Mumbai: Mahindra Two Wheelers Ltd has forayed into the Latin American market with its two-wheeler portfolio comprising Duro DZ, Pantero and Centuro motorcycles. Recently, MTWL had commenced operations in Sri Lanka and Bangladesh.
The products were unveiled in Nicaragua on August 20 and Guatemala City on August 23 in the presence of eminent dignitaries, dealers, bankers and business associates and media houses.
Mahindra Two Wheelers’ product portfolio incorporates the Mahindra brand DNA of performance, features and reliability.
“International business is a key component of our growth strategy and we are pleased to venture into the Latin American market which is amongst the fastest growing markets in the world. Mahindra is a recognised name in Latin America where it sells its range of vehicles and we have strong local partners who are committed to ensure customer satisfaction and volume growth in these markets. We will continue to expand our footprint across the globe as we enhance our range of customer centric two wheelers, bringing more and more customers into the Mahindra fold,” said Viren Popli, Executive Vice-President at MTWL.
Sandeep Singh Senior General Manager & Head–Exports, said: "With these launches we have initiated operations in 11 markets spread across South Asia, Africa, Middle East and Latin America. We will continue to expand our presence across the globe while remaining focused on customer satisfaction and volume growth.”
The company is putting in place infrastructure comprising sales, service and spares set up and SKD assembly facilities in Guatemala City and Managua, besides a network of dealers in both countries.
Success in my Habit
Monday, September 23, 2013
‘Life insurance sector to see 12-15% CAGR over 5 years’
Mumbai: The Life Insurance Council, the industry body of life insurers in India, has estimated the sector to record a compounded annual growth rate (CAGR) of 12-15 per cent over the next five years.
Life insurance penetration measured as the percentage of insurance premium to gross domestic product (GDP) is expected to grow to five per cent by 2020 from the current 3.2 per cent, according to the council.
“Life insurance industry has about 36 crore (360 million) in-force policies and is a high capital-intensive industry. With favourable demographics, new products launches on the anvil, industry expanding their operations and infusing efficiencies the industry will see significant growth in India,” said V Manickam, secretary general, Life Insurance Council.
The council said favourable Indian demography — insurable population, expected to grow to 750 million and life expectancy to 74 years by FY2020 — would help achieve spurt in the preference for life insurance. Thus, life insurance, which is the second most preferred financial instrument, would drive growth in net household financial savings to an estimated 35 per cent of total savings in the next seven years, compared with a meagre 26 per cent in FY10.
The council also estimated a potential foreign exchange inflow of $10 billion in the near term, when the foreign direct investment (FDI) in insurance increases to 49 per cent,.
According to the council, life insurers also plan to expand their distribution channel and increase the number of life insurance advisers to more than three million over the next five years and is expected to contribute Rs 3.5 lakh crore towards infrastructure projects by FY20. Assets under management (AUMs) of life insurers have risen to Rs 17.41 lakh crore as on March 31, 2013, compared with Rs 1.94 lakh crore in 2000-01.
Data from the council showed the total revenue from life insurers for 2012-13 stood at Rs 4.1 lakh crore, of which Rs 1.23 lakh crore was investment income, Rs 1.79 lakh crore was renewal premium and Rs 1.07 lakh crore was new business premium.
The total benefits paid to customers by the Indian life insurance industry in most challenging period, has increased to Rs 1.91 lakh crore as on March 31, 2013, compared with Rs 1.41 lakh crore in March 2011. In addition, there has been a marked improvement in death claims settled by life insurers in terms of the number of policies as also by the amount and the time taken to settle death claims.
Life Insurance Council asks for extension of new product guideline implementation deadline
Irda may not extend October 1 deadline
Life Insurance Council has asked the insurance regulator for an extension in the deadline for implementation of the new traditional product guideline. From October 1, life insurance companies cannot sell products that do not conform to the new product guidelines for traditional products.
V Manickam, Secretary General, Life Insurance Council said that after representation from the life insurers, they have proposed an extension of the October 1 deadline. He added that they expected a positive outcome from the Insurance Regulatory and Development Authority (Irda).
Meanwhile, Irda officials said that they are not looking to give any further extensions to enter the new product regime, since most life insurance companies have filed adequate products for re-filing.
On October 1, all life insurers are required to be ready with their new bouquet of products to be available to customers. With the deadline merely 15 days away, life insurance companies are leaving no stone unturned to ensure that their products are out in the market on time.
Insurance Regulatory and Development Authority (Irda) bought out the traditional product guidelines in February this year, which mandated life insurers to be complaint with the new norms by October 1, 2013. Their existing products are being re-filed with the regulator.
However, life insurance experts said that several players have not been able to get their entire portfolio ready for customers. If they do not have the requisite number of products by October 1, they will have an incomplete set of products for customers.
Life insurance penetration measured as the percentage of insurance premium to gross domestic product (GDP) is expected to grow to five per cent by 2020 from the current 3.2 per cent, according to the council.
“Life insurance industry has about 36 crore (360 million) in-force policies and is a high capital-intensive industry. With favourable demographics, new products launches on the anvil, industry expanding their operations and infusing efficiencies the industry will see significant growth in India,” said V Manickam, secretary general, Life Insurance Council.
The council said favourable Indian demography — insurable population, expected to grow to 750 million and life expectancy to 74 years by FY2020 — would help achieve spurt in the preference for life insurance. Thus, life insurance, which is the second most preferred financial instrument, would drive growth in net household financial savings to an estimated 35 per cent of total savings in the next seven years, compared with a meagre 26 per cent in FY10.
The council also estimated a potential foreign exchange inflow of $10 billion in the near term, when the foreign direct investment (FDI) in insurance increases to 49 per cent,.
According to the council, life insurers also plan to expand their distribution channel and increase the number of life insurance advisers to more than three million over the next five years and is expected to contribute Rs 3.5 lakh crore towards infrastructure projects by FY20. Assets under management (AUMs) of life insurers have risen to Rs 17.41 lakh crore as on March 31, 2013, compared with Rs 1.94 lakh crore in 2000-01.
Data from the council showed the total revenue from life insurers for 2012-13 stood at Rs 4.1 lakh crore, of which Rs 1.23 lakh crore was investment income, Rs 1.79 lakh crore was renewal premium and Rs 1.07 lakh crore was new business premium.
The total benefits paid to customers by the Indian life insurance industry in most challenging period, has increased to Rs 1.91 lakh crore as on March 31, 2013, compared with Rs 1.41 lakh crore in March 2011. In addition, there has been a marked improvement in death claims settled by life insurers in terms of the number of policies as also by the amount and the time taken to settle death claims.
Life Insurance Council asks for extension of new product guideline implementation deadline
Irda may not extend October 1 deadline
Life Insurance Council has asked the insurance regulator for an extension in the deadline for implementation of the new traditional product guideline. From October 1, life insurance companies cannot sell products that do not conform to the new product guidelines for traditional products.
V Manickam, Secretary General, Life Insurance Council said that after representation from the life insurers, they have proposed an extension of the October 1 deadline. He added that they expected a positive outcome from the Insurance Regulatory and Development Authority (Irda).
Meanwhile, Irda officials said that they are not looking to give any further extensions to enter the new product regime, since most life insurance companies have filed adequate products for re-filing.
On October 1, all life insurers are required to be ready with their new bouquet of products to be available to customers. With the deadline merely 15 days away, life insurance companies are leaving no stone unturned to ensure that their products are out in the market on time.
Insurance Regulatory and Development Authority (Irda) bought out the traditional product guidelines in February this year, which mandated life insurers to be complaint with the new norms by October 1, 2013. Their existing products are being re-filed with the regulator.
However, life insurance experts said that several players have not been able to get their entire portfolio ready for customers. If they do not have the requisite number of products by October 1, they will have an incomplete set of products for customers.
Banks free to open branches in Tier-1 cities: RBI
Mumbai: Banks have been given conditional freedom to open branches in tier-I cities without seeking the Reserve Bank of India’s prior approval in each case.
The RBI, however, linked the measure to the number of branches a bank would open in an un-banked or under-banked centre.
The central bank has clarified that the number of branches opened in tier-I centres cannot exceed the total number of branches opened in centres that do not have any at present.
If a bank is unable to open all the tier-I branches it is eligible to in a particular year, then it can open these branches in the subsequent year, the central bank added.
Earlier Norms
Similarly, banks that are unable to open branches in Tier II to Tier VI centres during the financial year must necessarily rectify the shortfall in the next financial year, the RBI said.
As per the earlier guidelines, all scheduled commercial banks were allowed to open branches in Tier-II to Tier-VI centreswithout taking RBI’s permission in each case.
Based on data given by banks to the RBI in the Basic Statistical Returns, which provides data on a number of key parameters of banks, it is estimated that rural India had only 7 branches per 100,000 adults in 2011. In sharp contrast, most of the developed economies have over 40 branches.
The RBI, however, linked the measure to the number of branches a bank would open in an un-banked or under-banked centre.
The central bank has clarified that the number of branches opened in tier-I centres cannot exceed the total number of branches opened in centres that do not have any at present.
If a bank is unable to open all the tier-I branches it is eligible to in a particular year, then it can open these branches in the subsequent year, the central bank added.
Earlier Norms
Similarly, banks that are unable to open branches in Tier II to Tier VI centres during the financial year must necessarily rectify the shortfall in the next financial year, the RBI said.
As per the earlier guidelines, all scheduled commercial banks were allowed to open branches in Tier-II to Tier-VI centreswithout taking RBI’s permission in each case.
Based on data given by banks to the RBI in the Basic Statistical Returns, which provides data on a number of key parameters of banks, it is estimated that rural India had only 7 branches per 100,000 adults in 2011. In sharp contrast, most of the developed economies have over 40 branches.
Sterlite Grid commissions Rs 500-cr transmission line
Mumbai: Sterlite Grid has commissioned a 23-km 400 kV double-circuit quad transmission line connecting Purnia and Bihar Sharif district substations in Bihar.
Sterlite Grid is a wholly-owned subsidiary of Sterlite Technologies.
The project cost is about Rs 500 crore. Awarded on build, own, operate and maintain (BOOM) basis, the project will provide annuity revenue to Sterlite Grid for 25 years. Sterlite Grid said it was selected to build the country’s first ultra mega transmission projectwith two 400 kV transmission lines under tariff-based competitive bidding.
The line provides critical connectivity for power transfer from hydro power plants in the North Eastern region. It will bring on line enough transmission capacity to power over one million homes in northeast Bihar and northern India.
The line had been identified highest priority by Power System Operation Corporation, the national power grid operator.
With the completion of the Purnia-Bihar Sharif transmission line, Sterlite Grid has completed the installation of one transmission line in the East North Interconnection Transmission Project. ENICL would connect Assam with West Bengal and Bihar.
Total investment in ENICL project is about Rs 1,000 crore, besides which the company has Rs 3,500 crore worth of projects in progress.
Sterlite Grid is a wholly-owned subsidiary of Sterlite Technologies.
The project cost is about Rs 500 crore. Awarded on build, own, operate and maintain (BOOM) basis, the project will provide annuity revenue to Sterlite Grid for 25 years. Sterlite Grid said it was selected to build the country’s first ultra mega transmission projectwith two 400 kV transmission lines under tariff-based competitive bidding.
The line provides critical connectivity for power transfer from hydro power plants in the North Eastern region. It will bring on line enough transmission capacity to power over one million homes in northeast Bihar and northern India.
The line had been identified highest priority by Power System Operation Corporation, the national power grid operator.
With the completion of the Purnia-Bihar Sharif transmission line, Sterlite Grid has completed the installation of one transmission line in the East North Interconnection Transmission Project. ENICL would connect Assam with West Bengal and Bihar.
Total investment in ENICL project is about Rs 1,000 crore, besides which the company has Rs 3,500 crore worth of projects in progress.
Bosch to invest Rs 1,500 crore in Karnataka
Bengaluru: Bosch, a leading supplier of technology and services in the areas of automotive, industrial technology, and consumer goods, will invest Rs 1,500 crore ($240 million) over the next seven years in Bangalore, in expanding its manufacturing and research and development capabilities.
The 53-billion euro German auto component manufacturer is relocating its six-decade-old manufacturing facility from Adugodi, located in the heart of the city, to Bidadi, which is approximately 32 km from Bangalore city.
The existing Bosch premises at Adugodi would continue to house the company's India head office and the space available on account of relocation will be used for expansion of Bosch R&D Centre, and Robert Bosch Engineering & Business Solutions.
"This move to relocate underlines our commitment to India and especially to the state of Karnataka. The developing industrial area in Bidadi will offer larger space and better infrastructure support for our future expansion," said Steffen Berns, MD, Bosch Ltd.
He added that though the current economic situation was tough, the relocation would cater to the growing business needs of the Indian market in the long term. The company has started work on its new facility, part of which will become operational in the next two years.
"In spite of the economic downturn we continue our projects in Bidadi and Adugodi and Bosch will invest Rs 1,500 crore in the next seven years in these two projects," said Soumitra Bhattacharya, joint MD, Bosch Ltd.
The relocation will happen in a phased manner with the company investing Rs 250 crore in setting up phase I of the Bidadi plant, which will be operational in the third quarter of fiscal 2015. Around 850 employees from the Adugodi plant will be relocated to the new facility.
In all around 4,000 employees will be part of the relocation exercise, which will be completed post 2017.
The new facility will initially manufacture several components of diesel fuel injection systems such as common rail pumps, common rail and glow plugs.
The Bosch Group operates in India through six companies, has a turnover of Rs 12,900 crore and employs 26,000 people. Of that 16,000 people are based in Karnataka.
The 53-billion euro German auto component manufacturer is relocating its six-decade-old manufacturing facility from Adugodi, located in the heart of the city, to Bidadi, which is approximately 32 km from Bangalore city.
The existing Bosch premises at Adugodi would continue to house the company's India head office and the space available on account of relocation will be used for expansion of Bosch R&D Centre, and Robert Bosch Engineering & Business Solutions.
"This move to relocate underlines our commitment to India and especially to the state of Karnataka. The developing industrial area in Bidadi will offer larger space and better infrastructure support for our future expansion," said Steffen Berns, MD, Bosch Ltd.
He added that though the current economic situation was tough, the relocation would cater to the growing business needs of the Indian market in the long term. The company has started work on its new facility, part of which will become operational in the next two years.
"In spite of the economic downturn we continue our projects in Bidadi and Adugodi and Bosch will invest Rs 1,500 crore in the next seven years in these two projects," said Soumitra Bhattacharya, joint MD, Bosch Ltd.
The relocation will happen in a phased manner with the company investing Rs 250 crore in setting up phase I of the Bidadi plant, which will be operational in the third quarter of fiscal 2015. Around 850 employees from the Adugodi plant will be relocated to the new facility.
In all around 4,000 employees will be part of the relocation exercise, which will be completed post 2017.
The new facility will initially manufacture several components of diesel fuel injection systems such as common rail pumps, common rail and glow plugs.
The Bosch Group operates in India through six companies, has a turnover of Rs 12,900 crore and employs 26,000 people. Of that 16,000 people are based in Karnataka.
Coal India to implement 126 projects during 12th Plan period
Kolkata: Coal India has identified 126 projects, having an estimated capacity of 438.04 million tonnes, to be taken up during the 12 {+t} {+h} Plan period.
According to S. Narsing Rao, Chairman, CIL, preliminary reports for 78 of them have been formulated.
“Four projects, having an estimated capacity of 12.50 million tonne and a proposed investment of Rs 2,294.79 crore, have also been sanctioned,” Rao told shareholders during the 39 {+t} {+h} AGM here on Wednesday. According to him, nearly half (60 of the identified 126) the projects would contribute about 88 million tonne in the terminal year (2016-17) of the Five Year Plan.
In order to meet production demand, the company has decided to work under the mine-developer-operator (MDO) mode. “We propose to take up seven mines in the first phase and expand later based on experience,” the Chairman said.
Coal Import
CIL is likely to import 15 million tonnes of coal for power utilities as part of meeting the fuel supply agreement commitments.
“We have received interest for 15 million tonnes from private power producers and state-owned entities,” CIL director (marketing), B.K Saxena, told reporters on the sidelines of the AGM.
Some 55- 60 companies that include Damodar Valley Corporation have shown interest in importing coal. Imported coal is likely to be supplied from 2014-15.
According to Saxena, Coal India would float tenders to select an agency who will import the coal on its behalf. The process is likely to be completed by the end of this fiscal.
Buyers will have to pay at least 90 per cent of coal value in advance to CIL.
Trade Union Meeting
Meanwhile, Coal India management will meet trade unions on September 20 to avert a proposed three-day strike beginning September 23. Five trade unions have decided to go on strike to protest the government’s plans of divesting another 5 per cent in the company.
According to S. Narsing Rao, Chairman, CIL, preliminary reports for 78 of them have been formulated.
“Four projects, having an estimated capacity of 12.50 million tonne and a proposed investment of Rs 2,294.79 crore, have also been sanctioned,” Rao told shareholders during the 39 {+t} {+h} AGM here on Wednesday. According to him, nearly half (60 of the identified 126) the projects would contribute about 88 million tonne in the terminal year (2016-17) of the Five Year Plan.
In order to meet production demand, the company has decided to work under the mine-developer-operator (MDO) mode. “We propose to take up seven mines in the first phase and expand later based on experience,” the Chairman said.
Coal Import
CIL is likely to import 15 million tonnes of coal for power utilities as part of meeting the fuel supply agreement commitments.
“We have received interest for 15 million tonnes from private power producers and state-owned entities,” CIL director (marketing), B.K Saxena, told reporters on the sidelines of the AGM.
Some 55- 60 companies that include Damodar Valley Corporation have shown interest in importing coal. Imported coal is likely to be supplied from 2014-15.
According to Saxena, Coal India would float tenders to select an agency who will import the coal on its behalf. The process is likely to be completed by the end of this fiscal.
Buyers will have to pay at least 90 per cent of coal value in advance to CIL.
Trade Union Meeting
Meanwhile, Coal India management will meet trade unions on September 20 to avert a proposed three-day strike beginning September 23. Five trade unions have decided to go on strike to protest the government’s plans of divesting another 5 per cent in the company.
Madras University, UK institute tie up for course in environment management
Chennai: Madras Varsity Ties Up With Uk Institute To Offer Green Course
UK-based University of Northampton has tied up with Madras University to offer a Master’s degree in International Environment Management. R. Thandavam, Vice-Chancellor, Madras University, said the one-year M.Sc course has been loosely structured to allow those in employment obtain a UK degree while working. The fee is Rs 1.5 lakh. Graduates would find favour with employers such as environmental consultancies and Government agencies managing conservation projects. The course will allow students access to online courseware put up by the University of Northampton; contact classes at the Madras University campus will include lectures by faculty from the UK University, but most lessons from the foreign university will be streamed online. The curriculum includes environment management policy and control in India, waste management in India, environment psychology, and pollution control.
UK-based University of Northampton has tied up with Madras University to offer a Master’s degree in International Environment Management. R. Thandavam, Vice-Chancellor, Madras University, said the one-year M.Sc course has been loosely structured to allow those in employment obtain a UK degree while working. The fee is Rs 1.5 lakh. Graduates would find favour with employers such as environmental consultancies and Government agencies managing conservation projects. The course will allow students access to online courseware put up by the University of Northampton; contact classes at the Madras University campus will include lectures by faculty from the UK University, but most lessons from the foreign university will be streamed online. The curriculum includes environment management policy and control in India, waste management in India, environment psychology, and pollution control.
Amritsar-Delhi-Kolkata corridor to get Rs 5,749 cr from Centre
New Delhi: The proposed Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC), that seeks to promote industrialisation and job creation in 20 cities spanning seven States, will require an estimated Central funding of Rs 5,749 crore for building an Integrated Manufacturing Cluster in each State it passes through.
The Inter Ministerial Group (IMG), set up by the Prime Minister to do the preparatory work for the project, has suggested in its report that the Centre’s support for the project would be disbursed over 15 years and used for a variety of purposes.
This would include interest subvention (subsidy), share in equity, development of trunk infrastructure and initial project development grant to ADKIC Development Corporation, a release given out by the Prime Minister’s Office on Wednesday said.
Principal Secretary to the Prime Minister, Pulok Chatterji, will hold a meeting with IMG members and other relevant ministries on Friday, the release added.
The IMG includes secretaries from the Ministries and Departments of Finance, Industrial Policy and Promotion, Urban Development, Shipping, Road Transport and Highways and Chairman of the Railway Board,
As per the IMG’s recommendations, the ADKIC will be aligned to the Eastern Development Freight Corridor and will span 20 cities in Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. It proposes to leverage the existing Highway system on this route and the Inland Water System being developed.
The IMG has suggested setting up an Apex Monitoring Authority, under the Commerce and Industry, for overall guidance, planning and approvals, setting up of timelines for implementation and monitoring.
The development of ADKIC will be taken up in a band of 150-200 km on either side of EDFC in a phased manner.
In the first phase, every State could promote at least one Integrated Manufacturing Cluster of about 10 sq km, in which 40 per cent area would be earmarked permanently for manufacturing and processing activities.
The Inter Ministerial Group (IMG), set up by the Prime Minister to do the preparatory work for the project, has suggested in its report that the Centre’s support for the project would be disbursed over 15 years and used for a variety of purposes.
This would include interest subvention (subsidy), share in equity, development of trunk infrastructure and initial project development grant to ADKIC Development Corporation, a release given out by the Prime Minister’s Office on Wednesday said.
Principal Secretary to the Prime Minister, Pulok Chatterji, will hold a meeting with IMG members and other relevant ministries on Friday, the release added.
The IMG includes secretaries from the Ministries and Departments of Finance, Industrial Policy and Promotion, Urban Development, Shipping, Road Transport and Highways and Chairman of the Railway Board,
As per the IMG’s recommendations, the ADKIC will be aligned to the Eastern Development Freight Corridor and will span 20 cities in Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. It proposes to leverage the existing Highway system on this route and the Inland Water System being developed.
The IMG has suggested setting up an Apex Monitoring Authority, under the Commerce and Industry, for overall guidance, planning and approvals, setting up of timelines for implementation and monitoring.
The development of ADKIC will be taken up in a band of 150-200 km on either side of EDFC in a phased manner.
In the first phase, every State could promote at least one Integrated Manufacturing Cluster of about 10 sq km, in which 40 per cent area would be earmarked permanently for manufacturing and processing activities.
Wednesday, September 18, 2013
Germany to finance India’s green energy corridors
New Delhi: Germany has committed financial and technical assistance to India for the Green Energy Corridors. This includes Financial Assistance of Euro 250 Million as Reduced Interest Loan. Technical Assistance includes:
(i) Euro 2 million for Indo-German Energy Programme – New component on Green Energy Corridors; and
(ii) Euro 2 million for Integration of Renewable Energies into the Indian Electricity System (I-RE).
This was disclosed during the Indo-German Annual Negotiation meeting held in New Delhi in July, 2013.
Germany has also expressed its willingness regarding concessional loans from KFW of up to one billion euro for financing the Green Energy Corridors project under Indo-German Bilateral Development Cooperation Programme over the next six years. This was discussed during the Indo-German Government Consultations held in Berlin in April, 2013
The Green Energy Corridors project will help in integrating renewable energy into the National grid. It comprises of both inter-state and intra-state schemes for evacuation of power from wind and solar projects.
(i) Euro 2 million for Indo-German Energy Programme – New component on Green Energy Corridors; and
(ii) Euro 2 million for Integration of Renewable Energies into the Indian Electricity System (I-RE).
This was disclosed during the Indo-German Annual Negotiation meeting held in New Delhi in July, 2013.
Germany has also expressed its willingness regarding concessional loans from KFW of up to one billion euro for financing the Green Energy Corridors project under Indo-German Bilateral Development Cooperation Programme over the next six years. This was discussed during the Indo-German Government Consultations held in Berlin in April, 2013
The Green Energy Corridors project will help in integrating renewable energy into the National grid. It comprises of both inter-state and intra-state schemes for evacuation of power from wind and solar projects.
Tamil Nadu takes India's solar power capacity up 30%
Chennai: India's installed solar power capacity is poised to jump 30% with the Tamil Nadu government close to signing power purchase agreements for 700 megawatts (MW) by the end of October.
Once the plants are up and running, Tamil Nadu will have the second largest solar power capacity in India after Gujarat, the pioneer in such projects in the country.
India has 1,759.43MW of grid-connected solar power, with close to 800MW coming from Gujarat. The projects are expected to be ready for commissioning next year.
As part of TN's solar power policy, which aims at installing 3,000MW of capacity by 2015, a total of 52 companies will sign agreements with the Tamil Nadu Generation and Distribution Corporation (Tangedco) for capacity totalling 698MW at a tariff of 6.48 per unit (with a 5% increase annually for 10 years).
This comes at a time when the country's national solar policy is tottering. The second phase of the Jawaharlal Nehru National Solar Mission (JNNSM) has been delayed by over five months with no sign of the programme being kick-started any time soon.
Solar power is the most expensive form of renewable energy and rupee depreciation has added to the woes of companies importing high-end photo voltaic panels.
"There has been a lot of uncertainty over solar power companies and negativity had set in. But now there are projects in the pipeline and activity for players across the board will go up," said Madhavan Nampoothiri, founder and director of RESolve Energy Consultants, an energy consultancy firm.
Last week, Tangedco held individual meetings with solar power developers asking them to submit documents for proof of land ownership and bank guarantees for financing. "Thirty companies are yet to submit the documents and we have given time till October 30. Once this is in place, power purchase agreements will be signed," a senior official from Tangedco said.
Companies that have the documents in place have started working on the project. "The meeting with the Tangedco chairman and other members was a manner of assurance of support and we have started progress on our project. The team is on the site and we are in talks with banks for financing," said T R Kishor Nair, President, Welspun Energy, which is setting up a 60 MW plant in Trichy district. Solar policies in other states haven't made as much progress and capacities also aren't as large as in Tamil Nadu. While Andhra Pradesh has a target of 1,000 MW, tariff is a deterrent for investors as it is fixed at Rs 6.49 with no annual hike. The programmes in states like Punjab (300 MW) and Karnataka (130 MW) are on a smaller scale and are in the nascent stage. What adds to Tamil Nadu's attractiveness is that the state has high solar radiation of 5.6 - 6.0 kWh per square meter with around 300 clear sunny days in a year, the third highest in India.
Once the plants are up and running, Tamil Nadu will have the second largest solar power capacity in India after Gujarat, the pioneer in such projects in the country.
India has 1,759.43MW of grid-connected solar power, with close to 800MW coming from Gujarat. The projects are expected to be ready for commissioning next year.
As part of TN's solar power policy, which aims at installing 3,000MW of capacity by 2015, a total of 52 companies will sign agreements with the Tamil Nadu Generation and Distribution Corporation (Tangedco) for capacity totalling 698MW at a tariff of 6.48 per unit (with a 5% increase annually for 10 years).
This comes at a time when the country's national solar policy is tottering. The second phase of the Jawaharlal Nehru National Solar Mission (JNNSM) has been delayed by over five months with no sign of the programme being kick-started any time soon.
Solar power is the most expensive form of renewable energy and rupee depreciation has added to the woes of companies importing high-end photo voltaic panels.
"There has been a lot of uncertainty over solar power companies and negativity had set in. But now there are projects in the pipeline and activity for players across the board will go up," said Madhavan Nampoothiri, founder and director of RESolve Energy Consultants, an energy consultancy firm.
Last week, Tangedco held individual meetings with solar power developers asking them to submit documents for proof of land ownership and bank guarantees for financing. "Thirty companies are yet to submit the documents and we have given time till October 30. Once this is in place, power purchase agreements will be signed," a senior official from Tangedco said.
Companies that have the documents in place have started working on the project. "The meeting with the Tangedco chairman and other members was a manner of assurance of support and we have started progress on our project. The team is on the site and we are in talks with banks for financing," said T R Kishor Nair, President, Welspun Energy, which is setting up a 60 MW plant in Trichy district. Solar policies in other states haven't made as much progress and capacities also aren't as large as in Tamil Nadu. While Andhra Pradesh has a target of 1,000 MW, tariff is a deterrent for investors as it is fixed at Rs 6.49 with no annual hike. The programmes in states like Punjab (300 MW) and Karnataka (130 MW) are on a smaller scale and are in the nascent stage. What adds to Tamil Nadu's attractiveness is that the state has high solar radiation of 5.6 - 6.0 kWh per square meter with around 300 clear sunny days in a year, the third highest in India.
Subscribe to:
Posts (Atom)