IEEMA Journal - May 2015

the leading electrical & electronics monthly

VOLUME 6



ISSUE NO. 9



MAY 2015

ISSN 0970-2946



Rs. 50/-

Cover Story Konnect North-East & Beyond

IEEMA Event Hannover Messe 2015 emPOWERing Make in India

Face2Face Mr Mukesh Khullar Principal Secretary Energy, Maharashtra

SME TALK MECO Instruments

Interview Mr Anil Naik Chairman, IEEMA Rotating Machines Division

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, No. 19 I 9th Sw 6th & Mum to Page 2 rn (Tu

From the President’s Desk

Dear Friends, Visiting Hannover Messe with other members of IEEMA was a heartening experience. India was present as the partner Country for this year’s show and established, beyond doubt that India has come of age. With the ‘Make in India’ theme pervading all over, the Indian presence was pre-dominantly visible all over Messe and the city of Hannover. Our lion symbolising ‘Make in India’ was present not only at the Messe venue but virtually at every important landmark of Hannover. India had over 350 Indian companies displaying their goods and services, some of them from the electrical sector also. The inauguration of the fair, jointly by the Indian Prime Minister and German Chancellor followed by the cultural show put up by India made every Indian present there proud of their country.

An atmosphere of keenness, exchange of ideas and investment in the new resurgent India was reflective at the India Pavilion, portraying the economic potential of the country. IEEMA had partnered with Department of Heavy Industries in setting up a stall and also facilitated other member companies in their participation.

The highlight of the visit was participation at the seminar “Make in India: “Opportunities in Electronics and Electrical Sectors” - The New Sunrise” on 14th April 2015 at Hannover, Germany. During the visit IEEMA signed two MoUs, one with ZVEI, the counterpart association of IEEMA in Germany and the second with European Business and Technology Centre (EBTC). Both the MoUs are expected to provide IEEMA members a base to establish one to one contact with the German and other European manufacturers in future.

IEEMA also successfully organised the “North-East Konnect & Beyond” Summit at Guwahati. This was inaugurated by Shri Devendra Chaudhary, Special Secretary, Ministry of Power, Government of India wherein Shri Bezbarua, IAS (retd.), Member Secretary of the North-East Council, Shri K V Eapen, IAS, Additional Chief Secretary Planning Development and Chairman of the Power Utilities, Government of Assam and Shri Uma Shankar, IAS (retd), former Secretary MOP, Government of India were also present in addition to a large number of senior officials from the Power Utilities of NE states. IEEMA had also organised an exhibition in which over 80 of our members had showcased technologies and product solutions in the low, medium and high voltage segment. The Exhibition was inaugurated by Shri Tanga Byaling, Minister of Home, Power and Non-Conventional Source of Energy, Arunachal Pradesh. Simultaneously, a full day Technical seminar was held during which Power engineers from amongst IEEMA members and the Utilities of the North-East had meaningful interaction.

The North-East states have been specially focused by GOI for development of Power during the next few years for which Investments of Rs 30,000 Crores in Transmission sector and Rs 7,000 Crores in the Distribution sector have already been sanctioned by GOI. This provides a sizeable opportunity for IEEMA members. The North-Eastern States still have issues relating to poor infrastructure and therefore logistic issues coupled with efficient Production planning and delivery for such an outlay will be the key to success of this program. The IEEMA Summit has laid the foundation for the Industry and the Central and State Governments to work together to realise the potential that exists in the North-East states. I am sure IEEMA members will find this useful in their own businesses.

Wishing all of you successful and profitable business.

Vishnu Agarwal

8

May July 2014 2015

“Samvaad...

Dear Members,

The entire business world is looking up to India. Low-cost manufacturing, efficient governance and zero-defect manufacturing makes India a global manufacturing hub. With India moving from a services driven economy to a manufacturing hub for global businesses, there is a strong impetus of the government to increase capacity building in the manufacturing sector.

The recently concluded Hannover Messe 2015 reflected the manufacturing aspirations of India and its engineering prowess. With India being the Partner country for the Show this year, it created an impressive showcase to promote its ‘Make in India’ campaign. IEEMA had partnered with Department of Heavy Industries and also facilitated 10 member companies in their participation. The IEEMA delegation was led by Mr Vishnu Agarwal, President IEEMA along with Mr Babu Babel Vice President, IEEMA. The Hannover Messe visitors were delighted with India’s confident, innovative and fresh presence. Prime Minister Shri Narendra Modi and German Chancellor Angela Merkel jointly inaugurated the India Pavilion at Hannover Messe. It was during this prestigious event that IEEMA signed two MoUs with European Business & Technology Centre (EBTC) and German Electrical & Electronics Manufacturers’ Association (ZVEI) to access European technology and link with German business. The members of IEEMA will benefit from ZVEI and EBTC networks, especially from the point of view of smart, micro, intelligent grids and renewable energy. Moreover, this comes at an opportune time when IEEMA prepares itself to showcase the world’s largest power transmission and distribution show – ELECRAMA-2016, later in February 2016, at Bangalore.

IEEMA compliments the Hon’ble Prime Minister and his team for such a well-planned and flawlessly executed Show at Hannover. India truly succeeded in positioning itself as a logical destination for investment, with more than 400 companies displaying their goods and services at the Show.

Indian companies were able to showcase their technical skills, engineering capabilities and export potential, creating a roaring impression on the global industrial technology map.

Sunil Misra

July 2014 May 2015

9

Contents

the leading electrical & electronics monthly

Volume 6 Issue No. 9 May 2015 CIN U99999MH970GAP014629 Official Organ of Indian Electrical & Electronics Manufacturers’ Association Member: Audit Bureau of Circulation & The Indian Newspaper Society

Contents the leading electrical & electronics monthly

VOLUME 6



ISSUE NO. 9



MAY 2015

ISSN 0970-2946



8

34

From the President’s Desk

Appointments

Rs. 50/-

9 Samvaad...

22 Cover Story Konnect North East & Beyond Summit

Cover Story Konnect North-East & Beyond

IEEMA Event Hannover Messe 2015 emPOWERing Make in India

Face2Face Mr Mukesh Khullar Principal Secretary Energy, Maharashtra

15 20

on ce ren ear nfe lg Co tro 15 al on r 20 on & C embe ti r rna gea Nov India 9) Inte itch 27th bai, No. 1 9th Sw 6th & Mum to Page

SME TALK MECO Instruments

Interview Mr Anil Naik Chairman, IEEMA Rotating Machines Division

2

36 In Depth Typical problems faced during Installation and commissioning of motors with VFD’s - A V Bhalerao

rn (Tu

2 1

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

3

The Konnect North East & Beyond Summit focusing on Capacity Building for Power Sector in NE States and Exhibition was organized at Guwahati. IEEMA also held a work shop titled emPOWERing Make In India with the Utilities of NE States and IEEMA top officials.

30 1. (L to R) Mr Vishnu Agarwal, President IEEMA, Mr Rajeev Kher, Secretary Department of Commerce and Mr Babu Babel, Vice President IEEMA 2. (L to R) Mr Sunil Misra, Director General, IEEMA, Mr Rajan Kumar Gupta, IAS, Additional Chief Secretary to Govt. of Haryana (Power), Chairman – HVPN, UHVPN, DHBPN, HPGCL, Mr Vishnu Agarwal, President IEEMA 3. Mr Tanga Byaling, Minister of Home, Power and Non-Conventional Source of Energy, Arunachal Pradesh at one of the stalls at Konnect North-East & Beyond Summit

Face to Face Mr. Mukesh Khullar, Principal Secretary (Energy), Maharashtra speaks to IEEMA Journal about new policy in pipeline which targets 14400 MW power generation by 2019 in Maharashtra.

Many users have faced problems of motors not accelerating, stalling, insulation failure, etc. when they are used along with variable frequency drives ( VFD’s).

The article gives typical problems and their solutions based on practical experience, international standards and available literature.

IEEMA Members Helpline No. 022-66605754

12

May 2015

Contents

46 Tech Space Overhead versus Underground Transmission Lines Ravi Kant Kumar Girish A. Kulkarni

Shri Tanga Byaling, Minister of Home, Power and Non-Conventional Source of Energy, Arunachal Pradesh inaugurating the Konnect North-East & Beyond Summit

42 In Focus Evolution of Communications in the Intelligent Substation - Mr. Sumit Deb

Overhead technology is adopted for transmission since it reduces the transmission losses. After first attempt of transmitting 2 kV to a distance of 30 KM today in 2014 this network of overhead lines has extended to several millions of KM with capacity up to 765 kV or more

55 SME Talks MECO Instruments

58 The concept of substation is undergoing a paradigm shift: from being a pure “energy hub” to an “information hub”.

Apart from delivering energy to a large grid at a certain voltage level, the substation also monitors, protects and controls the grid – many control operations from the grid control center today are focused on substations.

Interview Mr Anil Naik, Chairman IEEMA Rotating Machines Division

60 IEEMA Activities

64-65 Power Scenario Global Scenario Indian Scenario

66-67 IEEMA Database Basic Prices & Indices Production Statistics

68 ERDA News

14

May 2015

Contents

70

78

85

CPRI News

National News

Index to Advertisers

72

• Govt to kickstart its 100,000Mw solar energy plan soon

86

Seminars & Fairs

74

• Government to Pay for ONGC, OIL Q4 Fuel Subsidy: Report

International News

81

• T-SunPower breaks ground for 86MWp project in South Africa • Iraq seeks developers for solar, wind projects

Corporate News

• BHEL commissions Jindal Power’s 2,400 MW thermal project

Events • Hannover Messe 2015 • In Conversation • emPOWERing Make in India

93

• Avantha CG grabs Rs 115 Cr reactor supply deal from Powergrid

Editorial Board Advisory Committee Founder Chairman Mr R G Keswani

Chairman Mr Vishnu Agarwal

Members Mr Babu Babel Mr Sunil Misra Mr J Pande Mr Narayan Sethuramon Mr Mustafa Wajid

Content Co-ordinator 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

16

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.

May 2015

CoverStory

“Make in North East” a key for “Make In India” The key areas brought to focus Domestic Hydro-Power boost in North Eastern States, where IEEMA can collaborate to bring in technology through its 800 + members across the power value chain XX

Domestic manufacturing capabilities versus cheap imported equipment from non-market economy

XX

Responsible role of Utilities to adopt Technology and Standards of Specifications

XX

Capacity Building

transmission & distribution in India and whose 800

XX

Standard Bidding Documents

plus Members have a 90% power equipment installed

The North East Konnect & Beyond Summit was inaugurated by Shri Devendra Chaudhry, Special Secretary Power, Government of India. The key dignitaries present were Shri K V Eapen, IAS, Additional Chief Secretary Planning Development, Government of Assam, Shri Uma Shankar, former Secretary Power, Government of India. Also present at the occasion was Shri. R. L. Baruah, MD, Assam Power Distribution Company were The top officials from IEEMA included Shri Vishnu Agarwal , President – IEEMA, Shri Babu Babel, Vice President IEEMA, Shri Sunil Misra, Director General IEEMA and Shri

Indian

Electrical

&

Electronics

Manufacturers’

Association (IEEMA) - the apex association of power

in India, reiterated the need for a consistent dialogue between

transmission

and

distribution

service

providers and the North Eastern State Utilities. The Konnect North East & Beyond Summit focusing on Capacity Building for Power Sector in NE States and Exhibition was organized at Guwahati. IEEMA also held a work shop titled emPOWERing Make In India with the Utilities of NE States and IEEMA top officials.

The focus here was on the stakes of the Industry and facilitation by State Government for Make In India.

22

May 2015

CoverStory

Harish Agarwal, Convener for Konnect North East & Beyond Summit.

Around 80 exhibitors showcased their technologies & product solutions in the low, medium and high voltage segment. The Exhibiton was inaugurated by Shri Tanga Byaling, Minister of Home, Power and Non-Conventional Source of Energy, Arunachal Pradesh Shri Vishnu Agarwal, President-IEEMA stated that this is the ideal time for IEEMA to be here and look at a long term partnership with the Centre, State and Industry, so as to make power development a reality in the North East part of India. “The ‘Make In India’ campaign of the Honourable Prime Minister of India should be integrated with ‘Make In North East’ ” he added.

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi gave its approval for the North Eastern Region Power System Improvement Project (NERPSlP) for six States (Assam, Manipur, Meghalaya, M i z o r a m , Tr i p u r a and Nagaland for strengthening of Intra State Shri Devendra Chaudhry, Special the Secretary Power, GoI. Transmission and Distribution System at an estimated cost of ` 5111.33 crore including capacity building expenditure of ` 89 crore. The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power (MoP). The scheme is to be implemented with the assistance of World Bank loan Shri Vishnu Agarwal, President, IEEMA and the budget of

May 2015

MoP. Presently, all the six NER States are connected to transmission network at 132 KV and below.

The 33 KV system is the backbone of power distribution system in the six NER States.

In order to reduce the gap between the requirement and availability of the intrastate transmission and Shri K V Eapen, IAS, Additional distribution system, Chief Secretary Planning Development, Government of it is necessary to Assam provide 132 KV / 220 KV connectivity to all the six NER States for proper voltage management and lower distribution losses.

Similarly, the distribution system in all six NER States which mainly relies on 33 KV network would be strengthened substantially.

Shri K V Eapen, said, “For ‘Make In India’ to be successful, Made In India is necessary and it has been reiterated by the chief minister of Assam. Large transmission projects are being planned with the support of The World Bank and Powergrid, which will in the long run transform the entire State of Assam.”

Shri Uma Shankar, former Secretary Power emphasized the need of exploiting the Hydropower potential of the North Eastern States and that the Central Governments Task Force of Hydropower has to drive it ahead. This would also necessitate the need for improved infrastructure: roads, telecom, airports.

The Power Distribution business in the NE States will need a special focus where net losses are to the tune of Rs 7700 Cr. IEEMA emphasized the need for the Industry and the Government to work together to realize the potential of Rs 30,000 Crore of Investments being made by the Government of India in Transmission and Rs 7,000 Crore in Distribution. Production planning and delivery for such an outlay for North Eastern States will be the key to success.

23

CoverStory

Investment in the power sector for NE The Centre will invest ` 10,000 crore in the power sector of the eight North Eastern states, including Sikkim. It has undertaken major initiatives in the North East for speedy implementation of power projects and I urge all the eight NE state governments to extend their support in this endeavour. The Centre has already approved a scheme for strengthening the transmission and distribution system in Arunachal Pradesh and Sikkim with an outlay of Rs 4,754 crore.

There was also plan to restart the Teesta Hydro Electric Project in Sikkim with an investment of ` 13,000 crore and this would be huge source of power for the entire North East, he said. In Assam, the government would work with the government and the people to resolve all issues related to the Lower Subansiri Hydroelectric Project and was striving to resolve it in the best interest of all concerned.

Various projects are being implemented in the region, including the 6,000 MW Bishwanath CharialiAgra transmission lines to be completed in three and a half months, ` 1,000 crore BongaigaonBalipara transmission and ` 500 crore Silchar-Imphal transmission lines. The government want to expand opportunities in the region to ensure power production is increased so that there is power for irrigation, power for every household, working opportunities, industrialisation and a bright future of the state.

Highlight of the key decisions for NER XX

Approval of implementation of “the Comprehensive Telecom Development Plan” for the NE region,

Mr D Chaudhary, Special Secretary, Ministry of Power and Mr Harish Agarwal, Convener for Konnect North East & Beyond summit

with a planned expenditure of ` 5,336.18 Cr. This is to give increased reliability in 2G connectivity, by providing optical fiber networks.

XX

Approval of “the Comprehensive Scheme for Strengthening of Transmission & Distribution (T&D) Systems (CSST&DS)” in Arunachal Pradesh and Sikkim at an estimated cost of ` 4,754.42 Cr. Prior to this, only 5 of the 20 districts or Arunachal Pradesh had transmission network. This project will expand to cover all of Arunachal.

XX

Approval of “North Eastern Region Power System Improvement Project (NERPSIP)” for strengthening of the Intra-State Transmission and Distribution System at an estimated cost of ` 5,111.33 Cr. The project is planned to be completed in 48 months. This is in-line with the poll promise of 365 days of power in the region.

(L to R) Mr Sunil Misra, Director General, IEEMA, Shri Babu Babel, Vice President IEEMA, Mr Uma Shankar, former Secretary Power, GoI, Mr Vishnu Agarwal, President IEEMA, Mr D Chaudhary, Special Secretary, Ministry of Power and Mr Harish Agarwal, Convener for Konnect North East & Beyond summit

24

May 2015

CoverStory

AT&C Losses (%) North Eastern Region Loss Levels in 2009-10 as compared to that in 2008-09 It is observed that the AT&C losses in 5 out of the 8 States have shown a decreasing trend from 2008-09 to 2009-10. Details of the same are as follows: 90

Major Private Developers in Hydro Sector In Arunachal Pradesh Name of Project Developer

Name of HEPs with IC

Reliance Power

Kalai-II (1200 MW), Siyom (100 0 MW), Tato-II (700 MW)

Jindal Power

Etalin (4000 MW), Kamala (1600 MW)

Jaiprakash

Siang Lower (1600 MW), Hirong (500 MW)

Mountain Fall

Kalai-I (1400 MW), HutongII (1250 MW), Kameng (600 MW)

KSK Energy

Subansiri Upper (2000 MW), Dibin (125 MW), Kameng Dam (600 MW), Utung (100 MW)

DS Construction

Naying (1000 MW)

Costal Infrastructure

Niare (800 MW), Dengsar (552 MW), Nalo (360 MW)

Navayuga Engineering

Oju-II ( 1000 MW), Oju-I (700 MW)

80 70 60 50

2007-08

40

2008-09

30

2009-10

20 10 0

Source: North Eastern Regional Power Committee

The AT&C losses recorded for the North Eastern Region has been the highest amongst all other regions of the country. In the year 2007-08, the losses stood at 40.32% whereas the national average was 29.45%. In the year 2008-09, the losses stood at 40.70% whereas the national average was 27.74%.

In the year 2009-10, the losses stood at 36.44% whereas the national average was 27.15%.

94% Mw capacity from 45 projects of greater than 100mw Projects MW DPR completed S&I pending Concurred TOR Applied TOR obtained EIA complete EIA pending EC approved EC pending EC not applied FC approved FC pending FC not applied

45 38575 22 23 15 40 31 20 25 9 5 6 9 21 15

Source: Ministry of Power

May 2015

Source: Ministry of Power

Key issue concerning the power sector in the region Since the power generation in the region is hydrothermal mix, the region will be power surplus soon in both hydro and lean hydro season. But the main concern is that power connectivity for all by 2020 as plan by Govt. of India.

The present power demand of the seven NE States is of the order of 2200 MW. As per 18th EPS (Electric Power Survey) report of CEA, the projected power demand of the region will be 2966 MW by 2016-17 and 4056 MW by 2021-22. Due to vast geographical spread of the States, the power demand is scattered over large distances. Therefore, it becomes necessary to provide 132kV connectivity to the distant locations

25

CoverStory

New Projects XX

` 1900 Cr. Transmission evacuation plan for 7 IPPs totalling 2162 MW

XX

CEA has developed a basin-wise master Plan for evacuation of power from Hydro Projects in Arunachal Pradesh.

Nine pronged strategy to tap the huge power potential in NER XX

Generation/Transmission: Developer, MoEF, MoRTh, BRO, State Govt to work intensively as TEAM

XX

State Government to Address Law and order concerns

so that power supply from regional grid may be extended to all over the State.

XX

Forest / Environment clearances to be expedited

XX

Increase Demand rather than just export power.

The proposal is a major step towards meeting the national objectives like power to all, especially in the backward North Eastern (NE) region for inclusive growth, through enhancement in access of consumers to Grid connected power supply, besides improving its availability, adequacy, reliability and affordability. This shall also increase per capita power consumption in these States, which presently varies from 240.3 Kwh (Assam) to 690 Kwh (Meghalaya) compared to the National average of 914 Kwh. The transmission portion of the proposal has been planned for absorption of power from the overlying regional grid and to feed it to different parts of the State. The Distribution portion has been planned to facilitate dispersal of this power to the final consumers.

XX

Monthly targets follow up by state government

XX

Reduce distribution losses

XX

Increase consumption in Industry and Agriculture instead of planning to merely self power

XX

People need to be taken along: Need based Capacity Building and so local participation in the growth process

XX

Private sector to work in a partnership mode not just contractor mode.

Mr Tanga Byaling, Minister of Home, Power and NonConventional Source of Energy, Arunachal Pradesh at one of the stalls

− Compiled by Shalini Singh, IEEMA

Projects in Pipeline XX

` 11130 cr. for Lower Subansiri HEP (2000 MW), Kameng HEP (600 MW) and NER surplus +/- 800 KV Biswanath Chariyali – Agra HVDC Link – 6000 MW. Advanced stage – september 2015. Work affected due to local disturbances / agitation

XX

Rs 4,929 crs for Arunachal Pradesh and Sikkim – 2,035 km – 132 kV lines/ 220 kV; 31 new 132 / 66/33 kV sub-stations, 83 new 33 / 11 kV, 2,204 km of 66 kV, 33 kV lines.

XX

` 8100 Crs / USD 1500 Mn for other NER

26

Visitors at the Konnect North East Exhibiton

May 2015

Face2Face

We want to produce 14,400 MW electricity by 2019: Mr Mukesh Khullar Mr. Mukesh Khullar, Principal Secretary (Energy), Maharashtra speaks to IEEMA Journal about new policy in pipeline which targets 14400 MW power generation by 2019 in Maharashtra.

The Maharashtra government targets 14400 MW power generation by 2019 Mr Khullar says, “We want to produce 14,400 MW electricity by 2019 by way of non-conventional methods. For this, we will be inviting private companies and these companies will invest a total of about Rs 70,000-80,000 crore. A policy in this regard will soon come up. This source of energy is cheaper and far better as compared to conventional sources. The policy has been finalised from the administrative perspective and soon a presentation will be made before the chief minister, following which it will be sent for cabinet approval.”

Sharing more details about the policy he says, “ Solar energy will generate 75000 MW, while wind mills will generate 5000 MW of power. Sugar industries will help in creating 1000 MW, cogeneration will generate 200 MW, biogas will generate 300 MW and industrial waste will generate 400 MW. These sources will be used as per its availability. For instance, there are many sugar factories located in western Maharashtra, thus 1000 MW electricity will be generated from that region.”

Mr. Mukesh Khullar, IAS officer of 1985 batch has served as the Mission Director- National Food Security Mission, New Delhi, Jt. Secretary- Department of Agriculture and Co op; GOI; SecretaryAgriculture and Fisheries Department, Government of Maharashtra, Chief Protocol Officer- Government of Maharashtra, Commissioner- Small Savings and State Lotteries, Secretary (IT) Government of Maharashtra, Municipal Commissioner- Municipal Corporation, Navi Mumbai etc.

Power Minister of Maharashtra Mr Chandrashekhar Bawankule announced that Mumbai will get 1,100MW more power through additional transmission lines to The policy has been finalised from the administrative perspective and soon a presentation will be made before the chief minister, following which it will be sent for cabinet approval.”

30

keep it insulated from outages and the state electricity distribution company’s consumers can soon expect a drop in tariff as there’s a new strategy to bring down costs of generation, transmission and distribution by Re 1/per unit by March 2016. Adding more information to this Mr Khullar says, “Across Maharashtra, there is a shortfall of 500MW during afternoons, which we plan to buy through open access. We will thereby ensure there is uninterrupted power supply in Mumbai and across the state.”

Transmission lines able to carry 300MW have been laid to keep the city free from power outages, especially during peak load consumption in summer. Another 800MW transmission lines will be laid by December to bring in more electricity. At present, transmission lines to the city have a carrying capacity of 1,400MW and this will be enhanced by 2,200MW. The power Minister conducted a workshop with officials from power transmission and generation companies to devise a strategy to cut down costs.

The government will cut down 50 paise costs in power generation and another 50 paise in transmission and distribution. The measures include reducing transportation costs of coal, improving operations and maintenance practices at power plants, loan restructuring and reducing power distribution losses.

May 2015

Face2Face

“Across Maharashtra, there is a shortfall of 500MW during afternoons, which we plan to buy through open access. We will thereby ensure there is uninterrupted power supply in Mumbai and across the state.”

On reforms in distribution sector, the Principal Secretary said, “Our Minister in a press conference mentioned that the government was thinking of splitting MSEDCL into five companies, one for each region on the lines of some other states. In this case if the transmission charges for a company were lower we will reduce the cross subsidy surcharge (CSS) for open access.”

agricultural MSEDCL feeders in the state. Of them, 4,178 have losses less than 42% and hence do not face power cuts. The remaining 1,469 feeders (26% of the total) are high loss feeders and face load shedding as a penal measure.

He adds, “The feeder franchisee would be responsible for providing most of the consumer services on his feeder. These include taking the meter readings, issuing bills, providing new connections, disconnecting the consumer in case of power pilferage or huge arrears. The franchisee would also have to attend small scale breakdowns leading to disruption in power supply. The franchisee will be also responsible for maintenance and overhaul of the feeder. The franchisee will get remuneration for meter readings, attending breakdowns etc as per the prevailing rates of MSEDCL. If the franchisee is able to reduce losses and increase revenue, then incentive will be given from the extra amount collected.”

The state government has chalked out a plan to reduce annual expenses of state-run power generation company Mahagenco by Rs 2,000 crore. It is confident that if this target is achieved, power tariff will not go up. The govt swap coal linkages to reduce transportation expenses. For example, imported coal will be used mostly in Nashik The state government has chalked out and Bhusawal plants while a plan to reduce annual expenses of WCL coal will be used in power state-run power generation company plants of Vidarbha. This will Mahagenco by Rs 2,000 crore. save about Rs 500 crore.

One of the key projects by the government will be appointing franchisees and outsourcing the job of supervising power feeders to an electrical engineer who will be assisted by five ITI-trained men. He explains, “The Energy Minister Chandrashekhar Bawankule suggested to appoint franchisees for 11 KV feeders where distribution losses were more than 42%. Unemployed electrical engineers will be appointed as feeder franchisees.

Retired MSEDCL engineers could also be considered for the job. The aim of the scheme was manifold — the first was to reduce losses in high loss feeders. “This would increase MSEDCL’s revenue and reduce load shedding in the feeder concerned. The project will also provide employment to engineers and technicians. The feeder franchisees will also be responsible for providing consumer services.”

Initially the franchisee contract would be for one year. “If the performance is found to be satisfactory, then the contract will be extended by two years.

MSEDCL can give another two year extension. However, the maximum franchisee period will not exceed five years,” he said.

MSEDCL had conducted a similar experiment in Nagpur in 2010 and it was by and large successful.

However, when MSEDCL decided to appointed a franchisee for three divisions of the city, the model was discontinued.

- Shalini Singh

The project was a part of the state government’s mission for increasing public participation in working of MSEDCL. There are 5,647 non-

May 2015

31

Appointments

APPOINTMENTS Mr Saurabh Vijay

appointed Adviser to World Bank ED IAS officer Saurabh Vijay was today appointed as Adviser to Executive Director of World Bank in Washington. Vijay, a 1998 batch IAS officer of Maharashtra cadre, is presently working at President Secretariat. He has been appointed for a period of three years from the date of taking over charge of the post, an order issued by the Department of Personnel and Training ( DoPT) said.

Mr J S Deepak

gets extension as Additional Secretary, Department of Commerce Mr JS Deepak, IAS (UP:82) has been given extension as Additional Secretary, Department of Commerce, Ministry of Commerce & Industry for a period of six months beyond 8.4.2015 i.e. from 9.4.2015 to 8.10.2015.

Mr Siddharth Jhawar Mr L Chuaungo

appointed OSD to Minister of State for Finance

Mr L Chuaungo, an IAS officer has been appointed as Chairman of Gujarat Industries Power Company.

In pursuant to the Articles of Association of the Company, the Government of Gujarat has nominated Mr Chuaungo, an IAS officer, as the chairman of the company with immediate effect, Gujarat Industries Power Company said in a filing.

GIPCL, which was incorporated in 1985 as a Public Limited company, is engaged in business of electrical power generation.

Mr Siddharth Jhawar has been appointed as Officer on Special Duty (OSD) to Minister of State for Finance Jayant Sinha. Jhawar, a non government official, has been appointed at the level of Director for five years or on co-terminus basis with the minister’s tenure, an order issued today by Department of Personnel and Training (DoPT) said.

appointed chairman of GIPCL

Mr Mayilsamy Annadurai

appointed as Director of ISRO Satellite Centre (ISAC) Mr Mayilsamy Annadurai has been appointed as Director of ISRO Satellite Centre (ISAC), Bengaluru. As the Director of ISAC he will oversee development of satellite technology and implementation of satellite systems for scientific, technological and application missions. Before the present appointment he had been the Programme Director of Indian Remote Sensing Satellites (IRS) and Small Satellite Systems (SSS) at the ISAC since 2011.

Mr G C Murmu

PESB recommends Mr SK Gupta as Director (Technical), REC

The PESB has recommended Mr Sk Gupta as new Director (Technical) in Rural Electrification Corporation Limited (RECL).

PESB recommends Mr AK Jha

as Chairman and Managing Director, Mahanadi Coalfields The PESB has recommended Mr AK Jha as new Chairman And Managing Director, Mahanadi Coalfields Limited (MCL). Once the selection is ratified by the ACC, A K Jha will succeed A N Sahay, who is scheduled to superannuate on October 31 this year.

appointed as Joint Secretary in Department of Expenditure

Mr Shailesh Kumar Singh

Senior Gujarat bureaucrat Mr G C Murmu has been appointed as Joint Secretary in Department of Expenditure. Murmu, a 1985-batch IAS officer of Gujarat cadre, was the Principle Secretary to PM Modi during his tenure as Chief Minister.

Mr Shailesh Kumar Singh, IAS (JH:91), has been appointed as Chief Vigilance Officer in the Steel Authority of India (SAIL), New Delhi under the Ministry of Steel.

May 2015

appointed CVO, SAIL

34

InDepth

any users have faced problems of motors not accelerating, stalling, insulation failure, etc. when they are used along with variable frequency drives (VFD’s). The article gives typical problems and their solutions based on practical experience, international standards and available literature.

M

The four areas covered in this article are, }} Application problems when used in constant

torque mode.

Due to the stator resistance, the air gap voltage (which creates the flux ) is not 415 V but slightly lower and is equal to the supply voltage minus the stator drop (which is equal to the current x impedance).

The problem comes at low frequencies, eg  5 Hz. The stator drop remains similar but since the voltage applied is lower, the airgap voltage is much lower.

For example, considering the stator impedance of 8 ohms and stator resistance of 6 ohms.

}} Bearing failures due to circulating currents

The reduction of V/f ratio at the airgap (from 7.74 to 4.1)causes the motor torque to reduce to 28%.

Thus the motor cannot develop the rated torque at low frequencies, though the VFD keeps the V/F ratio constant. This causes the motor to run at much lower speed (at high slip) while taking the load.

Constant torque application : Typical problems at low speeds

To overcome this, the drive manufacturer gives an option of providing V/F boost at lower frequencies.

When VF drives are used in constant torque mode the V/F ratio is kept constant. (generally 415 V/50 Hz = 8.33).

Usually Parameters F1,F2 and F3 can be set in the VFD. Thus the V/F boost can be adjusted to suit the application.

}} Application problems when used in constant

power mode. }} Insulation failures due to long cables and short

rise times.

VFD Output Voltage (Volts)

VFD output freq. (Hz)

Current per phase ( line amps /sqrt 3) (amps)

IR Drop (Volts)

415

50

3.5

28 (impedance 8 ohms)

387

7.74

41.5

5

3.5

21 (resistance 6 ohms)

20.5

4.1

36

Air gap voltage (VFD output voltage minus V/f at airgap IR drop) Volts

May 2015

InDepth

applications. They wanted to know how much boost to be given, but we told them they would have to experiment and arrive at the optimum value. They changed the settings accordingly and now the motor is accelerating fine.

It should be emphasized that this solution of V/F boost is mainly required only for constant torque loads at low speeds.

Rated Freq

Examples of actual problems faced

Constant power (Field Weakening) Application : Typical problems at high speeds

1 Problem was faced by an Hoist manufacturer with our 2.2 kW 8 pole motor connected through a VFD drive. The motor was driving a hoist at two speeds, one normal and the other Creep speed ( 1/10th of rated speed). The motor performance in both Up and Down direction was OK at full speed, but at Creep speed, the hoist was moving at about 4.7 mm/sec while lifting and 9.8mm/ sec when lowering the load instead of specified 6.6 mm/sec in both directions. This clearly was due to the motor developing low torque at this low 5 Hz. On giving a V/F boost at 5 Hz, the performance was OK in both the directions.

The motor operates in a speed range higher than the base speed. Since VFD’s cannot increase the voltage beyond the supply voltage, the motor voltage remains constant and equal to the supply voltage, eg. 415 V. The V/F ratio reduces as frequency increases beyond the base frequency, eg 50 Hz. This results in the Flux reduction in the motor, reducing the torque. Since the motor is operating in constant power mode at speeds above base speed, the load torque is also reducing.

2 A similar problem was faced at an Aluminium Rolling Mill where we had given our 450 frame 500 kW 8P size motors for their cold rolling mill.

The customer explained that the motor was not starting on load. We discussed this with the drive manufacturers commissioning engineer and instructed him to set the V/F boost so as to compensate the stator drop. After he adjusted this, the motor is running smoothly and the customer is fully satisfied.

Hence the upper limit of the speed is determined by the pull out torque. This can be seen in the graph below. If the pullout torque of the motor is 200 % FLT, there is no margin at 200 % speed and the motor will pull out. If the motor is to run at twice the base speed, the pull out torque of the motor should be at least 280 % FLT. This would keep a margin of 40 % when running at twice the speed.

The problem is that the load torque reduces in inverse ratio of the speed, but the Motor pull out torque reduces with the square of speed.

% rated torque 300

3 The same problem was faced at a material conveyor belt application wherein our 400 Frame 400kW 4P motor supplied through a VFD, was driving the conveyor. When the motor was started on no load (conveyor empty) it was accelerating smoothly. However, when it had to be started with the conveyor full (eg. Restarting after a power failure), it was not accelerating.

The customer along with the drive commissioning engineer had tried all options and then when nothing worked they contacted us. The first thing we told them was to give V/F boost. The commissioning engineer was not aware of this and had never used this setting since he had only commissioned the drives for pump and fan

May 2015

250 200 150 100 50 0 0

Load Torque

50

100

150

200 % Pull out torque Not suitable; No margin at 200 % speed

200

250

% rated speed

280% Pull out torque Suitable; 40 % margin at 200 % speed

In general one can select a standard motor for running in field weakening mode provided the maximum speed is 150% of the base speed. For higher speeds, the motor should be checked for sufficient pull out torque value.

37

InDepth

Several customers have faced this problem and they have had to subsequently order special motors with high Pull out torque from us. This care should be taken while selecting the motors at enquiry stage.

It should be also checked that the critical speed of the motor is above twice the rated speed.

Insulation failures : Typical problems with long cable lengths Types of additional voltage stresses }} Stress on Phase insulation:

}}Higher peak voltages between phases (V ph to ph) due to reflection of the voltage at the motor terminals. These can be up to twice the DC link voltage, depending on the cable length and rise time. }} Stress on slot insulation:

}}Higher peak voltages between the winding and the stator laminated core (V ph to earth). }} Stress on the turn insulation :

}}Considerably higher electrical stress between the turns (V turn to turn) at the entry coils (which are connected to the motor terminals), due to very short rise times and steep voltage change .

Generally in the case of longer rise time (more than 0.5μs ), the maximum voltage value is constant and does not depend on the rise time. The limit is then based on the phase and slot insulation.

It is the responsibility of the system integrator to specify what will be the voltages coming at the motor terminals and the rise time due to the drive and cable lengths. These voltages are normally specified as phase to phase. Phase to ground will be lower by √3 (1.732 ) Most motor manufacturers have special insulation schemes for applications where the peak voltage at motor terminals can go high. This should be asked for at the time of ordering the motor.

BBL special insulation schemes have been tested and conform to the IEC 60034-18-41 “Qualification and type tests for Type I electrical insulation systems used in rotating electrical machines fed from voltage converters” for line voltages upto 690V. BBL have faced the problems of voltage at motor terminals exceeding the above limits leading to

38

motor insulation failure. Our team from Motors and Drives division have visited the various sites where there have been complaints and taken oscillographic recordings of the voltage and rise time. In all the cases voltages were higher than the limits.

If the voltages are exceeding the limits, it is necessary to use Sine filters, dV/dt filters or chokes between the drive and the motor to reduce the voltages to within the limits.

Generally sine filters provide the best solution, but the decision on which type of device is to be used depends on the criticality of the application and the cost. The advantages of the various options are given below. }}Output reactors }}Output dv/dt Filters (sometimes known as dU/dt filters) }}Sinusoidal Filters }}Motor termination units These solutions should be correctly matched to the application and the basic characteristics are as described below.

In each case the effects of voltage drop in the device on the final terminal voltage should be established.

Output Reactors These are specially designed reactors, which can accommodate the PWM waveform without causing undue reactor heating and can also provide the necessary inductance values over the frequency spectrum needed. They are used to reduce the dv/ dt and peak voltage. However, care is needed as reactors can theoretically extend the duration of the overshoot if incorrectly selected- particular care is needed with ferrite core reactors. Normally the output reactor is mounted inside the main VFD panel and of course leads to increased space, costs and drop in efficiency (~0.5%)

Voltage limiting Filter (dv/dt Filter) In this case, a design consisting of capacitors, inductors and diodes or resistors may be used to limit the dv/dt to typically less than 500V/micro sec., drastically reducing both the amplitude and the rate of rise of the peak voltage. Such filters allow the use of most motors without problem and are therefore recommended if the data of a motor is unknown.

Increased losses of 0.5 to 1.0 % must be considered.

May 2015

InDepth

Sinusoidal Filter

4. Number of poles.

A special design of low pass filter allows the high frequency currents to be shunted away. These types of filters are the most expensive and also have other limitations. They prevent the motor voltage from exceeding 90% of the supply voltage (thereby de-rating the inverter). They also will not be suitable for applications that require high dynamic performance. However, they have the following additional advantages;

5. Anisotropies in the magnetic sheets sued for laminations.

}}Reduced motor noise. }}Reduced motor losses. }}Simplifies hazardous area motor certification. }}Allows the use of standard motors and long motor cables (eliminates capacitive charging currents) }}Reduces radiated high frequencyemissions (EMC)

}}These asymmetries cause alternating flux around the shaft which induces a voltage in the shaft. }}This can be measured between shaft ends. }} Problem only in larger machines in 280 frame and above.

Normal greased bearings can withstand a Shaft Voltage upto 500mV. B) Currents caused due to VFD’s Some of the known causes and types of bearing currents caused by VFD’s are; 1 Common-mode current paths – earth current – shaft grounding current 2 Circulating current.

Motor termination Units Some manufacturers produce series–resistive/ capacitive filters, which may be locally connected at the motor terminals (usually as an extra box mounted near to the motor) To date, these motor termination devices have not been popular. One concern is that the parallel connection would be compromised, thereby subjecting the motor to the high transients without any warning. Some users have reported difficulties in matching the inverter current rating to the motor rating (presumably due to the terminator capacitive charging current)

Bearing failures due to circulating currents Many customers specify the use of insulated bearing on motors to be supplied through VFD’s. Given below are the various types of shaft currents due to manufacturing tolerances and due to the voltage supply through VFD’s.

Causes of shaft voltages and types of shaft currents.

A) Classical mechanism of bearing currents.

These are caused by asymmetries in the magnetic circuit of the motor due to, 1. Manufacturing tolerances.

2. The size of the machine.

3. Design parameters eg. No. of stator slots, No. of rotor slots

May 2015

3 Capacitive discharge current.

The following are available bearing current reduction methods Electrical installation This is perhaps the most important element of achieving good bearing life. Correct electrical installation is very important although these aspects can be somewhat easier to overlook. Good practice installation techniques are essential in any case to avoid potential problems with EMC. The same principles conveniently reduce the bearing current.

The principle is to ensure the lowest possible impedance path on the shield connection to avoid stray currents travelling through the bearings back to ground and potential equalization techniques (i.e. high frequency bonding) should be applied between the VFD, the motor and the load. This technique dramatically reduces the chance of shaft grounding currents.

This essential measure is practical and cost effective.

Improve the high-frequency grounding connections at each equipment, right from the transformer to the motor including the drive and the driven equipment.

Use high frequency earthing conductors made of finely stranded braided copper wires with a large cross section.

39

InDepth

Use of insulated bearings Having an insulated bearing only at Driving end does not prevent current flowing through the load coupling, ground and through the NDE bearing.

The Simple solution is to insulate the bearing on the non drive end of the motor. Generally the NDE bearing is smaller size as compared to the DE bearing, which has to take the radial as well as the axial load.

One must also be particularly careful with accessories such as tachogenerators, encoders etc. to ensure that they also have insulated bearings or insulated sleeves.

Install Sine filters / dv/dt filters /smoothing reactors between drive and motor.

It is possible to modify the inverter output waveform electronically or by using a variety of inverter output inductors or filters, which are specially designed to minimize the high frequency common-mode disturbance voltages. Without the excitation of the high frequency parasitic elements, bearing currents are dramatically reduced.

Install two insulated bearings on the motor.

If the rotor can be adequately isolated from the stator by two insulated motor bearings, the high frequency capacitive discharge currents will seek to find the lowest impedance ground. In this case, shaft currents could possibly flow through to the load and compromise the life expectancy of other bearings unless insulated couplings are also used.

Install a shaft grounding brush across one motor bearing Insulated end shield: The classical and older method was to have an insulated end shield at the Non Driving End. This method was prevalent since insulated bearings had not been developed then and were not available.

Even today, there is no option but to use the same where insulated bearings are not yet developed .

A mild steel or cast iron bush is fitted into the bore of the end shield to house the bearing. This bush is insulated from the end shield by having an epoxy or fibre glass tape or Teflon tape around the OD of the bush and then heat shrinking the bush ( bearing housing) into the end shield.

Subsequent to this, it is also necessary to keep insulated disks on both the inside and outside of the bearing. The complete bearing assembly is

40

then bolted together using special insulated sleeves around the bolts.

This method of insulating the bearing is cumbersome and its effectiveness totally depends on the skill of the assembly operator. Precautions have to be taken every time the motor is opened. The problem is also that such a mistake in assembly cannot be detected and is known only when the bearing fails.

In view of the difficulties face by users, most of the bearing manufacturers, eg. SKF, FAG, NIPPON, etc. have developed insulated bearings. These typically have a ceramic coating on the outer periphery and faces of the outer race of the bearing. The dimensions and load carrying capacity is exactly the same as the normal bearing of that design.

Though these insulated bearings are costlier, the advantage is that the insulating properties of the assembly do not require special skills of the assembly workers and normal assembly procedures can be followed.

Mostly these large motors are used in critical applications where the down time is very costly and results in great financial implications.

Wherever insulated bearings are available, it is preferable to use them instead of insulated end shields, even though the cost is higher. This avoids the possibility of costly downtime in case the bearing is not assembled precisely, which is very critical in the case of insulated end shields.

Summary: Generally the use of insulated bearing is required in only large motors from 280 frame onwards.

Proper electrical connection and earthing is the most easy and simple solution for reducing the possibility of bearing failure due to electrical currents.

Filters at the output of the drive are recommended if the supply voltage is more than 500 V. REFERENCES 1)

BBL experience.

2)

GAMBICA/REMA Technical guide “ Motor insulation voltage stresses under PWM inverter operation”.

3)

GAMBICA / REMA Technical Guide “Variable Speed Drives & Motors, Motor Shaft Voltages and

Bearing Currents Under PWM Inverter Operation, Technical Report No. 2 “, 2nd Edition : 2006

Author A V Bhalerao Consultant -Bharat Bijlee Ltd.

May 2015

InFocus

T

he concept of substation is undergoing a paradigm shift: from being a pure “energy hub” to an “information hub”. Apart from delivering energy to a large grid at a certain voltage level, the substation also monitors, protects and controls the grid – many control operations from the grid control center today are focused on substations. Therefore, in the wake of this tectonic shift in concept, the substation today may more aptly be defined as “a subsidiary station of an electricity generation, transmission and distribution system providing monitoring and protection of the associated grid, and functioning as the main connection point for grid control and monitoring functions”.

While substations are evolving around the concept of centralized protection and control functionalities, it is important to note that bay-level protection and control IEDs are not replaced by those functionalities. In fact, protection and control terminals are still seen as the backbone of the secondary system and they handle time-critical basic protection functions along with communicating with a centralized system. Station level primarily handles all advanced functionalities.

As the primary protection is covered by the bay-level IEDs, the functionality in the station level can be updated through the cloud without affecting the safety of the network, thus allowing fast, dynamic and smooth updates. The station level holds two important functionalities of its own: a) time-critical protection functionality, which needs real-time process data and directly affects network safety, and b) offline

42

functionality to operate on historic information. This function indirectly affects grid safety via condition monitoring and fault analysis functions.

Ethernet network switches Emerging evolution in networking communication equipments is leading to improvised network performance and reduced downtime across the substation network system. This will result in less outage for customers and therefore greater customer satisfaction and improved revenues for utilities. The good news is that these technologies are available today, and even if they all are not used today, they provide us an excellent migration path to new applications in modernizing substations. The first option to improving network performance is to use Ethernet network switches that are capable of gigabit speeds. Gigabit speeds are not new in enterprise networks parlance but so far they were not widely deployed in substation networks. This is simply because the protection and control equipment has, so far, not required at high levels of bandwidth to perform their functions. Remember that Ethernet networks have been deployed in the substations for only past fifteen years or so but large-scale deployments of Ethernet network has started in the substation communication arena only in recent times, so the need for increased bandwidth across the network is going to be more critical with the passage of time. The next stage in creating digital substation, by using IEC 61850 design, has the potential to

May 2015

InFocus

demand more network bandwidth and lower network latency. Moreover, substation network may also be utilized for other applications using high amounts of bandwidth such as condition based monitoring, new types of emerging field sensors, and security via IP video surveillance systems.

IEC 61850 utilizes layer 2 multicasts for different protocols and applications such as GOOSE messaging, IEEE 1588 time synchronization and Sampled Measured Values (SMV) on the process bus.

Multicast is a networking feature that allows a layer 2 message from a single source to be propagated to multiple receivers on the network. It is implemented across the network through the managed network switches that receive the multicast message on one port and flood the message out on desired egress ports. This, in turn, gets propagated to all switches and nodes in the network that want to subscribe to

that data traffic. Multicast messaging therefore needs to be managed by using either some or all available technologies including VLANs to segregate multicast domains, dynamic multicast filtering or providing increased available bandwidth. Gigabit speed switches capable of managing multicast should be used in substations to suffice the requirements of IEC 61850 networks. Packets that are forwarded through network switches are clocked out serially over the Ethernet network. Since gigabit switches clock the message out at 10 times the speed of 100mbps switches the latency time can be significantly reduced.

Properly designed networks - using high speed gigabit, managing multicast with VLANs and dynamic multicast filtering - are essential to prevent network flooding, congestion and dropped packets along with ensuring proper operation of protection and control algorithms. Communication through Layer2 Gigabit

Conceptual Architecture of a Future Substation

May 2015

43

InFocus

switches can also reduce network communication latency ensuring time sensitive messages are received on time and additionally can provide the capacity to support other substation applications such as physical security. Another important required feature of network switches in the substation communication is ‘field replaceable modules’ which significantly reduces mean-time-to-repair (MTTR) by allowing technicians to repair a problem by swapping out a faulty module with a working spare without having to remove the whole unit.

power sources such as AC supply and substation battery to protect from both supply failure and equipment failure.

Modular switch design with field replaceable hardware modules also facilitates future upgrades.

Communication technology is developing at very fast pace, new applications may require new protocols and new physical interfaces which may not be always feasible to be updated by software or firmware upgrades. So, a hardware design allowing interchangeable module will surely help in futureproofing the network and thereby protecting the CAPEX. Keeping in mind the flexible application perspective of substation automation system - e.g. new communication standard or new physical interfaces like different type of connectors, modulation, sampling rate etc – network equipment manufacturers are expected to develop new communication line module compatible with the network chassis and the device backplane. Thus an upgrade or migration to a new technology would be possible by exchanging or adding newly developed modules without the need to replace the entire network infrastructure in the substation. Such flexibility of the networking hardware can significantly extend the life cycle of a substation automation system. Redundant load sharing hot swappable power supplies have been available in substation rated networking equipment for several years and should be used whenever possible. These power supplies should be connected to independent

The new intelligent substation under IEC 61850 frameworks is expected to witness an increased adoption of process bus networks using merging units (MU) and sampled measured value (SMV) data streams. SMVs are digitized real time measurements of the power network that require an accurate time stamp. IEEE 1588 is the recommended technology to provide the precision time stamping required for SMV and Ethernet switches supporting IEEE 1588 are an essential part of the precision timing network. Ethernet switches with transparent clock functionality preserve the accuracy of the time signals as they propagate through the network. Even if process bus and SMV are not deployed today, ensuring the implementation of IEEE 1588 support now will allow an easier migration in the future. Another substation application that requires high precision time signal in the range of microseconds is Wide Area Monitoring based on Synchrophasors or PMU (Phasor Management Units).

While utility grade Ethernet switches with IEEE 1588 precision network based time synchronization have been available for more than 5 years, it is not widely supported by protection and control relays. In the past, distribution of precise clock signal required dedicated wiring and could be achieved either with IRIG-B standard or PPS (pulse per second – IEEE 1588 protocol provides the advantage of having a single networking infrastructure both for critical protection, control and measurement data as well as for highly accurate time signal. One of the valuable features of networking equipment is the capability of having legacy IRIG-B and PPS interfaces in order to support smooth migration to IEEE 1588. In such scenario an electrical utility can deploy IEEE 1588 based communications network even if they would still have to use non-IEEE 1588 aware IEDs, as for those IEDs a local “last meter conversion” from IEEE 1588 to IRIG-B or PPS can be done. We can envision a native IEEE 1588 network across the substation switchyard built with IEEE 1588 transparent clocks (Ethernet switches with hardware time-stamping capability) which, if needed, can provide legacy timing outputs justW to the desired IEDs in the bay protection and control cabinets. The only required component in such scenario would be IRIG-B / PPS output card in the IEEE 1588 network switch.

Example of substation grade Ethernet switch with hotswappable power supply modules and field-replaceable communications media modules

Apart from functional requirements for next generation of substation Ethernet switches need to support IEC 61850 Process Bus, Synchrophasors and other

Communication Technologies

44

May 2015

InFocus

the adoption of new technologies is just a matter of time before it all becomes a reality in the evolution of an intelligent future substation; optical sensors are already emerging technologies in electrical grids but there will be more and more sensors to monitor all kind of apparatus, be it in the application of circuit breakers, transmission lines, measurement transformers, power transformers, detection of faults etc to name a few. In summary, the substations of future will be all digital, meaning analog information will have to be digitized by intelligent sensors (e.g. merging units) and streamed at high frequency to protection IED, and in the mid-long term future to computer based protection and control servers. This will definitely require lots of processing power and bandwidth in the network.

Migration Strategy towards IEEE 1588 aware substation network

applications of tomorrow along with a robust hardware design. The wide temperature ratings and high immunity to EMI will ensure flawless operation in the unprotected and harsh substation environment. Lastly,

May 2015

Author Mr. Sumit Deb Senior Manager - Business Development (PD PACI)

Siemens Ltd

45

TechSpace

M

odern way of life has emerged in heavy requirements of electrical energy both at domestic as well as industrial sector. The Electrification in the early 20th century dramatically improved productivity and increased the well-being of the industrialized world.

Electrification has got three phases, Generation, transmission and distribution but among these the transmission line plays a vital role. The electricity is generated at very high voltage i.e. 11kv and it is transmitted to nearby substations through transmission line. The voltage is reduced at substations usually located in urban areas and distributed with distribution lines.

Overhead technology is adopted for transmission since it reduces the transmission losses. After first attempt of transmitting 2kV to a distance of 30 KM today in 2014 this network of overhead lines has extended to several millions of KM with capacity up to 765kV or more. Different OHHV lines of 132, 765 are electrifying the population throughout the world. Humans are utilizing the electrical energy in every aspect of life. Industries and consumers are in need of electricity tremendously. Humans at their work place or at residence are staying around these electrical utilities like never before. Humans are getting surrounded by the web of transmission lines due to increase in demand and supply. Life on earth is getting easy and comfortable with the use of electricity.

However some recent reports in relation to detrimental effects of Extremely Low Frequency

46

(ELF) Electromagnetic Fields (EMF) around HV transmission lines have forced the technical as well as common community members to think about design and installation techniques of HV lines.

One alternative come forward in management of power frequency fields around HV line was undergrounding. Underground cables are more likely to give good power continuity than overhead lines. The first underground transmission line was a 132kV line assembled in 1927 [1].

Despite of several advantages of underground cables in terms of power quality and management of power frequency fields, various design issues are still to be resolved to meet cost effectiveness.

Today both overhead and underground technology is in existence. Slowly we are moving from overhead to underground.

The purpose of this paper is to explore all the issues in relation to overhead as well as underground transmission lines from inception to design principles and individual advantages and disadvantages. This paper also provides comparative performance analysis of overhead and underground high voltage transmission lines. It will help to give quick review about individual advantages and disadvantages of both the techniques.

This paper consists of seven sections. Section I is the introduction. Overhead transmission line technology is detailed in section II. Section III deals with underground technology. Comparative analysis of both systems in Section IV. World scenario in

May 2015

TechSpace

Section V. India scenario in Section VI and Section VII concludes the paper.

Overhead Transmission Line High voltage systems can be natural as well as manmade. Lightening discharges are the only known natural form of high voltage on the other hand; all other forms of high voltage are manmade or synthetic to fulfill specific goals [2]. The first attempt to transmit HVOTL to long distance was recorded in 1886 at Carchi, Italy. AC power at 2kV transmitted to 30 km in this attempt. Since then higher voltage transmission lines emerged, giving utilities access to even more distant power sources. The number of miles of highvoltage transmission lines, essentially nonexistent in the 1950s, more than tripled to more than 60,000 circuit miles in the 1960s[3].

At the start of the 21st century, the transmission system is a truly interconnected network with more than 150,000 miles of high-voltage transmission lines [4].

In accordance with the voltage and length of OHTL are classified in major three categories as below:1) Short transmission lines. When the line voltage is relatively low (<20kV) and length of an overhead transmission line is up to about 50 km, considered as a short transmission line.

2) Medium transmission lines. When the line voltage moderatly high (>20kV <100kV), and length of an overhead transmission line is about 50-150 km it is considered as a medium transmission line 3) Long transmission lines. When the line voltage is very high (>100kV) and length of an overhead transmission line is more than 150 km it is considered as a long transmission line.

Electricity is transmitted from generating stations and substations via high-voltage transmission lines at 60–500kV (60,000–500,000 V). The high voltage lines on utility poles on our streets are typically at 4–25kV (4,000–25,000 V). These lines are located on peak of large towers or poles in transmission rights-of-way.

By increasing population of the world, towns are expanding, many buildings construct near high voltage overhead power transmission lines.These lines configurations with high voltage and current levels generate large values of electric as well as magnetic fields stresses which influence the human being and the close to objects placed at ground surfaces. This needs to be investigating the effects of electromagnetic fields near the transmission lines on human lives.

May 2015

There has been some concern about the health effects of electric and magnetic fields produced by transmission lines. Recent studies have heightened this concern. Health effects research is still preliminary and inconclusive, but a growing number of studies suggest that under certain circumstances even relatively weak electric and magnetic fields can produce biologic changes[18]. The report “Biological Effects of Power Frequency Electric and Magnetic Fields” discusses the present state of knowledge on the health effects of low-frequency electric and magnetic fields and describes research programs.

Also, the report provides information on regulatory activity, including existing and proposed field exposure standards.

The detailed status about this issue is extensively covered in “Biological Effects of Power Frequency Electric and Magnetic Fields” Health effects research is still preliminary and inconclusive, but a growing number of studies suggest that under certain circumstances even relatively weak electric and magnetic fields can produce biologic changes. To reduce the possible biological effects due to Extremely Low Frequency (ELF) Electromagnetic Fields (EMF) around overhead HV lines several efforts have been initiated worldwide. Out of which one is undergrounding. The next section discusses the feasibility and facts in relation to undergrounding the HV lines.

Socio economic and Health Issues There is significant risk of injury always possible due to overhead HV power line. It is due to the danger of electrical contact. Electrical contact between an object on the ground and an energized wire can occur even though the two do not actually touch.

In the case of high-voltage lines, electricity can arc across an air gap. The gap distance varies with the voltage at which the line is operated. Unlike the wiring in a home, the wires of overhead power lines are not enclosed by electrical insulating material [15].

Electrical injury depends on the current that passes through the body and the duration of contact. The longer the duration, the more likely it is to be lethal.

The resistance of human skin varies from person to person and fluctuates depending on the time of day. High voltage levels over 1000 volts may cause the skin to breakdown, thus lowering skin resistance and allowing increased current flow. Very high frequency electric current causes tissue burning but does not penetrate the body far enough to cause cardiac arrest[19-21].

47

TechSpace

In India some of the feeder cables that transmit 2.4kV to 33kV power to distribution transformers are not placed underground. In some rural areas these feeder cables are close to roof tops. Children playing with sticks, cricket bats or umbrellas on rooves get injured when they, intentionally or accidentally, touch these cables, and fall down. Occasionally these transmission cables snap and dangle over the building, causing children at play to be pulled into the arc and suffer burns[17].Apart from this as far as Indian perspective is concerned trees with height more than 10 feets like neem, banyan and pupil tree always require special consideration and leads to cutting.

Construction and maintenance of any structures are prohibited within right of way of overhead HV lines.

Undergrounding can offer comparative safe solution and avoid wasting time and money.

Mathangi Ramakrishnan K., Babu M.,* Mathivanan, Ramachandran B., Balasubramanian S., Raghuram K. in “High Voltage Electrical Burn Injuries In Teenage Children: Case Studies With Similarities (An Indian Perspective)” have reported about such risk and had done extensive case studies. According to him High voltage electrical accidents must be avoided by placing the transmission cables underground. Teenage children are vulnerable due to their curiosity and a lack of proper knowledge about high voltage electric current. Treatment becomes very expensive in developing countries due to prolonged hospital stays, repeated surgical procedures and expensive pressure garments.

Underground Transmission Line Electric power can also be transmitted by underground power cables as an option of overhead power lines as a solution which makes the transmission growth possible with minimized visual and electromagnetic field impacts on the communities.

Magnetic Field Profiles For Overhead And Underground (Solid Dielectric Cable) Transmission Line Graph—1[6] Underground cables are used for transmission and distribution of powers where it becomes impracticable to make use of Overhead construction or areas with large population density. It takes up of a reduced amount of subordinate visibility, and are less affected by bad climate.

But the cost differences between cables and overheated lines are still considerable in extra high voltage (EHV) networks. This cost is inevitable for special projects in urban areas or environmentally sensitive areas, where the construction of overhead lines is rather impossible [5].

However, costs of insulated cable and quarry are a lot superior then overhead construction for same voltage and same distance or higher initial construction costs.

Concerns about possible health effects due to EMF add to the desire on the part of some to eliminate overhead transmission lines altogether. Most new distribution lines are overhead and are subjected to the same criticism [6]. The electric fields from underground cables are protected by the wire’s insulation and the surrounding on earth, but the magnetic fields are not. By placing transmission lines underground in itself, does not eliminate magnetic fields above surface of the ground. This is because of the soil around underground cables has partially the same permeability as air [7].

Types of Underground Transmission Lines

Electric

There are several types of underground transmission lines. They are classified by whether they require pipes and their type of insulation. The main types are

High-pressure, fluid-filled pipe (HPFF)

Distance

48

HPFF cables are insulated with helicallywrapped Kraft paper or covered paperpolypropylene (LPP) tapes impregnated with high-viscosity synthetic dielectric

May 2015

TechSpace

Cross-linked polyethylene (XLPE)

The fact that underground cables are installed beneath the surface of the ground and surround by soil rather than air has no significant impact on the magnetic fields produced by the cables. This is because the magnetic permeability of soil is for all practical purposes the same as the magnetic permeability of the air. Laboratory tests showed that soil around the cables does not significantly affect the above ground magnetic field even when the soil contains up to 15% by weight of evenly distributed ferromagnetic particles.

System Grounding

liquid having voltages ranging from 69kV up to 345kV.

Self-contained fluid-filled (SCFF)

The construction of SCFF cables is similar to that of an HPFF cable which can be either Kraft paper or LPP tapes, impregnated with a dielectric fluid that is maintained under pressure to improve its electrical strength.

The first 230kV installation in the United States was in 1992, and California utilities have installed hundreds of circuit miles of 230kV XLPE cables in the last five years. The solid dielectric is usually XLPE for most present solid dielectric transmission cables the voltages bear of 69kV or below.

Based on the illustration of an underground installation the magnetic field would be higher instantaneously exceeding the hidden transmission line, than below the future overhead line. However, the magnetic fields from an underground line fall on more rapidly as you move away from the hidden cable. Magnetic fields drop off faster when the covered cables are located closer together which results in the magnetic fields diminishing more rapidly with distance, compared to an overhead line where the cables are farther apart.

Other factors such as how the lines are arranged and number of circuits in the line also manipulate the magnetic field levels.

As a basis for the design, the utility decided to use general specifications developed earlier for a 2.5 mile 138kV double circuit transmission line that was recently constructed in New Jersey. This design included duct bank and manhole configurations that would meet power transfer requirements, and with minor modifications, could be configured to reduce magnetic fields significantly [8].

Factors affecting the magnetic field of transmission cables â&#x20AC;&#x153;The factors that affect the magnetic field produced by conventional single conductor underground cable system may be grouped into four categories: 1) System grounding 2) Currents in the cables 3) Installation factors

The type of grounding affects the magnetic field in the vicinity of the cables.

Cables system grounding methods have a significant effect on the induced currents as discussed in IEEE std.575 and therefore, on magnetic field produced by an underground cable systems. These methods are single-point and cross bonded shield or sheath grounding.

Cable Currents The amount of zero-sequence current flowing in conventional single-conductor cables may have a significant impact on the magnitude of the magnetic field and how it decays with distance. The maximum value of the magnetic field increases significantly with zero sequence current flowing in the high voltage conductors, and the magnetic field decays by reciprocal of the distance from the line and rather than the square of the distance as for positive sequence currents.

Installation Factors The installation geometry of the transmission cables affects the magnitude of the magnetic field produced by the underground cables in the same way as for overhead lines.

For transmission cables, the direct burial installation method is usually limited to rural areas because of the necessity for relatively long open trenches during construction.

Other factors that significantly affect the above ground magnetic field produced by single-circuit cable systems are phase spacing, and depth of burial.

Effect Of Zero Sequence Current On Magnetic Field Profile Graph-2[6]

Cable Construction Most cables construction parameters for single conductor cables do not significantly affect the above

4) Cables construction

May 2015

49

TechSpace

Technical characteristics, reliability, operation and maintenance factors, environmental impact, possible health issues and costs are regarded.

The techno-economic characteristics of OHL and UGC are AC and DC of OHL and UGC on one hand and AC and DC technologies on the other hand hamper a direct Comparison.

Finally it identifies the key cost components per technology [10].

ground magnetic field. The most important exceptions are the diameter of the cables for installations where the cables are touching and the shield resistance for multi-point grounded cablesâ&#x20AC;? [9].

Socio Economic and Other Issues Even though road construction is possible on underground cables still it has to undergo certain strict restrictions. Buried cables occupy a significant amount of land except for cables installed in tunnels.

Access to cables for maintenance and repair is also required for the duration of their life. As far as trees are concerned even though in undergrounding there is no need to cut trees there is restrictions on the planting of trees and hedges over the cables or within 3m of the cable trench to prevent encroachment by vegetation. Tree roots can cause drying out of the ground around the cable causing a fall in the thermal conductivity and tree roots may also penetrate the back fill and cable construction causing electrical failure. This point is again important in case of trees that we find very commonly in India i.e. Neem, Banyan and Pupil trees.

Traffic disruption during fault investigation and repairs is also an issue attributed to undergrounding. Where cables are installed by direct burial in rural areas there are restrictions on the use of deep cultivating equipment to avoid the risk of disturbance[7].

Comparative Analysis This paper provides an independent view on the relative merits of constructing and operating Overhead line (OHL) compared to Underground cable (UGC). Advantages and disadvantages,

50

Both overhead and underground transmission lines are reliable by design. The transmission systems, overhead or underground, are impacted differently; overhead systems are exposed to weather and volcanic ash while underground lines can be dug into. Over the life cycle, the costs associated with transmission losses dominate the total operational costs for both OHL as well as UGC. High-voltage overhead transmission lines are a reliable, low cost, easily maintained, and established method to transport bulk electricity across long distances. Capital costs for UGC are clearly higher than for an OHL of the same transmission capacity.

The potential positive and negative impacts of the installation and subsequent operation of OHL and UGC are considered under the following headings:1) Land use 2) Climate of that area 3) Traffic and noise 4) Geology and Soils etc.

Above all the heading related to each impact for both OHL & UGC. With current price levels, a double circuit UGC configuration with 3000 mm2 aluminum conductors in soil is the option coming closest to OHL from an economic perspective.

Life Expectancy The life expectancy of an underground line is about half that of an overhead line.

Electric and Magnetic Fields: Underground transmission lines do not mitigate electric magnetic fields (EMF) because the earth does not provide shielding. EMF intensity levels may be higher above an underground installation as compared to overhead lines.

World scenario As economic growth in the world drives intensive electric energy demand, the need for advanced

May 2015

TechSpace

electric networks is fundamental for sustained and optimal usage of assets and resources available.

OHTL is still the dominant transmission construction around the world in terms of footprint. Innovation of underground cable and accessories technology have resulted in increased underground transmission networks projects in the last few decades [11].

Most electrical power in Japan is still provided by aerial cables. In Tokyo's 23 wards, according to Japan's Construction and Transport Ministry, just 7.3 percent of cables were laid underground as of March 2005. All low and medium voltage electrical power (<50kV) in the Netherlands is now supplied underground. Other EU countries such as the UK and Germany are undergrounding a proportion of these cables each year [12].

Table below shows the proportions (2006 data) of overhead and underground in various countries of the world.

Country

50109kV

110219kV

Denmark

1930

515

France

2316

1

Gennany

857

4972

45

65

0

907

197

34

Japan

11760

1769

1440

123

Korea

2

2144

221

221

Nether•Iands

1068

6

7

1185

Italy

220314kV

315500kV 52

903

2

Singapore

2558

1068

6

111

Spain

509

181

479

80

UnUed Kingdom

1457

2967

496

166

USA

946

2904

663

536

23520

17428

4880

1397

1.7

2.9

1.7

0.5

Total (km) 23520 Percentage (o/o)

Table No 1: Total Length of UG circuit (km) worldwide in 2006 [13].

annual per capita Power Consumption is at around 800 kWh (units), which is among the lowest levels in the world. More than 300 million Indians are still deprived of electricity. This initiative by the Gov. will provide a major opportunity for the Indian electrical industry to achieved 24*7 electricity to all [16]. Punjab has a recent project in which zero power cuts & 24*7 Electricity for rural Households.

Conclusions 1) Major public concern regarding the transmission projects under discussion is related to their perceived environmental impact, cost analysis and health effect.

2) OHL produces ELF EMF. There is need to reduce this power frequency fields.

3) Overhead lines can be replaced by underground transmission line and this can be one of the good solutions to minimize the ELF, EMF etc.

4) Underground cables offer justifiable solution for some cases with appropriate technology and minimize the environmental impact.

5) Injuries caused by HV lines and effects on other socio economic issues like construction near cables, tree plantation and cultivation are the topics of attention along with development in technology of transmission.

6) There is still wide scope exists to minimize the cost issues involved in designing and laying down the UGC. 7) Underground systems have the advantage of being out of public view and are much more aesthetically pleasing and accepted by the public than overhead lines. They are also not affected by wind, tornadoes and hurricanes.

8) Life span, susceptance to treeing (cracks in the insulation due to voltage breakdown of the insulation over time) and accidental dig are the issues to be looked upon seriously in UGC. Cable circuit fails, locating the failed part of the cable can be sometimes challenging.

REFERENCES

Indian Scenario The electricity sector in India had an installed capacity of 253.389 GW as of end August 2014. India became the world's third largest producer of electricity in the year 2013 with 4.8% global share in electricity generation surpassing Japan and Russia [14].

India has made huge strides in the generation and transmission segment. However at present, India’s

May 2015

1) 2) 3) 4) 5)

Metsco Energy Solution, “Comparison of Underground and Overhead Transmission Options in Iceland (132 and 220kV)” , November, 2013,PP.5. http://en.wikipedia.org/wiki/Electric_power_transmission Matthew H. Brown., Richard P. Sedano, “ Electricity Transmission A Primer”, June 2004, pp.4.

Matthew H. Brown., Richard P. Sedano, “Electricity Transmission A Primer”, June 2004,pp-6; https//:www.ec.europa.eu/energy/electricity/publications/ doc/undergrounding.pdf.

51

TechSpace

6)

Jhon H. cooper, “Electric and Magnetic Field Management Reference Book”, first edition TR-114200 Final Report, DEC-1999, pp 7-1.

7)

Undergrounding high voltage electricity transmission, Issued August 2009,pp 8.

8)

Magnetic Field Management Considerations for Underground Cable Duct Bank 2005 IEEE Transmission & Distribution Conference – New Orleans, Louisiana.

9)

Jhon H. cooper, “ Electric and Magnetic Field Management Reference Book”, first edition TR-114200 Final Report, DEC-1999, pp. 7-3 .

10)

Study on the comparative merits of overhead electricity transmission lines versus underground cables, KBU 30 MAY 2008, pp. 5 .

11)

Study on the comparative merits of overhead electricity transmission lines versus underground cables, ECOFYS, 2008 pp. 38.

12)

http://en.wikipedia.org/wiki/Undergrounding#Japan.

13)

Metsco Energy Solution, “Comparison of Underground and Overhead Transmission Options in Iceland ”,November,2013,PP. 5.

14)

Wikipedia of Electricity sector in india.

15)

Living Safely and Working around High-Voltage Power Lines,pp 3.

16)

“smart electricity for a smart India 24*7” IEEMA journal, volume 6,Issue no. 2, October 2014 ,pp. 22.

52

17)

18) 19)

Mathangi Ramakrishnan K., Babu M., Mathivanan, Ramachandran B., Balasubramanian S., Raghuram K., “High Voltage Electrical Burn Injuries In Teenage Children”, Annals of Burns and Fire Disasters - vol. 26 - n. 3 - September 2013 pp.121-126.

“Study of Power Frequency EMF and it’s Interaction with Biological Bodies” Girish A Kulkarni ,IEEMA journal ,volume 5, issue no.11, July 2014, pp.16-26..

Abbas AD, Dabkana TM et al: High tension electrical burns: Report of two cases. Annals of burns and fire disasters, n.22 – 2009 pp.160-162.

20)

Nichter LS, Morgan RF, Bryant CA et al: Electric Burns of the Oral cavity. Compr Ther, volume number 11, 1985, pp. 65-71.

21)

Guinard JP, Chiolero R, Buchser E et al: Myocardial injury after electrical burns: Short and long term study. Scand Jour Plast Reconstr Surg Hand Surg, volume number 21, 1987, pp. 301-302.

Author

Ravi Kant Kumar TE(Electrical Engineering), SSGBCOE&T, Bhusawal Girish A. Kulkarni Associate Professor, SSGBCOE&T, Bhusawal

May 2015

SMETalks

Our target is to increase our market share & sales by 25% - 30% every year Mr PC Goliya With the wide range of products MECO Instruments have been catering to the needs of most market segments, like electrical and electronic equipment manufacturers, power utilities, consumer product manufacturers, state electricity boards, system house/integrators, testing laboratories and educational institutions. he Company’s products are also widely accepted in over 55 countries.

Partial list includes France, Germany, Hongkong, Israel, Italy, Japan, Malaysia, Oman, Saudi Arabia, Singapore, UK, USA etc. Mr PC Goliya Chairman and Managing Director, MECO Instruments speaks to IEEMA Journal about developing solution for easier, efficient, reliable and accurate measurement at affordable cost.

T

Technology is changing every moment, in the electronic field and new solutions are developed in the measuring instruments field due to application of advanced micro circuits and software solutions. Mr Goliya says, “MECO’s in house R & D is continuously developing solution for easier, efficient, reliable and accurate measurement at affordable cost Mr PC Goliya with this in mind, MECO’s priority areas to focus now are : Multifunction CMD, MECO Instruments Power & Energy Monitors, High Voltage 5 KV Insulation Testers and Environment Testing Instruments.”

Multifunction Power & Energy Monitor: Model MFM96S Microcontroller based with MODBUS RTU Protocol is indigenously designed (saves more than 60% of the instrument cost in panel, it also reduces size of panel), around 64 Electrical Parameters can be measured in One instrument and upto 256 instruments can be connect to Scada, DCS, Computers via RS485.

Solar Analyzers: Models 9009 & 9018BT are portable analyzers used for testing, maintenance and finding efficiency of various parameters of solar panel and cell. Analyzer can be used to design Solar System to generate specific power. It can identify Solar Power system requirement, best angle of Solar Panel installation and broken / worn-out cells.

5KV Insulation Tester: Model DIT 954 is a 5KV Digital Insulation Tester with 3 ½ Digit (1999 Counts) Large Display and Backlight. It measures Insulation up to 200GΩ, AC Voltage up to 600VAC and checks Phase Sequence and Phase Status.

Environment Testing Instruments: Our new Environment testing series includes Infrared Thermometers Gun Type (IRT380P, IRT550P, IRT 1050P), Digital Sound Level Meter (970P), Digital LUX Meter (930P), Air Flow Anemometer (961P), Humidity & Temperature Meter (920P).

Talking about new projects in pipeline the CMD says, “MECO will be developing High End TRMS 6600 Counts and 20,000 Counts Auto Ranging Multimeters and Clamp Meters in future. Also our target is to increase our market share & sales by 25% - 30% every year.”

But his major concern area is the challenge faced by his organization, he explains, “The electrical sector is facing is competition and over capacity. In the next five years we want to make competitive product for global requirement. It takes long time in visualizing a product and starting R & D, deciding on hardware and developing software, testing pilot run and then testing & certifying in Govt. Lab, and rectifying the findings, and complete the product, take about two years, then field run for One year. Moreover the other challenge is to retain the Design Engineering Team so long.”

May 2015

55

SMETalks

MSME - Testing Centre MSME - Testing Centre (WR), Mumbai (formerly known as Regional Testing Centre, Mumbai) is one of the 4 Regional Testing Centre. Setup by Government of India under Ministry of Micro, Small & Medium Enterprises to provide Testing and Quality Control Facilities for the small scale industries in the Western Region.

The Main Objectives of the Centre are: 1. To provide testing facilities to small scale units in order to produce goods conforming to Indian & International Standards Specifications.

2. To provide Third Party Assurance to Bureau of Indian Standards, Export Inspection Council, DGS & D and other Government Purchasing Agencies like CPWD, Dept. Of Telecommunication, BMC, Railways, S.A.I.L., Canteen Stores Dept., Superintending Engineer (QC) of Maharashtra, Directorate Of Industries, Gujarat, Directorate Of Industries, Goa, Administration of Daman, Diu, Directorate Of Industries Daman & DIC, Daman, Directorate Of Industries (Electricity Dept.) Silvassa etc.

3. To help in improving Quality of Products of Small Scale Units for participation in the Government Store Purchase Programme, Defence Establishments, Railways etc.

4. To assist Small Scale Units by testing their raw materials, finished products and calibration of their instruments and gauges, etc., – Calibration services for up-gradation of quality and reliability (Performance testing, type testing & Acceptance testing). Assurance to Inspection Agency as a third party guarantor.

MSME Testing Centre - Approach }} Customer’s Services is uppermost in our mind.

The inter-action with the customers is done by test planning & coordination besides providing prompt service ensures : }} Confidentiality of the jobs accepted; }} Planned Scheduling of the jobs leading to optimized test effort }} Single window inter-action with the customer for any customer’s enquiry.

We invite all Small Scale Industries manufacturing electrical, Mechanical, Chemical & Metallurgical products situated in Maharashtra, Madhya Pradesh, Chhattisgarh, Gujarat & Goa to make use our facilities and Expertise available

56

Area Coverage The MSME Testing Centre, Mumbai caters to the testing needs of the whole of the Western Region i.e. the State of Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh and Goa. In addition to the MSME Testing Centre at Mumbai, Government of India has also started 2 MSME Testing Stations in the Western Region for specific industries at the areas of the cluster of the industries.

The location of the field testing station along with the industry groups are as follows:MSME Testing Centre, Mumbai - Testing Facilities Available Field Testing Station, Kolhapur— Maharashtra Foundry Products & Chemical Analysis of Ferrous and non-ferrous Metals Field Testing Station, Bhopal - Madhya Pradesh Engineering Product

Electrical Testing Product Testing (As per IS, IEC & Other International Standards) }} Domestic Electrical Appliances viz. Mixer, Blender, Iron, Washing Machine, Hot Plate, Cooking Oven, Instantaneous and Storage Water Heater, Electric Kettles, Toaster, Electric Heating Pad, Flash Light, Inverters, UPS, Voltage Stabilizer. }} Electrical Wiring Accessories viz. Switches, Three Pin Plug, Socket Ceiling Rose, Lamp Holder, Metal Clad Switch, Fuse Units, Distribution Box, Kit Kat Fuse, Control Panels. }} W ires and Cables (PVC, XLPE, Elastomeric, Overhead Conductor) FRLS Cables. }} Ceiling Fan Ventilation Fan, Table Fan, Air Circulators and Electric Fan Regulators }} Luminaries with IP and Photometry Test facility, Ballasts, CFL, LEDs

Major Tests }} High Voltage Test }} Temperature Rise Test }} FRLS Tests for Cables (Oxygen Index, Temperature

Index, HCL, Smoke Density)

}} Degree of Water Ingress Protection IPX3, IPX4, }} }} }} }} }} }}

IPX5, IPX6 Degree of Dust Ingress Protection IP5X & IP6X Thermal Endurance for Choke Photometry Test Ceiling Fan Air Delivery Test EMC/EMI Test (Proposed) Environmental Tests

May 2015

SMETalks

Special Equipmentâ&#x20AC;&#x2122;s }} Temperature Chamber -70oC to 20oC }} Water Ingress Protection Test System IPX3, IPX4, }} }} }} }} }} }} }}

}} }} }} }} }}

IPX5 and IPX6 Dust Chamber IP5X and IP6 Digital Storage Oscilloscope

Computerized Test System for Photometry of Luminaries (Goniometer) Photometric Integrating Sphere Computerized Tensile Testing System Humidity Control Oven Endurance Test Apparatus for Switches, Shutter Type Sockets, Flash Lights, Luminaires and Appliances Glow Wire and Tracking Test Apparatus Variable Voltage and Frequency Source PC Based System of Standing Loss Measurement Vibration / Sound Level Integrate Meter.

Humidity control oven

HOW TO APPLY PROCEDURE The Industrial Units intend to avail of testing facilities are required to apply in writing to the Director, MSME Testing Centre (Western Region), about the details of the tests to be conducted and the relevant Standard Specification Numbers etc. The payment for the test charges which are nominal is to be paid in advance by a Demand Draft in favor of Director, MSME Testing Centre, Mumbai.

Addresses of Testing Centres: MSME Testing Centre (Western Region) Ministry of Micro, Small & Medium Enterprises, Govt. of India MSME-DI Campus, Kurla Andheri Road, Saki Naka, Mumbai-400 072 (Maharashtra) Telephone: (022) 28570588 / 28576998 Fax: (022) 28572238 Email : dctc-wr@dcmsme.gov.in

Foundry Products & Chemical Analysis of Ferrous & Non-ferrous Products MSME â&#x20AC;&#x201C; Testing Station, P-31, MIDC Indl. Area, Shiroli, Kolhapur-416 122 (Maharashtra).

Telephone : (0230) 2469366.

General Engineering Products MSME-Testing Station, Shed No. 47-E, Industrial Area, Govindpura, Bhopal-462 023, (Madhya Pradesh) Telephone: (0755) 2586075

May 2015

57

Interview

However penetration is very low with production of only about 10% energy efficient motors IEEMA Rotating Machines Division Chairman Mr Anil Naik speaks to IEEMA Journal about the challenges being faced by the Rotating machines like that of fourfold increase in import of IHP Motors and the use of low efficiency motors in the manufacturing plants.

What are the three top most challenges faced by the

Rotating machines industry and your suggestions to combat them?

The three top most challenges faced by the Rotating machines are (a) over 10 % drop in MW production of last 3 years compared to CAGR in previous 10 years of over 15 % (b) Over 5 % drop in market price realization in last 3 years in spite of annual inflation of over 6 % & (c) Over fourfold increase in import of IHP Motors (Rs. 1400 Cr in FY15 ) & over 80 % appliances motors import from China.

Growth has direct relation with GDP, investment in projects & new capacity development of Industry. Till new capacity gets developed in the country, focus should be on the retrofit market of energy efficient motors. We are raising with the government, in different forums, to consider scrapping of over 15 to 20 years motors and replacing them with new generation energy efficient IE2 / IE3 / IE4 Motors, which will payback the total investment ( Purchase Price ) in 2 to 3 years & give continuous saving in next 10 to 12 years. We are in discussion with DIPP and BEE to make energy efficient motors standard IS 12615 / 2011 mandatory so that energy efficient motors production level will change from 10 % to 100%. This will also ensure that same standard is followed for import of motors in the country and reduce import considerably, giving support to domestic demand.

Energy efficiency is the key for energy security. How has India fared as far as bringing energy efficiency in its core industrial sectors is concerned?

In developed countries Energy efficiency policies and Instruments are at place. This is achieved

by Governance giving National targets, Laws & regulations followed by mandatory audits. In India, awareness of energy saving is very high with consumers, e.g. mileage of any vehicle is at the top of the mind or star labeling awareness is high which influences the buying pattern in consumer goods.

However in the Industrial sector, we have to still go

58

long way for bringing energy efficiency as a top most priority, by giving preference for only energy efficient equipment over lowest cost buying. Industry is giving consideration for life time running cost, but this is not reflected fully in the buying pattern. There are corporate companies who have made it compulsory to use only star labeled or the highest energy efficient products as per standards. The improvement of energy efficiency has become the most priority area for industries striving to achieve cost competitiveness. In the cost of production, energy cost is a major component, annually increasing faster than inflation and hence necessitates the installation of energy efficient technology, as well as to inculcate energy efficient practices across the plant personnel’s. Power ministry is considering to scrap more than 20 years old power plant as such plants are consuming auxiliary power about 12 % whereas new generation power plant will consume about 6%. More such initiatives in 24 X 365 running process / manufacturing plant will lead to save energy.

There is low awareness of Energy efficient motors even though IS 12615/2011 is in place. What steps should be taken in this direction according to you?

IEEMA and ICPCI have conducted seminars across the industry in the last 12 years, creating awareness to use energy efficient motors, cost impact offset, myth about starting current etc. However penetration is very low with production of only about 10 % energy efficient motors. In all developed countries energy efficient motors standard is mandatory and hence countries such as USA, Japan, European Commission has even moved from IE2 to IE3 as minimum efficiency level. Once energy efficient motors IE2 standard is mandatory all organized sector & SME will manufacture IE2 or above. All of them have developed capability for manufacture IE2 motors. This will ensure import of only energy efficient motors in the country. All consultants should recommend min]imum IE2 efficiency & depending on the motors annual running time to consider IE3 or IE4

May 2015

Interview

motors. OEM’s and EPC services decisions should be based on life time running cost instead of initial one time investment on L1 basis. ESCO should become more aggressive and offer better financial packages to replace old, oversized, low efficiency motors in the manufacturing plants. Industries should avail services of ESCO to work on performance contract of investment & savings or take ESCO help in bringing down power consumption per item manufactured by over 50 % in the next 2 to 3 years. Energy efficiency legislations such as Energy Conservation Building Code should be followed. This is specifying minimum energy efficiency standards for commercial building & encourages energy efficient buildings / retrofit of buildings, which will reduce considerable energy consumption in HVAC. An awareness creation program conducted by BEE with “National Energy Conservation Awards” encourages Energy Efficiency in domestic and Industrial sector.

Do you think the Government is doing enough for stimulating the demand?

Government is presently addressing the core issues of the industry such as coal block allotment,

May 2015

mining, reality bill etc. which will develop investors’ confidence. Halted Projects should get streamlined first & then only new investment will take place.

Challenges are from imports in project equipments as well as motors, dampening the demand of local motor industry. Investment in infrastructure & housing should trigger demand in next 2 to 3 quarters. Ministry of Power has conducted meeting with industry to promote make in India campaign related to power sector in Nov14. PMO has directed Department of Commerce to develop a system for institutionalizing import appraisal of engineering goods & reducing dependence on imports. EEPC has identified list of 181 tariff lines with import value of USD 100 Million plus/ Annum (Rotating Machine 4 Items) & support structure being created to develop capabilities, capacities, tariff/ duties or prescribing standards for import, infrastructure improvement need for enhancing production & need for providing subsidies to enhance encourage production. DIPP in consonance with the Govt’s initiative of Make in India have identified 5 sectors which have good investment potential for the domestic as well as export market and Electric Motors is one of these five sectors.

59

IEEMAActivities

discussed. IEEMA also submitted a representation to the Joint Secretary in this regard.

IEEMA Activities

Interface with Government and Agencies On 24th March 2015, Mr. Sunil Misra, Director General; Mr. Uttam Kumar, Executive Officer and other Senior IEEMA Members, attended a meeting on short term initiatives indicated in the outcome of the document of Make in India with Ministry of Power, Government of India. The meeting was chaired by Mr. Devendra Chaudhry, Special Secretary, Ministry of Power. The meeting was also attended by senior officials from CEA, REC and PFC. There was a discussion on product wise capacity utilisation domestic electrical equipment industry, orders which have gone to Chinese firms in last 3 years, identification of the areas of competiveness for domestic manufacturers vis-à-vis foreign manufacturers, vendor development initiatives etc.

On 31st March Mr. Sunil Misra, Director General along with Cdr Parijat Sinha, Head Operations and Administration met Mr. Poul Jensen, Director, European Business and Technology Centre ( EBTC) to discuss future working collaboration.

To further strengthen the collaboration, a Memorandum of Understanding ( MoU) was signed between IEEMA and EBTC, in the presence of Hon’ble Minister of State for Industry and Commerce, Smt Nirmala Sitharaman at Hannover Messe 2015, Germany.

On 10th April 2015. Mr. Vikas Khosla, Vice Chairman, IEEMA Public Policy Cell and Mr. Sudeep Sarkar, Deputy Director, IEEMA attended a meeting, chaired by Mr. Sudhanshu Pandey, Joint Secretary, Department of Commerce, Government of India on Second Round of Consultations on Negotiations Regional Comprehensive Economic Cooperation (RCEP). The Rules of Origin and Cumulative Value Addition for Chapter 85 and 90 was

IEEMA Representations On 13th April 2015, IEEMA submitted a representation to Tariff Commission, under Ministry of Commerce and Industry, Government of India, on removal of Inverted Duties and Anomalies in Electrical Equipment Manufacturing Industry.

On 6th April 2015, IEEMA submitted a representation to Department of Commerce, Ministry of Commerce and Industry, Govt. of India, regarding Rules of Origin and Cumulative Value Addition for Regional Comprehensive Economic Partnership (RCEP) Agreement.

On 20th March 2015, IEEMA submitted a representation to Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India, on Request List from Australia under India-Australia CECA.

IEEMA Achievements Issues represented by IEEMA and addressed by Government in favour of Electrical equipment industry

Some favourable announcements in Budget 2015-16 IEEMA had represented its Pre-Budget Memorandum 2015-16 to Ministry of Finance, and also through Ministry of Power, Department of Heavy Industry, Department of Industrial Policy and Promotion and other Government agencies. IEEMA Economic and Taxation Committee also had interactive meetings with the Ministry of Finance and Department of Industrial Policy and Promotion as a part of its PreBudget exercise.

Some of the issues represented by IEEMA have been addressed in the Union Budget 2015-16 in favour of the industry. These are as follow in brief:

}}Removal of Inverted Duty Structure in Manufacturing of Insulators and Insulated Cables Issue: As per customs tariff, basic customs duty on Electrical Insulators, under HS Codes 8546 and 8547, is 7.5%.

IEEMA VISION

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

60

May 2015

IEEMAActivities

However, major raw materials used for manufacturing of insulators viz. metal parts (MCI / SGI casting component), Ball pins and CC rings etc. under HS Code 7325, attract a basic customs duty of 10%.

leviable under the First Schedule to the Customs Tariff Act, 1975 (41 of 1975) and additional duty leviable under section 3 of the said Customs Tariff Act when imported into India.

This is a case of inverted duty structure, where the basic customs duty on raw materials is higher than that of the finished product.

While referring to the customs notification no.

12/2012-Cus, dated 17.3.2012, there are several sl. nos., where duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (41 of 1975) and additional duty leviable under section 3 of the said custom Tariff Act when imported into India are Nil. Against these Sl. Nos. also goods from any chapter are not exempt, like in sl. no. 507, the goods are exempt from payment duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (41 of 1975) and additional duty leviable under section 3 of the said custom Tariff Act when imported into India, when falling under Customs Tariff heading 98.01.

IEEMA Suggestion: Reduce basic customs duty on said metal parts.

Budget 2015-16 Announcement: Basic customs duty on metal parts falling under HS Code 7325 for use in manufacture of electrical insulators has been reduced from 10% to 7.5%. (please refer budget notification no. 10/2015-customs, dated 1st March, 2015 – sl. no. 334 B) Issue: The finished product Insulated Cables, under HS Code 8544, attracts a basic customs duty of 7.5%. However the raw materials to manufacture this product attract a basic customs duty in the following manner: Sr. No.

Item

HS Codes

Basic Customs Duty (%)

Thus unlike the central excise notification, which provides the exemption to goods from any chapter, customs notification restricts exemption to specified chapters only. Thus, making the exemption from payment of Excise Duty more complicated, whereas it should have been simpler.

1

EPDM (Ethylene 40029990 10.00 Propylene Diene Monomer)

IEEMA Suggestion: Provisions for excise duty exemption should be simplified by de-linking it to Customs Tariff Act.

2

Water Blocking Tape 39199090 10.00

3

Glass Mica Tape

Budget 2015-16 Announcement: The Condition no.

41 amended so as to provide that if imported goods are eligible for NIL basic and NIL CVD subject to certain conditions, then the said conditions shall also apply mutatis mutandis to such goods when manufactured domestically and supplied against International Competitive Bidding for the purposes of availing of the said excise duty exemption. (Condition no. 41 of notification no. 12/ 2012-CE, dated 17th March 2012 has been amended by notification no.

12/2015-CE, dated 1st March 2015).

68149090 10.00

This is a case of inverted duty structure, where the basic customs duty on raw materials is higher than that of the finished product.

IEEMA Suggestion: Reduce basic customs duty on above raw materials.

Budget 2015-16 Announcement: Basic customs duty on EPDM, Water Blocking Tape and Glass Mica Tape, falling under HS Codes 4002 7000; 3919 9090 and 6814 9090 respectively, used in manufacture of insulated wires and cables, have been reduced from 10% to 7.5%. (please refer budget notification no.

10/2015-customs, dated 1st March, 2015 – sl. no.

247 A B & C).

}}Difficulty in availing Central Excise Exemption under ICB Issue: Sl. No. 336 of the central excise notification no.

12/2012-CE, dated 17.3.2012, exempts all goods from payment of excise duty falling under any chapter, if supplied to International Competitive Bidding; by fulfilling the condition no. 41. Condition no. 41 states that “If the goods are exempt from duties of customs

May 2015

}}CENVAT Credit Rules, 2004 Issue: In the proviso to Rule 4 & 7 of CENVAT Credit Rules, 2004, restriction was put on availment of CENVAT Credit on inputs/input services within six months from the date of CENVAT document is proposed.

This provision defeats the purpose of CENVAT. Goods are generally removed by roads to various far off places and vehicle passes through various states, check posts & comply with entry provisions. Also natural causes, strikes, vehicle failures, loss of invoice etc., are reasons for abnormal delays in delivery in some cases.

61

IEEMAActivities

Sometimes the goods receipt documents are not finalized because of some dispute between the supplier and the buyer or till settlement of commercial disputes where possibility of crossing six months from document date cannot be ruled out.

Budget 2015-16 Announcement: The time limit for receiving back the capital goods by a manufacturer from a job worker has been extended from 180 days to two years. (please refer notification no. 6/2015â&#x20AC;&#x201C;CE (NT), dated 1st March 2015 sl. no 2 (c) (a) (ii)).

In case of service tax, the CENVAT Credit availment is linked to payment to service provider and hence this provision restrict service receiver to keep the payment terms within six month only, even if service provider allows more period.

}}Bill of Entry

IEEMA Suggestions: Withdraw the above proviso to move towards a liberalized GST regime; alternately, Increase the period from six months to one year, in line with provisions of applying refunds; alternately, Insert another provision to avail CENVAT after six month with justified reasons.

Budget 2015-16 Announcement: The time limit for taking CENVAT Credit on inputs and input services has been increased from six months to one year.

}}Time limit for return of inputs or capital goods sent to job-workers:

The name & address of Importer is getting printed in the present format of Bill of entry. If any imported material is to be transferred to job worker then importer has to necessarily take the delivery in his registered premises for availment of CENVAT as Bill of entry is in his name. The importer can transfer the material subsequently under Rule 3(5) of CENVAT Credit Rules, 2004.

IEEMA Suggestion: It is suggested to make provision in the format of Bill of Entry to enter the name of importer as customer & name of job worker as consignee in line with the invoice issued under Rule 11 of Central Excise Rules, 2002. This will facilitate trade to transfer the imported material directly to job worker from the port.

Budget 2015-16 Announcement: Credit shall also be allowed even if any inputs are directly sent to a job worker without there being first brought to the premises of the manufacturer or the provider of output service, as the case may be, and in such a case, the period of 180 days shall be counted from the date of receipt of the inputs by the job worker. (please refer notification no. 6/2015â&#x20AC;&#x201C;CE (NT), dated 1st March 2015 sl. no 2 (c) (a) (i)).

Under the provisions of Rule 4(5) (a) of CENVAT Credit Rules, 2004, if the inputs or the capital goods (on which CENVAT credit has been availed) are sent out of the factory premises for further processing, manufacture of intermediate goods necessary for manufacture of final products, etc., to a job-worker and are not returned within 180 days, the manufacturer has to pay an amount equal to CENVAT claimed on such inputs. The re-credit of such amount is allowed as and when the inputs / capital goods are returned.

}}Enhance the Rate of Depreciation for Construction

It is submitted that return of capital goods from a job worker location with consequential disruption of manufacture at such location, merely to avail CENVAT credit, is economically inefficient. Additionally, in the event of return of inputs / capital goods beyond 180 days due to reasons like strike / lockout / other disruptions at the job-workers premises also disentitles an assessee from availing the CENVAT credit for reasons beyond his control.

The electrical industry is extensively technology oriented and machinery used in the industry is susceptible to frequent technological changes.

The industry has to keep pace with time to remain competitive nationally and internationally. Therefore, it is essential to adopt new technologies at a faster rate. The present rate of depreciation for construction equipment is 15%.

IEEMA Suggestion: The time limit for return of inputs and capital goods removed to job-worker premises be done away with. Alternately, jurisdictional excise authority be delegated the necessary powers to extend the time limit of 180 days for return of inputs from job worker for reasons beyond the control of the manufacturer, like strike/lockout at the premises of the job worker. In respect of capital goods the time limit should be extended for the duration of the contract with the job-worker based on which such capital goods are sent out.

62

Equipment / Plant and Machinery:

IEEMA Suggestion: Higher and accelerated depreciation should be allowed for construction equipment at construction sites @ 30% so that the equipment can be written off in 10 years. This will enable companies to bring in better technology in manufacturing sector where newer technologies can reduce project cycle time.

Budget 2015-16 Announcement: Additional depreciation @ 20% is allowed on new plant and machinery installed by a manufacturing unit or a unit engaged in generation and distribution of power.

May 2015

IEEMAActivities

However, if the asset is installed after 30th September of the previous year only 10% of the additional depreciation is allowed. It is proposed to allow the remaining 10% of the additional depreciation in the subsequent previous year.

Inclusion of Electrical Equipment under MEIS Scheme of Foreign Trade Policy In the new Foreign Trade Policy 2015-2020, announced on 1st April 2015; 5 different schemes - Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agricultural Infrastructure Incentive Scrip and Vishesh Krishi Gram Udyog Yogna have been merged into single scheme.

This scheme is known as â&#x20AC;&#x2DC;Merchandise Exports from India Schemeâ&#x20AC;&#x2122; (MEIS). Reward under MEIS shall be payable as a percentage of realised FOB value in free foreign exchange.

IEEMA had represented earlier to Directorate General of Foreign Trade, Ministry of Commerce & Industry, Government of India, for inclusion of certain electrical equipment under earlier existing Focus Product Scheme. Several electrical equipment were included in the MEIS.

Imposition of Safeguards and Anti-Dumping Duty on Insulators Increased import of insulators from China have caused and threatened to cause market disruption to the domestic industry and producers of electrical insulators.

On the finding of the Director General (Safeguard) about severe surge in imports of electrical insulators; the Government of India, vide notification no.

5/2012-Customs (SG), dated 20th December 2012, had imposed a safeguard duty of 35% in the first year and 25% in the second year on imports of Glass or Ceramics/Porcelain falling under sub-heading 8546 10 or 8546 20, from China.

Later, based on preliminary findings of the Directorate General of Anti-Dumping & Allied Duties, the Ministry of Finance notified imposition of provisional antidumping duty on imports of Glass or Ceramics/ Porcelain from China; for a period of six months from 16th September 2014. Recently, as per the final findings of the Directorate General of Anti-Dumping & Allied Duties, the Ministry of Finance notified definitive anti-dumping duty on imports of these products from China, vide notification no. 11/2015-Customs (ADD), dated 11/04/2015.

May 2015

63

PowerStatistics

Electricity - Installed Generating Capacity (Country wise upto 2013) World’s Electricity - installed generating capacity is equal to 5,250,000,000 kW upto 2013 The top 5 countries’ Electricity - installed generating capacity amounts to 55.30% of the world’s Electricity - installed generating capacity.

1400 1200 1000 800 600 400 200 0 China

United States

Japan

Russia

India

Germany Canada

France

Electricity - installed generating capacity kW

East Asia & Pacific China Japan Korea Australia Indonesia North America United States Canada Bermuda Europe & Central Asia Russia Germany France Italy Spain

1765825300 1146000000 287000000 84660000 59130000 39900000 1176065000 1039000000 136900000 165000

Venezuela Chile South Asia India Pakistan Bangladesh Sri Lanka Bhutan

27500000 16210000 242505180 208100000 22270000 6673000 2685000 1505000

Middle East & North Africa

255926600

1353865100

Iran Saudi Arabia Egypt

62090000 49050000 26910000

United Arab Emirates

23250000

Israel Sub-Saharan Africa Sub-Saharan Africa Nigeria Dem. Rep. Congo Mozambique Sudan

15330000 78310250 44260000 5900000 2437000 2428000 2083000

Latin America & Caribbean

327476300

Brazil Mexico Argentina

113700000 62000000 32870000

Source: CIA world Factbook

64

Brazil

Region & Country

223100000 153200000 124300000 122300000 101700000

Region & Country

Italy

May 2015

Electricity - installed generating capacity kW

PowerStatistics

Growth of Transmission Sector Since 6th Plan Import and Export data of select Ports for the period of 2014-2015

% Variation over 2013-14

April-March 2014-15 IMPORT

EXPORT

IMPORT

EXPORT

-3.5

-0.2

17877.1

10.8

8.2

50158.82

613.48

2.6

101.7

46658.92

2592.91

6.9

3.5

DC motors & generators of an output > 750 W but < 75 KW

13048.21

2504.81

3.8

55.2

850133

DC motors & generators of an output > 75 KW but < 375 KW

974.14

1460.07

-33.8

-17.1

850134

DC motors & generators of an output > 375 KW

1160.24

2528.8

-48.6

-86.8

850140

FHP Motors

38541.79

49855.97

49.3

25.0

850151

AC Motors of an output < 750 W

20692.24

3509.87

18.7

12.9

850152

AC Motors of an output > 750 W but < 75 KW

69117.68

13224.75

-19.8

27.0

850153

AC Motors of an output > 75 KW

49253.91

19347.1

-36.2

4.9

1.2

Rotating Machines: AC Generators

27905.48

54932.85

-38.3

50.1

850161

AC Generators Of an output < 75 KvA

1332.34

15591.71

-57.5

37.7

850162

AC Generators Of an output > 75 kVA but < 375 KVA

154.96

3645.03

-83.5

189.5

850163

AC Generators Of an output > 375 kVA but < 750 Kva

23.08

1067.16

-75.7

48.3

850164

AC Generators of an output > 750 KVA

26395.1

34628.94

-35.7

48.7

1.3

Rotating Machines: Generating Sets

22799.22 141635.21

-54.2

37.9

850211

Generating sets with Diesel engines of an output < 75 KVA

1685.49

18675.99

-10.4

-25.7

850212

Generating sets with Diesel engines of an output > 75 KVA but < 375 KVA

1681.15

16119.2

75.8

-10.7

850213

Generating sets with Diesel engines of an output > 375 KVA

8351.05

32167.49

-74.3

65.8

850220

Generating sets with spark-ignition internal combustion piston engines

1110.92

28291.56

-8.4

35.8

850231

Generating sets - Wind-powered

319.44

22535.21

-72.6

124.1

850239

Generating sets with steam engines, water turbines & other prime movers

9651.18

23845.76

-19.5

157.5

1.4

Rotating Machines: Parts

229022.92 147638.29

1.8

43.5

850300

Parts of Rotating machines

229022.92 147638.29

1.8

43.5

ITC-6

DESC

1.1

Rotating Machines: Motors

850110

Motors of an output < 37.5 W incl. Stepper, Micro, Wiper 115321.23 motors etc..

850120

Universal AC/DC motors of an output > 37.5 W

850131

DC motors & generators of an output < 750 W

850132

(value in Rs. Lakhs) 404927.18 113514.87

Source: Import Export data from select ports from private agency

KW Production of IEEMA membersâ&#x20AC;&#x2122; Fractional Horse Power Motors

April to Dec 14

Nos April to Dec 13

April to Dec 14

April to Dec 13

791044

691057

3114419

2520897

6681473

7673462

975608

1074473

Low Tension Induction Motors Squirrel Cage Motors Slipring Motors

204246

197272

3944

5016

Flame Proof Motors

333198

293848

53259

51576

H.T. Squirrel Cage Motors

1917819

1939576

2474

2180

H.T. Slipring Motors

295376

386351

267

271

High Tension Motors

A. C. Generators Brushless Alternators

7840157

7946806

103336

114293

Slip Ring Alternators

170430

226411

9556

12668

Source: IEEMA database

May 2015

65

IEEMADatabase

Rs/MT

BASIC PRICES AND INDEX NUMBERS Unit

as on 01.02.15

IRON, STEEL & STEEL PRODUCTS

OTHER RAW MATERIALS

BLOOMS(SBL) 150mmX150mm

`/MT

30287

BILLETS(SBI) 100MM

`/MT

30926

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

`/MT

54000

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 01.02.15

Unit

Epoxy Resin CT - 5900

`/Kg

330

Phenolic Moulding Powder

`/Kg

82

PVC Compound - Grade CW - 22

`/MT

123500

PVC Compound Grade HR - 11

`/MT

124500

`/KLitre

57046

Transformer Oil Base Stock (TOBS)

OTHER IEEMA INDEX NUMBERS

186973

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

226000

NON-FERROUS METALS

239.06

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

296.35

Electrolytic High Grade Zinc

`/MT

156900

IN - WT (Base June 2000=100

212.33

Lead (99.97%)

`/MT

137600

IN-INSLR (Base: Jan 2003 = 100)

230.67

Copper Wire Bars

`/MT

381554

Copper Wire Rods

`/MT

393671

Aluminium Ingots - EC Grade (IS 4026-1987)

`/MT

155383

Aluminuium Properzi Rods EC Grade (IS5484 1978)

`/MT

160967

Aluminium Busbar (IS 5082 1998)

`/MT

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

154.50

194.60

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

210800

253.00

# Estimated, NA: Not available 180000

Aluminuium Properzi Rods - EC Grade (IS5484 1978)

175000 170000 165000

RS./MT

160000 155000 150000 145000 140000 135000 130000 `02-15

`01-15

`12-14

`11-14

`10-14

`09-14

`08-14

`07-14

`06-14

`05-14

`04-14

`03-14

`02-14

`01-14

`12-13

`11-13

`10-13

`09-13

`08-13

`07-13

`06-13

`05-13

`04-13

`03-13

March 2013 - February 2015

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.

66

May 2015

IEEMADatabase

3000

Energy Meters

2500

000' Nos.

2000

1500

1000 4

6

8 10 12 2

4

6

8 10 12 2

4

6

8 10 12 2

4

6

8 10 12

April 2011- January 2015

Name of Product

Accounting Unit

Production For the Month â&#x20AC;&#x2DC;From Jan 14 to Highest Annual January 15

January 15

Production

Electric Motors* AC Motors - LT

000' KW

826

9813

11217

AC Motors - HT

000' KW

215

3045

4647

DC Motors

000' KW

39

343

618

000' KVA

822

10673

10426

Contactors

000' Nos.

705

8438

8505

Motor Starters

000' Nos.

172

1784

1909

Nos.

51133

531716

947878

000' Poles

10878

113636

116151

Circuit Breakers - LT

Nos.

147921

1774654

1815007

Circuit Breakers - HT

Nos.

5184

70134

72155

Custom-Build Products

Rs. Lakhs

14280

198042

265267

HRC Fuses & Overload Relays

000' Nos.

1305

14325

16875

KM

40319

434096

434967

000' KVAR

3463

49656

53417

Distribution Transformers

000' KVA

2989

42103

43346

Power Transformers

000' KVA

8417

138505

178782

Current Transformers

000' Nos.

55

647

660

Voltage Transformers

Nos.

7683

101412

114488

000' Nos.

2436

19344

22645

000' MT

84

1138

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

May 2015

67

ERDANews

Power Conditioner unit along with Battery Bank

Inauguration of 25 kWp Roof Top Microgrid:

to cater to the load, then electrical supply is drawn from the grid.

ERDA’s Contribution to Reducing Global Warming

In the event of the load being less than the generation, the battery will get charged. This micro grid has provision for feeding to grid in case of excess generation but presently this mode is disabled. There is provision to integrate diesel generation or any other generation mode such as wind into this system.

This system is expected to reduce 27 tons of carbon di-oxide emissions per annum.

Nearly forty percent of India’s vast population does not have access to the electric grid. The energy needs of this electricity deprived population are predominantly met by burning kerosene, firewood, & cow dung. These traditional fuels are environmentally unfriendly and are also major sources of emission of greenhouse gases. A techno-economically optimal and environmentally friendly solution for bringing electrical power supply to the energy deprived population in India lies in setting up of localized renewable energy based micro grids. In this connection, the Renewable Energy Group of ERDA’s Technology Centre have designed and developed a demonstrator technology 25 kWp solar photovoltaic microgrid. This system has been installed on the roof top of the technology centre building. The facility comprises of one hundred multi – crystalline solar panels each of 250 Wp rating, a VRLA battery of 100 Ah capacity and a power conditioning unit of 30 kVA capacity.

This pilot micro grid is grid synchronized but provides priority to solar generation. In case solar generation is not sufficient to meet the load demand, then battery backup feeds electrical supply for a limited period. When the battery is also not able

The micro grid was inaugurated by ERDA’s President, Shri S.G Patki on 14th March 2015 in the distinguished presence of Management Committee Members, Past Presidents and Director, ERDA.

Training Course Calendar – 2015 Programme Evaluation of Cables & Accessories

25-26 June

Evaluation of Solid Insulation Materials

23-24 July

Design Aspects & Performance Evaluation of Motors & Pumps

6-7 August

Condition Monitoring and Health Assessment of Power Transformers Evaluation of T&D Hardware

68

26-27 August 10-11 September

High Voltage Evaluation Techniques

8-9 October

EMI/EMC Evaluation Techniques for Electronic Equipment & Machinery

16-17 October

Uncertainty Measurement in Electrical Discipline

President of ERDA Shri S.G. Patki inaugurating the Pilot Micro Grid System on March 14, 2015

Date

27-28 November

Condition Monitoring of Motors, Generators, Pumps & Turbines

3-4 November

Industrial Energy Management Techniques

16-17 December

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

May 2015

CPRINews

Before 1000 hours of Weather Ageing Test

Weather Aging Test (1000 hours Salt Fog method) on 144kV Polymer housed Surge Arrester â&#x20AC;&#x201C; Conducted First time in India Polymer Insulator for transmission line has significant advantages over porcelain and glass insulator, especially for Ultra-High Voltage (UHV) transmission line. Silicone rubbers have low surface tension energy and thereby maintain a hydrophobic surface property, resulting in better insulation performance under contaminated and wet conditions. Polymer insulators may suffer from erosion and tracking which may lead ultimately to failure of the insulators. Long term reliability is unknown and life expectancy of polymer insulators is difficult to estimate. Faulty insulators are difficult to detect. When a polymer insulator is employed and used in service for a long period and exposed under high voltage to weather, pollution and other environmental stresses, changes in the characteristics of the polymer insulator cannot be avoided because it is made of organic materials. These changes can be physical, chemical or physicochemical, and may lead to serious electrical and mechanical failures. These long-term changes in characteristics are generally classified as ageing. The salt fog ageing test has been most widely conducted on polymer arrester for evaluating the anti-tracking and anti-erosion performance of housing material for polymer arrester. Weather ageing test on 144 kV polymeric surge arrester was conducted to examine the deterioration and erosion performance of silicone rubber housing material for polymer arrester. The test was based fundamentally on IEC 60099-4 2014.

A Synthetic chamber having the volume 19 m3 was used as the salt fog test chamber.

During salt fog

70

After 1000 hours of Weather Ageing Test

ageing tests, the test specimen was mounted vertically in the test chamber. Salt fog was generated by specially designed nozzle to generate salt fog of 5-10 micro meter particle size. Test arrangements are shown below.

Photograph showing the sample before 1000 hours of Weather Ageing Test Photograph showing the sample after 1000 hours of Weather Ageing Test Test was conducted continuously for 1000 hours based on IEC 60099-4 2014. The salt fog ageing test was conducted by injecting salt fog for 24 hours every day under AC voltage of 117 kV.The leakage currents both volume and surface currents were periodically monitored using TransiNor AS LCM II leakage current monitor.

The test can be conducted up to voltage application of 150kV.

High Power Testing of Electrical Equipment CPRI with the state-of-art 2500MVA Short Circuit Generator in Bangalore has been carrying out High Power testing of electrical equipment. The facilities have been extensively used both by Indian and Overseas manufacturers. Recently the laboratory has carried out the following tests:

40kA Short circuit current test on 400kV Double suspension string for Quadruple ACSR Moose conductor consisting of 2X23 Nos. 120kN ball & socket antifog disc insulators.

40kA Short time current test for 1secon 220kV, 1250A, 0.5mH Wave Trap.

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

May 2015

Seminars&Fairs

and more. It is the perfect opportunity to meet new contacts, source products, and discuss new trends and technological developments.

INALIGHT is the specialized international trade show for lighting solution. With strong support from Ministry of Industry, Republic of Indonesia and APERLINDO (Indonesia Electrical Lighting Industry Association) and Federasi GABEL (Indonesia Electronic Producers Association) and HTII (Indonesian Illuminating Engineering Society) will make INALIGHT 2015 toward as ASEAN’s Largest Lighting Platform and have the grand opportunity to meet the key buyers and decision makers from Lighting Designers, Lighting Producers, Distributors/Buyers, Property Developers, etc. directly.

Intersolar India Intersolar India is the country’s largest exhibition and conference for the solar industry. It will take place on November 18-20, 2015 in Mumbai at the Bombay Exhibition Centre (BEC). The event’s exhibition and conference both focus on the areas of photovoltaics, PV production technologies, energy storage systems and solar thermal technologies.

Since being founded, Intersolar has become the most important industry platform for manufacturers, suppliers, distributors, service providers and partners in the global solar industry.

In 2014, 160 international exhibitors and around 9,000 visitors attended Intersolar India. 100 distinguished speakers and 500 attendees discussed current industry topics and shed light on the conditions surrounding technological, market and political developments at the accompanying conference.

Contact details Solar Promotion International GmbH PO Box 100 170, 75101 Pforzheim, Germany

INALIGHT Lighting Exhibition 2015 INALIGHT 2015 will be the ASEAN’s most comprehensive gathering of lighting suppliers in Indonesia. It will take place from May 20-22, 2015 at the Jakarta International Expo. The event offers a B2B platform to manufacturers, architects, designers, consultants, engineers, construction companies, hospitality industry professionals, government officials

72

Contact details PT Global Expo Management, (GEM Indonesia) www.gem-indonesia.net

14th China (Shanghai) International Power and Generating Sets Exhibition The 14th China (Shanghai) International Power and Generating Sets Exhibition will be held on May 1315, 2015 at Shanghai New International Expo Center.

“GPOWER” exhibition founded in 2002, has deeply won industry recognition and trust for its deep work in internal combustion generation industry for over 10 years. Every year manufacturers,traders from around the world gather here to carry out technical exchanges, business cooperation and trade sourcing. The last exhibition area reached 16,000sq.m. There were 226 exhibitors to exhibit and it received 16,763 vistors, the scale and quantity of visitors created the best record beyond previous sessions.

In order to attract relevant enterprises involved in industry chain to attend, and promote positive interactions between exhibitors and visitors, starting in year 2013, China four electric power brand exhibitions “China (Shanghai) International Wind Energy Exhibition and Conference”, “China International Electric Power & Electric Engineering Technology Exhibition”, “China International Smart Grid Technology and Equipment Exhibition” and “China (Shanghai) International Power and Generating sets Exhibition” were collectively held over the same time and at the same place, it has created electric power exhibition clusters hand in hand together, meanwhile created and utilized synergies to provide a stronger value orientation for exhibitors, visitors, media and cooperation units

May 2015

InternationalNews

study similar to the one prescribed by the ministry of electricity, preliminary engineering plans, project financing details and reference projects by May 13.

International News

The Iraqi government also has plans to offer various incentives to Potential project developers. Besides tax and fees exemptions in accordance with investment law provisions, the ministry of electricity, the NIC and provincial governments will facilitate provision of necessary licenses and approvals for the project.

SunPower breaks ground for 86MWp project in South Africa California-based photovoltaic manufacturer SunPower has started construction of its third solar power project under South Africa’s renewable energy program REIPPP. The 86-megawatt peak (MWp) solar power plant is being installed at Prieska in South Africa’s Northern Cape province.

Last year SunPower completed two projects under REIPPPP, which is short for Renewable Energy Independent Power Producer Procurement Programme.

The projects developed at Douglas in Northern Cape Province added 33 megawatts of capacity.

SunPower has stated that it hopes to complete the Prieska project by next year.“South Africa is one of the fastest growing solar markets in the world today,” Tom Werner, the president and CEO of SunPower, said. “We look forward to continuing to serve the region with the opening of our new solar panel manufacturing plant this year.”

Iraq seeks developers for solar, wind projects Iraq is set to develop three solar and one wind power project to be sited at Diwania, Najaf and Missan (Maysan) provinces.

The country’s ministry of electricity has invited expressions of interest from foreign companies to build them. The foreign developers will need to submit their letters of interest along with project feasibility

74

Also, the developers will be provided with the assistance required during the development and operation of the project. Once the developers have settled financial dues, they would also be vested with the right to repatriate capital, revenue and workers’ fees, the NIC has stated.

India-Canada uranium supply deal to boost nuclear power generation India’s move to enter into a commercial contract with Canada for the supply of 3,000 tonnes of uranium over five years will help achieve continuous and sustained power generation and higher plant load factor of the nuclear power plants in the country.

Canada is the third country to supply uranium to India after Russia and Kazakhstan. The supplies will be under the International Atomic Energy Agency (IAEA) safeguards. India also signed a civil nuclear deal with Australia in September last year to sell uranium.

Currently, 21 nuclear power plants operated by Nuclear Power Corporation of India Ltd (NPCIL) have a generation capacity of 5,780 Mw. Of these reactors, the supply of imported uranium is currently made to 11 reactors with generation capacity of 2,620 Mw, which are under the IAEA safeguards.

The list of these reactors include Tarapur units 1 & 2 (420 Mw), Narora units 1 & 2 (440 Mw), Kakrapar units 1 & 2 (440 Mw) and Rajasthan units 2 to 6 (1,080 Mw).

The unit 1 of the Rajasthan plant has completed its life and is not under operation. Kudankulam’s 1,000-Mw reactor has been assured lifetime supply of enriched uranium from Russia.

ABB enters $30 mn deal in Brazil, expands in Czech Republic Swiss corporation ABB and Brazilian renewables company Casa dos Ventos have entered into a $30-million contract in wind power infrastructure development.In another development, ABB has inaugurated a $50 million worth manufacturing facility in the Czech Republic. Under the agreement, ABB is to install power systems for the 216-megawatt São

May 2015

InternationalNews

Clemente project as well as the 130-megawatt Tianguá project, which comprise 13 wind farm complexes.

ABB is required to deliver air-insulated substations, including 230kV, 69kV, and the compact 34.5 kV substations along with distribution transformers, connection bays and overhead lines.Work on the complexes in Pernambuco and Ceara states in northeastern Brazil is scheduled for completion in 2016.

Meanwhile, ABB’s new factories in the Czech Republic are to manufacture air-insulated medium voltage switchgear, instrument transformers and substation automation systems.The manufacturing units have been established at ABB-owned sites in Brno, the second largest city in Czech Republic and in Trutnov, the city northeast of the Czech capital Prague.

The Brno center is additionally equipped with a service unit and a research and development center.Further, the Brno facility features specially automated lines, according to a statement issued by ABB.ABB’s new manufacturing facility covers 13,000 square meters in all and is expected to enable a 25 percent increase in the number of switchgear units the company produces.

Last year ABB launched a 12,500-square-meter manufacturing unit for producing high-voltage components in Brno.That project was part of ABB’s global gas-insulated switchgear (GIS) factory network.

And the premises comprised incorporating engineering, assembly, and testing facilities.

Dubai Carbon–AFC MoU for 300MW fuel cell growth by 2020 Dubai Carbon Centre of Excellence has signed a memorandum of understanding (MoU) with UK-based fuel cell company AFC Energy to add 300 megawatts of fuel cell capacity by 2020.The MoU was signed recently as an official part of the DEWA Green Week activities during the 2015 Water, Energy, Technology and Environment Exhibition (WETEX) in Dubai.

Dubai carbon and AFC will explore the potential for fuel cells in projects such as Dubai Expo 2020, The World Development and Al Maktoum International Airport, according to a statement.The joint venture will coordinate with owners of Dubai Carbon — Dubai Electricity and Water Authority, Emirates National Oil Co and Dubai Aluminium Co — to assess more project opportunities.

Further, the JV would explore sources of local funding to back its commercial projects.According to the statement, the JV will generate a multi-billion dollar revenue stream over the life of projects.

The CEO of AFC, Adam Bond, has stated that the company was targeting 1 gigawatt of fuel cell capacity

76

by the end of 2020.Bond added that the MoU signed will take the JV closer to its target. Ivano Iannelli, the CEO of Dubai Carbon, said: “In an economy as dynamic as Dubai’s, innovative technologies such as fuel cells have a close fit to numerous activities and realities, with specific regional relevance. We are looking forward to piloting the commercial readiness and technological effectiveness through the partnership with AFC.”

Pakistan Parliament gets 1MW Chinafunded solar project Pakistan has formally inaugurated the installation of a 1 megawatt photovoltaic system at its parliament building.The system, which uses multicrystalline solar modules made by Chinese PV manufacturer Yingli, is capable of generating 1.6 million kilowatt hours of electricity annually.

The system, fully financed by China, was inaugurated

by Chinese President Xi Jinping in Islamabad recently.

The Pakistani government has expressed hope that installation of the PV array will be completed by June, a report said.The installation could reduce the electricity costs of the building by about $275,631 each year.

The 17th Bureau Group of China Railway is overseeing the engineering, procurement and construction of the project for which Yingli is supplying its YGE 60 Cell Series panels.Solar energy projects have a huge potential in Pakistan as the country receives abundant solar radiation and is also suffering from severe electricity shortage.

The energy mix of the country is currently dominated by oil and gas.Last year, Pakistan introduced a feed-intariff scheme which is applicable to solar power plants of capacity between 1 MW and 100 MW. The scheme comes with varying rates in the north and south of the country.The government also approved a net energy metering system, which allows solar panel purchasers to sell the power they produce to the national grid, late last year.

Among comparable installations globally, the unit in the Pakistani parliament has surpassed capacity at the Knesset of Israel.The 450-kW system at Knesset was inaugurated last month and was claimed as the largest photovoltaic system on any parliament building in the world.

Unlike Pakistan’s Chinese-funded array, the Knesset solar system cost $610,000 to build and was funded

by Israeli taxpayers. Used JA Solar PV modules were used for building the project. Reports earlier had suggested that Pakistan was shifting its focus away from solar and wind development to liquefied natural gas.

May 2015

NationalNews

Govt to kickstart its 100,000MW solar energy plan soon

National News

The Narendra Modi-led government at the Centre is considering starting its plan to build a 100,000-Mw solar energy capacity by 2022 through award of 10,000-Mw projects in the coming three months. The plan includes close to 6,000 Mw of capacity to be set up

by NTPC alone, 2,500 Mw by Solar Energy Corporation, around 2,500 Mw in Madhya Pradesh and the rest as solar energy parks in several other states.

Officials in the ministry of new and renewable energy said NTPC would build 3,300 MW of its own projects and tender 3,000 MW under the power bundling scheme. “NTPC plans to harness 25,000 MW of solar power in six years. Of this, it has committed to building 10,000 MW itself. The balance it will tender to private players and bundle with unutilised thermal power and sell at an average rate,” said one.

NTPC’s plan has two solar parks - 1,500 MW in Anantpur, Andhra Pradesh; and 1,000 MW in Coonoor, Tamil Nadu.

The clearance for land and tenders for transmission have been achieved and capacity will be awarded through ratebased bidding.

Solar Energy Corporation of India (SECI), a fully owned subsidiary of the ministry of new and renewable energy, will tender out 2,000 MW of projects, likely by next month. “It will go to the Cabinet in a fortnight. All plans are in place and the ball will be set rolling for centrally awarded solar projects once approvals come,” said a senior executive of SECI. SECI is also about to sign a joint venture agreement with the Madhya Pradesh government to develop India’s first solar ultra mega power plant, of 750 MW at one location. Officials in the state’s renewable energy department said the project would come up in Rewa and bids would be called in batches of either 250 MW or 500 MW, by May.

under the solar mission is 1,112 MW. The current government revised upwards the target for the Jawaharlal Nehru National Solar Mission by five times.

It aims to have in place 100,000 MW of solar capacity by 2022, including by foreign investment.

UPPCL to buy power from ACME’s upcoming Mahoba plant Indian energy developer ACME and Uttar Pradesh Power Corporation Limited (UPPCL), the staterun power utility, have signed a power purchase

Government to Pay for ONGC, OIL Q4 Fuel Subsidy: Report The government has exempted oil producers ONGC and Oil India Ltd from payment of fuel subsidy in the fourth quarter after the finance ministry agreed to meet all of the revenue loss on fuel sales. The ministry in a letter to the Oil Ministry, said it will pay ` 5,324 crore in fuel subsidy for the January-March quarter, effectively meeting all of the revenue retailers lost on selling domestic LPG and kerosene at governmentcontrolled rates.

Official sources said while the finance ministry sent the comfort letter, actual disbursals will happen only next month.The government regulates price of cooking fuels LPG and kerosene to shield the poor. The difference between the cost and the retail selling price is borne by the government by way of cash subsidy and upstream producers like ONGC. Under-recoveries, or revenue retailers’ loss on selling fuel below cost, of ` 67,091 crore in first nine months of the fiscal were fully accounted for by the subsidy support and dole out from upstream firms like ONGC. The under-recoveries of ` 5,324 crore for the March quarter are being entirely borne by the government, they said.

In the first nine months, government gave cash subsidy of ` 22,085 crore to meet less than a third of the under- recoveries on cooking fuel and diesel (up to October 17). Upstream oil producers ONGC, OIL and GAIL chipped in ` 42,822 crore.

The upstream subsidy contribution is by way of discount on crude oil they sell to refineries. With international oil prices almost halving to $57-58 per barrel, providing the subsidy discounts would have meant they got rates way below their cost of production.

India’s current solar capacity is 3,382 MW and the amount commissioned

78

May 2015

NationalNews

agreement.UPPCL is to purchase electricity generated

by ACME from a 30-MW solar photovoltaic power project the latter plans to install on 150 acres in Mahoba district.Under the agreement, ACME is required to supply UPPCL with 50 million units of electricity each year for 12 years at the rate of ` 8.93/KWh. After the first 12 years, ACME will supply power to UPPCL for another 13 years at the price of eleventh year Average Pooled Purchase Cost (APPC).

According to one estimate, the Mahoba project will cost ACME about $37 million. Work on the project will commence by November and it will go online

by August 2016. A 132 kV line has been laid to evacuate the power generated by the solar farm into the state grid.

Uttar Pradesh ranks high among states with the lowest per capita consumption of electricity in India.

It recorded the highest deficit of more than 15,000 million units between April 2014 and February 2015.

An increase in the number of renewable energy projects in the state is expected to benefit its power situation.

ACME already has more than 900 MWp of projects, including 104 MW in Punjab, 160 MW in Andhra Pradesh and 100 MW JNNSM Phase II Projects in Rajasthan besides smaller projects in Gujarat, Madhya Pradesh, Rajasthan, Odisha and Chhattisgarh.

The company has set itself the target of achieving 7500 MW capacity by 2017. ACME’s 25MW plant at Khilchipur in Madhya Pradesh gave a record output of 25 GWh within six months of installation. It is a for any solar power plant of that scale.

Power plants to be soon allowed to swap coal supplies : Piyush Goyal The government is working on a policy to allow power generating companies to swap fuel linkages so as to clear bottlenecks in coal supply, Power and Coal Minister Piyush Goyal said. “We are looking at soon coming out with a policy where state generation firms, central PSUs and companies in the private sector, all will be given the approval to soon to swap coal inter se their various plants,” Goyal told reporters on the sidelines of the “MindMine” conference here.

The proposed policy is towards running thermal power plants with more efficiency, reduce pollution and freight, the minister said. He said such a move will benefit “particularly those (projects) at the pithead where it is easier to transmit coal and reduce the PLF (plant load factor) of the inefficient plants”.

“There is a challenge that I am trying to sort out

May 2015

which is that different plants have contracted sales to different states. When we increase production in one plant and bring it down in another, we have to ensure the transmission capabilities to disseminate that power,” Goyal said. “We are working on that but I am fairly confident we will resolve that issue,” he added. He further said if two different companies want to swap coal supplies they will have to get permission so as to ensure that there is no misuse and no windfall gains or profiteering is involved.

Tihar jail gets 430 KW solar power plant Delhi’s Tihar prison complex got a 430 KW solar power plant which would reduce the prison’s dependency on the power grid by about 5 lakh units and its bill by ` 45-50 lakh a year. Inaugurating the plant, Delhi Home Minister Satyendar Jain said solar energy is the future solution for our growing energy needs.

Commending Tihar authorities for setting an example for other government institutions, Jain asked them to bring the power bill to zero by using LED Bulbs and other measures. DG (Prisons) Alok Kumar Verma maintained that the annual consumption of the prison complex would be drastically reduced using the solar plant, and outlined plans for increasing the solar capacity in the coming months.

“The 430 KW of solar power is now powering the Prison Headquarter Complex, reducing our drawal from the electric grid by a massive five lakh units each year and reducing our electric bill by almost 45-50 lakh rupees per annum. The discom can now provide the energy saved by Tihar to other needy users,” Tihar spokesperson and DIG (Prisons) Mukesh Prasad said.

The installation is a grid connected solar plant whose whole object is to augment the grid using solar radiation, duly converted to electricity using solar panels, said Col Ajay Reddy, Director of Premier Solar, which had installed the plant in the complex.

JSPL completes ` 13,000 crore power expansion project in Chhattisgarh Jindal Steel & Power Ltd (JSPL) has completed a 2,400MW expansion project at Tamnar in Chhattisgarh at a cost of ` 13,000 crore and achieved ultra mega power plant (UMPP) scale there. “The completion of Jindal Power’s (a JSPL arm) landmark 2,400 MW expansion project at Tamnar (Chhattisgarh) has resulted in JSPL Group’s installed generation capacity in Raigarh belt reaching 4,294 MW, thereby achieving UMPP scale,” the Naveen Jindal-led company said.

79

CorporateNews

will be installed at Power Grid’s Vemagiri and Srikakulam sub-stations in Andhra Pradesh state.

The supply has to be executed in 20 months, according to Avantha sources. The contract includes design, engineering, manufacturing, shop testing, supply, erection testing and commissioning in addition to associated civil works.

Corporate News

BHEL Ltd BHEL commissions Jindal Power’s 2,400 MW thermal project State-run Bharat Heavy Electricals Ltd. (BHEL) has fully commissioned the 2,400 MW O.P. Jindal thermal power project in Chhattisgarh.”The unit has been commissioned at Jindal Power Ltd’s O.P. Jindal 4X600 MW thermal power plant located at Tamnar in Raigarh district of Chhattisgarh,” BHEL said in a statement.

The previous three units were commissioned by BHEL in the last three months. The scope of work in the contract included design, engineering, manufacture, supply, erection, testing and commissioning of steam turbines, generators and boilers, besides controls and instrumentation and Electrostatic Precipitators (ESPs), BHEL said.

The company said it has commissioned another 600-MW unit of Dainik Bhaskar Power Ltd’s upcoming 2x600 MW thermal power project in Janjgir Champa district of Chhattisgarh. This is the second unit of the power project commissioned by BHEL.

Crompton Greaves Avantha CG grabs ` 115 Cr reactor supply deal from Powergrid Avantha Group CG has won `115 crore supply contract from India’s central transmission utility Power Grid Corporation for reactors These reactors

May 2015

Once the installation is complete, these reactors are expected to enhance the transmission efficiency of the national grid, improving the quality of power supply. As rapid urbanization and industrialization adds millions of new consumers in the country, a robust infrastructure will be the backbone of the power sector and CG is well positioned to serve the utilities for their future growth plan,” CG chief executive and managing director Laurent Demortier said.

CG has 20 manufacturing divisions spread across India. The company is organized into three business groups including power systems, industrial systems and consumer products. In addition, the company is emerging as a major global supplier for electrical equipments with the acquisition of Pauwels (Belgium), Ganz (Hungary), Microsol (Ireland), Sonomatra (France), MSE Power Systems (USA), Power Technology Solutions (UK), three businesses in Nelco (INDIA), Emotron (Sweden), QEI (USA) and ZIV Group (Spain).

Recently, Avantha Group CG has bagged an order from Administracion Nacional de Energia (ANDE), the national electric utility of Paraguay to supply 10 complete ZIV substation automation systems. The scope of the contract also includes engineering services, training and systems integration. The project, financed by the World Bank, is scheduled to be completed in six months.

Toshiba Toshiba begins demo run of hybrid energy system Japanese conglomerate Toshiba started demonstration run of a hybrid energy supply system. According to a statement issued by the Tokyo-based company, the solar power generated is used to electrolyze water and produce hydrogen.The hydrogen is stored for later use to independently provide electricity and hot water when required.

H2One, which is scheduled to run till March 31, 2021, has been installed at Kawasaki Marien and HigashiOgishima-Naka, a municipal facility designated as an emergency evacuation area.In post-disaster situations, when lifelines are most likely to be disrupted, H2One will be able to use its hydrogen stock to provide

81

CorporateNews

electricity and hot water to an estimated 300 persons for a week.

H2One produces one cubic metre of hydrogen an hour and has a tank that can store 33 cubic metres of the fuel. It can supply 75 litres of water an hour at 40 degrees Celsius. And the fuel cell attached uses 2.5 cubic metres of hydrogen an hour to produce power. Further the container-size system can be transported to disaster-hit areas on trailers, the company has stated. Toshiba is also looking to increase the hydrogen storage capacity of H2One.The demonstration project will verify the effectiveness of the system in normal operating circumstances at both sites in Kawasaki. It will also support improvement of overall system efficiency.

NTPC NTPC launches single window system for procurement needs State-owned power producer NTPC Limited has launched a single-window system to deal with the procurement needs of the power plants across the country in place of a plant-wise tender process being practiced so far.

“The new system will create a win-win situation for both the vendors and company. The vendors can now participate in the operation and maintenance requirements of every plant while the enhanced competition will result in cost-savings for the company,” R Venkateshwaran, regional executive director(South), said.

The company procures materials and items worth ` 2,000 crore for the operational and maintenance requirement, besides awarding `1,600-crore work contracts each year, according to Venkateshwaran.

Under the new business initiative, it proposes to expand the vendor base and bring uniformity in procurement process at all power plants, by enlisting the vendors and contractors on an-all India basis.

For the said enlistment, the company has already developed a separate website to meet the requirements of vendors and the contractors, and the enlisting process has started.

Vikram Solar Vikram Solar signs MoUs for quality enhancement Vikram Solar has signed three memoranda of understanding (MoUs) aimed at optimizing its module production technology. The Indian solar module

82

maker has signed the MoUs with Germany-based Fraunhofer Institute for Solar Energy Systems and Centrotherm Photovoltaics besides Switzerlandbased Meyer Burger Technology at the Hannover Trade Fair (at Hannover Messe).

The MoUs will help Vikram Solar to upgrade and equip itself for solar cell manufacturing and to establish a solar academy in India. “Vikram Solar aims to reinforce its position as a technologically advanced PV module manufacturer through the collaboration. We believe this will add tremendous value for our global customers, resulting in product quality at competitive costs,” Gyanesh Chaudhary, the managing director and CEO of Vikram Solar, said.

The MoUs will also help Vikram Solar further research and development of industrial scale crystalline silicon solar cell and module processing. “Fraunhofer ISE is happy to support Vikram Solar to build a production line for solar cells with the latest technology and therefore contribute to the ‘Make in India’ initiative of the Indian Government,” Gerhard Stryi-Hipp, the head of energy policy of Fraunhofer ISE, said.

Reliance Reliance Group kicks off Sasan mega power project Anil Ambani-led Reliance Group has fully attained commercial operations of the `27,000-crore Sasan ultra mega power project (UMPP) in Madhya Pradesh, some 12 months ahead of schedule, with all the six units generating 3,960 MW of electricity. The group said this was not only the largest integrated coalmining-cum-power project at a single location in the world, but that the 20-million Moher and MoherAmlohri mines, which are also now fully operational, were the largest in the country.

Commissioning the project 12 months ahead of the commercial commencement of the power purchase, the group said the six units, comprising 660 MW each, were now running continuously for 24 hours, and that sive of them had been commissioned in just about 12 months.“With this, the project has been successfully commissioned 12 months ahead of PPA (power purchase agreement) schedule,” Reliance Power said in a statement here.

“The Sasan UMPP is the largest integrated power plant cum coal mining project at a single location in the world, involving investment of over ` 27,000 crore,” it added. Reliance Power’s generation capacity is now 5,945 MW, which includes 5,760 MW of thermal capacity and 185 MW of renewable energy based capacity, it said.

May 2015

IEEMAEvents: Hannover Messe 2015

‘Make in India’ dominates Hannover Messe, generates investment interest

IEEMA delegation at the Make in India Pavillion

A

s the curtains come down, on the world’s largest industrial fair at Hannover, India, the official Country Partner’s call to ‘Make in India’ will continue to resonate worldwide galvanizing its resurgent position as an investment and manufacturing hub. The fair, was inaugurated by the Prime Minister of India along with the German Chancellor. With the ‘Make in India’ theme splashed all over, the Indian presence was pre-dominantly visible all over the ground and the city of Hannover.

IEEMA had partnered with Department of Heavy Industries and also facilitated 10 member companies in their participation. The IEEMA delegation was led

by Mr Vishnu Agarwal, President IEEMA along with Mr Babu Babel Vice President, IEEMA. The highlight of the visit was participation at the seminar Make in India: “Opportunities in Electronics and Electrical Sectors”- The New Sunrise” on 14th April 2015 at Hannover Germany.

During the visit two MoUs were signed, one with German Electrical and Electronics Manufacturers’ Association (ZVEI), which is an identical counterpart association of IEEMA in Germany and the second with European Business and Technology Centre (EBTC). Both the MoUs are expected to benefit IEEMA Membership in future. These MoUs were signed in the

86

presence of Hon’ble Minister of State for Commerce and Industry, Smt Nirmala Sithraman. Mr Rajeev Kher, Secretary, Ministry of Commerce and Mr Ravi Capor, Joint Secretary Commerce were also present.

On the side lines President IEEMA also participated in a seminar organised by the city government of Moscow. Other than the international visitors at the IEEMA stall, prominent Indian bureaucrats and political leaders also interacted with IEEMA. Prominent being Shri Akhilesh Yadav, Chief Minister of Uttar Pradesh, Mr Rajeev Kher, Secretary Ministry of Commerce, Mr Rakesh Garg, Secretary Ministry of IT & Telecommunications, Upendra Tripathi Secretary MNRE, Shri Shankar Agarwal, Secretary Ministry of Labour and Employment, Shri Rajan Katoch, Secretary Department of Heavy Industries, Shri Visvajit Sahay and Mr Ravi Capor, Joint Secretary, Department of Commerce.

An environment of enthusiasm, promising exchange of ideas and investment in the new resurgent India prevailed at the India Pavilion that was crafted to portray the economic potential of the country’s most fertile sectors-biotechnology, renewable energy, space, IT & Business Process Management, industrial corridors, smart cities and the demographic dividend it aims to reap.

May 2015

IEEMAEvents: Hannover Messe 2015

(L to R) Mr Vishnu Agarwal, President IEEMA, Mr Rajeev Kher, Secretary Department of Commerce and Mr Babu Babel, Vice President IEEMA

(Lto R) Mr Vishnu Agarwal, Mr Babu Babel, Mr Shankar Agarwal, Secretary Ministry of Labour and Employment and Mr Sunil Misra, Director General IEEMA

MoU signing: IEEMA and ZVEI. Mr Vishnu Agarwal President Indian Electrical & Electronics Manufacturers’ Association (IEEMA) with Dr. Klaus Mittelbach CEO German Electrical & Electronics

MoU signing: IEEMA with EBTC (European Business and Technology Centre). Mr Sunil Misra Director General IEEMA and Mr Joerg Uehlin Head of Operations EBTC

Mr Vishnu Agarwal with Ms Nirmala Sitharaman, Minister of State for Ministry of Commerce & Industry

Mr Sunil Misra, Director General, IEEMA with Uttar Pradesh Chief Minister Mr Akhilesh Yadav

Mr Vishnu Agarwal, President IEEMA participated at the seminar Make in India “Opportunities in Electronics and Electrical Sectors”- The New Sunrise”

May 2015

87

IEEMAEvents: In Conversation

Mr Vijay Karia Chairman and Managing Director, Ravin Cables Ltd

shares his experience at Hannover Messe 2015

Since you were part of the PM’s delegation, please share with our readers the experience you had at Hannover Messe?

We have, in the past, participated many times in the Hannover Messe exhibition, and this time around it was an altogether different experience than any of the earlier years. I recall I was also present in 2006 when the then PM Shri Manmohan Singh inaugurated the Hannover Messe. However that was nothing compared to the Hannover Messe 2015. I received a personal invitation to be part of PM’s CEO Delegation comprising of 120 CEO invitees from India. I was honoured and pleased to accept this invitation.

The Hannover Messe started with a grand inauguration ceremony at the Hannover Convention Centre, at 5:00 pm on 12th April, 2015. Apart from the Honorable PM Shri. Modi and Chancellor of Germany Mrs. Angela Merkel, there were various other dignitaries who addressed the gathering, including Dr. Jochen Koeckler, member of the Managing Board, Deutsche Messe. On the sidelines, one must confess that the “Make In India” branding as well as the Indian Lion was present all over Germany. Hannover, it seemed was part of India not Germany.

India being the partner country for Hannover Messe, the PM’s make in India campaign clearly marked its presence all across. Please share your views?

The Prime Minister was pretty explicit in all the speeches that “Make In India” was not just a slogan but a reality that he intended to fulfill. At the same time India was not looking for largesse from the rest of the world, and neither was it working to play

88

favorites with anybody. This message was loud and clear and most importantly the Germans not only acknowledged but also accepted this message.

What’s next in the offering for the Indian electrical equipment industry?

The offering for the Indian Electrical Industry seems to be the latest technology. However, with the “Make in India” campaign, the industry can expect a lot of tie ups from foreign players. I also see that now the focus is well and truly on the environment.

Renewable energy, energy saving and smart grids seems to be the call of the future. Hence both solar and wind energies will get a huge boost in terms of technology as well as demand.

I also see a huge fillip for the electronics industry, as going forward electrical industry will not be without its associate partner, i.e. electronics. India has a very minuscule share of less than 1% in the world electronics market and the government has been rightly looking to give a big boost to the manufacture of electronics in India. Hence we should look forward to see the electrical and electronics industry growing manifold in the next few years. There was a large display by the Department of Electronics, and they were there to encourage the setup of Electronic manufacturing units in India.

How can Make in India strengthen Indo-German relations?

Germany is a highly industrialized country and perhaps best in the world as far as mechanical

May 2015

IEEMAEvents: In Conversation

engineering goes. Most of our electrical majors like Siemens, ABB, etc. are based in and around Germany. From the huge amount of interest evinced from the “Make In India” campaign and the brand building exercise done by India, it is natural that India has reignited the interest of Germany. Almost all the premium car makers of Germany have huge interest in India and this further boost by the “Make In India” will strengthen the cultural and business ties between India and Germany.

What are the major issues that Indian exporters have been facing? How can these be solved?

Under the current policies, exports, which should always be the thrust for the industry is today a big area of a deterrent to business, because of some non-friendly laws. a. The extremely high costs of administration and the time and manpower spent on applying for licenses, filing various forms and tax returns is a big deterrent to exports. A small time exporter either looks to give up benefits (and loses out on competitiveness in world markets), or then becomes uncompetitive because of huge amount of administrative costs. b. Under the present advance license scheme the time limit to import goods has been reduced from 36 months to 12 months from date of issue of license. How can this help exports, especially for large projects? c. Why should there be any time frame for importing goods against advance license once the export obligations have been fulfilled by the exporters? d. SEZs and EOUs are a big contributor to exports.

However, SEZ rules change every year. A non stable policy will never help business. e. The current definition of exports has been changed to cover physical exports. Hence local supplies to SEZs, which earlier had the benefit of refund/rebate in Excise duty, has been debarred from the refund/rebate. This means that the local manufacturer will accrue CENVAT credit in his account without being able to use the same, nor will he be entitled for refund of the same.

This recent change in policy would affect local supplies to the SEZ and EOUs. Effectively we are discouraging local supplies whereas for “Make in India” to be effective, we should be encouraging local supplies. f. In a large country like India, imports should be allowed from any port and not through the port mentioned in EDI application for advance authorization

May 2015

Mr Vijay Karia, Chairman and Managing Director, Ravin Cables Ltd. in discussion with Mr Devendra Phadnavis, Hon’ble Chief Minister, Maharashtra State at Hannover Messe 2015

g. There should be no retrospective amendment or application of Foreign Trade Policy in respect of validity of license / EOP of license / Redemption procedure of license / Clubbing eligibility etc. in respect to Advance Licenses. The Advance Licenses issued prior to any such amendments should be governed by the provisions, then prevailing on the date of issue of Licenses. h. In the cases where RBI or the Authorized Dealer (authorized by RBI for this purpose) has granted permission on merits for write-off on unrealized export proceeds, the exporter should not be made liable to return the export benefits / incentives, as required under para 2.54 (a) of FTP 2015 – 20 i. Focus market export benefits are too cumbersome and not possible for small exporters to take advantage of.

How challenging do you see the govt’s target of setting 75 Giga Watts of new capacity for renewable and clean energy in the next seven years?

The government is looking to set up 100 GW of solar energy, and about 165 GW of Renewable energy by 2022. Today the power mix is still dominated by coal which is about 60% and solar stands at about 1% of total solar generation. Over the last few years fundamentals of energy supply in India have changed significantly in terms of cost / KW hours. Solar energy which was 7x a few years ago is today at 2x.

Globally, Renewable Energy has been incredibly successful both in Wind and in Solar with America and China being the leaders in terms of Solar and wind, and Europe not being too far behind. Germany for e.g. generates 40% of its energy from Solar, and China is looking to add 70 GW in next 2 years’ time, ie by 2017. Seeing all these figures, it would be very challenging under the current policies and style of operations to reach figures of 100+ GWs of Renewable Energy in the next 7 years.

89

IEEMAEvents: emPOWERing MAKE IN INDIA

Domestic Power Boost a must for Make In India: IEEMA

(L to R) Mr Sunil Misra, Director General, IEEMA, Mr Rajan Kumar Gupta, IAS, Additional Chief Secretary to Govt. of Haryana (Power), Chairman – HVPN, UHVPN, DHBPN, HPGCL, Mr Vishnu Agarwal, President IEEMA and Mr Nitin Yadav, Secretary Power – Haryana and Managing Director of UHBVN and HVPN (additional charge)

I

NDIAN ELECTRICAL & ELECTRONIC S MANUFACTURERS’ ASSOCIATION (IEEMA) - the apex association of power transmission & distribution in India and whose 800 plus Members have a 90% power equipment installed in India, reiterated the need for a consistent dialogue between transmission and distribution service providers and the Haryana Utilities. A meeting under the banner of Empowering ‘Make In India’, was organised with the Utilities of Haryana and IEEMA top officials and Members in Chandigarh on April 6, focussing on the stakes of the Industry and facilitation

by State Government for Make In India. The key areas needing attention:

• Testing of Imported Electrical Equipment by Test Houses in India.

Domestic manufacturing -

• Shri Jagjit Singh, Chairman, HERC

• Domestic manufacturing capabilities versus cheap imported equipment from non-market economy

• Central & State Utility officials

• Responsible role of Utilities to adopt Technology and Standards of Specifications • Standard Bidding Documents

Linkage to Power Economics • Power situation & impact on agriculture in Haryana & steps taken by the Utilities to manage risks

90

• Steps taken to improve T&D losses and Electricity theft in the State of Haryana • Single window clearance for Projects

Present among the dignitaries were– • Shri Rajan Kumar Gupta, IAS, Additional Chief Secretary to Govt. of Haryana (Power), Chairman – HVPN, UHVPN, DHBPN, HPGCL • Shri Nitin Yadav, Secretary Power – Haryana and Managing Director of UHBVN and HVPN (additional charge)

IEEMA brought to notice the burgeoning issues in the wake of low investment in R&D and the poor financial health of discoms and the much needed technical skill gaps training of Plant and Field level staff relative to generation, transmission and distribution. The demand for power in Haryana is around eight-ten per cent per annum at State level and 15-20 per cent per annum in Gurgaon and Faridabad.

May 2015

IEEMAEvents: emPOWERing MAKE IN INDIA

Addressing to the Utilities, Mr Vishnu Agarwal, President IEEMA, said, “While it is an acknowledged fact that increase import of electrical goods has put the domestic industry at the brink of vulnerability, yet it is an opportunity for domestic industry to do serious introspection as well. Strategies for compettiveness for India have become need of the hour. Lowering the tariff barriers in domestic market has unleashed growing competition. The ‘Make In India’ campaign of the government will help the domestic market to become competitive to earn sufficient foreign exchange. Only way we can stay afloat is by creating a competitive edge. The Utilities should be sensitive to the price variation in raw materials and how the suppliers get affected”.

IEEMA is working closely with various key stakeholders including developers, contractors, reputed consultants, legal firms and regulators with primary intent of sensitizing the policy makers on prevailing problems which are hampering the growth of Generation, Transmission and distribution sector.

IEEMA Director General Mr Sunil Misra said, “Currently the manufacturing sector faces challenges but right policies, incentives, infrastructure and encouragement from Government will act as a catalyst for ‘Make-inIndia’, drive. This will transform import driven Indian electrical and industrial electronics industry to an indigenous manufacturing hub, leading to a selfsustained economy. Also convergence in policies at the centre and state government levels would further drive inclusive growth.”

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. In addition to this, IEEMA also recommend framing of guidelines for Model procurement for Utilities with standardised and fair contract terms and conditions and clear path for increased spending in R&D will help develop cost effective technologies.

Deliberations were made on stalled power projects which need to be prioritised to augment existing grid capabilities as well as stimulate production in allied sectors such as coal, iron and steel, power plant equipments and so on. Furthermore assured power supply from the grid determines the sustenance of SMEs that cannot afford to set up captive sources of power.

Among other key points were - Lack of domestic orders is Liquidity/ Credit Crunch issue starting from Utilities & percolating down to EPC, Equipment suppliers and Component Suppliers (primarily: SMEs/ MSMEs) and substantial quantum of funds that are held up on account of non-closure of contracts due to disputes between the customer utilities and the EPC (engineering, procurement and construction) contractors.

IEEMA is working closely with various key stakeholders including developers, contractors, reputed consultants, legal firms and regulators with primary intent of sensitizing the policy makers on prevailing problems which are hampering the growth of Generation, Transmission and distribution sector. IEEMA has been echoing the voice of Modi’s Government ‘The economic situation in this country demands that more jobs be provided for young, talented, well-educated skilled people of India’.

This falls in line with the ‘Made In India’ brand focus of IEEMA.

Members & utility officials at Chandigarh

May 2015

91

Shocks&Sparks

The law of Karma One day a man saw an old lady, stranded on the side of the road, but even in the dim light of day, he could see she needed help. So he pulled up in front of her Mercedes and got out. His Pontiac was still sputtering when he approached her.

Even with the smile on her face, she was worried. No one had stopped to help for the last hour or so. Was he going to hurt her? She didn’t look safe; she looked poor and hungry.

He could see that she was frightened, standing out there in the cold. He knew how she felt. It was those chills which only fear can put in you.

He said, ‘I’m here to help you, ma’am. Why don’t you wait in the car where it’s warm? By the way, my name is Bryan Anderson.’

Well, all she had was a flat tire, but for an old lady, that was bad enough. Bryan crawled under the car looking for a place to put the jack, skinning his knuckles a time or two. Soon he was able to change the tire. But he had to get dirty and his hands hurt.

As he was tightening up the lug nuts, she rolled down the window and began to talk to him. She told him that she was from St. Louis and was only just passing through. She couldn’t thank him enough for coming to her aid.

Bryan just smiled as he closed her trunk. The lady asked how much she owed him. Any amount would have been all right with her. She already imagined all the awful things that could have happened had he not stopped.

He told her that if she really wanted to pay him back, the next time she saw someone who needed help, she

May 2015

could give that person the assistance they needed, and Bryan added, ‘And think of me.’

He waited until she started her car and drove off.

It had been a cold and depressing day, but he felt good as he headed for home, disappearing into the twilight.

A few miles down the road the lady saw a small cafe. She went in to grab a bite to eat, and take the chill off before she made the last leg of her trip home. It was a dingy looking restaurant. Outside were two old gas pumps.

The waitress came over and brought a clean towel to wipe her wet hair. The lady noticed the waitress was nearly eight months pregnant, but she never let the strain and aches change her attitude.

Then she remembered Bryan. After the lady finished her meal, she paid with a hundred dollar bill. The waitress quickly went to get change for her hundred dollar bill, but the old lady had slipped right out the door. She was gone by the time the waitress came back. The waitress wondered where the lady could be. Then she noticed something written on the napkin.

There were tears in her eyes when she read what the lady wrote: ‘You don’t owe me anything. I have been there too. Somebody once helped me out, the way I’m helping you. If you really want to pay me back, here is what you do: Do not let this chain of love end with you.’

Under the napkin were four more $100 bills. That night when she got home from work and climbed into bed, she was thinking about the money and what the lady had written. How could the lady have known how much she and her husband needed it? With the baby due next month, it was going to be hard.....

She knew how worried her husband was, and as he lay sleeping next to her, she gave him a soft kiss and whispered soft and low, ‘Everything’s going to be all right. I love you, Bryan Anderson.’

There is an old saying ‘What goes around comes around.’

R G Keswani

93