Smart-grid is the future of energy conservation
Power Grid Corporation of India Ltd., a public sector undertaking that transmits about 50 per cent of generated power, is further augmenting its capacity to meet the growing needs of industry .
The energy transmission utility has plans to invest Rs.110,000 crore to build transmission lines and to set up transformers to evacuate power as more power plants are getting ready for commissioning. In a recent interview with The Hindu , Power Grid Chairman and Managing Director R. N. Nayak said that the transmission sector would continue to grow around 25 per cent year after year. He also said that the company would look for more opportunities to grow its presence in the overseas market Edited excerpts:
What are the major problems plaguing the power transmission sector now?
In transmission, the number one problem is basically during construction. The right of way (where to put the tower) problem is most severe because it is on somebody else’s land. The second problem is availability of land to build substations. The availability and possibility of buying that land is also difficult. The third problem concerns the vendors. Because our construction is quite large, we need a large number of vendors. Sufficient numbers of vendors are not available. Fourth, we face problems in realisation of money from the beneficiaries. The financial condition of distribution companies is not very good currently. So collection of money is difficult.
What do your future investment plans look like?
In the XII Plan, we are investing Rs.110,000 crore. In the last financial year, we spent more than Rs.20,000 crore in execution of projects and this year we are in the process of spending Rs.22,000 crore. The balance will be invested in the rest of the Plan period. So lots of projects are coming up.
There was a plan by power companies to build power generation capacity of 87,000 MW in the XI Plan out of which 55,000 MW could come up. Are you ready with the transmission network for this?
Our inter-State transmission systems are under schedule. As far as generation plan is concerned, the evacuation system is being built. The moment the generation capacity is ready, we can evacuate power as our projects are under construction. There will be no delay.
What are your overseas expansion plans?
Now we are only into providing consultancy services in foreign countries. We have not invested outside, except Nepal, where a company has been established with equity participation from us. Other than Nepal, we don’t have ownership in any project in the overseas market though we have presence in 14 countries. In Ethiopia, we are managing their grid, exactly the same way we manage the grid in India.
What is the status ofthe smart-grid project and what is the roadmap ahead?
We took the first project at Puducherry. We have all the features of smart-grid there. The project is complete. One thousand four hundred smart meters have been installed. Anyt feature of smart-grid you name, it is there. Now, the government has planned similar projects at 14 other locations.
Where are the other projects located and when will work start ?
These will be in various States. It is in the domain of distribution. It will not be in our network. We are basically consultants for these projects. In the transmission sector, a smart-grid is under implementation.
What is the benefit of a smart-grid?
The basic objective is that consumers should participate in the project. They should know what is happening in the power supply space. They should know how much they are actually consuming and paying. Presently, someone comes at some time for meter reading and the consumers have no clues, they just pay the bill. In the new system, a lot of intelligence is built into your meter.
How much energy saving happens in a smart-grid set up?
At least 15 to 20 per cent, which is huge. Smart-grid is the future. That is why we have invested in the project. Our objective is not to earn money but to ensure energy conservation and help improve the quality of life in the society.
What is your fund raising plan?
Out of the budgeted capital expenditure of Rs.22,000 crore for this year, 30 per cent will be our money and the rest will be raised through line of credit and issue of bonds. We have already raised Rs.8,000 crore and the balance Rs.6,000 crore will raised.
What are the changes you have brought in since taking over?
The main emphasis has shifted to commissioning. Normally, government companies work on budgets. Up to the XI Plan (before I joined) there was gross spending of Rs.50,000 crore. In the last two and half years, we have done Rs.39,000 crore. So about 77 per cent of what was done in 21 years has now been done in 30 months.
Second, we worked on smart-grid and energy efficiency. Third, we ventured into products. Traditionally, we are a services company and now we have developed products such as smart meters and apertures.
Fourth is the research centre. We did not have a laboratory. The board has now cleared an investment of Rs.150 crore for setting up a lab facility. Fifth is in the area of human resources. Previously, we were not concentrating on creating leaders. Now we are ensuring that at every level there is a leader.
In this front, we are setting up an academy called Powergrid Academy of Leadership at Manesar. It will be operational next year.
Finally, in the area of finance. We were not used to raising money from abroad. All our requirements were met through issuance of domestic bonds. We have shifted our attention to international bonds. We have got external commercial borrowings of $1 billion, for the first time at Powergrid.
Waking up to R&D, finally
After years of neglect, domestic two-wheeler companies are shoring up their research and development (R&D) in the wake of intensifying competition triggered by global players.
. A quick look at the R&D spending of Indian two-wheeler firms reveals a stronger thrust being given on design and development. Companies such as TVS Motor, Bajaj Auto and Hero MotoCorp are all spending more on R&D now. Though their R&D spending hasn’t increased dramatically it is better compared to the past.
“Clearly, the sector is new to the R&D game in India. There may be some exceptions up to a point. But, on the whole, the global players have the scale, skills and most importantly, processes that put them at significant advantage at this time. Therefore, it is incumbent upon the Indian companies to achieve maturity in these areas at a rapid pace,” Kumar Kandaswami, senior director, Deloitte India, says.
While Japanese firms spend 5-6 per cent of their revenues on R&D, Indian companies’ R&D expenditure was always at one per cent or even lower. However, it is now hovering around 1-2 per cent and is likely to go up in the coming years as Indian firms embrace R&D and innovation wholeheartedly to grow. Mr. Kandaswami feels that R&D focus is absolutely important for two-wheeler firms to fight global majors and stay afloat. “The foreign brands are making significant progress and seem to be dominating some product categories or markets. As they gain experience, they will spread their distribution and product range — the only way to fight them in the market would be to have a pipeline of exciting launches. Further, on some of the products push down the life-cycle cost of ownership — both of which will require superior R&D,” he adds.
But he also admits that there is fair amount of focus on R&D on the part of Indian companies. While R&D is one part, the whole New Product Development (NPD) process is where Indian companies have to build strength.
TVS Motor leads
Among the Indian two-wheeler firms, TVS Motor Company currently leads the R&D table, followed by Bajaj Auto and Hero. TVS Motor's R&D spend has increased as the company has been working on new engine platforms to roll out many new products for a strong comeback. The company spent 1.79 per cent of its revenues on R&D in 2012-13, up from 1.68 per cent in the previous year.
“ Over the last five years, the automobile market has evolved and with an increasing demand for technologically superior products, the number of new projects that we are working on has doubled. Manpower has also gone up proportionately increasing by around 40 per cent or so,” says Vinay Harne, President - NPI, TVS Motor Company. “Our strong focus on R&D capabilities has enabled us to bring out products that compete with global players in countries where we do business.," he adds.
In-house success
For Bajaj Auto, strong in-house R&D capabilities have come in handy to launch vehicles with higher fuel efficiency and performance. Its R&D spend has increased to 1.2 per cent (of the total sales) in 2012-13 from 0.8 per cent in 2011-12. Bajaj’s Triple Spark Technology for the Pulsar family has won accolades. “Our strategy of differentiation is possible only due to in-house capability of developing engines and bikes. The highly successful platforms of Pulsar and Discover are complete in-house developments,” says K Srinivas, President - motorcycle business, Bajaj Auto.
Bajaj claims undisputed leadership position in the sports segment with Pulsar (with 47 % share) and is a strong challenger in the mileage segment with Discover (18 % share).
Global design partners
Though Hero MotoCorp's R&D spend was below one per cent in 2012-13, the largest Indian two-wheeler brand has embarked on a slew of initiatives on the R&D front ever since its separation from a joint venture with Honda.
While it has planned to invest more in R&D, the company has global design and technology firms as partners now to develop next generation two-wheelers.
Hero is also setting up a world-class technology and integrated R&D Centre at Jaipur with a host of facilities such as innovation labs for component design, engine and vehicle testing, test tracks and vehicle simulation unit, among others.
Last but not least
Meanwhile, Mahindra Two Wheelers, latest entrant, has also set up an exclusive R&D centre in Pune to develop engines for its two-wheeler range, while Mahindra Research Valley, Mahindra’s group’s automobile R&D facility near Chennai, would also provide a big support. “Overall, Indian players remain focused on development of new technology — both vehicle side and engine side besides financial investments in global firms in last few years to further strengthen their design and engineering capabilities. Also, Indian players are investing to produce and export vehicles that are compliant with applicable standards in overseas markets — for instance: ethanol mix fuel and flexi-fuel vehicles for the Brazilian market,” points out Subrata Ray, senior vice president – corporate ratings, Icra. Though global OEMs have superior design and technological capabilities, emerging strong eco-system for design and development in India should come in handy for the Indian brands to try and match the prowess of global players in the coming years.
Calm solar cycle prompts questions
The surface of the sun has been surprisingly calm of late — with fewer sunspots than anytime in the last century — prompting curious scientists to wonder just what it might mean here on Earth.
Sunspots have been observed for millennia — first by Chinese astronomers and then, for the first time with a telescope, by Galileo in 1610.
The sunspots appear in roughly 11-year cycles — increasing to a daily flurry and then subsiding drastically, before amping up again.
But this cycle — dubbed cycle 24 — has surprised scientists with its sluggishness. The number of spots counted since it kicked off in December 2008 is well below the average observed over the last 250 years. In fact, it’s less than half.
“It is the weakest cycle the sun has been in for all the space age, for 50 years,” said National Oceanic and Atmospheric Administration physicist Doug Biesecker.
The intense electromagnetic energy from sunspots has a significant impact on the sun’s ultraviolet and X-ray emissions as well as on solar storms.
Solar storms can interrupt telecommunications and electronic networks on Earth. Sunspot activity can also have an impact on the Earth’s climate. Cycle 23 hit its maximum in April 2000 with an average of 120 solar spots a day. The cycle then wound down, hitting bottom around December 2008, the point at which scientists marked the start of the current cycle. The minimal solar activity at the end of cycle 23 led astronomers to predict a slow cycle 24. But the reality fell even below expectations.
In the first year of the cycle, during which solar activity should have risen, astronomers counted 266 days without a single sun spot.
Cycle 24 has also diverged from the norm in another surprising way.
Typically, around the end of each 11-year sunspot cycle, the sun’s magnetic fields switch direction. The northern and southern hemispheres change polarity, usually simultaneously. During the swap, the strength of the magnetic fields drops to near zero and reappears when the polarity is reversed, scientists explain.
But this time, something different seems to be happening. The north pole already reversed its polarity several months ago — and so it’s now the same polarity as the south pole.
Some researchers speculate this could be the start of a prolonged period of weak solar activity.
The last time that happened, during the so-called “Maunder Minimum” between 1650 and 1715, almost no sunspots were observed. During the same period, temperatures dropped sharply on Earth, sparking what is called the “Little Ice Age” in Europe and North America.
As the sunspot numbers continue to stay low, it’s possible the Earth’s climate is being affected again.
But thanks to global warming, we’re unlikely to see another ice age. — AFP
Geneva: six-month window to negotiate permanent deal
The nuclear deal between Iran and P5+1 (the U.S, the U.K., France, Russia, China and Germany), signed at 4.30 a.m. on Sunday local time, came after a diplomatic marathon of three intensive rounds, culminating in a late-night session in Geneva.
It was chaired by the EU’s foreign policy chief, Catherine Ashton, for whom the deal represents a personal triumph. Some of the complications involved in coming to a deal stemmed from the need to keep the six powers together.
The six-month life of the Geneva deal is intended to be used to negotiate a comprehensive and permanent settlement that would allow Iran to pursue a peaceful programme, almost certainly including enrichment, but under long-term limits and intrusive monitoring, that would reassure the world that any parallel covert programme would be spotted and stopped well before Tehran could make a bomb.
That agreement would lead to the lifting of the main sanctions on oil and banking that have all but crippled the Iranian economy, and the eventual normalisation of relations between Iran and the U.S. for the first time since the 1979 Islamic revolution.
The difficulties facing the negotiators in the coming months were highlighted by the different interpretations U.S. Secretary of State John Kerry and his Iranian counterpart, Mohammad Javad Zarif, took on the fiercely disputed issue of whether the deal represented recognition of Iran’s right to enrich uranium in principle. Mr. Zarif was insistent that it did because it was based on the nuclear Non-Proliferation Treaty (NPT), which guarantees the right to a peaceful nuclear programme. Mr. Kerry said that neither the NPT nor the latest deal specified a right to enrichment. That, he said, was a matter for negotiation in the coming six months.
News of the deal united Iranians from across the political spectrum in celebration, reflecting widespread hope that it would reduce the threat of war and ease punishing sanctions. Hundreds of thousands of people stayed up through the night to follow the minute-by-minute coverage.
The first announcement that a deal had been reached, by Ms. Ashton’s spokesman Michael Mann, and the confirmation by Mr. Zarif, were both made on Twitter — a first for a major global accord.
“Day five, 3am, it’s white smoke,” tweeted Deputy Iranian Foreign Minister Seyyed Abbas Araghchi, referring to the terminology used in Vatican for the announcement of a Pope. — © Guardian Newspapers Limited, 2013
Danish aid to renovate heritage buildings
A total of 116 heritage buildings, constructed in the 18th and 19th centuries and located on the banks of the river Hooghly in West Bengal, will be renovated and preserved with the help of Denmark.
The National Museum of Denmark has formulated an ambitious plan in collaboration with the West Bengal Heritage Commission (WBHC) for the revival of the lost glory of these buildings.
Large
settlement
There was a large Danish settlement at Serampore on the banks of the Hooghly from 1755 to 1845 before the arrival of the British in India and all the 116 buildings constructed during that period had elegant Danish structures with neo-classical architecture.
Most of these heritage buildings are occupied by government organisations while the rest of them are owned by private trusts and commercial organisations.
Historical
identity
The National Museum of Denmark will enhance the specific historical identity of Serampore and also improve the aesthetic and recreational qualities of the town heritage buildings through citizen-centric conservation projects by actively involving local populations, NGOs and other stakeholders, a State Tourism Department official said.
Grand
plans
The department has formulated grand plans to promote heritage tourism in the area and link it with other former European colonies along the Hooghly.
The ambitious Serampore project will serve as a model for similar conservation projects in the entire State and Kolkata in particular.
The Danish handed over the entire area to the English for a sum of Rs.1. 2 million on October 11, 1845. — PTI
Deal consistent with our stand, says India
India has said that the two-stage deal Iran struck with the U.S. and five other world powers on its nuclear programme was consistent with the position it had taken with Russia, Brazil, China, South Africa and other like-minded countries.
It also hoped the negotiators would display the same sense of accommodation — as they did in the run-up to the agreement — to clinch a final settlement over the next two months.
Syed Akbaruddin, spokesman of the Ministry of External Affairs, emphasised the point about the two-stage process: one was the agreement reached on Saturday between Iran and P5+1 (the U.S., the U.K., France, Russia, China and Germany); and the other was between Iran and the International Atomic Energy Agency (IAEA), done on November 11.
“Based on initial information available at this stage, I can say India welcomes the prospect of resolving questions related to Iran’s nuclear programme through dialogue and diplomacy,” he said.
New Delhi also welcomed the agreement with the IAEA, which Mr. Akbaruddin said “is the only competent technical agency to verify the exclusively peaceful nature of Iran’s nuclear activities…”
Officials of the Ministry of External Affairs admitted that India had “nothing much to do with the process” that led to the agreement between Iran and P-5+1. But the mood in the run-up was upbeat among Iranian officials they interacted with.
“Anything that improves Iran’s economy would be useful. India-Iran ties did not gain much traction because of sanctions. The withdrawal of the sanctions will benefit the ties,” a senior official said.
Another official said the agreement was consistent with India’s stand that the issue should be resolved diplomatically, with the recognition of Iran’s right use nuclear energy for peaceful purposes and in accordance with Iran’s international obligations as a non-nuclear weapon state.
The interim steps agreed upon in Geneva could build trust between Iran and the international community and lead to a long-term settlement of the issue, the official said. For this, diplomatic engagement must be continued in the same spirit of mutual respect and accommodation as in the last two months.
‘India-Iran talks create new atmosphere for Peace Pipeline via Pakistan’
Geneva Round will bring Iran into the Afghanistan game, say officials
When they hold their next Foreign Office consultations on Monday, India and Iran will review the same list of issues in new circumstances brought about by the promise of easing U.S. sanctions.
“Relations with Iran have been held up due to the U.S. sanctions. The talks have created a new atmosphere for the Peace Pipeline via Pakistan,” says Chintamani Mahapatra of the School of International Studies, Jawaharlal Nehru University.
Despite India having walked away from talks on the Iran-Pakistan-India (IPI) Peace Pipeline citing security concerns, Iranian Deputy Minister for International and Commercial affairs Ali Majedi on Saturday expected New Delhi to overcome its doubts and join the project.
Government officials advised caution as some ground remained to be covered in the nuclear talks but felt the vibes generated by the just-ended Geneva Round will bring Iran into the Afghanistan game which will be to India’s advantage. Both Iran and India are concerned over the U.S.-Pakistan initiative to hold peace talks with the Afghan Taliban without preconditions. “If the U.S.-Iran ties improve, Tehran will be inclined to play an increasingly constructive role in Afghanistan,” noted Srinath Raghavan, Senior Fellow at the Centre for Policy Research.
Officials say modernisation and expansion of the Chah-bahar port will be vital for providing India and the international community access to Afghanistan and Central Asia. It will also ensure Indian presence just 80 km away from the Chinese built Gwadar port in Pakistan. India has allotted $100 million for the port’s development and is sorting out a trilateral arrangement with Iran and Afghanistan for a customs and transit agreement.
Senior Iranian officials see the Shahid Beheshti Port and its contiguous free trade zone as crucial for Afghanistan’s economic growth and say that over the past one year there has been tangible progress in moving the concept forward during high level interactions with Indian officials. But Mr. Raghavan says in conversations with Indian interlocutors, Tehran has not been clear about New Delhi’s role. Prof. Mahapatra expected a push for the North South Corridor that will use the Bandar Abbas port for connectivity with Turkmenistan, the Caucasus and beyond.
The port can be connected to Afghanistan and even beyond to Central Asia by linking it up to the Iranian border town of Milak on the Afghan border. An Indian-built road from the corresponding Afghan border town of Zaranj will then lead to the Afghan garland highway.
In the first trilateral, India, Iran and Afghanistan agreed on preferential treatment and tariff reductions for Indian goods at Chah-bahar. There is now talk of a rail line from Bamyan in Afghanistan that will follow this road route down to Chah-bahar.
Stepping up oil supplies
Government sources expected Iran's major Indian clients for oil to enter into hectic negotiations for stepping up supplies after having been forced to reduce consumption due to the effects of the U.S. sanctions on insurance and sending back payments. Officials say India has managed to stay in the good books of the U.S. because its rate of reduction has been much higher than other major consumers of Iranian oil.
This would also mean the plan to create a Rs. 2,000-crore fund to provide cover for imports of Iranian crude can easily be shelved for the time being.
India will also be looking at resuming talks on a lucrative gasfield — Farzad-B gas — on which just two rounds have been held over the past four years. Sources said although the two sides did not meet too often, they managed to agree on all issues but for the internal rate of return and security of investment.
Analysts and government officials feel that years of regular, high-level contacts with the top Iranian leadership should yield dividends in intra-Asian security, trade and energy linkages. This is something Iran also feels was a missing factor in its dealings with the world. “We kept looking at Europe for too long,” Iranian Ambassador in India Gholam Reza Ansari told The Hindu earlier.
Modernisation and expansion of Chah-Bahar port will be vital
India will be looking at resuming talks on Farzad-B gas field
States oppose shift in balance of fiscal power that GST will cause
GST will lead to dilution of individual States’ powers, says Gujarat
Several States are opposed to the shift in the balance of fiscal power between the Centre and the States that the proposed Goods & Services Tax (GST) will cause. “The GST idea is not completely abandoned yet, though the hopes of getting it are receding,” said a highly placed official source in Tamil Nadu on condition of anonymity.
Last month, Tamil Nadu Minister for Commercial Taxes and Registration B.V. Ramanaa said in Delhi, “Such powers to the GST Council are likely to encroach upon the legislative powers of the State enshrined in the Constitution.” “In the name of harmonised tax structure, the State’s already limited authority to levy taxes should not be snatched away.”
In the proposed GST Council the Union and States’ Finance Ministers will collectively take decisions such as on fixing the rates of tax and the exemptions from the levy that at present individual Finance Ministers take in States.
“Though the opposition is being articulated as technical points, the hold-up really is to the shift of the Centre-State balance of fiscal power,” said a source closely associated with the GST’s design. Said the Tamil Nadu source: “This is not a political posturing so much — if the Opposition forms the next government at the Centre, the obstructions will then come from the Congress-ruled States.”
“Even if, we keep alcohol and petroleum out of the GST in line with the States’ demand there might then be a call for tobacco too, the sources said, adding: “We might still introduce the Constitution Amendment Bill in the Winter Session of Parliament.”
In its report on the Union Finance Ministry’s draft Constitutional Amendment Bill for GST, the Empowered Committee of State Finance Ministers has demanded that alcohol and petroleum be kept in the exemption list.
Its chairman and Jammu & Kashmir Finance Minister A. R. Rather told The Hindu , “The States unanimously without any dissent notes voted for the GST but want their grievances and apprehensions addressed.”
“The Constitution should be amended only after everybody agrees fully,” said Mr. Patel.
Dr. Parthasarthy Shome, Advisor to the Union Finance Minster, recently stated that the technical issues were resolved and it was up to the politicians.
“For the States that will lose revenue due to the shift to the GST — such as Gujarat and Tamil Nadu — it is not clear what is the compelling reason for them to give it up,” the Tamil Nadu source said.
There are apprehensions of revenue losses. Gujarat Cabinet Minister Saurabh Patel, who normally represents the State at the Empowered Committee’s meetings said last month in Delhi, “If the Union government … enacts the GST regime, Gujarat will have to bear Rs. 14,000 crore loss per annum.”
The GST will be levied on consumption of goods and services whereas States such as Gujarat and Tamil Nadu are producing and net exporting States.
There is a proposal to compensate such States for the revenue they might lose after the shift to the GST.
Though all the three grama panchayats in the Attappady Hills are listed as ‘A’ category (ecologically fragile land) in the K. Kasturirangan Committee report on the Western Ghats, large-scale degradation of environment has been reported from these areas.
The hills around Narasimukku in Agali grama panchayat on the banks of the Bhavani have been razed for construction of resorts. Roads were built by flattening land, causing soil erosion.
The destruction of hills is carried out under the cover of an order from the Village Officer of Agali, purportedly for taking up agriculture on the 20-acre land. Razing of hills has caused serious environment problems, said K. Sukumaran, convener of the Attappady Samrakshana Samithy. Streams and check-dams across the rivulets downstream have been filled with the eroded soil.
Mr. Sukumaran said parts of Attappady had turned into dust land owing to the removal of large quantities of sand.
At Nallashinka, three check-dams are filled with eroded sand from the construction of platforms for windmills, depriving the people of drinking water. At Kavundikkal and Kunnamchala in Agali village, construction of the platforms was taken up at 12 locations.
Unauthorised sand-mining and quarrying continues to be rampant in Attappady, Mr. Sukumaran said.
He said such large-scale destruction of the environment was going on in a place where the State government had completed a Rs.218-crore eco-restoration scheme implemented by the Attappady Hill Area Development Society.
