IEEMA Journal - July 2015

Page 1

the leading electrical & electronics monthly

VOLUME 6  ISSUE NO. 11  JULY 2015  PGS. 106

ISSN 0970-2946

Rs. 50/-

Cover Story Power Equipment Industry Review FY14-15

IEEMA Event emPOWERing Make in India

Face2Face

Thought Leader of the Month 33

Mr MV Rao, MD, HPGCL

Mr Sunil Mathur, MD & CEO, Siemens Ltd

Special Feature Status of RPO & REC Rooftop Solar

15on 0 2 ence r

r ea nfe rolg 15 o C t al Con ber 20 n o ati ar & ovem dia n r e N In nte itchg 27th bai, I 9th Sw 6th & Mum 23 2


From the President’s Desk

Dear Friends, The electrical and industrial electronics industry has witnessed a 13% growth in Q4 of FY 2014-15. The overall growth of the industry is 9.98% in this fiscal. Although higher imports still plague the industry but policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival for the sector. We, as a country, are aspiring to increase the output of the electrical equipment industry to $100 billion by 2022 and become a destination of choice for overseas producers of such equipment. This ambitious target cannot be achieved without the active support from the Government through investment friendly policies and focused efforts of industry. We have to be competitive for growth globally and also look at ways and means to draw in more investment into the country. The task is difficult but not unachievable. The electrical Industry shall have to focus on project innovation and superior product quality. We in India spend lot of resources in Research however there is not much focus on Development. Superior manufacturing and process technologies shall need to be harnessed for cost reduction and becoming competitive. Skill development has to be taken with earnest. Moreover the constant changing condition of international markets is also a matter of concern. INNOVATION is the key to deal with such situation while through TECHNOLOGY ADVANCES we can lower the cost and risk levels thereby reducing the manufacturing Capital requirements. Increased Spending in R&D will help develop cost effective technologies The Government seems to very serious about initiatives like Make in India campaign, Skill India and others. To unlock the Power sector growth, which is battling fuel shortages and problems of land acquisition and securing mandatory approvals and suffering from several stalled projects, would be a topmost priority. A lot of actions in all directions are being taken with right earnest at that level. IEEMA has been in the forefront of many thought provoking and practical interactions with the Centre and State Governments. Especially, the ‘emPOWERing Make In India’ interactions with State Energy Secretaries and Utility heads have created an ideal platform to elicit the solutions to the various challenges to power distribution and the technologies to improve the energy ecosystem and curbing pilferage of electricity. It will remain out consistent endeavour to drive the agenda of a commercially viable and competitive power supply for all consumers in the State, propelling industrial development.

Vishnu Agarwal

8

July 2015 2014


“Samvaad...

Dear Members,

The Ministry of Power and New & Renewable Energy is committed to ensure electrification of the entire country thus creating an ‘Ujwal Bharat’. IEEMA is aligned to this vision and looks at not just capacity addition but quality delivery as the key ingredient for optimizing the power value chain.

We recently concluded our interaction with the Government of Madhya Pradesh. The State is on track to be the fastest growing industrial State. IEEMA will actively support the ‘Make in Madhya Pradesh’ proposition and will also come up with strategies for skill up-gradation, infrastructure development and technological advances. The State Government has made significant advancement in Electrical generation and has near sufficient availability of Power. The challenges they wish to deal with includes strengthening of the distribution network and reducing T&D losses. IEEMA made a few presentations on this subject and would now engage its product Divisions with Utilities of Madhya Pradesh. In fact, all of IEEMA’s interactions with various State Governments are aimed at strengthening the power value chain. While India has been ranked 142 among the 189 countries as per the latest report on ‘Ease of Doing Business’ report of the World Bank, falling two places from last year’s ranking, the government is aiming to improve India’s ranking within the 50th position. The ‘Make in India’ campaign is targeted towards making the country an important investment destination and a global hub for manufacturing, design and innovation. Indian Electrical Industry across generation, transmission and distribution products and solutions has an opportunity to lead and demonstrate its competitiveness and propel industrial and overall economic growth for the nation. Over the last one year, India has made impressive progress in adding to the size of its overall power generation capacity. The power sector is getting the right attention in recent times. The government started in right earnest; coal blocks were auctioned and for the first time in its history in FY15 Coal India delivered an 8 percent plus growth in output compared with its usual average growth of 2-3 percent. Yet, fulfilling a vision of ‘Electricity for All’ is possible with a robust power distribution sector since this is essentially the funnel which feeds revenues to the transmission and generation sectors. IEEMA supports partnerships and technical collaborations which will be key to translate the Vision into a Reality, leading Bharat to Ujwal Bhvishya.

Sunil Misra

July 2015 2014

9


Contents

the leading electrical & electronics monthly

Volume 6 Issue No. 11 July 2015 CIN U99999MH970GAP014629 Official Organ of Indian Electrical & Electronics Manufacturers’ Association Member: Audit Bureau of Circulation & The Indian Newspaper Society

Contents 8

30

From the President’s Desk

In Conversation

9 Samvaad...

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

26 Cover Story Despite growth Po w e r Equipment Industry not confident on sustainability

IEEMA Journal speaks to Additional Director General, Directorate General of Foreign Trade, Ms Kavita Gupta to get an in depth knowledge on the new FTP 2015-20.

33 Thought Leader of the Month Siemens Ltd, Managing Director and CEO, Mr Sunil Mathur speaks to IEEMA Journal about the opportunities his company is looking at ELECRAMA 2016

36 Trade Talk The Indian Electrical Euipment industry has grown by 10% during FY14-15 as against FY1314. Quarter on Quarter basis, the growth momentum had picked up in 2nd half period where 3rd & 4th quarter of FY14-15 saw a growth of 11.5% and 13% respectively over same quarter of previous fiscal.

Global trade environment and Regional Comprehensive Economic Partnership Agreement Global trade scenarios are fast changing, as major economies are moving towards larger integration via Mega trade agreements instead of bilateral or multilateral agreements with handful of other economies.

42 Face to Face IEEMA Members Helpline No. 022-66605754

12

Managing Director, Mr MKV Rama Rao speaks to IEEMA Journal on ensuring energy security for the State by setting up highly efficient

July 2015


Contents

Purchase Obligation has given a sudden thrust in the trade of RECs for both solar and non-solar

55 A new opportunity–Rooftop Solar

(From L to R) Mr Vishnu Agarwal, President, IEEMA, Mr I C P Keshari, IAS, Principal Secretary, Energy, MP, Mr P Uma Shankar, Former, Power Secretary, GOI, Mr Sanjay Kumar Shukla, IAS, MD, MPPMCL and Mr. Vivek Kumar Porwal, IAS, MD, MPMKVVCL

supercritical thermal power stations and supplying cheap and green power to the consumer of Haryana.

46 In Focus Dealing with energy costs in metal refining Energy consumption is one of the highest costs for many industries, especially those such as aluminium and copper extraction. Efficient usage of energy could significantly reduce the cost incurred by these companies.

49 In Focus

The target of 20,000 MW (20 GW) till 2022 seems to be a herculean task. But the ministry and bureaucracy started working in the direction like every other policy launch of that era, but Solar was little fortunate; the vigor was little more than that other policies could attract.

58 Guest Article Standardization of PV Wires and Cables Once the cables have passed the electron beam, the crosslinking process is complete. These cables remain soft and elastic throughout their whole service life.

62 TechSpace Creep Behaviour of Aluminum a major cause for Failure of Distribution Transformers

MAKE IN INDIA initiative good news for Copper sector The performance of the copper industry is highly dependent on the performance of sectors like power, construction, telecom, and automobile, and on demand for products like power cables, transformers, generators, radiators, and other ancillary components.

52 Special feature- Renewable Status of Renewable Purchase Obligation & Renewable Energy Certificate Aftermath effect of the landmark order of the honourable Supreme Court on the matter of compliance of the mandatory Renewable

14

Electrical utilities are reporting failure rate of Aluminum wound distribution transformers (DTs) of rating 25, 63, 100 kVA from 15% to 25% especially in power deficient, poorly designed and haphazardly expanded power distribution networks where frequent energization of DTs is in common practice.

71 IEEMA Activities

74 IEEMA Event

July 2015


Contents

76-77 Power Scenario Global Scenario Indian Scenario

78-79

86

Product Showcase

89 International News

Basic Prices & Indices Production Statistics

• US would retire 90-GW of coalfired power capacity by 2040 • Canadian Solar to receive $58 mn loan from Deutsche Bank

82

92

IEEMA Database

CPRI News

84 ERDA News

84

Seminars & Fairs

96 Corporate News • ABB wins order to build substation for grid integrating solar power • BHEL commissions 82.5 MW hydroelectric unit in Uttarakhand

99 Index to Advertisers

National News • Electrical Equipment Grows by 13% in Q4: IEEMA

100

• India approves raising solar power generation to 100,000 MW

Editorial Board Advisory Committee Founder Chairman Mr R G Keswani

Chairman Mr Vishnu Agarwal

Members Mr Babu Babel Mr Sunil Misra Mr Sri Chandra Mr Mustafa Wajid

Sub Editor Ms Shalini Singh

Advertisements Incharge Ms Vidya Chikhale

Circulation Incharge Ms Chitra Tamhankar

Statistics & Data Incharge Mr Ninad Ranade Designed by Reflections Processed at India Printing Works

Edited, Printed and published by Mr Sunil Kumar Misra on behalf of Indian Electrical and Electronics Manufacturers’ Association, and Printed at India Printing Works, India Printing House, 42, G. D. Ambekar Road, Wadala, Mumbai 400 031 and Published at 501, Kakad Chambers, 132, Dr. Annie Besant Road, Worli, Mumbai 400 018. Website: www.ieema.org

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Annual Subscription: Inland: ` 300/Foreign: (Airmail) US $ 120/Single Copy ` 50/Articles: Technical data presented and views expressed by authors of articles are their own and IEEMA does not assume any responsibility for the same. IEEMA Journal owns copyright for original articles published in IEEMA Journal. Advertisements: Artworks accepted upto 15th day of previous month of issue. Advertisements published in IEEMA Journal are on good faith basis. Advertisers are solely responsible for contents/ violation of any law in the contents / actions arising from contents. IEEMA Journal does not take responsibility for claims made by advertisers regarding products, ownership, trademarks, logos, patents and other such things. Subscribers can write to the Editor for an extra copy if issue is not received by 15th day of the month. Enquiries & Correspondence: Editor, IEEMA Journal, Regd Office - Mumbai 501, Kakad Chambers, 132, Dr A Besant Road, Worli, Mumbai 400 018. Phones: +91(0) 22 24930532 / 6528 Fax: +91(0) 22 2493 2705 Email: mumbai@ieema.org Corporate Office - New Delhi Rishyamook Building, First floor, 85 A, Panchkuian Road, New Delhi 110001. Phones: +91 (0) 11-23363013, 14, 16 Fax: +91 (0) 11-23363015 Email: delhi@ieema.org Branch Office - Bengaluru 204, Swiss Complex, 33, Race Course Road, Bengaluru 560 001. Phones: +91 (0) 80 2220 1316 / 1318 Fax: +91 (0) 80 220 1317 Email: bangalore@ieema.org

Branch Office - Kolkata 503 A, Oswal Chambers, 2, Church Lane, Kolkata 700 001. Phones: +91 (0) 33 2213 1326 Fax: +91 (0) 33 2213 1326 Email: kolkata@ieema.org Representatives: Guwahati (Assam) - Nilankha Chaliha Email: nilankha.chaliha@ieema.org Mobile: +91 9706389965 Raipur (Chhattisgarh) - Rakesh Ojha Email: rakesh.ojha@ieema.org Mobile:+91 9826855666 Lucknow (U.P. and Uttarakhand) Ajuj Kumar Chaturvedi Email: anuj.chaturvedi@ieema.org Mobile: +91 9839603195 Chandigarh (Punjab & Haryana) Bharti Bisht Email: bharti.bisht@ieema.org Mobile: +91 9888208880 Jaipur (Rajasthan) Devesh Vyas Email: devesh.vyas@ieema.org Mobile: +91 8955093854 Bhubaneshwar (Odisha) Smruti Ranjan Samantaray Email: smrutiranjan.samantaray@ieema.org Mobile: +91 9437189920 Hyderabad (Andhra Pradesh) Jesse A Inaparthi Email: jesse.inaparthi@ieema.org Mobile: +91 9949235153 Srinagar (Jammu & Kashmir) Mohammad Irfan Parray Email: irfan.parray@ieema.org Mobile: +91 9858455509 Posting Date: 1st working day of the month of issue.

July 2015


Appointments

Mr PK Sinha appointed new Cabinet Secretary Mr Pradeep Kumar Sinha, a 1977-batch IAS officer of the UP cadre, has been appointed as the next Cabinet Secretary, with effect from June 13, 2015. He will succeed the incumbent Ajit Seth. Mr Sinha was serving as Secretary, Ministry of Power. He has earlier been Secretary in the Ministry of Shipping, and has held several other important positions in the Union Government and the State of Uttar Pradesh.

Mr Atul Sobti appointed BHEL CMD Atul Sobti, Director (Power) BHEL, has been appointed as Chairman and Managing Director of Bharat Heavy Electricals Limited (BHEL). Sobti will succeed B Prasad Rao on January 1, 2016. Recently Sobti, has been given the additional charge of Director (Finance), after P K Bajpayee relinquished the charge on superannuation on May 31.

Mr S Christopher appointed Secretary, DRDO Eminent scientist S Christopher has been appointed as Secretary, DoDRD (Defence Research & Development) and Director General of DRDO (Defence Research and Development Organisation) for a two-year term. Currently Christopher is Programme Director, AWACS (Airborne early warning and control system) and Director, Centre for Air-Borne Systems in DRDO

Mr Pradeep Kumar Pujari appointed Secretary, Ministry of Power Mr Pradeep Kumar Pujari, IAS (GJ: 81), has been appointed as Secretary in the Ministry of Power. Earlier he was Special Secretary and Financial Adviser in the Department of Agriculture Research and Education under the Ministry of Agriculture.

Mr Anup K Pujari appointed Secretary, MSME Mr Anup K Pujari, IAS (KN:1980), has been appointed as Secretary, Ministry of Micro, Small and Medium Enterprises (MSME). Pujari was serving as Secretary, Ministry of Mines.

24

Mr Balvender Kumar appointed Secretary, Ministry of Mines Mr Balvender Kumar, IAS (UP:1981), has been appointed as Secretary in the Ministry of Mines. Earlier he was Vice Chairman in Delhi Development Authority.

Mr Ajay Shankar appointed L&T Independent Director Larsen & Toubro Ltd has informed BSE that Ajay Shankar has been appointed as an Independent NonExecutive Director of the Company, with effect from May 30, 2015.

Mr Ganga Ram Aloria appointed Chief Secretary, Gujarat The Gujarat Government has appointed Ganga Ram Aloria as chief secretary of the state replacing D J Pandian, who retired on Saturday. The 1981 batch IAS, Aloria (59) has been heading urban development and is also in-charge of home department as Additional Chief Secretary since October 2014.

Ms Rita Teotia appointed Commerce Secretary Ms Rita Teotia, a Gujarat cadre Indian Administrative Service Officer, 1981 batch, has been appointed as the new Commerce Secretary, succeeding Rajeev Kher, who is retired on June 30.

Secretary (Steel), Mr Rakesh Singh, takes charge as SAIL Chairman Mr Rakesh Singh, IAS, Secretary, Government of India, Ministry of Steel has taken additional charge of the post of Chairman, Steel Authority of India Limited (SAIL). Singh is a 1978 batch officer of Punjab cadre.

Mr RN Choubey appointed Civil Aviation Secretary Mr Rajiv Nayan Choubey, a 1981 batch IAS officer of Tamil Nadu cadre, has been appointed as Secretary in the Ministry of Civil Aviation. He was posted in the Ministry of Power as Special Secretary.

Dr Archana S Mathur appointed IOC Director Dr. Archana S. Mathur has been appointed as Govt. Nominee Director of Indian Oil Corporation Ltd.

July 2015


CoverStory

I

n FY14-15, India witnessed highest ever addition of Power Generation to the tune of 22,566 MW excluding Renewable Energy as against 17,825 MW last year. A majority portion (about 90%) and growth (24%) came from thermal power generation. Nuclear Power generation added 1,000 MW for the first time in the 12th Plan.

Although higher inflow of imports still impacting adversely to the growth of domestic industry; various initiatives undertaken by the industry especially for exports and initiatives by government are eventually showing signs of revival for the sector. However, capacity utilization is sub-optimal and is in the range of 60-75% for different sectors.

However, Plant Load Factor (PLF) was below 63% as against 67% last year; mainly for Private and State level power generation. This is a cause of concern as despite healthy power generation currently & also planned in near future, there are no takers for the power; indicates bad state of buyers i.e. distribution utilities that are sitting on & piling on huge debt & losses.

The data is compiled by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment. The production and sales data is collected from its member organizations, which represent 95 percent of the entire sector.

In Transmission addition of network in CKM and Sub-stations addition in MVA, 30% and 15% growth is observed in FY14-15 over FY13-14; majorly driven by growth in 765 KV and 400 KV segment.

Review of Growth of Electrical Equipment Industry Indian Electrical Equipment Industry today is about Rs. 1.3 trillion industries and contributing about 9-10% in the manufacturing sector of India. The industry has grown by 10% during FY14-15 as against FY13-14. Quarter on Quarter basis, the growth momentum had picked up in 2nd half period where 3rd & 4th quarter of FY14-15 saw a growth of 11.5% and 13% respectively over same quarter of previous fiscal.

26

Programme, actual achievement and growth in electricity generation in the country during 2009-10 to 2015-16 ( Source: Ministry of Power) % of

% of

target

growth

771.551

97.73

6.6

830.757

811.143

97.64

5.56

2011-12

855.000

876.887

102.56

8.11

2012-13

930.000

912.056

98.07

4.01

2013-14

975.000

967.150

99.19

6.04

2014-15

1023.000

1048.673

102.51

8.43

2015-16* (Upto April 2015)

91.781

86.695

94.46

-0.52

Year

Target

Achievement

2009-10

789.511

2010-11

July 2015


CoverStory

Product Segment Review Transformer sector declined by 3% mainly due to 15% decline in Power Transformer segment. Delay in project implementation due to various reasons has adversely affected the segment. However, 30% growth in exports has helped to arrest the decline. Distribution Transformer segment grown moderately to 6% with the help of growth in exports. Order Book Position (OBP) is also not encouraging. Transmission Line sector witnessed marginal decline of 1%.Transmission Line Towers registered a decline of 12% due to poor domestic growth whereas Conductors segment registered a growth of 16%. The growth picked up in last 2 quarters due to off-take by major buyers like Power Grid. Rotating machinery sector although declined by mere 1%; LT & HT Motors declined by 10% & 2.5% respectively due to very little capex activity in core sector. There is low awareness in consumers for energy efficient motors even though the Indian Standard - IS 12615/2011 is in place. There is a surge in import of Rotating Machines to the tune of Rs. 2000 crs in the last fiscal. 18% growth in FHP although indicates momentum in white goods industry, some portion of growth is actually due to shift of market from unorganized to organized players. In Switchgear sector, LV Switchgear segment grown by 7% whereas HV Switchgear segment grown by 5%. In LV, major contributors were LT Circuit breakers, Power Contactors and MCBs which are increasingly in demand from various industries and realty sector. In HV Switchgear, all the segments i.e. MV, HV and EHV (765KV) have grown in varied degrees; however; exports have contributed to this growth to a large extent. Cable sector continued to show improvement in growth and registered a healthy growth of 32%. Power Cables production has grown by 24% whereas Control & Special purpose cables grown by 51%. This high growth is attributed to orders from Although higher inflow of imports still impacting adversely to the growth of domestic industry; various initiatives undertaken by the industry especially for exports and initiatives by government are eventually showing signs of revival for the sector. However, capacity utilization is sub-optimal and is in the range of 60-75% for different sectors.

July 2015

Delay in project implementation due to various reasons has adversely affected the segment. However, 30% growth in exports has helped to arrest the decline. Distribution Transformer segment grown moderately to 6% with the help of growth in exports. Order Book Position (OBP) is also not encouraging.

power generation, Sub-stations and upgrading of lines by some utilities & orders from other infrastructure projects. Growth of 16% in Energy Meter segment is due to 20% growth in Single Phase Meters. Poly phase Meters demand was stagnant. In Single phase Meters, although there has been a decline in demand for tariff meters (KWH Meters); demand for Multi-function meters especially thrust for ‘Smart’ meters by Utilities, PSUs and other industries has lifted the growth. Although first 2 quarters witnessed a sluggish demand, last 2 Quarters have saw a high growth of 28% & 51% respectively; which indicate historical buying pattern. Exports however declined by about 12%. LT & HT Capacitors demand was reduced due to poor off-take from Utilities and PSUs buyers. Exports also shown declining trend. The negative growth need to be seen with background of high base of last year (FY13-14) production which had registered a growth of about 40% over FY12-13.

Required capacity additions foreseen during the 13th Plan The requirement of installed capacity and capacity addition to meet the generation requirement during the 13th Plan period (2017-22): Types of capacity Capacity Addition during 13th plan (2017-22) (MW) Types of Capacity

Capacity addition during 13th plan (2017-22)(MW)

Thermal

63400

Hydro

12000

Nyclear

18000

Total

93400

Government Initiatives In order to boost the power sector, the government has taken various initiatives as given below: uu India and Bhutan have signed a power project

pact to provide a major boost to the 600 MW

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CoverStory

EXIM DATA – April-March 2014-15

Source: DGCIS • Growth in Imports from MV/HV breakers, GIS, HV Cables & Meters through direct imports • Project Imports – Transformer (975 cr.), Insulator (270 crs) and Capacitors (210 cr.) etc.

Kholongchu hydroelectric project. It will be the first hydroelectric project to be developed by a joint venture (P/) between public sector units (PSUs) of the two countries. uu India and Nepal have signed the power trade

agreement (PTA). The agreement will be effective for the next 25 years and deals with power trade, cross-border transmission lines and grid connectivity. uu The Ministry of New and Renewable Energy

(MNRE) has initiated scheme for setting up of 25 Solar Parks, each with the capacity of 500 MW and above, to be developed over the next 5 years in various states. uu Indian

Renewable Energy Development Agency (IREDA) has signed a Moll with the US Exim Bank with respect to cooperation on clean energy investment.

EXIM Trend Exports in general is growing for most of the product segments and helping the industry to arrest decline and to remain competitive. High growth of imports of more than Rs. 500 Crores of AC Motors, HV cables, MV/HV Breakers, GIS, LT Circuit Breakers and other switchgear and control gear products was seen

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during FY14-15. Imports of worth Rs. 950 crores for EHV Transformers, Reactors and Accessories, Insulators (Rs. 260 crores), Capacitors (Rs. 210 crs) and Cables (Rs. 125 crores) etc. is observed through project import routes. Share of Chinese imports have increased alarmingly and IEEMA has flagged this issue consistently to the concerned Ministries for a policy remedial measures.

Concern Areas The PMO’s intervention and supervision via Project Monitoring Group (PMG) indicates Government`s commitment for 24 x 7 Electricity Vision. Power Generation program which include 1 Lakh MW Solar Power mission is heading towards achieving this objective. Poor financial health of DISCOMs raises the issue of affordability of generated power. Government need to hit the nail now by focusing attention to restructuring of DISCOMs thereby reviving commercial viability of the entire power sector and in turn overall economic growth. Availability of Credit at affordable cost, policy support to domestic industry on IEEMA’s four points proposal to be competitive against Imports are few other focus areas where Government need to address on top priority basis. IEEMA is committed to give full support in this task. - IEEMA Research Group

July 2015


In Conversation

DGFT is no more a regulatory body, we are also facilitator - Kavita Gupta,

Additional Director General, Directorate General of Foreign Trade

T

he Foreign Trade Policy 2015-2020 aims to make India a significant participant in world trade by the year 2020 and to enable the country to assume a position of leadership in the international trade discourse. IEEMA Journal speaks to Additional Director General, Directorate General of Foreign Trade, Ms Kavita Gupta to get an in depth knowledge on the new FTP 2015-20. Excerpts of the interview.

Foreign trade today plays a significant part in India’s economy, so much so that foreign trade policy deserves a special focus and dedicated attention as a key constituent of India’s economic policies. Ms Kavita Gupta says, “The FTP has set a new direction and stabilised environment. India, as a founding member, and a country which has evolved significantly since the WTO was established, India will continue to contribute to the capacities of willing developing members to help them to fully participate in the rule making process. The need to ensure that the FTP is aligned with both India’s interests in the negotiations, as well its obligations and commitments under various WTO Agreements, has been an important consideration in framing this Policy.” Studies show that vis-a-vis products exported by some of the major East Asian countries, Indian products have been losing their competitiveness. This has been attributed to mainly two kinds of reasons. The first kind relates to the state of infrastructure, factor policies, ease of doing business, facilitation at the borders and the system of taxation. This policy therefore attempts to mainstream exports and imports into overall and sector-specific economic policy.

Significant announcements ll Merchandise Export from India Scheme (MEIS)

and Service Exports from India Scheme (SEIS)

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launched. MEIS & SEIS incentives to be available to SEZs, too ll FTP to be aligned to Make in India, Digital India

and Skills India initiatives ll Duty credit scrips to be freely transferable and

usable for payment of custom duty, excise duty and service tax ll Trade facilitation and ease of doing business by

way of online filing of documents and emphasis on paperless trade

What the govt is looking at ll Employment creation in both manufacturing and

services ll Zero-defect products with a focus on quality and

standards ll A stable agriculture trade policy ll A focus on higher value-addition and technology

infusion ll Investment in agriculture overseas to produce

raw material for Indian industry ll Lower tariffs on inputs and raw materials ll Development of trade infrastructure and provision

of production and export incentive documents There is a symbiotic relationship between the FTP and the government’s ‘Make in India’ initiative. The ‘Make in India’ initiative aims to achieve global recognition for the Indian economy, promote the country as an investment destination, spur manufacturing and promote employment. It encompasses initiatives for skill development to ensure the availability of skilled manpower for manufacturing, to improve the ease of doing business through initiatives

July 2015


In Conversation

such as self-certification of documents and innovative revenue models. It also envisages the development of infrastructure including i-ways besides highways, ports, optical fibre networks, gas grids and water grids. She further says, “The FTP 2015-20 aims to help various sectors of the Indian economy to gain global competitiveness. So we suggest that the manufacturers should focus on quality and standards and produce zero defect products. ‘Brand India’ must be synonymous with quality and reliability.” Ms Gupta suggested that the “Exporters should also concentrate on timely delivery schedule. Additionally they should understand that DGFT is no more a regulatory body we are also facilitator and the exporters can approach us with their problems.” Talking on Countries which are considered to be major attractions for exports Ms Gupta says, “The emerging economies which have huge potential for business are Latin America and African Countries. There are certain countries which have similar types of development trajectory like Turkey, Iran, Far East

ly month onics & electr ctrical ding ele the lea

¬ E4 ME LUM OLU VO

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Asian countries. In order to put exports on a high growth trajectory, India needs a market diversification strategy based on the changing dynamics of growth in the world economy. So far India’s bilateral trade engagement has been mainly with the industrial powers or driven by multiple considerations. In future engagements, India will engage with regions and countries that are not only promising markets but are also major suppliers of critical inputs and have complementarities with the Indian economy.” Ms Kavita gupta has brought some tremendous changes in the department since she took over as ADG, DGFT she says, “We have mapped all our processes. We are doing incremental improvement in our department. Also I have introduced open door policy in my office where anybody can approach me with their problems. For transparency we have introduced a monitoring cell in our department.” The success of trade policy is critically dependent on the coordinated efforts of the Government of India as well as State Governments. - Shalini Singh, IEEMA

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July 2015

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Thought Leader of the Month

Increasing adoption of digitalization & automation will reduce India’s dependency on foreign exchange Mr Sunil Mathur Managing Director and CEO, Siemens Ltd.

Siemens Ltd, Managing Director and CEO, Mr Sunil Mathur speaks to IEEMA Journal about the opportunities his company is looking at ELECRAMA 2016

With World Electricity Forum being the theme of ELECRAMA 2016, what opportunities do you see? With the business environment improving, we expect manufacturers to invest in improving capacities. Increasing adoption of digitalization and automation will help Indian industry reduce dependency on foreign exchange and become self-sufficient in terms of quality, price and supply of components. Manufacturers can leapfrog stages and get ahead of the curve in terms of efficiency, minimal wastage of resources, etc. Siemens is the only company in India that can realistically combine the digital and the physical world of automation and unlock huge customer value.

What is your opinion on ease of doing business in India? There has been significant improvement. Public sentiment has substantially improved since the new Government took charge and there is considerable hope that the new Government will start creating an environment conducive to investment. Initial steps taken by the Government have been positive, however it will take some time before projects put on hold in the past will be cleared and will start contributing to the economy.

July 2015

The Indian economy is currently $1 trillion – and is expected to be a $3 trillion economy by 2020 (according to IMF). The government of India targets increasing manufacturing’s share in the GDP from the current 16% to 25% by 2022, which means manufacturing will grow from $150 billion now to $750 billion

Siemens aims to be a key shareholder in the Make in India campaign. Please share the details on how Siemens wants to achieve this target. Siemens has been present in India for close to 150 years and has 23 factories located across India, 8 Centers of Competence and 11 R&D Centers. The factories manufacture Steam Turbines, Switchgear, Remote Monitoring Systems (RMS), Motors and Generators, Relays and Smart Grid Systems, Transformers, Railway Bogies and X-ray Machines. These have been set up replicating global, best-inclass manufacturing systems and practices. Siemens has a comprehensive Electrification, Automation and Digitalization portfolio that comprises

33


Thought Leader of the Month

integrated technologies for manufacturing automation and Smart Cities. These are the latest and advanced production technologies that power and enable Indian manufacturing to become faster, flexible, efficient and competitive at a

improve, interest rate needs to come down. The governments in different states have organized road shows to attract investors, they are talking to industry and seeking to know their requirements. Some have already implemented single-window clearances.

India is known for innovation, and it has the capability to produce better and faster than any other country. We have the advantage of being one of the youngest countries in the world, which is an asset. India is the place to be for manufacturing – we have the capabilities and the innovation skills global level.

The entire product and production life cycle can be optimized through automation, delivering cost efficiencies as high as 30-4 0%. In an environment of increasing margin pressures, manufacturing units that consistently leverage energy-efficient, integrated technology and automation can emerge as leaders in a globalized economy. Siemens has designed and built intelligent technology solutions that have delivered these benefits. Siemens has the competencies and can deliver on India’s requirement of Make in India.

How do you compare India’s growth with other growing economies? India is known for innovation, and it has the capability to produce better and faster than any other country. We have the advantage of being one of the youngest countries in the world, which is an asset. India is the place to be for manufacturing – we have the capabilities and the innovation skills. To put it in context, the Indian economy is currently $1 trillion – and is expected to be a $3 trillion economy by 2020 (according to IMF). The government of India targets increasing manufacturing’s share in the GDP from the current 16% to 25% by 2022, which means manufacturing will grow from $150 billion now to $750 billion.

How is Siemens helping in India with technology and expertise? We’re focusing on partnering India by providing integrated technologies for a sustainable future. Our core business focus is on Electrification, Automation and Digitalization. Through our power generation, transmission & distribution solutions, we are able to deliver on India’s requirement of “24/7 Power for All”; our offerings in Smart Grids, Energy Efficiency, Urban Transportation and High Speed Rail, will support India’s call for building Smart Cities. Our automation and digitalization offerings will support our customers in setting up globally-efficient factories thus supporting India’s “Make in India” initiative, and finally, our state-of-the-art products in Healthcare will assist India in meeting its goal of “Healthcare for all”.

Siemens is a leader in providing technology solutions for setting up intelligent (smart), sustainable cities. With solutions for Smart Grid, Building Technologies, Mobility and Power Distribution, Siemens has successfully set up smart cities in Vienna and New York, and is already involved in the Restructured Accelerated Power Development and Reforms Programme (R-APDRP) Program of the Government of India for installing Smart Grid solutions in multiple cities in India. It has also been a preferred technology solution provider for the Indian Railways for close to six decades. Over the China has attracted a lot of foreign years, it has further built capabilities in the areas investment because of the ease of of Metros, Integrated doing business. What Mobility Platforms, We’re focusing on partnering India by improvements can Airport Links, Passenger providing integrated technologies for a India do? Coaches, Rail Services sustainable future. Our core business and Maintenance, Urban Both countries have their focus is on Electrification, Automation and Traffic Control, Rail advantages. In India, the Digitalization. Through our power generation, Signalling and other stategovernment is making it transmission & distribution solutions, we are of-the-art Transportation happen in India, in spite of able to deliver on India’s requirement of “24/7 Solutions. a lot of complicated issues. Power for All” For industrial demand to

34

- Shalini Singh, IEEMA

July 2015


TradeTalk

G

lobal trade scenarios are fast changing, as major economies are moving towards larger integration via Mega trade agreements instead of bilateral or multilateral agreements with handful of other economies.

then. India though had been negotiating India- EU BTIA, subduing the effect of its non- participation in TTIP - India had no or limited preferential trade engagement with the US and other participating countries in TPP. And therefore, it was imperative for India to participate in Regional Comprehensive Partnership Agreement (RCEP). However, vital difference between TPP and RCEP is participation of China in RCEP, but not in TPP. TPP could have given India similar edge as RCEP.

Two mega trade agreements Trans Pacific Partnership (TPP) and Transatlantic Trade & Investment Partnership (TTIP) promise to integrate West, East and South East Asia. TPP, being negotiated between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam- intends to “enhance trade and investment among the TPP partner countries, to promote innovation, economic growth and development, and to support the creation and retention of jobs”. TTIP, being negotiated between the European Union and the United states aims at multilateral economic growth. Both these agreements are believed to have the potential of setting member economies feet more into global value chain. TPP and TTIP formation together commands around 2022% of world population, but accounts for more than 35% and more than 50% of World GDP, respectively.

Integration into global value chain is important given fast changing global trade scenarios. Trade agreements are for the same purpose, precisely. Signing such mega trade agreements has certain temporary disadvantages, but permanent advantages in long run. Minimum temporary damage to domestic industry and maximum benefits in near/ far future to economy can only be ensured by timely inputs by stake holders/ interested parties during negotiations and critical analysis of the adverse effects by the Government. RCEP is into similar debate- how to minimize adverse effect and ensure maximum benefits?

These trade engagements between major economies have the potential of adversely affecting non- TPP and TTIP member countries like India. It became a cause of concern for India, as India was not a participating member of TPP and TTIP, and had limited trade agreements unlike other major economies by

It is evident that India’s participation in RCEP could not have been ruled out. So, whole heartedly accept India’s participation in RCEP, and prepare for smooth integration with diverse economies. This calls for not only engaging into negotiations from agreement perspective- but attempting to align

36

July 2015


TradeTalk

domestic policies and foreign trade policies with this and other agreements under negotiation. Therefore, with global integration, it is equally important to align trade agreements with domestic and foreign policies to the extent possible. RCEP negotiations between 10 ASEAN countries, India, China, Japan, South Korea, Australia and New Zealand which aims at integrating member countries into the global market through regional economic integration, leading to the largest regional trading bloc in the world commanding almost 45% of the world population with a combined GDP of around USD 21 trillion, is an ambitious partnership. India’s participation in RCEP- to certain extent would secure its position with respect to changing global environment. However, certainly, minor to major reforms in domestic and foreign policies will have to be made for outspreading reach into Global value chain with minimal adverse effect to domestic established strength and realized potential. India has significant trade with all RCEP member countries, which is around 26% of its total trade with the World. Currently, India has trade deficit with all RCEP member countries/ region. Its total trade with each of its RCEP partners is as in Table 1.

Table 1 SN

Country/ Region

Export (Rs. Crores)

Imports (Rs. Crores)

1

Australia

17,001

62,768

2

China

73,038

3,69,545

3

Japan

32,835

61,991

Figure 1 - Source: Compiled by author, World Bank 2013 Statistics

July 2015

4

South Korea

28,085

82,716

5

New Zealand

1,969

3,608

6

ASEAN

1,95,737

2,73,432

Source: 2014- 15 Trade Statistics as Published by DGCI&S

India’s RCEP partners account for share in India’s import and export of Electrical Transmission & Distribution (T&D) Equipments- as given in Table 2- out of total Electrical T&D Equipments imports and exports of India.

Table 2 SN

Country

Import Share of RCEP Partners

Export Share of RCEP Partners

1

Australia

0%

1%

2

China

35%

3%

3

Japan

7%

2%

4

South Korea

8%

2%

5

New Zealand

0%

0%

6

ASEAN

7%

13%

China commands more than 30% of T&D Equipment imports into India; All RCEP member countries together command more than 50% of India’s T&D Equipments’ imports. Further, in T&D Equipments sector India has trade deficit with China, Japan and Korea, whereas, trade surplus with Australia, New Zealand and ASEAN. Out of 273 tariff lines pertaining to Electrical Transmission & Distribution Equipments sector, 67 tariff lines individually have reported more than or equal to 100 Crores of imports in FY 2014- 15. Out of those 67 tariff lines, 66 tariff lines individually have reported more than or equal to 10 Crores of imports into India from RCEP member countries during the same period. Those 66 tariff lines when clubbed at HS code level (6 digits), shows as in Table 3 that in certain categories RCEP member countries have major share in India out of their total

37


TradeTalk

exports to the World. It may be noted that all these HS codes constitute more than 100 crores of imports into India from the World and 10 crores from RCEP partners, at present. Therefore, where RCEP countries have high share in India with respect to their exports- 1% to 2% trade diversion from World to India will not have as significant effect as trade diversion from World to India in categories where RCEP countries have at present low share in India with respect to their exports. And trade diversion is evident post RCEP agreement comes into operation. Therefore, categories (at HS code level) where RCEP member countries have at present low export share to India out of their global exports, but individually account for more than 10 Crores of imports into India from RCEP countries, are more sensitive.

Table 3 India’s Share in Total Exports of Respective RCEP Member Countries SN

HS Code

Description

ASEAN

Australia

China

1

840290

Parts of steam or vapour generating boilers nes

0%

0%

12%

2

840682

Turbines nes, output , 40 MW

0%

0%

13%

3

840690

Parts of steam and vapour turbines

0%

0%

18%

4

841182

Gas turbines nes of a power exceeding 5000 KW

0%

0%

0%

5

841199

Parts of gas turbines nes

1%

0%

1%

6

847190

Automatic data processing equipment nes

1%

0%

6%

7

850110

Electric motors of an output not exceeding 37.5 W

1%

1%

2%

8

850120

Universal AC/DC motors of an output exceeding 37.5 W

1%

4%

1%

9

850131

DC motors, DC generators, of an output not exceeding 750 W

2%

1%

1%

10

850140

AC motors, single-phase, nes

3%

1%

4%

11

850151

AC motors, multi-phase, of an output not exceeding 750 W

2%

0%

1%

12

850152

2%

0%

2%

13

850153

AC motors, multi-phase, of an output exceeding 75 KW

1%

0%

5%

14

850164

AC generators, of an output exceeding 750 KVA

0%

1%

4%

15

850300

Parts of electric motors,generators,generatg sets & rotary converters

3%

0%

5%

16

850423

Liq dielectric transf havg a power handlg capacity exceedg 10,000 KVA

0%

0%

5%

17

850431

Transformers electric power handling capacity not exceeding 1 KVA, nes 1%

0%

2%

18

850434

Transformers electric havg a power handlg capacity exceedg 500 KVA,nes 0%

0%

5%

19

850440

Static converters, nes

3%

0%

2%

20

850490

Parts of electrical transformers, static converters and inductors

4%

1%

5%

21

853222

Electrical capacitors, fixed, aluminium electrolytic, nes

1%

0%

5%

22

853224

Electrical capacitors, fixed, ceramic dielectric, multilayer, nes

3%

0%

0%

23

853229

Electrical capacitors, fixed, nes

2%

0%

3%

24

853590

Electrical app for switchg/protec elec circuits,exced 1,000 volts,nes

3%

1%

5%

25

853610

Electrical fuses, for a voltage not exceeding 1,000 volts

1%

1%

1%

26

853620

Automatic circuit breakers for a voltage not exceeding 1,000 volts

1%

14%

3%

27

853630

Electrical app f protectg electr circuits,for voltage <=1,000 V,nes

1%

1%

1%

28

853641

Electrical relays for a voltage not exceeding 60 volts

2%

0%

2%

29

853649

Electrical relays for a voltage exced 60 V but not exceedg 1,000 volts

2%

0%

4%

38

AC motors,multi-phase,of an output exceedg 750 W but not exceedg 75 KW

July 2015


TradeTalk

30

853650

Electrical switches for a voltage not exceeding 1,000 volts, nes

2%

0%

1%

31

853690

Electrical app for switchg/protec elec circuits,not exced 1,000 V,nes

1%

0%

1%

32

853710

Boards,panels,includg numerical control panels,for a voltage <=1000 V 2%

0%

2%

33

853720

Boards,panels,includg numerical control panels,for a voltage > 1,000 V

14%

0%

7%

34

853921

Filament lamps, tungsten halogen

2%

0%

3%

35

853929

Filament lamps, excluding ultraviolet or infra-red lamps, nes

1%

2%

4%

36

853990

Parts of electric filament or discharge lamps,UV or IR lamps&arc-lamps

0%

0%

7%

37

854411

Insulated (including enamelled or anodised) winding wire of copper

5%

0%

3%

38

854419

Insulated (including enamelled or anodised) winding wire, nes

3%

0%

16%

39

854420

Co-axial cable and other co-axial electric conductors

1%

1%

7%

40

854430

Ignition wirg sets&oth wirg sets usd in vehicles,aircraft etc

0%

0%

0%

41

854442

Electric conductors for a voltage <= 1.000 V, insulated, fitted with c

1%

1%

1%

42

854449

Electric conductors, for a voltage not exceeding 80 V, nes

1%

0%

2%

43

854460

Electric conductors, for a voltage exceeding 1,000 V, nes

12%

13%

2%

44

854470

Optical fibre cables, made up of individually sheathed fibres

2%

0%

3%

45

854690

Electrical insulators, nes

3%

0%

15%

46

854720

Insulatg fittings of plastics for elec machines,appliances o equipment

1%

0%

2%

47

854790

Insulating fittings for electrical mach appliances or equipment, nes

2%

0%

2%

India’s Share in Total Exports of Respective RCEP Member Countries SN

HS Code

Description

Japan

Korea

New Zealand

1

840290

Parts of steam or vapour generating boilers nes

1%

15%

0%

2

840682

Turbines nes, output , 40 MW

1%

0%

-

3

840690

Parts of steam and vapour turbines

9%

6%

0%

4

841182

Gas turbines nes of a power exceeding 5000 KW

4%

0%

-

5

841199

Parts of gas turbines nes

8%

0%

0%

6

847190

Automatic data processing equipment nes

0%

6%

1%

7

850110

Electric motors of an output not exceeding 37.5 W

1%

7%

0%

8

850120

Universal AC/DC motors of an output exceeding 37.5 W

1%

16%

0%

9

850131

DC motors, DC generators, of an output not exceeding 750 W

1%

10%

0%

10

850140

AC motors, single-phase, nes

0%

1%

0%

11

850151

AC motors, multi-phase, of an output not exceeding 750 W

1%

11%

0%

12

850152

AC motors,multi-phase,of an output exceedg 750 W but not exceedg 75 KW

1%

1%

0%

13

850153

AC motors, multi-phase, of an output exceeding 75 KW

2%

5%

0%

14

850164

AC generators, of an output exceeding 750 KVA

4%

7%

0%

15

850300

Parts of electric motors,generators,generatg sets & rotary converters

4%

2%

0%

16

850423

Liq dielectric transf havg a power handlg capacity exceedg 10,000 KVA

0%

0%

0%

17

850431

Transformers electric power handling capacity not exceeding 1 KVA, nes

1%

1%

0%

18

850434

Transformers electric havg a power handlg capacity exceedg 500 KVA,nes

0%

1%

0%

July 2015

39


TradeTalk

19

850440

Static converters, nes

2%

3%

0%

20

850490

Parts of electrical transformers, static converters and inductors

1%

1%

0%

21

853222

Electrical capacitors, fixed, aluminium electrolytic, nes

0%

3%

0%

22

853224

Electrical capacitors, fixed, ceramic dielectric, multilayer, nes

0%

0%

0%

23

853229

Electrical capacitors, fixed, nes

1%

3%

3%

24

853590

Electrical app for switchg/protec elec circuits,exced 1,000 volts,nes

1%

1%

2%

25

853610

Electrical fuses, for a voltage not exceeding 1,000 volts

3%

3%

0%

26

853620

Automatic circuit breakers for a voltage not exceeding 1,000 volts

1%

2%

62%

27

853630

Electrical app f protectg electr circuits,for voltage <=1,000 V,nes

2%

2%

0%

28

853641

Electrical relays for a voltage not exceeding 60 volts

1%

2%

3%

29

853649

Electrical relays for a voltage exced 60 V but not exceedg 1,000 volts

0%

3%

0%

30

853650

Electrical switches for a voltage not exceeding 1,000 volts, nes

1%

4%

0%

31

853690

Electrical app for switchg/protec elec circuits,not exced 1,000 V,nes

1%

2%

0%

32

853710

Boards,panels,includg numerical control panels,for a voltage <=1000 V

3%

3%

0%

33

853720

Boards,panels,includg numerical control panels,for a voltage > 1,000 V

2%

25%

0%

34

853921

Filament lamps, tungsten halogen

0%

0%

0%

35

853929

Filament lamps, excluding ultraviolet or infra-red lamps, nes

1%

25%

0%

36

853990

Parts of electric filament or discharge lamps,UV or IR lamps&arc-lamps

2%

5%

0%

37

854411

Insulated (including enamelled or anodised) winding wire of copper

0%

2%

0%

38

854419

Insulated (including enamelled or anodised) winding wire, nes

0%

4%

0%

39

854420

Co-axial cable and other co-axial electric conductors

1%

0%

0%

40

854430

Ignition wirg sets&oth wirg sets usd in vehicles,aircraft etc

1%

6%

0%

41

854442

Electric conductors for a voltage <= 1.000 V, insulated, fitted with c

1%

1%

0%

42

854449

Electric conductors, for a voltage not exceeding 80 V, nes

1%

1%

0%

43

854460

Electric conductors, for a voltage exceeding 1,000 V, nes

0%

2%

0%

44

854470

Optical fibre cables, made up of individually sheathed fibres

1%

6%

0%

45

854690

Electrical insulators, nes

0%

1%

0%

46

854720

Insulatg fittings of plastics for elec machines,appliances o equipment

1%

2%

0%

47

854790

Insulating fittings for electrical mach appliances or equipment, nes

1%

0%

0%

India had made initial offer of tariff lines under RCEP last year, when all other RCEP member countries also tabled their initial offer list. And it is anticipated that India’s final offer list of tariff lines to various RCEP members countries would vary keeping in view potential adverse effect domestic industry might experience with respect to imports from various RCEP partners once the agreement becomes operational. Precise and timely inputs from the industry while negotiations are underway would therefore be required to realize the aim with which RCEP or any other trade agreement is contemplated.

40

Will India gain or loss by signing RCEP- remains debatable. But with such fast changing global trade scenarios- levels have been raised; one who quickly adapts itself to changing scenarios might gain, while others may lose. Therefore, timely reforms in policies and procedures- domestic or foreign- need to be considered on continuous basis with change in global trade environment. Author Mr AK Gupta and Mr Nihit Gupta TPM Consultants & Solicitors, Delhi

July 2015


Face2Face

“

We have embarked on a mission to achieve the highest level of efficiency - Mr MKV Rama Rao Haryana Power Generation Corporation Ltd. (HPGCL) has embarked on a mission to establish itself as a modern, growth oriented organization and to make its presence felt in the country’s dynamic power sector. Its Managing Director, Mr MKV Rama Rao speaks to IEEMA Journal on ensuring energy security for the State by setting up highly efficient supercritical thermal power stations and supplying cheap and green power to the consumer of Haryana. Excerpts of the conversation.

Please share with us the efficiency improvement cum cost reduction measures at the Power Stations. The Haryana Power Generation Corporation Ltd. (HPGCL) has embarked on a mission to improve the efficiency of its thermal power stations and to bring down the cost of generation. An Operation Review Teams (ORT) comprising of HPGCL Engineers and ex-NTPC experts, have been constituted to monitor the performance of our thermal power stations. The ORT is required to visit each power plant every month and analyze the performance parameters, cost, heat rate , efficiency and safety at a micro level.. The mission of ORT is to bring the operating parameters as close to the design parameters as possible and to analyze and eliminate the gaps between the actual and design heat rate and efficiency. The Chief Engineers of power stations have been instructed to hold Daily Plant Meetings with the officers to closely monitor the performance parameters and for sorting out day to day problems quickly. Cross Functional Groups have been constituted at each power stations to continuously monitor the running parameters, safety practices, house-keeping and environment parameters. Further, to minimize the number of forced outages and to avoid re-occurrence of faults of similar nature, Performance Monitoring Groups have been constituted at the Power Stations to critically analyze each and every outage and to take remedial measures so that it does not occur again. It is emphasized that no benefit will be achieved if the activities of all the above groups and teams is not monitored at the highest level.

42

Therefore, an Apex Committee comprising of Managing Director, Directors, all Chief Engineers and Financial Advisors has also been constituted. The apex committee meets every month to monitor the activities of the above groups and the performance of the power stations. Area wise Knowledge Teams have been constituted to monitor the performance of equipment and to inspect the quality of work during overhauling of the units so as to ensure improvement in performance of the unit after overhauling. Services of NTPC, BHEL, SEC and Ex- NTPC/Ex-BHEL experts of relevant fields are being availed from time to time as per requirement.

What are the measures being undertaken in order to bridge the gap between demand and supply in the State? To bridge the gap between supply and demand, the State gets power from its share in Central Sector Generating Stations of NTPC, NHPC, NPCIL, THDC etc. Further, Haryana has long term bilateral arrangements with independent private power projects such as Mundhra UMPP of TATA, Mundhra Adani, Sasan Power Ltd. (UMPP) etc. The DISCOMS of the State are also buying power from 12.8 MW Solar Power Project set-up by IPPs in the State of Haryana. In addition to above, short term power on day ahead basis is also purchased from time to time from Indian Energy Exchange (IEX) as per requirement. The DISCOMS also make arrangements for banking of power.

July 2015


Face2Face

Further, to ensure that sufficient generation capacity is available to meet the future growth of demand, HPGCL has planned to set up thermal power generation projects in the State, based on supercritical technology and Solar Power projects at surplus land available at its Power Stations and on top of the abandoned ash dykes of the phased out Faridabad Thermal Power Station.

What are the challenges if any, the State Power Sector is facing. The main challenge being faced by a generating company is arranging sufficient quantity of good quality coal for its Thermal Power Stations. HPGCL is taking all possible measures to get a good quality coal from various coal companies of Coal India Limited. Vigorous pursual is being done with the coal companies and teams of HPGCL officers are being deputed by rotation, at the colliery end to ensure loading of good quality coal is loaded for HPGCL. We are also buying high GCV and low ash content imported coal and blending it with the indengious coal to improve GCV of coal being fed in to the boiler. Another challenge being faced is the huge difference in demand during off peak and peak hours which varies between 1000 to 1500 MW during summers and goes upto about 2500 MW during winters. Due to this huge difference, the running Power Plants of HPGCL are forced to back down during various off peak slots. Sometimes the demand falls down to such a low level that the generating units are closed down. This partial/full backing down of Power Plants has adverse impact on the performance and efficiency parameters, the auxiliary consumption and cost of generation increase and the operational life of the power plant machinery gets reduced. It is a major challenge to flatten the demand curve so that it remains more or less same during peak and off peak hours and there is no compulsion of backing down of the power plants due to less demand.

What are the priority areas to be focused on? As a generating company the main priority areas for HPGCL are: }} Improving the reliability of Power Plants on a

sustained basis. }} Bringing down the cost of generation by improving

the efficiency and heat rate. }} Improving the process of sampling and testing

of coal at the loading end so as to minimize the

July 2015

difference between the GCV at the loading end the receiving end. }} Ensuring adequate fuel security by expediting the

development of Kalyanpur-Badalpara Coal block in Jharkhand which has been allocated to HPGCL. }} To maintain the environmental parameters within

the norms specified by the Haryana State Pollution Control Board and other authorities. }} To improve and maintain the highest possible

occupational health and safety standards. }} To maximize utilization of dry fly ash and pond ash. }} Ensuring energy security for the State by setting

up highly efficient supercritical thermal power stations and supplying cheap and green power to the consumer of Haryana.

How do you describe your tenure as MD, HPGCL so far? My tenure as MD/HPGCL since November 2013 has been very exciting and full of challenges. It has been my endeavor to improve the performance of our Power Stations on all fronts. On the basis of my earlier rich experience at NTPC, I have tried to inculcate a feeling of continuous improvement in the employees of HPGCL, at all levels. A lot of good O&M practices have been started at our power stations. Close monitoring of the performance and interactive involvement of the engineers has been possible because of Daily Plant Meetings, Operation Review Teams, Knowledge Teams, Cross Functional Groups and Apex Level Meetings etc., We have been able to sensitize the employees regarding the importance of cost of generation and the impact of their actions on the same. During 2014-15, the performance parameters have improved substantially. The generating Units of HPGCL as a whole achieved the lowest ever Auxiliary Power Consumption of 8.30%, Station Heat Rate of 2431 kcal/kwh, Specific Oil Consumption of only 0.85 ml/kwh and Specific Coal Consumption of 695 gm/kwh since their commissioning, because of improvement in efficiency. When I joined HPGCL, the cost of coal was Rs. 4213 per ton and variable cost of generation for the year FY 2013-14 (upto Nov 2013) of HPGCL as a whole, was Rs. 3.23 per kwh. During FY 2014-15 the cost of coal has increased to Rs 4574 per ton and the variable cost of generation during the same period remained Rs 3.42 per Kwh. Had the cost of coal remained at the same level, the cost of generation would have been Rs 3.15 per Kwh during FY 2014-

43


Face2Face

15, thereby indicating an improvement in efficiency due to improved O&M practices. The above achievements have been possible because of the cooperation and whole-hearted support of the HPGCL employees. I am very happy to note that our employees at all levels have started to focus on improvement in efficiency and reduction in cost of generation. I would like to mention that HPGCL is diversifying its energy portfolio. The Corporation has chalked out an ambitious capacity addition programme and is planning to setup thermal generating Units based on Supercritical Technology at Panipat, Yamunanagar and Hisar, to meet the future growth in demand. We are also foraying into the field of Solar Power generation. All out efforts are being made for ensuring our future energy security by developing a coal mine allocated to HPGCL in Jharkhand. HPGCL has embarked on a mission to achieve the highest level of efficiency, minimum forced outages

ly month onics & electr ctrical ding ele the lea

¬ O.. 10 NO EN ¬ ISSUE E4 ME LUM OLU VO

0-2946 ISSN 097

¬

at our power stations and sufficient capacity addition. However, a lot more needs to be done and I am confident that no stone shall be left unturned to achieve this target and to make HPGCL one of the best employee friendly utilities in the country.

How do you see government’s agenda of 24X7 electricity to all? How states can contribute to achieve this target? Power consumption is a very important index that indicates the development level of a Nation. It is the endeavor of Govt. of India to improve the quality of the people by ensuring availability of electricity round the clock for each and every household. The 24X7 Power for All programme is a major step in this direction. In the 1st phase, the programme will be implemented in Andhra Pradesh, Rajasthan and Delhi. The success of the programme and its feedback will set the road map for its implementation in other states. As a generation company of Haryana, HPGCL and other power utilities are fully committed to support this initiative of the Government of India.

R 50/ Rs.

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July 2015


InFocus

E

nergy consumption is one of the highest costs for many industries, especially those such as aluminium and copper extraction. Efficient usage of energy could significantly reduce the cost incurred by these companies. Energy usage can only be reduced if industries are aware of how much energy they are using and on what. The metering industry is developing tools and services to offer industries access to the relevant information quickly and easily. In India, the electrical and telecoms sectors dominate the market, with a marketshare of 26% and 30% respectively. Although there is a limited supply of raw copper, India remains a net exporter of copper. The raw material comes in to the country to be processed. India contributes about 3% of the global market share of copper, making it a significant earner for the country. Any increase in efficiency, therefore, would lead to large benefits, making it a lucrative focus area. The major costs in the processing plant are the cost of the raw material, labour and energy. Due to its scarcity, there is very little control over the price of the raw product. Inflation rates too, have been volatile, making the cost of labour unpredictable. As a result the one factor the industry can control is energy consumption. When it comes to controlling energy consumption, we believe strongly in the old adage “you cannot control any variable which you cannot monitor” and that too, monitor accurately and in real time. Energy use in industry is usually measured as “specific energy consumption”, where the energy usage is measured against production. Based on this measure, there has been a 3% increase in energy used per unit. The Ministry of New and Renewable Energy has stated that converting industrial waste into energy could generate up to 1700MW. A study from UNIDO (United Nations Industrial Development Organisation) stated that streamlining processes and increasing efficiency could save up to 26% of worldwide energy consumption. The flip side is that if we do not change our processes, the energy usage in the commercial sector will double by 2050.

46

Energy management cannot be a one-time activity. Nor can there be a silver bullet solution. Reducing consumption requires constant awareness of usage patterns. Based on recent studies, it seems that we have four options: ll Assume that the industry is functioning at optimum

energy efficiency and therefore no improvements are possible. This is almost certainly not true based on the data given above.

ll Follow a new benchmarking system which would

lead to a 1% reduction in usage each year

ll Implement best available technologies which

could deliver a 1.7% yearly reduction until 2030

Each of these options shows the possibility for substantial savings through increased energy efficiency. It seems foolhardy, therefore, for such energy intensive industries to overlook such improvements. To see the greatest benefits, they will need to engage thoughtfully and consistently with their energy usage, installing and using systems to monitor, analyse and communicate their energy usage throughout the company. Secure, as an organisation centred on the energy sector, has been evolving better reporting and analysis tools for industry. With the right information reaching the right person at the right time through systems such as eWatch 100, we have enabled many of our customers to become more aware of their energy usage, revealing areas of inefficiency and wastage. This has allowed them to streamline their processes, thereby conserving energy and reducing cost. We continue to focus our vision on the road ahead, and on developing new ways of creating even more energy efficiency and transparency. Without this optimisation, industries will struggle to stay competitive and therefore be sustainable. Cost and therefore energy reduction has rapidly become a necessity for these industries. Author

Mr Kapil Sharma, Secure Meters Ltd

July 2015


InFocus

C

opper is the best non-precious metal conductor of electricity as it encounters much less resistance compared with other commonly used metals. It sets the standard to which other conductors are compared. This property of copper makes it a preferred metal for various electrical applications. Copper is used in power cables and wires, either insulated or uninsulated, for high, medium and low voltage applications. In addition, copper’s exceptional strength, ductility and resistance to creeping and corrosion make it the preferred and safest conductor for commercial and residential building wiring. Copper is also an essential component of energy efficient generators, motors, transformers, air conditioners and renewable energy production systems. The performance of the copper industry is highly dependent on the performance of sectors like power, construction, telecom, and automobile, and on demand for products like power cables, transformers, generators, radiators, and other ancillary components. Hence, its growth is closely linked to the country’s economic and industrial growth. Since 2000, India’s domestic copper consumption has registered a very healthy growth rate which is in-line with the robust GDP growth witnessed by India during the same period. As per our estimates, the copper consumption in India grew at CAGR of 6.4% from 2006 to 2013 to reach 1 million tonnes in 2013. However, India’s per capita copper consumption is around 0.80 kg whereas the world average is 3.7 kgs, indicates clearly that there is huge potential for growth. India has all the ingredients that can make it compete with China for copper demand; given its billion plus predominately young population, rapid urbanisation, huge infrastructure projects, investment in smart

July 2015

cities, proposed industrial corridors, modernisation of ports, airports, rail and electricity grids; this with ever increasing aspiring middle class with appetite to spend on copper centric product such as air conditioners, cars, consumer appliances and smart homes. However, policy bottlenecks has been India’s bane for achieving higher growth targets. The current Central Government has shown promise in addressing these bottlenecks and we are hopeful that it will continue to take steps to boost infrastructure development and industrialisation which will help copper growth in the country.

India’s Copper Semis consumption by segment in 2013 Others* 28%

Building Construction 23% Infrastructure 12%

Electronics 3% Transport Equipment 12%

Industrial Equipment 15%

Air Con & Refrigeration 7%

Others small appliances, instruments tools, clothing, Others includeinclude small appliances, instruments tools, clothing, ammunitions, and consumer & general products (excluding air con and refrigeration) ammunitions, and consumer & general products (excluding air con and refrigeration)

Building construction is one of the largest consumers of copper mainly in form of building wire. As per Ministry ofconstruction Housing and Urban Alleviation, there is consumers housing shortage of around 22 Building isPoverty one of the largest million and 19 million in urban and rural area respectively. Government of India aims to add 40 of copper mainly in form of building wire. As per million rural and 20 million urban houses under its Housing for All by 2022 scheme. Under the Ministry ofthese Housing andhaveUrban Poverty Alleviation, scheme each of houses would 24/7 electricity, drinking water supply, toilet and road connectivity. envisaged to invest US $ 122 trillionmillion in next seven years. As per there is Government housinghasshortage of almost around some estimated about 3 billion square feet area of real estate needs to be added annually to achieve and 19 million in urban and rural area respectively. this target. Real Estate Investment Trusts (REITs) would play an important role in boosting the Government ofAIndia aimsconducted to addby40 million rural and Copper funding for the sector. recent study a third party for International Association India urban (ICAI) indicates that thatunder the use of wire in new 20 million houses itscopper Housing forbuildings All continues to grow, but is fast being outpaced by the density of copper used per square foot in new by 2022 scheme. Under the scheme each of these construction. ICAI has been on forefront in spreading awareness regarding using of right material and right sizing of houses would have 24/7 electricity, drinking water wire for various building wire applications.

supply, toilet and road connectivity. Government has

The government's proposal to set up five new 4,000 MW ultra mega power projects, entailing investments of around Rs 1 lakh crore, is a big positive for the copper industry. Further, rural electrification to improve power supplies, complete electrification of remaining 20,000 villages by 2020, and increase in clean energy targets to 175 GW by 2020 would boost use of copper in power cables and transformers. As per some rough estimate around 160,000 MVa of transformers would be required annually.

49


InFocus

envisaged to invest almost US $ 1 trillion in next seven years. As per some estimated about 3 billion square feet area of real estate needs to be added annually to achieve this target. Real Estate Investment Trusts (REITs) would play an important role in boosting the funding for the sector. A recent study conducted by a third party for International Copper Association India (ICAI) indicates that that the use of copper wire in new buildings continues to grow, but is fast being outpaced by the density of copper used per square foot in new construction. ICAI has been on forefront in spreading awareness regarding using of right material and right sizing of wire for various building wire applications. The government’s proposal to set up five new 4,000 MW ultra mega power projects, entailing investments of around Rs 1 lakh crore, is a big positive for the copper industry. Further, rural electrification to improve power supplies, complete electrification of remaining 20,000 villages by 2020, and increase in clean energy targets to 175 GW by 2020 would boost use of copper in power cables and transformers. As per some rough estimate around 160,000 MVa of transformers would be required annually. Consolidation and improvement in operations of railways by bringing in better technology will also be a big positive for the copper industry. The railway budget had set up a roadmap for reforms and the tone for the Budget has followed more or less a similar pattern. “Make in India” initiative which aims to increase manufacturing sector’s contribution to GDP from current 11% to 25% by 2025 is also good news for copper sector. Copper would gain through higher demand of industrial motors, transformers and fittings. Till February 2015 the country produced 62.7 thousand tonnes of refined copper as compared to 61.3 thousand tonnes in February 2014. The total production of refined copper stood at produced 695.1 thousand tonnes during April 2014-February 2015, an increase by about 21.3 per cent. As per recent World Bank estimates, India is poised to grow by 7.5% in the current fiscal on account of increased economic activity and stability. The growth rate will also depend on monetary policy of Reserve Bank and normal monsoon. We believe that growth of copper consumption would be in line with the GDP growth and would grow by 6% annually in the next couple of years. Author

International Copper Association India

50

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July 2015

January 2014


SpecialFeature-Renewable

Aftermath effect of the landmark order of the honourable Supreme Court on the matter of compliance of the mandatory Renewable Purchase Obligation has given a sudden thrust in the trade of RECs for both solar and non-solar. The long term and sustainable effect of the same will be visible in the coming days if there is similar or better trading sessions month after month. To have a real RPO compliance the state DISCOMS which have major obligations come forward for the generation, procurement and / or purchase of renewable energy certificates. In terms of RPO compliance vast variation has been observed between states to states and between one DISCOM to other DISCOM within the same state. There is huge disparity between Solar RPO trajectory and the actual Solar RPO targets set by the states. Baring a few states, none of the state come closer to the Solar RPO trajectory set in the tariff policy. Some of the states which show compliance of their Solar RPO is because there solar RPO targets are just fraction of Solar RPO trajectory recommended. In nut shell a lot has to be done for the enforcement and compliance of the renewable purchase obligation in this country and this is only possible when the state regulatory commissions take concrete measures in this regard. The ministry has planned to increase the solar RPO further from 3% by 2022 to 10% by 2022 this means by 2022 a total capacity of 100 GW has to be installed in the country. As per the official data published for the total solar installation in the country under various policies and categories is around 3600 MW which is expected to increase by around 1000 MW by the end of 31st march 2016. If we go by the total solar power required for the compliance of the present RPO of the country as per the previously set trajectory / target the capacity should have been 5291 MW by the end of 31st march 2015 and 7560 MW by end of 31st march 2016. This doesn’t mean that if we install cumulatively 7500MWs of solar power plants by March 2016 our deficit will be over. Our deficit will still remain since we have defaulted to a huge extent in all the past years. Since the country is lagging in the compliance of solar RPO year after year the cumulative deficit has increased to a huge extent.

52

The regulations clearly spells out the valid instruments for the compliance of the RPO which is either by having generation from own source of renewable energy or purchase of renewable energy or purchase of renewable energy certificates or combination of any of the options. Many obligated entities do not comply with their RPOs for the reasons like lack of resources, sources, availability of funds for investment in installations, developers not coming forward to sign PPAs for various reasons, surplus power available etc etc. A practical and more viable solution in these conditions is compliance of deficit RPO by the purchase of renewable energy Certificates. With the restructuring of the trading price of the Solar RECs the central commission has made it more viable for the obligated entities to comply with their deficit RPOs. On one hand it is independent of the geographical boundaries, needs no one time investment from obligated entity and more over even if the state is power surplus doesn’t add to its woos. These plants are installed in the states with deficit of power, high resources available and balance the power requirement of the nation to a lot. Further to the clear orders from the highest of the legal and the regulatory bodies like supreme courts and APTEL the state commissions must suo-motu initiate the process of enforcement of the compliance of RPOs of the obligated entities within their states and union territories. Today more than INR 25000 Million (400 Million USD) worth RECs (both solar and non-solar) are available in the exchange which is moving dead slow. With the present rate of compliance of the RPOs these inventories will pile up further. With no strict enforcement of the RPO and provisions of the regulations and the Electricity Act the target of 100 GW of solar power in the country will remain in the papers. Author Mr Ashu Gupta Ujaas Energy Ltd

July 2015


SpecialFeature-Renewable

I

n Jan 2010 when JNNSM (Jawaharlal Nehru National Solar Mission) was launched in India, at that time no one might have thought of its business potential, specially to Indian business community. The then target of 20,000 MW (20 GW) till 2022 seems to be a herculean task. Anyway but ministry and bureaucracy started working in the direction like every other policy launch of that era, but Solar was little fortunate; the vigor was little more than that other policies could attract. Something out of the box thinking was bought into the play and country saw a few new concepts for first time in history. Like Reverse Bidding, REC mechanism etc. etc. But as many people state that May 2014 may be termed as a distinct year in the Indian History, a meteoric rise of a humble CM to Prime Minister of world’s largest democracy. Mr. Narendra Modi becomes the new hope for India and Indian people. You love him or hate him, but one thing is very sure, you cannot ignore him. And the real trumpet of solar is started blowing up with revision of solar target to five folds making it a dream of 100 GW Solar (till 2022) by the new Govt. And suddenly the whole govt. machinery get into motion and everyone started thinking how to make this mammoth target a reality. Most of us have ignored that in roadmap of achievement of 100 GW, a massive 40 GW is supposed to come from Roof Top Solar. Hence, I would now like to discuss this New

July 2015

Opportunity in an holistic way, what is its significance to all stake holders and over and above to our Country on the top of it. First of all let us discuss what govt. & tax policies are supporting the same, what the expectations are and what needs to be done.

Existing Tax & other benefits 1. Investor can avail Accelerated Depreciation (AD): By AD an existing profit making business/ professional can set off the existing profit equivalent to the extent of its investment in Solar.

Explanation: Say a business is earning Rs. 100 as a taxable profit in a financial year, if an investment of Rs. 100 is made into solar the exiting business need not to pay tax on Rs. 100.

The same is applicable in any kind of Solar including Rooftop also.

2. Benefit under section 80(I)A: This section of IT act gives an option to avail a Tax Free Income for a period of 10 continuous years.

Explanation : If any business has installed say, a 100 KW Rooftop Solar plant on its factory (or place of business). From the power generated by Solar the electricity bill will be reduced, the levelised cost of generation of per KWh of Solar is itself is economical than the utility tariff and it makes a business sense by installing solar, but the fact which is ignored that on such saving;

55


SpecialFeature-Renewable

even a benefit of 80(I)A becomes ‘Cherry on the Cake’. It directly gives you a reduction in your Tax liability. 3. Priority Sector Treatment: Lending to Solar is under priority sector, upto a loan of 15 Cr. Can be classified in this. And priority sector attract some 1-2 % less interest rate. 4. Valid activity in CSR: Solar power installation is a valid activity in CSR as defined in new Companies Act. Hence, if business is not in need of above said Tax incentive, it still can Go Solar by classifying this expense in CSR. 5. Go Green Initiative: It’s a buzz word and your customer will definitely appreciate you initiative. It can be used as a direct marketing tool in an Export oriented business, (as western world give it proper recognition) and to win and attract investors confidence in the companies who are in listed space or looking toward it. 6. Inclusion in Home Loan: The cost of putting up a solar power plant can be added to Home Loan, hence it will attract an interest rate of home loan, which is lesser than business loan, the tenure can be 10-20 yrs. & indirectly the Tax benefit of home loan. 7. Subsidy: The Solar cost have come down so drastically in last 3 yrs. That there is no need of any subsidy to this. Further, above benefits are further more attractive than the subsidy. And govt. also understand the same, hence it reduced the subsidy to 15% & it is mainly available only to Govt. Buildings only. Few states like Telangana are giving subsidy to small home rooftop systems.

Benefit to Discoms 1. Distributed Generation : It is always beneficial as being power generated at the point of consumption there is no T&D losses. 2. Voltage Boosting : As all such plants can be Grid Tied plants, it automatically boost the voltage of grid and indirectly results in low losses for Discoms in its infrastructure 3. Supporting to Power Factor maintenance: All Grid tied solar power plants are auto synchronized and works on Unity PF, whereas normally the grid tends to become lagging due to nature of load (which is mostly lagging). Hence, it contributes towards PF maintenance.

56

4. Set off against RPO : Net metered units can be set off against its RPO, it can be cheapest source of complying with RPOs.

What more is needed 1. Net metering policy should be launched in every state and its hassle free implementation. 2. Central Govt. should declare that there will be no subsidy for Rooftop system for a private investor. As subsidy always restrict a business to grow. Infact in realistic scenario there is no subsidy but a clarity on the subject will not tend to defer investment. 3. Interstate wheeling charges of Solar Power should be NIL. 4. Solar should not attract any TOD/Scheduling rules. Hence, the writing on wall is very clear. The next decade belongs to Solar, one can invest in Solar by 1) Investing in a Solar Power Plant situated in Solar Park and the power can be used either Capitively or can be sold in the market. 2) Invest on Rooftop of your business place, Factory, office, Malls, Hospitals etc. 3) Invest in Home system on roof of your home. Now, with the technology and regulations there is no need for Storage of power Net-metering policy is the key enabler and in simple words it means that grid is being used as a storage device. More and more states are opening up and releasing their tight control over the power sector, as they understood that in overall good for the country & humanity Solar should be promoted. Author Mr Vikalp Mundra Jt. MD, Ujaas Energy Ltd.

July 2015


GuestArticle

S

tarting at the end of last century the worldwide interest in renewable energy was encouraging the PV industry to grow significantly and this growth around the world was irresistible. At that time the construction of PV systems was an expensive and long term investment and the investors did not know how to estimate the quality of modules, and customers were asking for the expected lifetime of PV modules and PV installations. There was a strong need for a third party assessment of safety and quality. In 2001 the TUV Rheinland in Germany started testing PV modules and noticed many problems because of the cables, since no dedicated standard tests for these cables existed, the TUV Rheinland created their

Figure 1: Wiring failures caused by ozone and high temperatures

58

own standard. This was the birth of 2Pfg 1169:2004 which was based on IEC 60245-4:1994 (Rubber insulated cables – Rated voltage up to and including 450/750V Part 4: Cords and flexible cables) After numerous wiring failures the PV experts recognized, that the requirements of the PV wires were much higher and requirements of the first Pfg 1169:2004 had been too low. In 2006 a new experts group (German National Committee Working Group 411.2.3) started to work on a new version of the “ Requirements for photovoltaic cables”. In the first part of the work, it was a joined group of module and cable experts. The focus was on the period of use of PV wires. The result of this work was published by TUV as TUV 2 Pfg 1169/2007:08 Solar cables have to withstand a wide range of environmental conditions – and continue to do so over a long period. High temperatures, UV radiation, rain, humidity, dirt and attack by moss and microbes are all a serious challenge to solar cables. Cables tested in accordance with EN, TÜV and UL requirements (120°C; 20,000 hours) can be used at environmental temperatures of –40°C to +90°C. They should therefore achieve the target service life of 25 years.

July 2015


GuestArticle

Apart from temperature, UV radiation is the other significant factor. Trials have shown that untreated material (free of any colour additive) will lose more than 50% of its performance capacity within less than six months. In order to avoid this deterioration, fine soot particles are added to the plastics (leading to a black colouring in the sheath). These particles absorb the UV radiation and convert it into heat. Optimum UV resistance can therefore only be achieved by using black solar cables with enough black carbon content. In 2011 the German National Committee for PV wires and cables started to work out a revision of VDE-AR-E 2283-4 “Requirements for cables for PV systems�. The target was now to apply this draft as a new work item to CENELEC TC20, The main topics were ll Increasing the system voltage ll Adapting test procedures to the new voltage level

The result of this work is the EN50618 which has been published as a new European Standard EN 50618 published in December 2014, this standard specifies cables for use in Photovoltaic (PV) Systems, in particular for installation at Direct Current (DC) side, with a nominal DC voltage up to 1.5kV between conductors as well as between conductor and earth. These cables are suitable for permanent outdoor use for many years under variable demanding conditions. Relatively stringent requirements are set for these products in line with the expected harsh usage conditions. EN 50618 requires cables to be low smoke halogen free, flexible tin coated copper conductors, single core power cable with crosslinked insulation and sheath. The testing requirements in EN 50618 are more stringent, the most important change is that all the test are done on material taken from finished cable ensuring that the product to be installed is passing all the testing requirements. Cables are required to be tested at Voltage of 11KV AC 50Hz. An IEC

July 2015

standard for Solar DC Cables based on EN50618 is also in preparation. To meet the stringent requirements insulation and sheath in modern solar cables consist of cross-linked polymers. Two different processes can be used for cross-linking – a choice between electron beam cross-linking and chemical cross-linking. Chemical cross-linking is a process that cannot be stopped once it has started. As a result, chemically crosslinked cables suffer from the same phenomenon as old car tyres. They can harden and become porous. By contrast, electron beam cross-linked cables are irradiated with beta rays. This improves the synthetic material. Once the cables have passed the electron beam, the cross-linking process is complete. These cables remain soft and elastic throughout their whole service life. Energy delivered from a Solar PV system is not only dependent on the efficiency of the module but also on other system components like DC Cables, Connectors and Junction Boxes. While designing the solar farm, engineers have to factor the losses from modules to the inverters to calculate the over-all performance ratio of the farm. Low quality solar cables and connectors will lead to small increases in resistance and result in higher losses of energy (I2Rt). The loss of energy already harvested, when calculated over a twenty five year life represents a substantial loss and would affect the profitability of the project. To determine the thermal ageing effect, the Arrhenius equation is a simple and accurate formula for the

59


GuestArticle

temperature dependence of reaction rates. It is used to model many thermally-induced processes/reactions. A useful generalization supported by the Arrhenius equation is that the reaction rate doubles for every 10 degree Celsius increase in temperature. To determine the long-term temperature stability of an insulation material, the different ageing times corresponding to different temperatures are measured and recorded in the Arrhenius-Diagram. A straight line is drawn to connect the various recorded points. By extending the straight line until it intersects the 20,000 hours axis, it is possible to determine the service life or the temperature index. A 10° C shift in temperature will increase or decrease the process by a factor of two. The temperature index as per IEC 60216 defines the ageing temperature (in °C), at which the material still has elongation at break of 50% after 20,000 hours. EN 50618 / TUV rates cable at 120°C @ 20000hrs with working temperature of -40°C to 90°C for

ly month onics & electr ctrical ding ele the lea

¬ O.. 10 NO EN ¬ ISSUE E4 ME LUM OLU VO

0-2946 ISSN 097

¬

solar DC cables resulting in the life expectancy of cables at 90°C to be >25 years. A high quality Solar DC Cable is expected to perform for the complete lifetime of the installation which is about twenty five years. The cost of replacing a defective installed cable is very high. The replacement costs increase when factoring in manpower used for removal, reinstallation and testing of the system. In addition, there are losses in power output and revenue generation. The cost of these cables and connectors is very small in the total cost. Since the differential cost of the high quality cables is insignificant, it makes sense to invest with higher initial cost and reduce the “total cost of ownership” of a PV plant. Author Mr Brinder Gandhi Business Development Manager , LEONI Cable Solutions India Pvt Ltd Mobile No :- 08411966236

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July 2015


TechSpace

E

lectrical utilities are reporting failure rate of Aluminum wound distribution transformers (DTs) of rating 25, 63, 100 kVA from 15% to 25% especially in power deficient, poorly designed and haphazardly expanded power distribution networks where frequent energization of DTs is in common practice. But, a private electrical utility where 24-hours power supply is maintained to the customers have reported failure rate of Aluminum wound DTs of ratings upto 100 kVA only by 3%. Therefore, the authors envisaged that failure rate of Aluminum wound DTs is about 10 to 15% due to their frequent switchings whereas remaining 5% to 10% failure may be considered owing to other reasons such as overloading, poor design, lack of maintenance, etc.

At every switching of a DT, cold load pick up (CLPU) and inrush current (explained in next section) are produced in them. Frequent switchings of DTs increase the probability of exposing the winding conductors for a long time at high stress and temperature[1-5]. Since the thermal time constant of DTs windings is very low around 10 minutes therefore temperature rise in the windings is very fast. These stress and temperature conditions are sufficient for elongation in the high voltage (HV) winding conductors due to creep. Creep is the time-dependent strain that occurs when a material is subjected to stress at elevated temperature. Metal creep remarkably at temperatures above about 0.3 Tm, where Tm is the absolute melting point temperature[6].

Figure 1(a) and (b): Failed high voltage windings of 25 kVA aluminum wound distribution transformers

62

July 2015


TechSpace

The HV winding conductors are caused Radial Spacers loose after elongation owing to creep. The HV winding conductors may also be left loose during manufacturing due Distance between Specified adjacent radial to poor workmanship. The loose HV clearance spacers Creep strain High voltage between winding conductors may be susceptible winding adjacent to vibrations or cyclic loading due windings (b) Low voltage to alternating nature of electromagnetic winding stresses produced in the DTs at service (a) current and inrush current [7]. The repetitive cyclic loading initiates fatigue Figure 2 Schematic diagrams showing failure mechanism of DTs due to creep in HV winding conductors; (a) Radial spacers’ arrangement in transformer in loose HV winding conductors. windings, and (b) Progressive creep strain reducing specified clearance in

The authors surveyed around 200 failed adjacent windings between radial spacers coils of aluminum wound DTs which networks. This condition produces several times were subjected to frequent energization and tried to higher load current than the normal value and may categorize the fault. These failed coils were viewed in the repair workshops of transformer industries and last upto several hours[8]. utilities. Some photographs of the failed coils were Inrush current generates due to magnetic saturation also collected and two of them are presented in of the core having residual flux. The inrush current Figure 1 (a) and (b) where fault area on the winding is found to be non-sinusoidal in nature of magnitude is encircled. It was observed that fault in almost ranging from 10 to 20 times of the rated current 70% of the failed coils was started from their inside of a DT [9]. Owing to the slow attenuation of the portion where electro-magnetic stresses are found transients, the effects of inrush current may persist maximum. These facts increase the probability of for several seconds before attaining the steady state failure of the Aluminum wound DTs due to creep and condition[10]. Faiz, Ebrahimi and Noori[2] calculated the fatigue in HV winding conductors. Thus, the authors axial forces and maximum radial forces on the HV have been motivated for experimental investigation windings due to inrush current to be 1.36 times and about the creep and fatigue behaviour of both EC 3 times, respectively than due to short circuit case. grade Aluminum and electrolytic Copper HV winding conductors used in 11/0.433 kV, 25 kVA DTs. The chemical composition of EC grade Aluminum and electrolytic Copper HV winding conductors under study is given in Table 1 and Table 2. Table 1 Chemical composition of the electric conductor grade Aluminum HV winding conductor wire under study Content

Fe

Si

Cu

Mg

Mn

Cr

Al

Weight% 0.23 0.11 0.03 0.01 0.01 0.01 99.6 Table 2 Chemical composition of the electrolytic Copper HV winding conductor wire under study Content

Pb

Weight% 0.004

Ni

Al

Fe

Cu

0.016

0.006

0.004

99.97

Cold load pick up and Inrush Current The cold load pick up condition is caused by loss of diversity among thermostatically controlled electrical devices during restoration of power in distribution

July 2015

Failure Mechanism of DTs Considering Creep

Strain or elongation due to creep in the HV conductors of adjacent windings gradually reduces the gap between them. If the creep strain in the winding conductors between radial spacers approaches to specified gap between adjacent windings then short circuit occurs between them and hence causes failure of the DTs. The failure mechanism of DTs due to creep has schematically been shown in Figure 2 (a) and (b).

Creep Characteristics of Hv Winding Conductors of DTs Creep characteristics of the EC grade Aluminum and electrolytic Copper wires of diameter 0.8 and 0.62 mm, respectively were investigated at temperature and stress that may generate in the HV winding conductors during frequent energization of the 25 kVA DTs. The stress in HV windings due to CLPU and inrush current was calculated using well established formulas for stress calculation owing to short circuit[11]. The setup and procedure for performing creep tests are presented in the following sections.

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Creep Test Setup A creep test chamber had an electrical resistance heating based furnace capable to maintain temperature upto 500 ˚C with accuracy of 1 ˚C. The test wires of length 150 mm can coaxially be placed in the furnace through the small openings at both the ends. Both the ends of the test wire were fixed by collets. The collet was used for gripping the dead ends of the test wire. The required tensile load on the test wire was applied using the dead weights through lever arm system attached with collet on lower end of the test wire. A K-type thermocouple was used for measuring the temperature of the test wire. The output of the thermocouple was used as a feedback to the temperature controller for automatically maintaining the desired temperature constant. Both the holes in the furnace were closed by fiber glass after placing the test wire and the thermocouple. Elongation of the test wire during test was measured by digital dial gauge with an accuracy of ±1 μm. The elongation data was acquired to the Microsoft Excel Sheet in a computer using data acquisition system through RS-232 serial port. The schematic diagram of wire creep test setup is shown in Figure 3.

Creep Test Procedure Constant temperature and fixed tensile load were applied to test specimens of EC grade Aluminum and electrolytic Copper wires to obtain the engineering creep curve. The general procedure adopted for creep test was as per American Society for Testing and Materials (ASTM) specification E139-06 [12]. Test specimens of 150 mm long wires were taken for creep test. A bias tension of approximately 3 Newton

was applied on test wire (at ambient temperature) after placing in the furnace for straightening it without any plastic deformation. The dead weights on the lever arm system were used to apply tensile loads on the test wire. The temperature of the furnace was increased to required test temperature after applying the desired tensile load on test wire and the same was maintained constant during creep test.

Creep Test Results The creep tests were performed only on few selected conditions of temperature and stress because these tests take very long time in completion. The creep tests on Aluminum and Copper winding conductors were performed at 40 and 65 Mega Pascal (MPa) stress and temperature of 100 ˚C and 140 ˚C. These conditions typically generate under worst energization conditions of the 25 kVA DTs. The temperatures for creep tests were taken corresponding to the extreme hot spot temperature in HV windings[13]. Beniwal, Dwivedi and Gupta[14] presented the calculation of hot spot temperature in DTs. Creep results for EC grade Aluminum and electrolytic Copper wires at different temperature and stress conditions are presented in the form of creep curves, i.e., variation in creep strain (%) as a function of time, as shown in Figure 4 and Figure 5, respectively.

Tertiary creep stage for EC grade Aluminum wire was started after time elapsed of 3000, 1125, 470 and 450 hours at temperature and stres combinations of (100 °C and 40 MPa), (100 °C and 65 MPa), (140 °C and 40 MPa) and (140 °C and 65 MPa), respectively. Tertiary creep stage for electrolytic Copper wire was observed after time elapsed of 2700 and 2100 hours at temperature and stress combinations of (140 °C and 40 Elongation Stored Electric Heating Chamber MPa) and (140 °C and 65 MPa), K type in MS Excel Sheet Thermo Collet respectively. The tertiary creep stage Couple for the electrolytic Copper wire was not observed till time elapsed of Temperature Computer 3000 hours at the temperature and Controller stress conditions of (100 °C and Test wire 40 MPa) and (100 °C and 65 MPa). Dead Weight Dead For clarity in presentation, creep Weight curves have been shown only upto the time elapsed of 3000 hours. Timer for Data Transfer Time elapsed to start tertiary creep Data Acquisition Digital dial gauge stage for EC grade Aluminum and System electrolytic Copper is summarized in Table 3. It can be observed that Figure 3 Schematic diagram of setup for performing creep tests on HV winding conductors of DTs increase in temperature and stress

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Figure 4 Creep curves of the EC grade Aluminum HV winding conductors

For electrolytic Copper wire, time elapsed to fracture at temperature and stress combinations of (140 °C and 40 MPa) and (140 °C and 65 MPa) were found 2900 hours and 2260 hours. The time elapsed to fracture was not recorded for the electrolytic Copper wire at the temperature and stress conditions of (100 °C and 40 MPa) and (100 °C and 65 MPa) as the creep tests were precipitately concluded after time elapsed of 3000 hours before actual fracture of the test wire. It is insignificant to run the creep tests on electrolytic Copper wires upto time elapsed of 3000 hours in view of the life of the DTs. Time elapsed to fracture for EC grade Aluminum and electrolytic Copper wires are summarized in Table 3.

The steady state creep rate is the important parameter in view of life of the DTs. The steady state creep rates for EC grade Aluminum and electrolytic Copper wires were derived from the creep curves and presented in Table 4. The steady state creep rates for Figure 5 Creep Curves of electrolytic Copper HV winding conductors EC grade Aluminum wire were found 5.34x10-6 /hour at 100 ˚C, 40 MPa, lowers the time required to attain tertiary stage. 18x10-6 /hour at 100 ˚C, 65 MPa, 25.3x10-6 /hour at 140 ˚C, 40 MPa and 79.3x10-6 /hour at 140 ˚C, For EC grade Aluminum wire, time elapsed to fracture 65 MPa. The steady state creep rates for electrolytic at temperature and stress combinations of (100 °C and Copper wire were found 0.25x10-6 /hour at 100 ˚C, 40 MPa), (100 °C and 65 MPa), (140 °C and 40 MPa) 40 MPa, 0.5x10-6 /hour at 100 ˚C, 65 MPa, 3.5x10-6 and (140 °C and 65 MPa) were found 3070 hours, /hour at 140 ˚C, 40 MPa and 6.9x10-6 /hour at 140 1180 hours, 520 hours and 465 hours, respectively. ˚C, 65 MPa. At high temperature, diffusion becomes Table 3 Time elapsed to start tertiary creep stage and fracture of the EC grade Aluminum and electrolytic Copper HV winding conductors Temperature (°C)

Stress (MPa)

100

Time (hours) elapsed to start tertiary creep stage

Time (hours) elapsed to fracture of the wire

EC grade Aluminum wire

Electrolytic Copper wire

EC grade Aluminum wire

Electrolytic Copper wire

40

3000

Not observed till 3000 hours

3070

Not observed till 3000 hours

100

65

1125

Not observed till 3000 hours

1180

Not observed till 3000 hours

140

40

470

2700

520

2900

140

65

450

2100

465

2260

July 2015

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very active which accelerates plastic deformation due to recovery which in turn increases steady state creep rate and tendency to early rupture of test wires. Table 4 Steady state creep rates of the EC grade Aluminum and electrolytic Copper HV winding conductors Temperature Stress (°C) (MPa)

Steady state creep rate (per hour) EC grade Electrolytic Aluminum wire Copper wire

100

40

5.34 x10-6

0.26 x10-6

100

65

18 x10-6

0.5 x10-6

140

40

25.3 x10-6

3.5 x10-6

140

65

79.3 x10-6

6.9 x10-6

The steady state creep rate for EC grade Aluminum wire is found more than that of electrolytic Copper wire under similar operating temperature and stress conditions which in turn leads to the fact that former is fractured earlier than the later. This is the reason for early failure of the Aluminum wound DTs than Copper wound DTs. The steady state creep rate for both the winding conductors rises with increasing the stress and temperature conditions which in turn leads to the fact that DTs operating under high stress and temperature conditions fail earlier. The stress and temperature in DTs may be generated due to CLPU and inrush current during frequent switchings of the DTs. Thus, creep in HV winding conductors is one of the reasons for failure of the frequently energized DTs.

Failure Mechanism of DTs Considering Fatigue The winding conductors on the inner most layer of the HV windings have more chances to get loose than outer layer as the maximum stresses occur on the inner most layer. The loose HV winding conductors are subjected to cyclic loading due to alternating nature of the electromagnetic stress produced in DTs. Repetitive cyclic stresses during frequent energization of the DTs may ultimately lead to fracture of the HV winding conductor wire as a result of fatigue. Thus, fatigue in loose HV winding conductors may eventually cause untimely failure of the frequently energized DTs. The mechanism of failure of the DTs considering fatigue in loose HV winding conductors is schematically shown in Figure 6.

Fatigue Results of HV Winding Conductors of DTs Fatigue tests under axial stress were performed on EC grade Aluminum and electrolytic Copper wires of diameter 0.8 and 0.62 mm, respectively. Axial tests were carried out at load cycle characteristic (R) value of zero which is obtained from theoretical analysis of electro-magnetic forces produced on HV winding conductors of the DTs under different CLPU and inrush current conditions. The load cycle characteristic ( ϕ ) is defines as follows: ϕ =Pmin/Pmax, where Pmin and Pmax refer to the minimum and maximum load of sinusoidal wave in each cycle on specimen under fatigue test. The setup and procedure for performing fatigue tests is presented in the following section.

Axial Fatigue Test Setup For fatigue studies of EC grade Aluminum and electrolytic Copper wires at axial tensile stress, a system was indigenously fabricated. A schematic

Radial spacers Loose conductor in the inner most layer of the HV winding

Radial spacers

High voltage (HV) winding

Cyclic loading in the inner most loose HV winding conductor

Low voltage winding

(a)

Conductors adjacent to inner most HV winding conductor

(b)

Figure 6 Schematic diagrams showing failure mechanism of DTs considering fatigue in the loose high voltage winding conductors between radial spacers; (a) Schematic representation of radial spacers, high voltage and low voltage windings, and (b) Schematic illustration of the cyclic loading in the innermost loose HV winding conductor

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Motor + +

M

M

+

Pulley

+

Circular disc Bearing

Test wire Dead weight

Eccentric

W

Rod Platform

Guidance

W

Spring

Damping oil

(a)

(b)

Figure 7 Schematic diagram of axial fatigue test setup showing two stress positions of test wire (a) Maximum stress, and (b) Minimum (zero) stress

diagram of the axial fatigue test setup is shown in Figure 7. The fatigue test system had a speed controlled motor and an eccentric attached mechanically with the motor’s shaft. A circular disc was fitted with the eccentric through a rod with a ball bearing between them. The bearing was used for loading the test wire and giving joggles free linear axial motion to it. The circular disc was welded with a well finished pulley. Diameter of the pulley was taken large enough to eliminate the stress concentration at any point of the test wire. A dead-weight container with a lever arm was used for applying the fatigue load/stress on the test wire. The weight of the container in addition to dead weights was also taken into account for calculating the fatigue stress on the test wire. Cyclic stress varying from zero to maximum was applied on the test wire. A spring supported platform was used to avoid shocks and ensure nil fatigue load on the test wire at minimum stress condition. The spring was further immersed in damping liquid oil to reduce the jerks on the test wire during its contact with the platform. The lower end of the spring was fixed with the ground. A guide with almost negligible friction with the spring was provided to ensure only axial loading without bending the test wire.

Axial Fatigue Test Procedure The test wires of EC grade Aluminum and electrolytic Copper of length 150 mm were subjected to fatigue test under axial tensile load. Predetermined amount

July 2015

of total weight (dead-weight and container’s weight) was applied on test wire corresponding to required stress. Stress cycle was achieved by stressing and relaxing the test wire between maximum and zero stress conditions. The motor had speed range from 90 to 300 revolutions per minute (rpm). The actual speed in rpm of the eccentric attached with the motor shaft was calculated by taking its diameter into account. Stop watch was used to measure the time for fatigue fracture of the test wire. The total fatigue life cycles till the fracture of the test wire were obtained by multiplying the speed of the eccentric with the time of cyclic loading till fracture of the wire.

This procedure was repeated for both EC grade Aluminum and electrolytic Copper wires at various stress conditions. Graphs between stress (S) and corresponding fatigue life cycles (N) under different stress conditions were plotted.

Axial Fatigue Results The axial fatigue tests were conducted at maximum stresses ranging from 8 to 20 Mega Pascal (MPa). As per needs of current work and long time required in the completion of the fatigue tests, the tests were conducted only at selected stress conditions corresponding to their maximum values. The fatigue life (N) for HV winding conductor wires of EC grade Aluminum and electrolytic Copper were obtained corresponding to different values of stress (S) and S–N curves were plotted accordingly. The fatigue tests were repeated 5 times at each stress value. The maximum scatter in the results of number of fatigue cycles (N) corresponding to particular stress was found upto 5%. The S–N curves (with scatter in results of N) for EC grade Aluminum and electrolytic Copper HV winding conductors under axial stress are shown in Figures 8 (a) and (b), respectively. Based on the Figures 8 (a) and (b) following observations can be made. The fatigue life of EC grade Aluminum HV winding conductors is found lesser than electrolytic Copper under similar operating stress conditions. This fact suggests that after loosening the winding conductor, Aluminum

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A B Figure 8 S–N curves under axial stress for high voltage winding conductors of (a) Electric conductor grade Aluminum, and (b) Electrolytic Copper

wound DTs fail earlier than Copper wound DTs. The fatigue life of HV winding conductor reduces with increasing the stress which in turn leads to the fact that higher amplitude of CLPU and inrush current cause early failure of DTs. The fatigue is a cumulative phenomenon which signifies that life of the DTs depends upon their number of energization also.

Scanning Electron Microscope (SEM) Analysis of Creep Fractured Surfaces

the solid solution matrix. After nucleation, the voids grow in the direction perpendicular to the applied stress. Some times secondary voids can nucleate at the smaller particles. The necking during fracture occurs due to expansion of the voids which in turn leads to the coalescence by void impingement.

Scanning Electron Microscope (SEM) Analysis of Fatigue Fractured Surfaces

The fracture of the test specimens during last phase of creep tests was observed as dimple fracture which is evident from the presence of cup like depressions, i.e., dimples on the fractured surface. The test specimens showed significant elongation prior to fracture. The dimples are caused by the formation of micro-voids and their coalescence. These voids mostly nucleate at second phase particles present in

The fatigue fracture occur in three stages namely fatigue crack nucleation followed by stable propagation and then sudden fracture. Many researchers[15-17] have proposed the different theories to explain the failure mechanisms due to fatigue. The SEM micrographs of fatigue fractured surfaces of EC grade Aluminum and electrolytic Copper test wires are shown in Figure 11 and Figure 12, respectively. The fatigue fractured surface is found normal to the direction of the principal tensile stress. The crack forms at a nucleus, such as an internal flaw or metallurgical discontinuity, and continues to grow during the repetition of loading with very little plastic deformation. Eventually, the crack grows to such an extent that the stress is significantly amplified by the reduced cross section,

Figure 9 SEM fractograph of creep fractured surface of EC grade Aluminum HV winding conductor

Figure 10 SEM fractograph of creep fractured surface of electrolytic Copper HV winding conductor

The scanning electron microscope (SEM) fractographs help to study the mechanism of the fracture. The SEM fractographs of the creep fractured surfaces of the EC grade Aluminum and electrolytic Copper HV winding conductor specimens are shown in Figures 9 and 10, respectively.

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Figure 11 SEM image of fatigue fractured surface of EC grade Aluminum HV winding conductor under study

Figure 12 SEM image of fatigue fractured surface of electrolytic Copper HV winding conductor under study

and unstable crack growth (fracture) occurs. Beach marks were not observed for electrolytic Copper test specimen due to low magnification.

viii The mode of fracture of test specimens during last stage of creep tests was recognized as dimple fracture indicating the significant elongation prior to fracture.

Conclusions i

It has been found that creep and fatigue in high voltage winding conductors greatly affect the performance of the distribution transformers.

ii

The steady state creep rates of winding conductors were found to increase with increasing temperature and stress.

ix SEM analysis of fatigue fractured surfaces reveal that fatigue fracture follows the sequence of initial crack development then growing up of cracks to such as extent that the stress is considerably high at the reduced cross section which ultimately cause fracture of the wire. x

iii The steady state creep rates were found higher for EC grade Aluminum winding conductors than electrolytic Copper winding conductors under identical test conditions. iv The fatigue and creep in high voltage winding conductors affect the performance of the Aluminum wound distribution transformers more than Copper wound distribution transformers. v

The fatigue life (number of cycles) of high voltage winding conductor wires corresponding to particular stress have been related with the failure tendency of the distribution transformers having loose high voltage winding conductors.

vi The life of the Copper wound distribution transformers is found more than Aluminum wound distribution transformers considering fatigue in loose winding conductors and the same was attributed to longer fatigue life of high voltage winding conductors of electrolytic Copper than that of electric conductor grade Aluminum. vii The magnitude and duration of the stress experienced by the loose HV winding conductors and number of energization of DTs influence the life of the distribution transformers.

July 2015

The S–N curves of the high voltage winding conductors must be included at the design stage for producing reliable distribution transformers of improved life. As, the S–N curves may help in selecting suitable diameter of high voltage winding conductors that has sufficient fatigue life.

REFERENCES 1

J. Aubin, R. Bergeron and R. Morin, “Distribution transformer overloading capability under cold-load pickup conditions,” IEEE Transactions on Power Delivery, vol. 5, issue 4, pp. 1883-1891, Oct. 1990.

2

J. Faiz, B. M. Ebrahimi and T. Noori, “Three- and twodimensional finite-element computation of inrush current and short-circuit electromagnetic forces on windings of a three-phase core-type power transformer,” IEEE Transactions on Magnetics, vol. 44, no. 5, pp. 590-597, May 2008.

3

K. Najdenkoski and D. Manov, “Electromagnetic forces calculation on power transformer windings under short circuit,” International Journal for Computation and Mathematics in Electrical and Electronic Engineering, vol. 17, no. 1-3, pp. 374-377, 1998.

4

K. Najdenkoski, G. Rafajlovski and V. Dimcev, “Thermal aging of distribution transformers according to IEEE and IEC standards,” IEEE Power Engineering Society General Meeting, pp. 1-5, 2007.

5

M. Popov, L. V. Sluis and G. C. Paap, “Computation of very fast transient over voltages in transformer windings,” IEEE Transactions on Power Delivery, vol. 18, no. 4, pp. 1268-1274, Oct. 2003.

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6

H. Fessler and T. H. Hyde, “Creep of engineering materials,” Editor, C. D. Pomeroy, Mechanical Engineering Publications Limited, pp. 85, 1978.

12

Standard test methods for conducting creep, creeprupture and stress rupture tests of metallic materials, E139-06, ASTM Standards, 2007.

7

M. Steurer and K. Frohlich, “The impact of inrush currents on the mechanical stress of high voltage power transformer coils,” IEEE Transactions on Power Delivery, vol. 17, no. 1, pp. 155-160, Jan. 2002.

13

D. Susa and H. Nordman, “A simple model for calculating transformer hot-spot temperature,” IEEE Transactions on Power Delivery, vol. 24, issue 3, pp. 1257-1265, Jul. 2009.

14

N.S. Beniwal, H.O. Gupta, and D.K. Dwivedi, “Creep Life Assessment of Distribution Transformers,” Engineering Failure Analysis, vol. 17, no. 5, pp. 1077-1085, 2010.

15

A. M. Freudenthal and T. J. Dolan, “The character of the fatigue of metals,” 4th Progress Report, Office of Naval Research, 1948.

16

E. Orowan, “Theory of the fatigue of metals,” Proceedings of London Royal Society, pp. 79-105, 1939.

17

F. R. Shanley, “A proposed mechanism of fatigue failure,” RAND Corporation, 1955.

8

9

10

11

V. Kumar, I. Gupta, and H.O. Gupta, “An Overview of Cold Load Pick Up Issues in Distribution Systems,” Electric Power Components and Systems, vol. 34, no. 6, pp. 639-651, 2006. L.F. Blume, G. Camilli, S.B. Farnham, and H.A. Peterson, “Transformer Magnetizing Inrush Currents and Influence on System Operation,” AIEE Transactions, vol. 63, pp. 366-367, 1944. J.J. Rico, E. Acha, and M. Madrigal, “The Study of Inrush Current Phenomenon Using Operational Matrices,” IEEE Transactions on Power Delivery, vol. 16, no. 2, pp. 231-237, 2001.

Author

N.S. Beniwal, H.O. Gupta, and D.K. Dwivedi, “Effect of Creep on Failure of Distribution Transformers - An Experimental Evaluation,” International Journal of Performability Engineering, vol. 6, no. 2, pp. 173-181, 2010.

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July 2015


IEEMAActivities

as advised by Shri Devendra Chaudhry, Special Secretary, Power.

IEEMA Activities

ERC Meeting in Kolkata Vice Chairman ERC, Mr. R. K. Shah welcomed the members to the 1st ERC Meeting of 2015-16. The meeting took place in Kolkata on 23rd May, 2015, at Tata Steel Room, The Bengal Chamber of Commerce and Industry. The meeting was also graced by Mr. Sunil Misra, DG, IEEMA & Shri Ranjan Dasgupta, Past President IEEMA. Mr. Banerjee, from IEEMA Kolkata Secretariat gave a presentation on “Konnect N-E & Beyond”, the eastern region summit which was recently held at Guwahati on 23rd & 24th April. The Chief Convenor Mr. Harish Agarwal on behalf of core committee thanked everybody in making the event a grand success. Shri Ranjan Dasgupta - Past President IEEMA, presented a case study on “Building Exports”. The presentation was prepared on his past experience which presents how CGL became one of the major exporters of Electrical Equipments started from a mere order of US $ 2000. The presentation was spell bounding and was highly appreciated by the members present. In continuation with “Konnect NorthEast and Beyond” Summit, a discussion was held in regards to the mission NER

Secretariat also informed that Mr. Bhaskar Sen, Chirman ERC has completed more than two years in this position. As per IEEMA norms the immediate Vice–Chairman should take the charge of Chairman with immediate effect. Mr. R. K. Shah agreed to take the charge. Mr. Harish Agarwal, one of the EC members, in consultation with DG & Mr. R. K. Shah, proposed the name of Mr. Sharan Bansal, DirectorSkipper Ltd, as Vice- Chairman of Eastern Region Committee, the members accepted the proposal wholeheartedly.

IEEMA Participation in 2015 UL International conference on Wires & Cables and Trade Show, China Underwriters Laboratories had organized 2015 UL Wire and Cable International Conference from 28-30 May 2015 at Dongguan, China, the city which is the hub of wires and cables manufacturing companies of China. The theme of the conference was ‘Advancing Compliance with Innovative Technology’. The conference focused more on compliance on communica tion cables, new innovative technologies in data cables, communication cables, UL standards, Cables for 4G communications equipment, etc. The conference was co-organised by Greater China Wire & Cable Association and Dongguan Humeni Information Wire & Cable Association and Huanan Hao Jing Wire & Cable City. IEEMA was invited as the Guest speaker in this conference. IEEMA Secretariat

Guest speakers at 2015 UL Wire Cable International Conference China

IEEMA VISION

‘Electricity for All and Global Excellence Leading to Human Enrichment’ July 2015

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IEEMAActivities

organised a Workshop cum Seminar on “New Foreign Trade Policy 2015-20� on 5th June at IEEMA Mumbai office. There were 20 participants from various organisation attended the programme. Dr. Kavita Gupta, IAS, Additional Director General of Foreign Trade (DGFT) delivered the Valedictory Address. Mr Vinod Bihari, CEO, PSSC met the HR Heads of IEEMA Member Companies

official Ms. Pragati Sohoni attended the conference and made the presentation on Indian power sector scenario, Indian Cable industry status, Make in India Campaign of Government of India, ELECRAMA-2016, etc. IEEMA presentation was well received and many Chinese manufacturers have shown interest in IEEMA and ELECRAMA 2016. Concurrently with the conference, the trade show was also organized where 100 exhibitors participated. Most of the exhibitors were Chinese and majority of them were manufacturers of cable and wire machinery. IEEMA member R R Kabel was also one of the participants.

FTP 2015-20 workshop cum seminar held in Mumbai by IEEMA The new Foreign Trade Policy (FTP) 2015-20 has been unveiled by the Government recently. There are several changes in the structure of the policy, especially the promotional schemes. There are new schemes like MEIS and SEIS introduced for goods and services. Deemed Export benefits have been curtailed to a large extent.

PSSC interaction session

A PSSC interactive session was held on June 12, 2015 at IEEMA Delhi office. The main objective of this meeting is gain a better understanding on how to develop a complete eco-system in this regard beginning with nationwide skill gap survey, development of National Occupational Standards/ Qualification Packs (NOS/QPs) with reference to each major job role thereby mapping extensively job requirement and skills needed to perform them successfully thereafter. The prerequisite of developing training content, curriculum and roll out of skill training program in partnership with credible training providers, followed by rigorous assessment and certification by another party to ensure quality in the process is the need of hour. Mr. Vinod Behari, CEO, PSSC shared an presentation citing the importance of developing the National Occupational Standards (NOS) & Qualification Packs (QPs) of those job roles which has larger employment penetration & how the industry to going to be benefited out of it. He also stressed on the main points describing in details of how we can become a partner in the whole exercise towards the nation building on Skill India concept.

The objective of the Government has been to promote exports, but there are several areas where the exporters would need to understand the impact and variations of the policy, and co-relation of FTP with customs and central excise, as well as other dynamics of exports and imports, to be able to take the full Kavita Gupta, Additional Director General, DGFT adressing IEEMA Members during the FTP 2015-20 benefits of FTP. IEEMA workshop

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IEEMAActivities

INTERFACE WITH GOVERNMENT AND AGENCIES Delhi

Mumbai

On 20th May 2015, Shri Sunil Misra, Director General, Shri Ajay Mahajan, Head-Trade fairs Marketing IEEMA, had meeting with Shri Upendra Tripathy, Secretary, MNRE regarding ELECRAMA-2016.

1st June, 2015 Cdr Parijat Sinha met Dr.Kavita Gupta, IAS, Additional Director General of Foreign Trade, DGFT introduced IEEMA and its activities and also briefed about its involvement with the Central and state government through various divisions. Discussions took place on the electrical equipment industry exports and imports and IEEMA’s aspiration to help the industry go global.

On 20th May 2015, Shri Sunil Misra, Director General, along with Ms Reema Shrivastava Dy Director, IEEMA met Mr RP Singh Director – HR, PGCIL, to discuss skill development initiatives of IEEMA. On 21st May 2015, Shri Sunil Misra, Director General, IEEMA along with Mr Devesh Vyas State Rep. Rajasthan, IEEMA met Mr Anurag bharadwaj, IFS,MD, Jaipur Discom, Mr. Vishvenath Hiremath (Chairman –RERC) & Mr. N.M.Mathur (CMD-RVUNL) in Jaipur to discuss EPC Contractors, Make in Rajasthan and EL 2016. On 22nd May 2015, Shri Sunil Misra, Director General and Shri Sudeep Sarkar, Deputy Director, IEEMA, had meetings with Dr. Rajan S Katoch, Secretary and Shri R K Singh, Joint Secretary, Department of Heavy Industry regarding status review of recommendations of Mission Plan 2012-22 for Indian Electrical Equipment Industry. On 25th and 26th May 2015, Shri Sunil Misra, Director General, IEEMA along with Mr Rakesh Ojha State Rep. Madhya Pradesh, IEEMA met Mr. I C P Keshari, IAS, Principal Secretary (Energy), Madhya Pradesh and Mr. Sanjay Shukla, IAS, MD, MP Power Management Comp. Ltd to discuss and finalize ‘empowering Make in India’ programme to be held on 22nd June 2015 at Bhopal. On 2nd June 2015, Shri Sudeep Sarkar, Deputy Director, attended a meeting under the Chairmanship of Dr. Nagesh Singh, Economic Advisor, Deptt of Industrial Policy & Promotion to discuss issues and concerns with ASEAN-India Trade in Goods Agreement. On 8th June 2015, Shri Sunil Misra, Director General, IEEMA along with Shri Vishnu Agarwal President IEEMA and members of IEEMA had an interactive session with Shri. Jawaid Akhtar, MD KPTCL, in Bangalore. On 12th June 2015 Shri Sunil Misra, Director General, IEEMA called upon Shri P K Pujari the newly appointed Secretary Power in his office to brief him about IEEMA and its engagement with Ministry of Power.

July 2015

Bangalore IEEMA INTERACTIVE SESSION WITH MD, KPTCL 8th June 2015, IEEMA Executive Council alongwith 20 IEEMA Members had a interactive session at The Taj West End, Bangalore. The session was organised by IEEMA to welcome the new MD of KPTCL, Mr Jawaid Akhtar. Various issues pertaining to utility industry interface were discussed.

Hyderabad IEEMA Officials met Mr. Ajay Jain, IAS – Secretary to Government of Andhra Pradesh (Energy, Infrastructure & Investment Department), and introduced IEEMA and its activities, discussed about membership in Hyderabad and shared about past events (Member Integration event) in Hyderabad. IEEMA Officials met Dr. K. Srinivas Reddy, IRS – Commission Secretary, Telangana State Electricity Regulatory Commission to discuss issue of Telangana State Energy, he shared about the generation, transmission and renewable energy (wind & solar).

Srinagar IEEMA officials met Mr. Sandeep Kumar Nayak, IAS, Principal Secretary Power, Government of Jammu & Kashmir and interacted with him about IEEMA ‘Empowering MAKE-IN-INDIA’ across the country. IEEMA officials met Tasneem Maajid, IAS – Special Secretary Power, Government of Jammu & Kashmir– Visited and interacted with her about IEEMA and interacted on the innovative ways for the smooth consumption of electricity across J&K. IEEMA officials met Mr. Mohinder Singh, KAS– Additional Secretary Power J&K and discussed with him about IEEMA and its Secretariat. Discussion about ‘Empowering MAKE-IN-INDA’ campaign of India across the country was done. He mentioned that there are many sick units and it is the priority to make them workable enough for the growth of India.

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IEEMAEvents

Power Sector Boost a Must for ‘Make In Madhya Pradesh’ - IEEMA

I

ndian Electrical & Electronics Manufacturers’ Association (Ieema) reiterated the need for a consistent dialogue between transmission and distribution service providers and the Madhya Pradesh Utilities. A workshop cum interactive session is being organised with the Utilities of Madhya Pradesh and IEEMA member Companies in Bhopal on June 22 under the banner of emPOWERing Make In India. The dignitaries present on the occasion were:

}} Mr I C P Keshari, IAS, Principal Secretary, Energy, Madhya Pradesh

}} Mr Manu Srivastava, IAS Principal Secretary, Renewable Energy & MD, Urja Vikash Nigam

}} Mr Sanjay Kumar Shukla, IAS, MD, MPPMCL }} Mr Vivek Kumar Porwal, IAS, MD, MPMKVVCL While IEEMA appreciated the efforts of the Government of Madhya Pradesh to provide special thrust to renewable energy progammes and new areas of technologies in the entire spectrum of nonconventional energy sources, which will provide immense opportunities in the field of wind, solar photovoltaic, biomass, solar thermal, small hydro and industrial wastes based projects, the association also brought to the fore accumulated bad debts in power purchase expense conforming to Madhya Pradesh State Electricity Board (MPSEB). In order to stimulate demand for the domestic electrical equipment industry, IEEMA suggested that the government has to

provide a level playing field for Indian manufacturers to compete with imported equipment in the domestic market. There is an urgent need to improve fund availability to the power sector and provide fuel linkages and faster regulatory clearances for timely completion of power projects. IEEMA recommend framing of guidelines for Model procurement for utilities with standardised and fair contract terms and conditions and increased spending in R&D that will help develop cost effective technologies. Mr Vishnu Agarwal, President - IEEMA, said, “The MP government has undertaken “Make in MP” mission on the lines of Prime Minister Narendra Modi’s “Make in India” campaign to overcome the challenges of power shortage. We appreciate that the State Government is encouraging setting up of power plants by private investors. Opportunities are immense in the areas of thermal, hydel, wind and solar energy generation and the Government is keen to support the private ventures in Madhya Pradesh.” Mr Sunil Misra, Director General - IEEMA said, “IEEMA appreciates MP government’s efforts in making the state of Madhya Pradesh fastest growing state of the country industrially. IEEMA will actively support the “Make in Madhya Pradesh’ proposition and will also come up with strategies for skill upgradation, infrastructure development and technological advances. We expect the centre and state governments to continue to harness growth enabling policies and increase their emphases on development of social infrastructure.”

(From L to R) Mr Vishnu Agarwal, President, IEEMA, Mr I C P Keshari, IAS, Principal Secretary, Energy, MP, Mr P Uma Shankar, Former, Power Secretary, GOI, Mr Sanjay Kumar Shukla, IAS, MD, MPPMCL and Mr Vivek Kumar Porwal, IAS, MD, MPMKVVCL

74

July 2015


IEEMAActivities

Recognition

Key Contributor at Mr Rajesh Parab receiving a token of appreciation from IEEMA Director General. Rajesh Parab has been playing a key role in developing strategic partnership. He has been pursuing collaborations with a number of foreign associations with our member companies for technology transfer as part of the Make In India campaign

Konnect NE & Beyond Summit Mr Anupam Banerjee, Sr Executive Officer, for the first time managed to bring foreign utilities from Vietnam, Cambodia and Burma to North East at the Konnect North East Summit in Guwahati

Key Contributor at emPOWERing MAKE IN INDIA

Mr Rakesh Ojha, Mr Anuj Chaturvedi & Mr Maneesh Anand July 2015

75


PowerStatistics

Copper World Reserves

Chile 47%

China 13% Peru 12%

Mexico Canada Zambia

Australia D R of Congo 8% 9%

Copper in Mine Production in Million Tons

United States 11%

Top Ten Countries

Russia

Copper World Reserves Data in thousand metric tons of Copper content World Total 700,000

Canada 1%

Chile 24%

Russia 5% Indonesia 5%

Copper World Reserves Data in thousand metric tons of copper content World Total 700,000

Australia 12%

Kazakhstan 3% Zambia 3% Poland 4%

Peru 14%

China USA 5% 5%

Other countries 13% Mexico 6%

Brazil 12%

Australia 21%

World Bauxite Reserves - 2013

Other 11% Vietnam 7% Jamaica 7%

Guinea 25% India 3% China 3% Kazakhstan 1%

Sierra Leone 1%

Russia Venezuela 1% 1%

Source: USGS

76

July 2015

Guyana 3%

Suriname Greece 2% 2%


PowerStatistics

Quarterly percentage growth of electrical equipment industry FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Product Rotating Machines Industry LV Switchgear Industry HV Switchgear Industry Switchgear Industry Cable Industry Transformer Industry Capacitor Industry Meter Industry Transmission Line Industry Electrical Equipment Industry Index (EEI) 15.0 10.0

9.6

3.2 -7.7

-2.6 2.5 44.6 6.6 20.9 17.3

2.4 2.5 9.7 2.4 8.2 6.3

8.0 -2.6 0.8 -4.4 -0.9 -4.5 -7.1 -2.4 -11.4 1.4

5.2 3.0 1.4 1.4 -2.9 -11.8 -7.9 2.5 -15.2 -11.8 -8.3 -13.6 -6.6 -7.0 4.2 -3.9 -3.6 -2.3 -6.7 8.7 59.1 -11.8 -14.5 -31.2 -35.0 5.4 -3.0 0.6 -7.6 -16.0 -9.6 -2.8 -4.5 -9.9 -20.0 -26.8 -37.3 -25.7 1.4 20.8 4.9 -0.7 -3.1 2.8 -7.9 5.2 14.6

-5.4 -1.8 2.9 13.8 3.6

0.4 12.2 16.4 6.0 -1.4 8.6

5.2 0.8

1.4

-0.9

0.0

-1.1

-2.4 -4.5

-7.1

-7.7

-8.7

-10.0

-11.4

Capacitors

8.2

14.7

1.4

-20.0

-16.2 -14.1 -19.4

-37.3

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-14.5

-11.8

LV Switchgear

25.0

-35.0

16.4 12.2

-5.0

-1.8

-2.9

-1.4

-5.4

-2.5

-9.7

-8.5

Switchgear

22.2

1.4

3.0

FY13 Q1

FY13 Q2

FY13 Q3

FY13 Q4

8.8

5.0

4.4

1.4

FY14-2.9FY14 FY14 Q1 Q2 -5.8 Q3

FY14 Q4

2.5

FY15 Q2

FY15 Q3

FY15 Q4

-5.0

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-6.6

4.1 0.6

-2.8

3.2

-3.0

-10.0

-3.1

-4.5

-9.6

-5.0

-9.7

-15.0

20.0 10.0

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-7.6

51.0

30.0

8.7

6.6

0.0

-6.7

40.0

10.0

2.4

-2.3

Meters

50.0

18.8

15.0

-3.9 -3.6

-7.0

60.0

Transformers

20.0

7.2 0.6

-2.6

-10.0

-10.0

10.3

5.8

4.2

2.5

0.0

-0.7

FY15 Q1

9.2

10.0

11.6

9.3 5.2

0.0

-16.0

-20.0

0.0 -10.0

6.3

28.2

24.1

17.3

14.6 4.9

2.8

-0.7

6.6

5.7

5.2

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-7.9

-3.1

-20.0

-3.4

-16.8

-30.0

Overall Electrical Equipment Industry Index 13.8

9.8

9.3

11.5

13.0

7.2

3.6 0.6

HV Switchgear

10.0

15.0

10.0

0.0

1.8

0.4

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

15.0

10.0

-5.0

4.1

20.0

15.0

5.0

8.8

8.6 6.0

2.9

25.0

27.7

20.0

15.0

-31.2

-15.0

30.0

-5.0

23.8 8.0

1.2

-10.0

-60.0

5.0

5.4

0.0

0.0

-25.7

-26.8

32.6

23.3 8.7

9.7

5.0

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 -9.9 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-40.0

7.2 11.5 13.0

41.9

10.0

20.8

0.0

9.3

28.7

33.9

20.9 20.0

-5.0

3.1

44.6

15.0

51.7

40.0

8.8 1.0 7.2 41.9 -9.7 -19.4 51.0

59.1

40.0

-20.0

11.6 5.2 10.3 23.8 3.2 -14.1 28.2

Transmission Lines

69.2

60.0

5.0

0.9

-40.0

-15.0 80.0

-0.7 9.3 5.6 9.0 0.6 9.2 28.7 32.6 4.1 -5.0 14.7 -16.2 -16.8 6.6

20.0

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 -2.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-4.4

27.7 12.3 22.2 8.0 -3.1 33.9 -3.4

Cables

60.0

8.0 3.2

-20.0

9.8

80.0

Rotating Machines 9.6

4.4 8.4 5.8 1.2 8.7 69.2 5.7

1.8 -8.5 -2.9 4.1 -9.7 8.8 -2.5

0.6 15.0 -1.8 -3.9 -10.5 -10.7 2.2

5.0

-5.0

-5.8 3.1 -2.6 23.3 18.8 51.7 24.1

-1.1 -8.7 5.2

2.2

-1.8

0.9

3.1

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-3.9

-10.0

-10.5

-10.7

12.3

5.0

2.5

2.4

3.1

0.0 -5.0

5.6

5.2 1.0

FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY14 FY14 FY15 FY15 FY15 FY15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

-2.6

-8.3

-7.9

-10.0 -15.0

9.0

8.4

-11.8

-11.8

-13.6

-15.2 -20.0

-15.0

July 2015

77


IEEMADatabase

Rs/MT

BASIC PRICES AND INDEX NUMBERS as on 01.04.15

Unit Iron, Steel & Steel Products

OTHER RAW MATERIALS

BLOOMS(SBL) 150mmX150mm

`/MT

30067.00

BILLETS(SBI) 100MM

`/MT

30716.00

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

`/MT

54000.00

Crgo Electrical Steel Sheets a) For Transformers of rating up to 10MVA and voltage up to 33 KV

`/MT

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

`/MT

as on 01.04.15

Unit

Epoxy Resin CT - 5900

`/Kg

350

Phenolic Moulding Powder

`/Kg

84

PVC Compound - Grade CW - 22

`/MT

127250.00

PVC Compound Grade HR - 11

`/MT

128250.00

`/KLitre

57203.00

Transformer Oil Base Stock (TOBS) 192100

OTHER IEEMA INDEX NUMBERS

227036

IN-BUSDUCTS (Base June 2000=100) for the month September 2014

NON-FERROUS METALS Electrolytic High Grade Zinc

`/MT

158600

Lead (99.97%)

`/MT

139500.00

Copper Wire Bars

`/MT

407013.00

Copper Wire Rods

`/MT

419939.00

Aluminium Ingots - EC Grade (IS 4026-1987)

`/MT

149444.00

Aluminuium Properzi Rods EC Grade (IS5484 1978)

`/MT

155639

Aluminium Busbar (IS 5082 1998)

`/MT

226.19

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

310.38

IN - WT (Base June 2000=100

211.73

IN-INSLR (Base: Jan 2003 = 100)

222.28

Wholesale price index number for ‘Ferrous Metals (Base 2004-05 = 100) for the month September 2014 Wholesale price index number for’ Fuel & Power (Base 2004-05 = 100) for the month September 2014

152.80

181.20

All India Average Consumer Price Index Number for Industrial Workers (Base 2001=100) September 2014

203800

253

# Estimated, NA: Not available

PVC Compound - Grade CW- 22

135000

RS.

130000 125000 120000 115000 110000

78

July 2015

`04-15

`02-15

`03-15

`01-15

`11-14

`12-14

`10-14

`09-14

`07-14

`08-14

`06-14

`04-14

`05-14

`03-14

`01-14

`02-14

`12-13

`10-13

`11-13

`09-13

`07-13

`08-13

`06-13

`05-13

The basic prices and indices are calculated on the basis of raw material prices, exclusive of excise/C.V. duty wherever manufactures are eligible to obtain MODVAT benefit. These basic prices and indices are for operation of IEEMA’s Price Variation Clauses for various products. Basic Price Variation Clauses, explanation of nomenclature can be obtained from IEEMA office. Every care has been taken to ensure correctness of reported prices and indices. However, no responsibility is assured for correctness. Authenticated prices and indices are separately circulated by IEEMA every month. We recommend using authenticated prices and indices only for claiming price variation.


IEEMADatabase

9000

H.T. Circuit Breakers

8000

Nos. ' KVA

7000 .

6000 5000 4000

4 5 6 7 8 910 121 2 3 4 5 6 7 8 910 121 2 3 4 5 6 7 8 910 121 2 3 4 5 6 7 8 910 121 2 3 April 2011- March 2015

Name of Product

Accounting Unit

Production For the Month From April 14 to Highest Annual March 15

March 15

Production

Electric Motors* AC Motors - LT

000' KW

904

9780

11217

AC Motors - HT

000' KW

429

3078

4647

DC Motors

000' KW

38

343

618

000' KVA

996

10676

10426

Contactors

000' Nos.

800

8527

8505

Motor Starters

000' Nos.

162

1808

1909

Nos.

58355

542503

947878

000' Poles

9963

114970

116151

Circuit Breakers - LT

Nos.

176290

1825044

1815007

Circuit Breakers - HT

Nos.

7851

70288

72155

Custom-Build Products

Rs. Lakhs

31553

200725

265267

HRC Fuses & Overload Relays

000' Nos.

1392

14603

16875

KM

70562

464826

434967

000' KVAR

4803

48035

53417

Distribution Transformers

000' KVA

5425

42242

43346

Power Transformers

000' KVA

24534

143726

178782

Current Transformers

000' Nos.

70

660

660

Voltage Transformers

Nos.

13404

105448

114488

000' Nos.

3116

26390

22645

000' MT

106

1097

1250

AC Generators Switchgears*

Switch Fuse & Fuse Switch Units Miniature Circuit Breakers

Power Cables* Power Capacitors - LT & HT* Transformers

Instrument Transformers

Energy Meters* Transmission Line Towers* * Weighted Production

July 2015

79


CPRINews

On the network simulated on RTDS different islanding scenarios of the field are simulated to check (a) Performance of the controller under various operating scenarios and (b) Stability of the WASIT system after the PMS controller actions. Around 28 cases of full Island and Partial Island of WASIT network were tested on RTDS and found that successful Islanding took place based on PMS actions resulting in WASIT system being stable. Generator breaker tripping timings were recorded which are well within the specification of the PMS controller.

CPRI Participates in Eastern Region Summit GE Power Management System Controller successfully tested on RTDS The Power Management System Controller designed by M/s GE for ARAMCO WASIT project was tested on Real Time Digital Simulator (RTDS)at CPRI, Bangalore. RTDS is a specialized power system simulator using parallel processing architecture to solve three-phase electromagnetic and electromechanical power system transients in real time. It solves power system equations fast enough to continuously produce conditions that realistically represent conditions in the real network. The detailed network of ARAMCO WASIT network consisting of four generators (GTG) of 150 MW each and two generators (STG) of 75MW each is simulated on RTDS. WASIT network System is having a WASIT load of 130 MW and Abu Ali Load of 110 MW. Generators are modeled in detail with associated AVRs, Turbines and Governors. Loads are modeled as dynamic loads. WASIT network is connected with utility grid through 230 kV lines. Under normal operating conditions the WASIT network is exporting 500MW power to the utility grid. The Developed model is validated for Steady state load flow, short circuit currents and dynamic contingencies before proceeding to actual PMS controller testing using RTDS. The signal interface between RTDS and PMS controller is through digital signals. The digital inputs to the PMS controller are +24V signals sent through GTDO card of RTDS. The digital outputs from the PMS controller are +24V signals received through GTDI card present in RTDS. During the testing of the PMS controller, status of Circuit Breakers, Disconnector switches, GTG Generators, STG Generators from the modeled system in RTDS are provided to PMS controllers as digital signal inputs. Generator Trip, Runback Load Target Signals to maintain the load generation balance, generator droop mode, generator Isochronous mode, generator MVAR control mode and generator Voltage control mode are provided to the system modeled on RTDS from PMS controller as digital signal outputs.

82

CPRI participated in the 5th Eastern Region Summit “KONNECT North East & Beyond” at Maniram Dewan Trade Centre, Guwahati from 23rd to 24th April 2015 organised by IEEMA. The event comprised of Conference and Exhibition.CPRI participated in the event by positioning its 9 sqm stall in the exhibition arena of this event. CPRI stall featured its state of art research facilities, Testing & Certification, Consultancy/ Field testing and Training program. The stall attracted large numbers of Researchers, Academicians and Senior Officials from Utilities/Industries.

Forthcoming CPRI Technical Programmes http://www.cpri.in/events.html Sl No

Name of the Event

Dates

1)

Metallurgical analysis & condition assessment of power plant & process industries components

August 7, 2015

2)

Enhancement of O & M Skills for BESCOM Engineers

August 12-14, 2015

3)

Comprehensive Tutorial Programme on “Transformer oil, Polymeric Composite Materials as well as Reclamation and Reconditioning of Used Lubricating Oils”

September 07-11, 2015

4)

Enhancement of O & M Skills for BESCOM Engineers

September 9-11, 2015

5)

Workshop on Condition Monitoring Engineering and Asset Management of Power Plant and Substation Equipment

September 11, 2015

6)

Workshop on “Selected topics in Flexible Power Transmission & Protection”

September 17-18, 2015

7)

Short Term Course on “Power Cable Technology”

September 21-23, 2015

8)

Tutorial Program on “Testing & Evaluation of Power/Distribution Transformers”

September 24 -25, 2015

For details, contact: Shri Prabhakar Hegde, Joint Director (Information and Publicity Division) CPRI, Bangalore. Tel: 080 23602329 Email: hegde@cpri.in

July 2015


ERDANews

Thermo-Mechanical Test Chamber

400 kV Transmission Line Hardware under RIV Test

uu Hardware

required for spacing and / or damping of aeolian vibration of conductors such as spacers and dampers of various types and shapes as well as spacer – dampers as per IS: 9708

uu Conductors

Evaluation of Transmission & Distribution Hardware:Capability at ERDA ERDA havecomprehensive state-of-the-art facilities for certification testing and evaluation of T&D hardware. The main emphasis of evaluation of these items is their durability under all possible operational and environmental conditions. These components are evaluated for various electrical, dielectric, mechanical and thermal properties. Details of the existing capabilityis profiled below:

(ACSR, AA, AAA upto 400 kV class) as per IS:398 (Pt.2 & 5), IEC: 1089

uu Insulators(Composite

Insulators with Hardware upto 400 kV, Disk Insulators upto 33 kV and Post Insulators upto 220 kV as per IS:731,2544,5621,IEC: 60383,60575, 60797, 61109, 62217

Transmission & Distribution Hardware Testing Facilities (Upto 400 kV Class) uu Impulse uu HVAC uu PD

VoltageGenerators

Transformers

/ RIV Measuring Instruments

T&D Hardware Evaluated (Suitable for 400kV Class)

uu Short

uu G eneral

uu Universal

hardware required for stringing of conductors such as strain clamps with accessories, yoke plates, turn buckles, shackles and links of various geometry, dead end clamps, mid-span joints, corona control rings, pins, fasteners, earth wires, stay wires, etc., as per IS: 2486, 2121 (Pt. 1 to 4); 2062,1786; 1897, 13730, 613, 191; 2141, 280, 12776

uu High

Time WithstandCurrent Test Facility Current source forTemperature Rise Test Testing Machine(UTM)

uu Themo-MechanicalChamber uu Salt

Spray Chamber

uu Tracking

& Erosion Test Facilities (1000 hrs. salt fog test, wheel test, multiple stress test) Salt Spray Chamber

Forthcoming Training Programs Programme Evaluation of Cables & Accessories

Evaluation of Solid Insulation Materials Design Aspects & Performance Evaluation of Motors & Pumps Condition Monitoring and Health Assessment of Power Transformers

1000 hrs. Salt Fog Test on Polymer Insulators as per IEC:62217

84

Universal Testing Machine (UTM) 10T

Date

25-26 June 23-24 July 6-7 August 26-27 August

Dr G S Grewal, Deputy Director (MTD) Phone: 0265-3048027, Mobile: 09978940951 E-mail: gurpreet.grewal@erda.org Website: www.erda.org

July 2015


Seminars&Fairs

this hotbed. Joined by CSP players and experts from India and the rest of the world, we are going to figure out what is really going on in India, and we do hope CSP Focus India 2015 can serve as your guidance to lead you to future success.

Key Topics • Political enforcement in solar industry—figure out what is really going on in India by taking a closer look at its JNNSM plans, debate how the grand goals of 100 GW’s solar capacity in 2022 can be achieved. Identify the potential business opportunities for alternative industrial applications. •

Recent dynamics of solar thermal projects in India ---benefit yourself from the experience of 3 initial CSP developers under JNNSM Phase I by learning how to withstand great pressure from policies, finance and technologies, and realize its far-reaching impact on Indian CSP ecosystems. Analyze SECI’s future plans for its two pilot CSP projects and MNRE’s support to alternative industrial application projects to seize the chances.

What makes CSP projects bankable in India--hear from local banks and international financial supporters about their funding solutions, learn how the government is going to offer subsidies to ensure the feasibility of CSP in India.

2015 OMICRON IPTS and ITMF The exchange of knowledge about new methods and solutions for ensuring stable and reliable grids will be the central pillar of this year’s International Protection Testing Symposium (IPTS) and Instrument Transformer Measurement Forum (ITMF). The 3-day international conference will take place from October 13-15, 2015 in Feldkirch, Austria.

International Protection Testing Symposium (IPTS) October 13-14, 2015 The IPTS 2015 will cover topics concerned with protection testing in distribution automation, transmission systems and generation. Selected papers will focus on power utility communication, IEC 61850 system verification, data management and new distributed testing approaches that consider simulation.

Instrument Transformer Measurement Forum (ITMF) October 14-15, 2015 The ITMF 2015 will concentrate on conventional and non-conventional instrument transformers. General subjects such as design and accuracy will be covered along with more specific topics such as power quality requirements, ferroresonance and field diagnostics. For registration and more information please visit www. omicron.at/ipts-itmf.

CSP Focus India 2015 CSP Focus India 2015 to be held in New Delhi on July 2-3, 2015 will take a journey through India CSP world to try and find the business opportunities underneath

86

• Driving diversified technologies forward---find out the latest breakthroughs of CSP components, get to know the optimized O&M methods, evaluate the hybrid power generation model.

EP Shanghai 2015 Established in 1986, EP China is organized by the most authoritative organization, China Electricity Council, and fully supported by all major Power Group Corporations and Power Grid Corporations in China. Over 30 years successful track record and experience, it has become the largest and the most reputable electric power exhibition endorsed by UFI Approved Event in China and has been widely recognized by global market leaders and international trade associations. With annual rotation in Beijing and Shanghai in alternate years, EP Shanghai 2015 will be held again at Shanghai World Expo Exhibition & Convention Center during 14-16 October 2015 in Shanghai. Exhibiting spaces will be expanding to 35,000sqm, including Hall 1 and 2, which expecting for a total of about 1,000 exhibitors all over the world.

July 2015


ProductShowcase

SecoVac* R Retrofill Vacuum Circuit Breaker The GE SecoVac* R Retrofill vacuum circuit breaker is designed to easily replace vacuum circuit breakers in existing switchgear in systems up to 15kV maximum rated voltage. It is a streamlined solution to update legacy circuit breakers with smart design features such as a simplified mechanism, which reduces maintenance time for customers. It is designed and tested to the requirements of IEEE C37.04, C37.06, C37.20.2, C37.09, including continuous current, short circuit and short-time current, capacitive switching and endurance.

SIMATIC PCS 7 SMART DCS Siemens launched a new DCS product line SIMATIC PCS 7 SMART specifically designed for small to mid-sized process automation markets across applications and industries. PCS 7 SMART ensures lower initial acquisition cost than a larger DCS, thus reducing the Total-Cost-of-Ownership (TCO). It offers a fixed, compact configuration which ensures ease of repeatability, meaning once a standard solution is designed, the same can be used for several similar applications as well. This feature not only reduces engineering efforts but also ensures lesser time-tomarket. This compact automation controller is an extension of the powerful and proven SIMATIC AS 410 series controllers and ensures the same robustness and highest SIMATIC quality. SIMATIC PCS 7 SMART can withstand harsh temperature, vibration, shock, EMC requirements and is designed for round-the-clock industry use. It has a proven ruggedness of SIMATIC controllers and is equipped with conformal coating (G3). SIMATIC PCS 7 SMART is the future-oriented process control system with modern system architecture. It is based on robust, industrial standard SIMATIC hardware, software and peripheral components. It allows flexible and simple integration of field devices and drives based on PROFINET, PROFIBUS or Foundation Fieldbus. It also supports open source interfaces based on international standards such as OPC.

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Manufactured in accordance with the highest quality standards, the SecoVac R Retrofill is a highly reliable and compact system. This advanced design demonstrates GE’s engineering strength in core technologies, combining mechanism modularity design, vacuum arc control, the latest circuit breaker and insulation technology.

Lexium 28 & Lexium BCH2 servo bundle Schneider Electric, the global specialist in energy management, has just introduced a new servo bundle optimised for a wide range of machine applications. Comprising the LexiumTM 28 servo drive and the Lexium BCH2 servo motor, the bundle offers customers the advantage of out-of-the-box integration, as well as increased cost and energy efficiency. Lexium 28 is a line of servo drives offering a performance range of 0.05 to 4.5 kW. They use CANopen and CANmotion, as well as a pulse train interface, for easy connection to controllers without a fieldbus network. Lexium 28 servo drives are parameterised and commissioned using a Modbus interface. Thanks to speed and torque control functions, and an integrated autotuning algorithm, they are suitable for use in a wide variety of machine applications. In addition, with an embedded Safe Torque Off (STO) function, the servo drive can be used in safety solutions rated up to SIL 2/PL d (SIL: Safety integrity level; PL: performance level). Lexium 28 units can also be customised with a range of accessories, including power filters, braking resistors and other accessories for easier installation and commissioning.

July 2015


INTERNATIONALNEWS US would retire 90-GW of coal-fired power capacity by 2040 The US Energy Information Administration (EIA) has stated that new emissions rules drafted by the country’s Environmental Protection Agency (EPA) will lead to closure of twice the currently projected capacity of coal-fired power plants by 2040. In numerical terms, that translates into retiring 90 gigawatts of coal-fired power plants by 2040. Previously, the projection was to retire 40 gigawatts of coal-fired power plants in the same period. The EIA report released last month also includes the following findings: Electricity prices will rise 3-7% throughout the 2020s as companies take action to remain in compliance (compared with the scenario without the new rules); renewable energy capacity will increase by 160% resulting in projected growth to 174 GW of renewable energy capacity by 2040. The report focuses on the key strategy to achieve the goals set by the proposed rules would be to switch from coal-fired generation to natural gas-fired power generation. Renewables will play a “growing role in the mid-2020s and beyond”, the report says.

Canadian Solar to receive $58 mn loan from Deutsche Bank Canadian Solar is to receive 71.6 million Canadian dollars ($58 million) under a financing agreement with Deutsche Bank. The German bank has agreed to provide the nonrecourse, short-term construction loan to Canadian Solar for the development of two solar projects in Ontario, Canada. Also, Independent Electricity System Operator (IESO) has signed a 20-year power purchase agreement with Canadian Solar from the 10-MW (AC) projects under Ontario’s Feed-in-Tariff (FiT) program. Previously, Canadian Solar had received construction loans from Deutsche Bank thrice.

July 2015

In May, Canadian Solar received a 53.5-millionCanadian-dollar($44.4 million) non-recourse, construction plus term-financing loan from Natixis, Norddeutsche Landesbank Gironzentrale, Cooperative Centrale Raiffeisen-Boerenleen bank BA and Rabobank Nederland. The company planned to use the financing to develop “Illumination”, a 10-MW utility-scale solar power project located in the town of Scugog, Ontario. The project is to be acquired by DIF Infra 3 RE Canada Limited. The solar power plant is expected to go into commercial operation by the fourth quarter this year. And Ontario Power Authority has signed a 20-year power purchase agreement with the company under the Feed-in-Tariff program of Ontario.

World Bank arm invests $35 mn in PFS India for clean energy The International Finance Corp (IFC), the private financing arm of the World Bank said it has subscribed to $35 million worth of 10-year non-convertible debentures issued by PTC India Financial Services (PFS) to boost long-term financing for renewable energy projects in India. “The investment will help generate an estimated 129 GWh (gigawatt hours) of clean energy over five years,” IFC said in a statement. “In 2011, IFC had provided PFS a senior loan of $50 million to fund four renewable energy projects,” it added. “Infrastructure finance companies like PFS can fill a critical funding gap for renewable energy projects in India,” said Vivek Pathak, IFC director for Asia-Pacific. In April, PFS became the first institution in India and the 26th globally to sign IFC’s master cooperation agreement. The IFC’s master cooperation agreement was created in 2009 for financial institutions to collaborate

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Internationalnews

more closely to help meet the shortfalls in private sector financing during the global financial crisis.

more than 1,000 MW in development stages in six states across the country.

Pakistan approves 1,400-MW power project by Shanghai Electric of China

SunEdison intends to place the power plants acquired from Continuum on the operational call rights list for TerraForm Global, an indirect subsidiary of SunEdison headquartered in the US.

Pakistan has approved a coal-based 1,400-MW power project by the Shanghai Electric Group of China in Sindh province. The project, in the Hindu-majority district of Tharparkar, is among the “prioritised projects” under the China-Pakistan Economic Corridor (CPEC) and is scheduled to start power generation in 2017-18, Dawn reported.

In September last year, SunEdison and TerraForm Power announced the interconnection of 50 MW of solar Projects in Britain.

sPower acquires 62.1-MW wind power project in Utah

Chinese President Xi Jinping announced the ambitious $46-billion China-Pakistan Economic Corridor (CPEC) during his visit to Pakistan in April.Indian Prime Minister Narendra Modi has raised “very strongly” the issue of the China-Pakistan economic corridor during his visit to Beijing last month and told them that it was “unacceptable”, External Affairs Minister Sushma Swaraj had said in New Delhi. “Prime minster during his visit took up the issue very firmly and spoke very strongly that the CPEC going through Pakistan-occupied Kashmir was unacceptable,” she said. The power project in Tharparkar was approved in a meeting of the board of directors of Private Power and Infrastructure Board (PPIB), presided over by Minister for Water and Power, Khawaja Muhammad Asif.

SunEdison India to buy Continuum Wind Energy Solar technology firm SunEdison India has acquired Singapore-based Continuum Wind Energy for an undisclosed sum. “SunEdison has signed a definitive agreement to acquire Continuum Wind Energy, Singapore with assets in India,” SunEdison said in a statement. “India is a core market for us and offers tremendous growth opportunities in wind and solar energy. With the acquisition of Continuum, a leading wind energy company in India, we have added significant assets and a skilled wind development team to drive further growth in our renewable energy development platform,” chief executive Ahmad Chatila said. “SunEdison’s strong global financial capabilities and talented local team here in India position us to capture the incredible business opportunity in this dynamic market,” Continuum chief executive Arvind Bansal said. Continuum operates 242 MW of wind power plants in Maharashtra and Gujarat, has another 170 MW project under construction in Madhya Pradesh, and

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wind power project in Utah

Utah-based renewable energy company sPower has acquired a 62.1-megawatt wind power project at Monticello. It is the first wind project to be acquired by the company and adds to its portfolio in its home state. At peak output, the Monticello project is expected to reduce carbon emissions by approximately 103,800 metric tons annually. It is the equivalent of removing about 22,000 cars from the road each year or cutting greenhouse gas emissions from 241,000 barrels of oil consumed. Construction of the project is to begin by September and is expected to be commissioned toward the end of this year. PacifiCorp, which does business as Rocky Mountain Power in Utah, has signed a 20-year power purchase agreement with sPower. As an independent power producer, sPower owns and/or operates more than 150 utility and commercial distributed electrical generation systems across the US and UK. It has more than 1.7 gigawatts of installed or under-construction capacity. The company is also actively buying renewable assets in North America and the UK. Fir Tree Partners, an investment fund that manages about $13 billion of capital, owns sPower.Earlier this month, sPower secured 20-year PPAs for three new solar photovoltaic projects in California.

July 2015


NATIONALNEWS Electrical Equipment Grows by 13% in Q4: IEEMA Addressing to Domestic Industry will support “Make In India” Campaign The electrical and industrial electronics industry has witnessed a 13% growth in Q4 of FY 2014-15. The overall growth of the industry is 9.98% in this fiscal. Although higher imports still plague the industry but policy changes and various initiatives undertaken by the industry and government are eventually showing signs of revival for the sector. The data is compiled by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment. The production and sales data is collected from its member organisations, which represent 90 percent of the entire sector. The major drivers in this growth are Cables & Conductors, LV and HV switchgear, while Power transformers and LT Motors continue to show declining trend. Rotating Machines continue to show negative growth on the back of huge rise imports of about Rs. 2,000 crs  and even Capacitors have shown decline in demand. Demand from Power Generation, sub-station completions, Infrastructure and Realty sectors coupled with Exports is helping the industry to remain competitive. Mr Sunil Misra, Director General, IEEMA says, “India now has an installed power capacity of 2,67,367 MW with 30,000 MW more in the pipeline. Another 1, 00,000 MW would be added from solar power over the next five years. But still the power sector is facing predicament and this is due to the losses faced by the discoms. The country has added the best generation growth in two decades with output touching trillion unit mark but there are no takers for all the generation capacity that is in place as they have no money to pay for the power due to the health of the discoms.”

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Mr Vishnu Agarwal, President, IEEMA is of the view that “There has been an overall increase in power generation by 8.4 per cent since last year. The government had done well to untangle supply side issues by augmenting coal supply as well as taken efforts to boost transmission & distribution. The Government’s “Make in India” is perhaps one of 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 on the pattern of China, Japan, South Korea etc. 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 stateof-the-art technology.” The other issue which is concerning specifically to Transformer industry is of Cold Rolled Grain Oriented (CRGO) availability which is adversely impacting the manufacturing & supply in time.  Uncertainty of deliveries in near future of certain grades of CRGO may affect manufacturers of transformers and in turn overall power Development program.

India approves raising solar power generation to 100,000 MW In a major decision to boost use of clean energy in India, the union cabinet decided to quintuple solar energy capacity under the National Solar Mission towards achieving 100,000 MW by 2022. “In an important decision, the Cabinet Committee on Economic Affairs (CCEA) decided that solar power capacity in the country is to go up five times to 1 lakh megawatt by 2022,” Telecom Minister Ravi Shankar Prasad told reporters. s“This is a giant step and India will become the biggest producer of solar power in the world,” he added.

July 2015


Nationalnews

“Rays Power Experts is completely debt free where all capital is raised from company’s internal accruals and it is fully equity based,” director Rahul Gupta said in a release here on the occasion.

TN Generation and Distribution Corp plans to add over 5700 MW before 2020 Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), power utility arm of the Tamil Nadu Government, is expected to add over 5700 mega watt (MW) before 2020. Describing how the ambitious project had elements like many solar projects and grid-connectivity for roof-top solar power, Prasad said an investment of Rs.600,000 crore is being envisaged till 2022. “The government of India is providing Rs.15,050 crore as capital subsidy to promote solar capacity addition in the country,” Prasad said. “The ministry of new and renewable energy intends to achieve the target of 100,000 MW with targets under the three schemes of 19,200 MW,” the cabinet communique said. “Apart from this, solar power projects with investment of about Rs.90,000 crore would be developed using bundling mechanism with thermal power,” it added. “Further investment will come from public sector undertakings and independent power producers. State governments have also come out with state specific solar policies to promote solar capacity addition,” Prasad said.

Solar rooftop plant set up at Delhi Metro station Solar power solutions provider Rays Power Experts said it has successfully installed a 10 kWp (kilowatts peak) solar power system at Delhi Metro’s ITO station, making it the fastest installation of a solar photovoltaic (PV) system in an underground station in India. The ITO station was inaugurated by Urban Development Minister M. Venkaiah Naidu and Delhi Chief Minister Arvind Kejriwal. Solar electricity systems are given a rating in kilowatts peak, the rate at which it generates energy at peak performance for example at noon on a sunny day (kWp). Each kWp should generate around 800 to 850 kilowatt hours (kwh) of electricity per year if unshaded. In April, Rays Power won a contract from Delhi Metro for setting up 7 MW solar rooftop photovoltaic plants on selected stations and sites. The company said it is a tariff-based project at a consistent tariff of Rs.6.248 per unit for a duration of 25 years.

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Projects which are in the pipepline, according to Energy Department’s Policy note 2014-15, includes Ennore Thermal Power Station Expansion (1x660 MW) The project cost is Rs 5,000 crore. The EPC contractor is Lanco Infratech Ltd and the project is expected to be commissioned in 2017. The Ennore SEZ Thermal Power Plant, consists of two units of 660 MW capacity each with super critical thermal technology. The cost of the project is Rs 8,391 crore. tenders for construction of this project are under evaluation and will be awarded shortly. This project is likely to be commissioned in 2018-19. For the Rs 10,121 crore Udangudi Thermal Power Project (2x660 MW), which also included a coal jetty, tenders are under evaluation and will be awarded shortly. This project is expected to be commissioned in 2018-19. For the Uppur Thermal Power Project (2x800 MW), cost estimate is Rs 9,600 crore. This project is being developed with private sector participation through tariff based bidding. This project is expected to be commissioned in 2019-20. For the Rs 4,800 crore North Chennai Thermal Power Project Stage III (1x800 MW), various studies for obtaining environmental clearance for this project of 800 MW capacity have been completed. Arrangement is being made to conduct public hearing for the project. After the public hearing, environmental clearance will be obtained from the Ministry of Environment and Forests, Government of India. This project is expected to be commissioned by 20192020, said in the Policy Note. For the Ennore Thermal Power Station Replacement (1x660 MW) cost is projected at Rs 3,960 crore. Government of Tamil Nadu has proposed replacement of old 5 units of ETPS (450 MW) with a new single 660 MW super critical unit. Prefeasibility report has been prepared and the project development activities are under progress. The project is likely to be commissioned by 2019-2020.

July 2015


CORPORATENEWS ABB Ltd ABB wins order to build substation for grid integrating solar power ABB has won a $20-million substation expansion order from Dubai Electricity and Water Authority (DEWA). The project is part of DEWA’s drive to double capacity of phase-II of Mohammed bin Rashid Al Maktoum solar park to 200 megawatts. The solar park, which is spread over 4.5 square kilometers, is expected to produce electricity adequate to meet the average power needs of 30,000 households. And it is to cut greenhouse emissions by 250,000 tons annually. The substation to be built by ABB is expected to help integrate power generated at the solar park with the electrical grid. ABB will be responsible for design, engineering, supply, installation and commissioning of the extension of the substation. The company will be deploying its products including three bays of 400 kilovolt (kV) and eleven bays of compact 132 kV gasinsulated switchgear (GIS), power transformers, and IEC 61850-based open architecture automation and controls. The project is scheduled to be completed in 2016. In 2014, DEWA had awarded ABB the contract to build a substation to integrate 100-MW from the park into the grid. DEWA has set the target of meeting 15 percent of Dubai’s electricity needs from renewable sources by 2030.

BHEL Ltd BHEL commissions 82.5 MW hydroelectric unit in Uttarakhand With the successful commissioning of the fourth unit of 82.5 MW, Bharat Heavy Electricals Ltd (BHEL) has commissioned the 330 MW Shrinagar hydroelectric project (HEP) in Uttarakhand. “Significantly, all the four units of this project have been commissioned in

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quick succession within a span of just 60 days. This achievement of BHEL comes close on the heels of the receipt of all the three awards for early completion of hydro projects, announced by the Government of India recently, where generating equipment was supplied & commissioned by BHEL,” said the company in the press release. The greenfield hydroelectric project consisting of four units of 82.5 MW each has been set up by Alaknanda Hydro Power Corporation Limited (GVK Group). The project is located on the Alaknanda River (near the town of Shrinagar in Pauri Garhwal District of Uttarakhand), a major tributary of the Ganga River, a perennial river in Uttarakhand. The project is designed to utilise the waters of River Alaknanda by way of a diversion dam. Power generation from Shrinagar HEP will result in reduction of greenhouse gas emissions and will help in achieving a low carbon development path for the state as well as the nation. BHEL is presently executing hydroelectric projects of around 4,000 MW which are under various stages of implementation. Other hydro power projects under execution by BHEL in Uttarakhand include Lata Tapovan HEP (3x57 MW), Tapovan Vishnugarh HEP (4x130 MW), Vyasi HEP (2x60 MW) and Vishnugarh Pipalkoti HEP (4x111 MW).

Hindustan Powerprojects Hindustan Powerprojects achieves COD of unit-I of its Anuppur thermal power plant India’s leading integrated power player, Hindustan Powerprojects successfully achieved COD of unit-I (600 MW) of the first phase of its flagship 2520 MW Anuppur thermal power project in Madhya Pradesh. The company had signed PPA’s with Government of Madhya Pradesh and Uttar Pradesh for 35% and 361 MW respectively earlier and importantly, the coal for the project is secured through a fuel supply

July 2015


corporatenews

agreement with South Eastern Coalfields. The total capacity of the flagship thermal plant is 2520 MW to be developed in two phases of 1,200 MW (2 x 600 MW) 1,320 MW (2 x 660 MW). The first phase of the project has been commissioned at a total project cost of INR 8,000 crores.

Highlights of the project: XX

Installs one of its kind Hydro bins, ESP technology and a disposal mechanism.

XX

Direct Connectivity of the Project to the National Grid to enhance reliability, economy and minimize system losses.

XX

Highly sophisticated thermal power plant construction and erection process through deployment of state of the art mechanized equipment.

Commenting on the commissioning, Ratul Puri, Chairman, Hindustan Power projects said: “The country needs to ramp up its energy generating capacity quickly to be able to meet the developmental agenda. We are committed to the vision of the Government and are focussing on adding capacity while not losing focus on the environment or social impact of the project. This project will play a key role in addressing power sufficiency in MP and UP.”

ONGC ONGC Videsh to invest $400 mn in Kazakhstan ONGC Videsh Limited (OVL), the external arm of state-run explorer Oil and Natural Gas Corporation, will invest up to $400 million for exploration activities in Kazakhstan. OVL will invest the amount for exploration activties in its Satpayev block in the central Asian nation, its managing director N.K. Verma said. “While we have 25 percent stake in the block, we will be funding the entire exploration activities. The company has already invested $150 million in the block. We have also committed to invest up to $400 million over there,” Verma told reporters after Petroleum Minister Dharmendra Pradhan met Kazakhstan`s Energy Minister Vladimor Shkolnik during the 12th India-Kazakhstan inter-governmental commission meeting. OVL acquired 25 percent stake in Satpayev in 2011, paying $13 million as a signing amount to Kazakhstan. In addition, it will pay $80 million as a one-time assignment fee to KazMunaiGas. “Co-operation in the energy sector was a focus of the meeting. ONGC Videsh is working and has seen satisfactory progress. We are also studying the feasibility

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of transporting hydrocarbons from Kazakhstan to India through a pipeline,” Pradhan told reporters. “It is an energy rich country; Signed bilateral protocol; Agreed to identify concrete projects of cooperation,” the petroleum minister tweeted.

NTPC LTD BHEL completes NTPC hydro project in Himachal Pradesh

Koldam Hydro Electric Project

State-owned electrical engineering major Bharat Heavy Electricals Ltd. (BHEL) said it has completed commissioning of four units for NTPC in Himachal Pradesh. The project has a capacity of generating approximately 3,054 gigawatt hours of power each year. The units, each with a capacity of 200 MW, are for the Koldam Hydro Electric Project. In a statement, the company said the projects were executed within a short span of 75 days, commencing with the commissioning of the first unit on March 30, 2015. “With the commissioning of these units by BHEL, NTPC (National Thermal Power Corporation) has made its maiden entry in the hydro sector. Located at the embankment on river Sutlej in Mandi district of Himachal Pradesh, the surface power house is the first hydro project of NTPC,” the company said. Besides the supply and installation of four 200 MW Francis turbines, the electrical gadget manufacturer’s scope of work includes supply and installation of matching synchronous generators, static excitation system, main inlet valves, digital governors, and control and monitoring System. Associated station auxiliaries, and electrical and mechanical balance of plant equipment were also deployed in the project. The electrical engineering major is presently executing three hydro electricity projects for power company NTPC -- the 520 MW Tapovan Vishnugad (Uttarakhand) hydro electricity project, 171 MW Lata Tapovan (Uttarakhand) project and the 120 MW Rammam Stage 3 (West Bengal) project.

July 2015


Shocks&Sparks

One of life’s greatest mysteries is how the boy who wasn’t good enough to marry your daughter can be the father of the smartest grandchild in the world.

- Jewish Proverb

Any intelligent fool can make things bigger and more complex. It takes a touch of genius - and a lot of courage to move in the opposite direction.   Life is like riding a bicycle. To keep your balance you must keep moving. Intellectuals solve problems; geniuses prevent them.

Super Insults Smart answers by a female... On a flight, a guy asked a beautiful lady sitting next to him... ‘Nice perfume.....which one is it? I want to gift it to my wife...!’ Lady: ‘Don’t give her...some idiot will find an excuse to talk to her..!!’

Jewish Wisdom Ever come across jewish proverbs? Here are some from the race that have, percentage wise, produced more nobel prize winners than any other race! If the rich could hire other people to die for them, the poor could make a wonderful living. The wise man, even when he holds his tongue, says more than the fool when he speaks. What you don’t see with your eyes, don’t invent with your mouth. A hero is someone who can keep his mouth shut when he is right.

We can’t solve problems by using the same kind of thinking we used when we created them. Imagination is more important than knowledge.

- Albert Einstein

Mother to Son Who is Tippu Sultan ? Son : Don’t know  Mother : Sometimes give attention to study also  Son to Mother : Do you know Chinky Aunty? Mother : Don’t know Son: Sometimes give attention to Dad also.

A cute excuse Teacher- Y r u late? Student- Mom dad were fighting. Teacher- so what makes U late if dey were fighting? Student- one shoe was in mom’s hand and one in dad’s..

One old friend is better than two new ones. You can’t control the wind, but you can adjust your sails. Wise man hears one word and understands two.

- Yiddish Proverbs

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R G Keswani

July 2015


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