad-based Vijai Electricals. An Indian company Toshiba Transmission & Distribution Systems (India) Ltd was formed to take over this business. Vijai Electricals was amongst the

suppliers of 1,200kV transformers for the Bina test line in Madhya Pradesh. TTDIL marked Toshiba’s entry into the Indian power T&D equipment segment.

Hammond (Canada): In around February 2012, Canada-based Hammond Power Solutions Inc (HPS) announced that it had completed the acquisition of Pan-Electo Technic Enterprises Pvt Ltd (PETE), acquiring 70 per cent equity ownership in PETE’s transformer business. The company today operates as PETE-Hammond Power Solutions Pvt Ltd, a subsidiary of HPS. The company, with its manufacturing facility at Hyderabad, manufactures several types of transformers including 132kV power transformers.

Virginia (USA): Virginia Transformers (VT) a leading North American transformer manufacturing company has set up a wholly-owned subsidiary in India, called Virginia Transformer India Pvt Ltd. According to information available with T&D India, VTIPL currently offers services in design of transformers (33kV to 220kV) and in sourcing components. n

O

Foreign investment in the Indian transformer industry

Overview of BTW’s (Baoding Tianwei Baobian Electric Co Ltd) headquarters in China.


interview

Siemens has a longstanding reputation in the field of power transformers with a track record of over 100 years. Please take us through your key offerings for the global market. Siemens Transformers offers transformers along the complete power transmission and distribution value chain. This starts with generator-step-up transformers and HVDC transformers for the highest ratings up to 1,100kV and breaks down to net transformers for every transmission and distribution level – liquid filled as well as cast resin type. The portfolio also includes special products like reactors, phase-shifters, high-current transformers for industrial applications and traction transformers for rolling stock. We offer a wide range of services to support operations starting from condition monitoring up to full

blown long-term programs to provide condition based maintenance and upgrades to the latest innovations

We have a clear focus on customer benefits and innovative products at competitive prices, which we deliver through our global manufacturing network. Specifically in India we supply 765kV autotransformers and 500kV HVDC converter transformers with the highest quality standards and best in class MTBF.

Some of our latest innovations include grid resilience modular transformers featuring plug & play bushings for rapid installation, variable shunt reactors up to 300 MVAR, high temperature transformers with natural ester oil, and phase shifters for grid stability.

For India, the imminent 1,200kV power transmission regime is of significance. Siemens has been

With a reputation of over 100 years, Siemens features amongst the world’s top-ranking transformer manufacturers. It has also been longstanding supplier to India. Dr Beatrix Natter takes us through Siemens’ engagement in India, and how its role will only improve in the years ahead. Siemens has been amongst the chosen suppliers of 1,200kV power transformers to India, and in the years ahead, extra high voltage market (both AC and DC) will be a focus area for Siemens in India, notes Dr Natter. An interview by Venugopal Pillai.

Our focus is on India’s growing EHV transformers market

— Dr Beatrix Natter, CEO Power Transformers, Siemens Energy, Siemens AG

interview


amongst the few suppliers to this endeavour. Please tell us what has been the role of Siemens so far in the 1,200kV enterprise.In 2014, we supplied a 1,200kV /333MVA single-phase auto transformer from our plant in Kalwa, Maharashtra. The transformer was commissioned successfully in the Bina test station of PGCIL. Since its inception, our local plant in India was future ready for addressing the 1,200kV AC market.

Apart from 1,200kV level power transmission, India is generally moving to extra high voltage power transmission using both AC and DC technologies. Please tell us about Siemens’ contribution so far and how it sees the road ahead. We have orders for supply and E&C of 765kV auto transformers from PGCIL which will be delivered to four different project sites across India in the current fiscal year. We are also geared up to address the 765kV reactor market.

We were the first transformer manufacturer in India to supply ±500kV HVDC converter transformers for an Indian IPP project. All units are delivering peak performance since 2011.

Subsequently, we have recently exported ±230kV HVDC transformers from our Kalwa plant.

We intend to focus on the growing market for EHV transformers (both AC and DC) as well as reactors in India.

As we appreciate, the Kalwa transformer factory of Siemens, set up in around 2007, has brought Siemens even closer to the Indian market. Tell us about the Kalwa factory in terms of the products manufactured and its overall competence. Do you envisage the Kalwa factory as an export hub for select global markets?Our Kalwa facility is equipped to handle AC and HVDC transformers up to the highest voltage ratings.

Besides, the plant focuses on the

generation segment as well, since it successfully manufactured, tested and commissioned the largest generator step-up (GSU) transformer for NTPC (315MVA/400kV/1Ø). It was incidentally the largest ever unit tested at KEMA Netherlands and passed in the first attempt for short circuit withstand test.

We have a manufacturing line in Kalwa for traction transformers, which are being supplied to Indian Railways and exported too.

Kalwa is an essential element in our global network, serving all markets with a customer-focused team and the highest quality standards. Outside of India we focus on South East Asia, Eastern Europe, South America and Africa.

Some 2-3 years ago, Siemens set up its transformer lifecycle management (TLM) centre in India. How has been the progress so far? Given that India has a large base of ageing power transformers, how do you see prospects?We do see promising potential for growth in this segment. With our vast TLM portfolio and the growing awareness and appreciation

among utilities to focus on asset management, this portfolio is poised for successful growth in the near future.

TLM also is an integral part of the Siemens Transformers resilience concept Pretact®, which assists utilities worldwide in risk mitigation for new as well as aged transformers. Ageing fleets can become a threat for power suppliers, so our service portfolio focuses on repair and retrofit as well as monitoring solutions to prevent transformer operators from unpleasant surprises.

In this regard, we see a globally rising interest in our long term service program. This might also be a viable option for utilities in India.

India is slowing witnessing the advent of several multinationals (including Chinese) setting up shop in the subcontinent. How do you view the situation?The government is actively promoting the ‘Make in India’ initiative, and as the quality leader in the transformer business we see the introduction of new multinational players as an advantage for the

SiemenS AG

interview


country. This will bring in better technology and a level playing field.

It is generally felt that India lacks testing facilities for high-voltage power equipment and thus often has to resort to services of foreign labs like KEMA, CESI, etc. Do you have any views on the situation?First of all, we are proud to have a very powerful own test field and oil laboratory in our Kalwa plant. It is accredited by NABL, which allows us to also test for third party suppliers.

However, local customers ask for type tests regularly, and we have done more than ten tests at external institutes like CPRI and KEMA during the last six years. As CPRI was not able to test the highest voltage levels, we tested these ratings at KEMA in Netherlands. So we do feel the need for an independent high-voltage test laboratory in India, and are looking forward to the one being installed in the near future.

We recollect that Siemens had, a couple of years ago, supplied a “green” transformer to an Indian utility where conventional transformer oil was substituted

by an eco-friendlier material. Tell us more on this tilt towards eco-friendly transformers.On a global level we see a huge interest in transformers that are insulated with ester instead of conventional mineral oil. Siemens Transformers is proud to be innovation leader in this field. We have excellent references in all voltage levels up to 400kV, and are currently working on higher voltage levels together with our customers. I am convinced that

esters have a bright future in power networks. Benefits include improved fire safety, environmental friendliness, reduced footprint, and higher operating temperatures. In addition we observed further technical benefits, for instance life time extension because of a slower decrease in the degree of polymerization and higher temperature limits.

Wind and solar energy is gaining traction in India. Do large solar parks and wind farms (including offshore ones) hold appeal for Siemens power transformers?We highly welcome the ambitious plans by the Indian government in regards to wind and solar energy. Recognizing the rising importance of this segment, we have enhanced our portfolio to fit the needs presented by renewable applications and have gained considerable experience for both onshore and offshore applications worldwide. This enables us to provide the best fit and quality for renewable applications at all voltage levels.

From a global perspective, which are currently the key markets for Siemens transformers? How do you view the role of India in Siemens’ global portfolio?Europe and the Americas remain our strongholds. However, we continue to focus and expand our presence in Middle East and Asian markets. Specifically for emerging economies such as China and India, we strive to be the partner of choice in driving economic growth through reliable infrastructure, enabling industries to thrive with a secure energy supply.

Our plant in Kalwa plays a strategically important role in all these markets. Our customer feedback is very positive. Based on the product quality and innovative solutions, Kalwa has a high reputation with customers in all of these markets. n

SiemenS AG


VIEWPOINT

Sanjay jadhav

ata centres and network rooms draw total electrical power, which is the sum of

the power consumed by the installed information technology equipment. Historically, this equipment consumed power at a value that varied only slightly depending on the computational load or the mode of operation. The notebook computer created the requirement that processor power be managed to lengthen battery run time. Power management technology enabled the power consumption of laptop computer processors to be reduced by up to 90 per cent when lightly loaded. As this technology has matured it has begun to migrate into server design. The result is that newly developed servers can have a power consumption that varies dramatically with workload over time. When power varies with time, a variety of new problems occur for the design and management of data centers and network rooms. A few years ago, this problem was negligible. The problem has now reached a point where it is significant and the magnitude of the

problem is growing. Fluctuations in power consumption can lead to unplanned and undesirable consequences in the data center and network room environment; including tripped circuit breakers, overheating, and loss of redundancy in redundant power systems. This situation creates new challenges for people designing or operating data centers and network rooms.

The unreliability of electricity grids is one of the major factors driving

the market. Electricity grids, which are already operational in India, are not able to withstand heavy rainfall, earthquake, and fire, which lead to power outages, have created the need for installation of gensets across the sectors. The need for uninterrupted and continuous power supply has led to increased adoption of gensets across the industrial, commercial, infrastructure and residential sectors. With implementation of CPCB2 and stringent emission norms, there will be substantial improvement in the quality of exhaust gases being discharged into the atmosphere. Engine manufacturers are continuously developing fuel-efficient engines which will improve efficiencies by at least 10 per cent. Therefore, diesel generator being a backup power and does feed the power through UPS in the absence of the main source and thus for the data centre this criteria may not applicable. For process-oriented manufacturing units the quality power is the main criteria where in the Smart DG set is the better choice. n

[Sanjay Jadhav is President of Sterling and Wilson Powergen Pvt Ltd]

Clean power is the need for data centresD

l According to estimates released by the International Copper Alliance, copper usage in India grew at a compound annual rate of 5.3 per cent from 2006 to 2015.

l In 2015, India’s copper consumption was estimated at 1.2 million tonnes.

l India’s per capita copper consumption is around 0.8 kg as compared with the global average of 3.7 kg.

l In FY11, India imported 64,000 tonnes of copper – a metric that grew at an annual rate of 22 per cent to reach 206,000 tonnes in FY16.

l India’s copper consumption is expected to increase thanks to various government initiatives like Housing for All, Make in India and Smart Cities.

l China consumed 25.6 million tonnes during its most recent five year plan period (2010 to 2015) implying an average annual consumption of 5.12 million tonnes.

l In the period 2007-11, the practice of copper substitution had peaked in China. However, this practice is now on the decline. China is exploring newer applications of copper in areas like aquaculture and air-conditioning.

Source: ICA India

Fact File: Copper


India is gearing up to world-class levels

Apex industry body IEEMA has set a target of improving India’s share in the global exports market for electrical equipment from a mere 1 per cent today to 5 per cent in the next 5-7

years. We have Anil Saboo discussing how India’s exports can be boosted, and how IEEMA events like ELECRAMA and INTELEC are bringing the Indian electrical equipment industry closer

to both global markets and global practices.

— Anil Saboo, Chairman, International Business Division, IEEMA and Organising Member, IEEMA

As chairman of IEEMA’s International Business Division, what would you regard as your key objectives?India’s exports of electrical products account for less than 1 per cent of the global exports and IEEMA has a target to grow India’s share in global exports to 5 per cent in next 5-7 years. We shall be participating in at least eight exhibitions during current year under “IEEMA” brand by collective participation of IEEMA members along with four delegations across the globe to achieve the target in next five years.

We are looking forward to sign MOU with our counterpart associations in other countries. It will give us an opportunity to share technology and expand exports.

We perceive that Indian companies are getting progressively globally

competitive. How do you view the situation over the years?Yes, Indian companies are becoming aware of global requirements and gearing up themselves to world-class levels, by upgrading quality of products as per international standards, along with competitive prices. In the next five years, Indian companies shall double their exports.

Within the power T&D space, what would you say are the thrust areas for international business? Which geographies are currently providing good potential for international business to Indian companies?Indian companies should invest in building up world class infrastructure, testing labs and R&D to get international business. They should also think of setting up joint ventures and production facilities in their country.

Brazil, the African continent as whole, and South East countries have good potential to Indian companies to expand their international business.

Speaking of imports, China has been an important country of origin with an estimated share of 45 per cent FY12. What is the dominance of China of late?During 2000–14, China accounted for one-third of global growth. Over the same period, exports from China increased dramatically from 3 per cent to 9 per cent of world exports and from 9 per cent to 22 per cent of regional exports. China accounts for over a quarter of exports and imports of emerging and developing economies and is one of the main trading partners (top ten) for over 100 economies that constitute about 80 per cent of world GDP.

However, China’s slowdown since 2013 has raised concerns about its underlying strength and the potential implications to global growth and trade. Recent financial market turmoil in China, amid the slowing economy and weaker trade volumes, has further aggravated concerns. Other countries like India, Vietnam and Indonesia shall be benefited by it and their market share shall improve.

How is the “Make in India” mission helping India control its import of electrical equipment?‘Make in India’ is perhaps one of

Q+A


the most important programmes being pursued by the government of India. The central theme is about transforming India into a manufacturing hub with world-class technology. IEEMA being one of the proud partners of the ‘Make in India´ campaign has identified a four-point agenda and has been vigorously pursuing with the policy makers, so as to positively impact

made in India products with state-of-the-art technology.

IEEMA is aggressively taking matter with ministry of commerce and ministry of power for implementing the safeguard duty or ban of imports on case to case basis for various electrical equipment.

Speaking of events, we understand that “Intelect” is a new rollout IEEMA. How was the response to Intelect 2015 and what your expectations for Intelect 2017?INTELECT provides a networking platform to various players in the ecosystem to come together to exchange ideas and share their visions.

INTELECT 2017 will bring together all stakeholders, which include government, utilities, trade and consumers, to experience evolving technologies and explore opportunities in the field of Intelligent Electricity since

electricity is going to be managed very differently in coming years, with help of IT companies.

The theme for this year’s INTELECT 2017 “Redefining Electricity for Smarter Living” is interesting and defines today’s need for intelligent electricity because self generation and self consumption of electricity is soon going to be the technology of tomorrow. This edition of INTELECT is getting better response than INTELECT 2015.

IEEMA’s flagship event Elecrama is witnessing transformation. Tell us about the key features of Elecrama 2018. Elecrama is now a window through which the world can see India and India can see the world. As such Elecrama 2018 shall be a unique platform for the world to share new trends and developments in the area of energy and power, with various stakeholders across the globe. n


Face-to-Face

Tell us about the early years of Hartek before solar came on the scene.Originally, we were a power trading company. We were more into transformers, circuit breakers, etc – everything related to the power distribution grid. That was how we, Hartek as a group, were born. From there we felt the need of offering a complete solution to the industry and power utilities. This is how, in 2007, we ventured into EPC, giving a complete solution to substations and transmission lines. In other words, wherever grid connectivity was needed—be it for industry or utilities—we were there. Due to our high quality consciousness, we picked up the best of brands in the field. I take pride in a short span of time—from 2007 to 2011—we commissioned 100 substations of 66kV and above. I am not even counting 33kV or 11kV projects. This feat itself could not be achieved even by experts who were present in the field even for over two decades! This accomplishment spoke highly of our quality and time management, which today has become the DNA of the Hartek Group. We never looked back.

How did the entry into solar finally happen?It was only by chance that we got to do the very first solar power plant in the country in 2012. This coincidentally happened to be at Amritsar in Punjab – our own home state. We were very successful in that project thanks to our high standards of quality and time management. That marked the beginning of the

solar domain that we are now into. We have never looked back. If you go back to the days of 2011 and 2012, the primary focus of solar was in Rajasthan. That’s where we landed ourselves. We again were the first company to do grid connectivity for a major project of 40 mw in Rajasthan. For me, the challenge began when we realized that there was a flurry of developers, putting up solar power projects—each larger than the preceding one. It was virtually a rat race of developers. For us, the question was: “Do we get into this rat race of developing solar power projects or do we focus on our core competence of grid connectivity?” We decided to believe in our basic principles and chose the latter. We never left our focus on transmission and distribution (T&D). Whichever project we picked up, we maintained high standards of equipment quality. We always chose reputed suppliers like Siemens and Schneider Electric. Our project team always comprised of the best of experienced professionals and specialists. The basic purpose was not only to put up the project but also provide operations and maintenance (O&M).

How have the recent years been with respect to grid connectivity of solar projects?Taking all the projects that we have undertaken the last 3-4 years now, we have crossed 330mw, spread over 17 states. Not a single project incurred time overruns and the generation losses have been minimum. If I look at last year (FY16) alone, we did about 113 mw. In this financial year,

The Hartek Group is a diversified entity with interests covering manufacturing, trading and EPC contracting. We have Hartek Singh discussing the company’s recent thrust area of providing grid connectivity to solar power plants. In conversation with Venugopal Pillai, Hartek Singh explains that while the entire attention seems concentrated on building solar power plants of every-increasing capacity, the true challenge lies in creating grid connectivity infrastructure without which solar power simply cannot be transmitted and distributed efficiently.

We are proud to be in the most challenging area of power T&D

— Hartek Singh, Chairman & Managing Director, Hartek Power Pvt Ltd

Face-to-Face


still in the second quarter, we have already done a booking of more than 300 mw. That means our year-on-year growth this year will be almost three times. The sheer belief in our standards has been responsible for this stellar performance.

What are the major challenges in grid connectivity of solar plants? The major challenge when you talk about a solar power plant is the harmonic factor. Then, it is the basic design of the distribution network, post the inverter. Up to the inverter

level, a solar project has more or less commoditized today. When you do the post-inverter portion, the AC (alternating current) challenges come into play. How much can you take out from the inverter is the key issue. Designing the post-inverter system to ensure minimum losses is the first challenge that we have to work with. We maintain highest level of efficiency when we design the various phases of the “step up”. This involves cabling, selection of the transformers and other equipment. We undertake a detailed

study of all parameters ensuring that breakdowns are minimum and so are the fault levels. For example, when it comes to transformers, there is a misconception that because the peak generation period for a solar power plant is usually three hours, the capacity of the inverter and that of the transformer is mechanically matched—for instance, a 4 MVA transformer is used for a 4-mw inverter. The undercurrent of harmonics is often ignored. In transformers also, I may add here that we were amongst

Face-to-Face


the first companies to adopt the “five-winding” transformer design, which has today become the norm. At Hartek, we work closely with our suppliers and keep track of what is going in other parts of the world. When we consider deployment of say advanced European technology, we first make sure that it is “adaptable” to Indian conditions.

As a big enabler of solar power, though not as developer of solar plants, how do you rate India’s ambition of installing 100 GW by 2020? If you had asked me this question say 2-3 years ago, I would have said that it was big challenge. Honestly, there was a big question mark in our minds? But today, let me compliment our Hon’ble Prime Minister and his team for taking this initiative very seriously. Today, we can actually see the possibility of achieving this solar target. The way the solar wheel is today moving, I don’t think it is going to stop or slow down, at least as far as the land-based grid-connected solar plants are concerned for which 60 GW of capacity is targeted by 2020. It is achievable given the inflow of foreign direct investment (FDI) and the active involvement of Indian corporates. I can see that in the past

one and half years or so, both (FDI and Indian corporate involvement) are veering towards the positive side.

What about rooftop solar?The 40 GW of rooftop installations targeted for 2020 will be a challenge. The government perhaps was a little slow in taking off the solar rooftop movement. I guess they have woken now but the time, I feel, is too short. At the ground level, things are not moving at the intended pace. When you talk of rooftop, this is where you need to reach the masses—every household, every institution. One cannot achieve this by installing solar plants on rooftops of government buildings alone.

Do you think solar could contribute to India’s vision of “Power for All”?If you are talking about the power sector in totality, solar should not exceed 20-30 per cent. The maximum contribution that solar has made to power generation, in any part of the world, has been 30 per cent. One cannot afford going beyond that. I think to a certain extent solar will contribute and the manner in which our power ministry is aggressively pursuing the solar mission, solar will play a very big role.

As you said, your grid connectivity portion involves challenges on the power utility side, rather than on the developer side. In this case, do you see any improvement in the way state power utilities are functioning after the trifurcation of erstwhile electricity boards?I welcome the concept of trifurcation. In the way state electricity boards used to function in the past, the focus somehow seemed missing. Now with generation, transmission and distribution now independent, it will definitely prove beneficial, in the times of come. Right now, utilities are in a stage of transition. It is very important for all these entities (post trifurcation) to be focused in their own area of operation but at the same time, work in synergy. I can already the benefits accruing in some states.

Do you think power transmission in general has benefited from the entry of private players?Undoubtedly! The missing aspect in the power transmission and distribution was professionalism, and this in turn was due to the dominance of government agencies in the sector. With private sector coming in, things changed. Private sector companies, at the end of the day, have to prove their balance sheet! Every penny spent needs to be justified. I think privatization has been the biggest boon to the power T&D sector. I also feel that there should be a more interactive platform between government and private agencies so that the partnership works in interest of the power sector as a whole.

How do you gauge the importance of solar in your business portfolio?Solar is definitely giving us good growth; there is no doubt about it. For a minimum of 3-4 years from now, this dominance of solar will continue. However, I will give more emphasis to power T&D than solar alone. I must reiterate that the basic challenge lies in T&D and we feel very proud that we are part of this challenge. n

New LauNches


New LauNches

Energy efficient elevator from OtisOtis Elevator Company (India) Ltd announced the launch of the Gen2 Core, an energy efficient elevator designed to meet the needs of the Indian mass and affordable hous-ing segments. With a speed of 0.7 meter-per-second (MPS) and op-tions of machine-room or machine-room less arrangements, this eleva-tor is ideal for low-rise residential buildings. Built on Otis’ flagship Gen2 technology platform, this lat-

est product offers an upgrade from traditional rope-geared systems to the permanent magnet (PM) gear-less-belted technology. The Gen2 Core uses Otis’ patented, flexible polyurethane-coated steel belts, the ReGen™ regenerative drive, which captures energy that is normally wasted during braking and feeds it back into the building’s electric grid, Compact Gearless Machine and Pulse™ monitoring system. The Gen2 Core will be manufactured exclusively at Otis’ expanded Ben-galuru facility, a release from Otis said.

Retrofit LED lamp by NTL LemnisNTL Lemnis, has added another in-novative product Pharox Apollo Ret-rofit LED bulb (18W) to its product portfolio. This product is an ideal replacement of CFLs and ICLs bulbs that are used in various places in

residences like living room, com-mon hall, kitchen, etc. Pharox Apol-lo Retrofit LED bulb can be replaced in the existing bulb holders without any hassle. NTL Lemnis products are available across the country through specially appointed institu-tional sales persons and distributors across the country. NTL Lemnis has its sales offices in North, West and South zones of India. Pharox Apollo Retrofit LED bulb will be available across India at a maximum retail price of Rs. 495 for 18W, a product note from NTL Lemnis said. n


S E T R U MPS C

S E C T R U MPS


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Renewables


ercom Capital Group, a global clean energy communications and

research firm, has reiterated its forecast of India witnessing over 9 GW of solar installations in 2017. Solar installations in India are expected to reach over 4 GW in 2016, compared to 2.3 GW installed in 2015, a Mercom release said. Cumulative installations including large-scale and rooftop projects in the country have reached 9.6 GW.

Of the 4 GW to be installed in 2016, 3.7 GW are expected to be utility-scale projects and about 275 MW are expected to be rooftop projects. The country’s solar development pipeline is now more than 14.2

GW with about 6.3 GW of projects tendered and pending auction. Indian government agencies have announced solar tenders of around 3,781 mw during the September-December quarter of 2016 and auctioned about 1,311 mw.

“We are forecasting installations to reach over 9 GW in 2017 which would put the Indian solar sector in the big league along with China, United States, and Japan. However, there are significant headwinds in terms of transmission and evacuation issues that could threaten the pace of growth,” said Raj Prabhu, CEO and co-founder of Mercom Capital Group, in the release. n

M

NLC invites bids for solar plants

NLC India Ltd (formerly Neyveli Lignite Corporation Ltd) has invited applications from global companies to set up 250 mw worth of solar photovoltaic power projects in Odisha. Bids have been invited from solar developers and operators for setting up of 250 mw grid-interactive solar photovoltaic power projects in not more than five locations in Odisha with a minimum of 50 mw capacity in a single location.

The scope of work for each location includes procurement of land, design, engineering, manufacture, supply, commissioning and provisional takeover with associated power evacuation system including grid connectivity and approval from Odisha State Electricity Authorities for load flow study, bay extensions, external transmission lines and right of way.

The scope of the work also includes operation and maintenance for 15 years after one year warranty period on successful commissioning of the project, the company said.

NLC, a navratna company under the ministry of coal, is engaged in mining coal and lignite, and power generation -- thermal and renewable. Its present total power generation capacity, including that under joint ventures, is 4293.5 mw.

Mercom forecasts 9 GW solar in 2017

SACE and SIMEST (Cassa Depositi e Prestiti Group) and BNP Paribas Corporate & Insti-tutional Banking (CIB) have announced the finalisation of export financing of $519 million for National Grid North America, a company of UK-based National Grid Plc Group, in support of the works and supply orders awarded to Prysmian as part of the North Sea Link proj-ect. With a total value of 2 billion euros, the project involves the construction of a subsea interconnector with a capacity of 1,400 mw between the United Kingdom and Norway. Once completed, it will extend over 730 km becoming the longest infrastructure of its kind in the world.

Qatar General Electricity & Water Corporation (Kahramaa) has recently signed a contract with Nexans for power cables. The contract, worth

approximately 300 million euros, includes low and medium voltage cables to be used in civil infrastructure projects in Qatar. Through the contract, Nexans will help in meeting the grow-ing demands for energy and facilitating infra-structure development while supplying the ca-bles in Qatar. The supply of cables will connect substations to various infrastructures-oriented projects across Doha and its suburbs such as Doha New Port, Qatar Rail and Metro projects as well as projects needed for 2022 FIFA World Cup, a release by Nexans said.

Nexans has announced the integration of its Russian activities into its local partner Impex Electro. Nexans keeps its current minority shareholding in Impex Electro. This transac-tion is part of the group portfolio management program and will strengthen the commercial

synergies between Nexans and Impex Electro which have demonstrated outstanding results, in particular in large infrastructure projects and resources market, over the past years, Nexans said in a release.

Siemens has received an order from the en-ergy provider SWW Wunsiedel GmbH to sup-ply and install a battery storage system. The Siestorage system is based on lithium-ion batteries and has a capacity of more than 6 mw. The storage system, which will be con-nected to the distribution grid, will enable the company to participate in the primary control reserve market. The large storage system from Siemens consists of three containers with lith-ium-ion cells, one container with the inverters, a concrete station with the transformers and the control system.

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interview

We understand that NTL had launched its range of over 250 retail products in early 2015. How has the business been doing since? What have been recent additions to the range?Our product portfolio today comprises of more than 250 products, keeping in mind the requirements of large institutions as well as individual users spread across home, retail, hospitality, industrial and outdoors category.

Our innovations in the last few months have seen a slew of launches across segments, where we have brought in new products and added new USPs. We have launched the series of Pharox Apollo retrofit LED Lamps in 12/14/18 watts and Pharox Streak Pro Batten in 5/10/20 watts in the last 6 months or so.

We have established our footprint in various parts of north, west and southern parts of India and have tied up with several like-minded people to take care of distribution. But it will still require a mammoth effort to cover the entire length and breadth of the country

Tell us about the geographical distribution of your project sales. We understand that NTL was planning to strengthen its position in the eastern region.

Most of the project sales for NTL are in northern, western and southern part of India primarily covering hospitality, automotive, retail and IT/ITES verticals.

As stated earlier, we are still in the process of appointing distributors across India and eastern market holds very important place in our scheme of things. We haven’t tied up with anyone in the eastern region as yet but are looking very closely at this market and would be happy to join hands with experienced and like-minded organizations to take the Pharox revolution ahead. The delay in establishing our presence (in the eastern region) can also be attributed to the fact that we first want to strengthen our position in the existing markets and then move to the next level. We are in talks with several renowned organizations in the eastern market and hopefully will be in a position to announce our tie-ups very soon.

NTL has been a big supplier under the government’s Domestic Efficient Lighting Programme (DELP) scheme. Tell us more about NTL’s involvement.NTL has been an early proponent of mass consumption of LEDs and has always been innovating products to suit the Indian conditions. When

NTL entered the lighting business in 2002 as a small manufacturer of ballasts for CFLs. In 2009, it became India’s first company to manufacture LED lamps. Today, it is amongst the largest Indian company in the lighting industry. Arun Gupta tells us more on the company’s LED lighting business and discusses how the government, through the DELP scheme has trigged a LED revolution in the country, and has helped penetration of this energy-efficient lighting device to an extent that has surpassed all expectations.

DELP has made mass LEDconsumption a reality in India

— Arun Gupta, Managing Director, NTL Group

interview


the Prime Minister launched the scheme to replace existing lighting under DELP scheme, were more than happy to support this initiative. The availability of LEDs and the government’s focus to promote it nationally has caught on fast and the consumer is getting way more than it bargained for.

Till date, we have supplied more than 15 million bulbs under this initiative and are one of the leading suppliers to EESL. We hope to continue this association.

How do you gauge DELP scheme as the creator of a “revolution” in the LED lighting market?We were the first company to manufacture LED lamps in the country in 2009 and at that point in time there was hardly any awareness for LEDs. People were used to ICL and CFLs and were not even aware of the technology and its benefits. The costing was huge and we always believed that to make this technology affordable, economies of scale were required which were simply not there at that time. The light which used to cost in excess of Rs.300 is now available at Rs.60 and the government is talking about bringing the costs down further.

DELP scheme has helped consumers shift from the traditional sources of lighting to LED, which not only helps save electricity, but also creates a movement towards green sources of lighting. More than 18 crore LED lamps have been

distributed in India till date and the government is planning to distribute 77 crore LEDs in the next three years. DELP scheme has actually made mass manufacturing and mass consumption a reality in India.

Is NTL involved in supplying LED lamps for the government’s urban street lighting project, initially targeting 100 cities?We have not supplied for the government’s urban street lighting project as yet. We look forward to participating in this programme in the future.

What is your view of the rapidly falling costs of LED lamps in India? Do you expect prices to further come down? What are factors responsible for the fall in costs?The cost of LEDs has radically moved down because of the high volumes and the constant component based innovations that are taking place

almost daily across the globe. But it is still higher than the conventional light sources.

As the demand for eco-friendly lighting products grows, the production volume has increased and the economies of scale have kicked in. For example, the ‘per unit’ cost of the LED lamps has come down drastically. This is basically because of EESL’s programmes and the DELP, which are propelling the early adoption of LED bulbs by the consumers. This has also helped in bringing the overall prices of LEDs in the retail market as well.

The government is planning to bring the cost further down to make it available to every citizen and after that shift their focus on other electrical appliances such as fans, etc.

Tell us about the capacity expansion plans of NTL. How do you see the growth ahead in your B2B business (NTL Electronics) and the B2C segment (Pharox) in the years to come?Our capacity was at a level of 1 million pieces per month in 2015-16 and we have now reached a level of 5 million pieces per month. Major expansion has taken place in the last six months wherein we have created the capacity of almost 3 million pieces per month. This is the capacity which was created by us to cope with the very aggressive procurement by EESL under Ujala scheme. n

ntL Group


Gujarat has ranked first with respect to dis-tribution of LED bulbs under various govern-ment schemes. Up to December 12, 2016, this western state had distributed 2.70 crore energy-efficient LED lamps, closely followed by Maharashtra with 2.01 crore. Maharash-tra has a target of distributing 3 crore of such bulbs.

International Copper Association India (ICA India) in association with Hindalco Indus-tries Ltd and Vedanta Ltd recently organised the India Copper Forum. The event brought together experts and thought leaders from the copper fraternity to congregate and de-liberate on opportunities, challenges and future of the country with copper. The event held extensive discussions to evaluate how the copper fraternity is contributing to the nation’s progress. Going forward, the esti-mated copper usage growth is expected to increase as the Government has put in pro-cess various initiatives such as Housing for All, Make in India and Smart Cities to name few.

BSES Yamuna Power Ltd has signed an agreement with Sensus, a global supplier of smart meters and utility-grade communica-tions systems. The agreement will enable BYPL to use FlexNet, Sensus’ advanced me-tering infrastructure (AMI) solution, in BYPL, Delhi Service area on a trial basis. This technology trial will start in the next three to four months and will simplify installation and commissioning of the Sensus FlexNet AMI solution in BYPL, Delhi. BYPL’s requirements for coverage, capacity and longer-term needs of smart grids will be met, without significant additional investment, by the Sensus FlexNet AMI solution, a release from Sensus noted.

Energy Efficiency Services Ltd (EESL) has so far distributed over 1.4 crore LED bulbs in 30 districts of Karnataka. The usage of LED bulbs has resulted in annual savings of Rs.729 crore in electricity bills of consumers. Meanwhile, the price of a 9W LED bulb under the UJALA scheme has dropped to Rs.65 per bulb, according to reliable reports.

Voltamp Transformers Ltd has informed stock exchanges that a few contract work-men at the company’s Savli factory situated at Village Vadadala, Jarod-Samlaya Road,

Savli taluka, Vadodara district, Gujarat, re-sorted to violent acts on December 20, 2016 with the company’s production supervisors, outside the factory premises. The company has suspended Savli factory operations ef-fective from December 21, 2016 to ensure safety and security of company’s employ-ees and property. However, operations at the Company’s Makarpura factory situated at Vadodara, Gujarat are totally normal, Vol-tamp said.

In a communication to stock exchanges, Power Grid Corporation of India Ltd has said that it has extended the additional Charge assigned to R. P. Sasmal, Director (Opera-tions) for the post of the Director (Projects) for a further period of six months, effective November 23, 2016, or till the regular ap-pointment is made, or until further orders, whichever is the earliest.

NTPC Ltd has signed a memorandum of un-derstanding with National Aluminium Com-pany Ltd (NALCO) to set up a joint venture company between NTPC and NALCO to sup-ply about 2,400 mw power from a proposed coal-based power project at Dhenkanal, Odisha for meeting captive power require-ment of NALCO for its proposed greenfield aluminium smelter plant at Kamakhya Nagar, Dhenkanal and the expansion at its existing Angul smelter in Odisha.

NTPC has commissioned the first unit of the 2x800-mw Kudgi super thermal power project, located in Karnataka. This is the first thermal power plant of NTPC equipped with 800-mw rating units, NTPC said in a stock exchange filing. The Kudgi unit has taken NTPC’s total power generation capacity, on standalone basis, to 41,062 mw and that of NTPC Group to 48,028 mw.

Usha International, India’s leading consumer durables company, has been awarded the third time at the National Energy Conserva-tion Awards 2016 held in New Delhi. The company has been recognized for its con-tribution in BEE Star labelled fan category. Rohit Mathur, President- Fans, Usha Interna-tional, received the award from the Honour-able Minister of State (I/C) for Power, Coal and New & Renewable Energy, Shri Piyush Goyal at an award event held at Le Meridian Hotel, New Delhi.

During December 2016, a total of 2.51 lakh renewable energy certificates (RECs) were traded on the Indian Energy Exchange, rep-resenting a growth of 43 per cent over the 1.75 lakh RECs traded in November 2016. Utilities involved in REC purchase in Decem-ber 2016 included BSES Rajdhani, Damodar Valley Corporation and BEST Undertaking. The total trading volume of 2.52 lakh RECs in December was largely made up of non-solar RECs that had a share of 90 per cent.

Private sector power transmission com-pany, Sterlite Power Transmission Ltd has been honoured by the Central Board of Ir-rigation and Power (CBIP) for setting new benchmarks in India’s power transmission sector and bringing advanced and innova-tive technologies to speed up energy de-livery. CBIP presented the award for ‘Best Performing Power Transmission (System) Utility’ to Sterlite Power. Sterlite Power is the first private transmission project developer to receive this honour from CBIP, it is learnt.

Considering the advantages of integrated solar and wind power projects, the Gujarat state government has decided to announce a new policy for such hybrid plants. It will be called Solar-Wind Hybrid Policy 2017. The government intends to invite sugges-tions from interested companies and other stakeholders for the proposed policy within a month, said reports.

Bharat Heavy Electricals has commissioned another 600-mw coal-fired power generation unit in Adilabad district of Telangana. The unit has been commissioned at the 2x600-mw Singareni Thermal Power Project owned by Singareni Collieries Company Ltd. This is the second 600-mw unit commissioned by BHEL at Singareni TPP, following the first commissioned in March 2016.

Private distribution company Torrent Power reportedly faced a major challenge of lay-ing underground cables in Mantola locality in Agra, after people protested against the digging of roads. A meeting comprising the administration, locals and Torrent Power which was scheduled to take place on De-cember 29, has been postponed. Torrent Power was appointed as the power distribu-tion franchisee in the urban area of Agra in May 2009. n

Short takeS

nPublished on 10th of every month

t&d india (january 2017): intelect 2017 special

Small Business & Entrepreneurship