Solar power, green corridor blip on energy radar for 2017
Green seems to be the catchword for the government heading into the next year as it gears up to achieve 175 gigawatt of clean energy by 2022 through auction of 1,000 MW of rooftop solar power, Rs 13,000 crore investment in solar parks and a Rs 21,000-crore package to boost local manufacturing of panels. By all yardsticks, 2016 remains a watershed year when solar tariff slumped to Rs 4 per unit and wind projects received a major thrust. The government is set to switch gears in 2017 to make India a hub for one of the largest installations of clean energy sources by 2022. Minister for New and Renewable Energy Piyush Goyal offered a glimpse of things to come while speaking to PTI. Scaling up of rooftop solar programme, scheme to encourage domestic manufacturing of solar panels and making wind power affordable through auction of sites all fill up a packed 2017. His ministry has in its sight Rs 1 lakh crore investment for the sector and is looking at 20 GW of power generation from non-conventional sources in 2017-18. Beginning with speeding up the tempo for solar panel installation at homes, schools and hospitals through subsidies in 2016, plans are afoot to expand the rooftop programme to government buildings by providing target-based incentives. In the November auction of 500 MW, subsidies for installation of as much as 432.7 MW of rooftop solar capacity were lapped up by 122 developers. A fresh tender for one gigawatt (1,000 MW) is now in the works. The Prime Minister Narendra Modi-led government is eyeing generation of 100 GW from solar power alone by 2022. Rooftop solar capacity almost doubled to 1,000 MW in 2016 and the aim is to take this to 40 GW. Also on the table is a green corridor to transmit 2,000 MW of power from 34 solar panels across 21 states. For good measure, Goyal said, a scheme to promote domestic manufacturing of solar panels will become a reality in 2017. The Rs 21,000-crore module aims to create 5 GW of photovoltaic manufacturing capacity by 2019 and 20 GW by 2026. India’s renewable energy generation capacity stands at 45 GW. According to Goyal, wind power is up next after successful reduction in solar tariff through transparent auction of sites. A mobility scheme is on the anvil to achieve 100 per cent electric vehicle-based transportation for India by 2030, he said without giving out specifics. Early next year, the ministry will organise Global RE- Invest 2017 India-ISA Partnership, the second edition of the bi-ennial Renewable Energy Investors Meet and Expo to bring in investors. The event will build on RE-Invest 2015 and explore the advances to help meet India’s ultimate target of adding 175 GW renewable energy capacity by 2022. The ministry is keen on fostering competition among players, particularly in the wind energy space, to bring down tariff and make it a viable source of electricity for consumers. The Global Renewable Energy Investors meet is the world’s largest renewable energy investors gathering to be organised in 2017, Goyal said. He spoke of launching renewable energy fund under the National Investment and Infrastructure Fund (NIIF). The ministry has been working on this USD 2-billion fund to make private players invest in the sector. In 2017-18, the government is eyeing 20,450 MW power capacity addition from renewables, including 15,000 (solar), 4,600 MW (wind), 750 MW (biomass) and 100 MW from small hydro power (of up to 25 MW). A total of 7,518 MW of grid-connected power generation capacity from renewable sources has been added this year (January to October 2016). In 2016-17, a total of 1,502 MW capacity has come on board till October-end this year, making a cumulative realisation of 28,279 MW. Now, in terms of wind power installed capacity, India is placed at the 4th rank after China, the US and Germany. As for solar power, a total of 1,750 MW capacity has been added till October-end this year, making it a cumulative 8,728 MW. After bringing solar tariff to a record low of Rs 3 per unit, the minister indicated making wind power affordable. He said, “There will be a wind auction to transparently reduce the tariff.” The government has planned solar energy from every roof in the country and there will be expansion of rooftop solar programmes next year. It has envisaged 40 GW of solar power from rooftop alone out of the total 100 GW planned to be added by 2022. This flows from the need to push rooftop solar in a big way against the backdrop of a target of 40 GW grid connected solar rooftops by 2022. So far, about 500 MW of rooftop solar has been installed and about 3,000 MW has been sanctioned for installation. All major sectors like the Railways, airport, hospitals, educational institutions, government buildings of central, state and PSUs are being targeted, besides the private sector. A massive Grid Connected Solar Rooftop Programme will be launched with 40 GW target. State Electricity Regulatory Commissions of 30 states/UTs notified regulations for net-metering and feed-in-tariff mechanism. Besides, funding of Rs 5,000 crore was approved for solar rooftops. A total sanction of USD 1,300 million has been received from the World Bank, KFW, ADB and NDB which will enable SBI, PNB, Canara Bank and IREDA to fund such projects at an interest rate of less than 10 per cent. The ministry has tied up with ISRO for geo-tagging of all the rooftop plants using ISRO’s VEDAS portal. To reduce import of solar equipment from other countries, particularly from China, the ministry is keen to encourage domestic production to meet the huge power demand. The minister said there will be focus on Make in India for solar power next year and a scheme to this effect may be launched. The government has also planned launch of founding conference of International Solar Alliance. About use of renewable in farm sector, he said, “We will focus on Prosperous Farmer — Pollution Free India. There
2016: High growth, maiden policy propelled aviation sector
A maiden integrated policy and over 20 per cent month-on-month traffic growth gave wings to the country’s civil aviation sector in 2016. The sector reaped benefits out of a rise in domestic disposable income, lower jet fuel prices and enhanced services to the non-metro cities, which accelerated India’s passenger traffic growth in 2016. According to the latest data from the Directorate General of Civil Aviation (DGCA), passenger traffic during January-November 2016 zoomed by 23.10 per cent to 90.36 million. This rise and other contributing factors have led global airlines’ industry body International Air Transport Association (IATA) to estimate that India will displace the UK as the third-largest aviation marketplace by 2026. It is currently at 9th. Recently, Minister of State for Civil Aviation Jayant Sinha elaborated that the sector has “dramatic headroom” for growth as India has only 150 million passenger trips a year as compared to China’s 450 million and the US’ 800 million. In the backdrop of such high growth, the sector finally got its maiden integrated National Civil Aviation Policy (NCAP). The long-awaited policy envisages a roadmap to support 300 million air travellers in five years and steps to make flying affordable and convenient. Broadly, the policy dwells on upgrade of airports, regional connectivity, easing of norms for flying abroad, liberalisation of the open skies regime, development of cargo hubs, chopper services, attracting investments in maintenance and ground-handling and security. The ambitious policy did away with one of the most contentious rules of the sector known as ‘5/20’ — five-years operation and a 20-aircraft fleet — to qualify for flying abroad. The five-year wait was done away with, but airlines will need 20 aircraft or fly 20 per cent of their capacity on domestic routes. The policy may be far away from achieving its intended target, but its showpiece sub-segment — the ‘UDAN’ (Ude Desh ka Aam Naagrik) Regional Connectivity Scheme (RCS) — is expected to become a reality from early 2017. According to Civil Aviation Minister P. Ashok Gajapathi Raju, the first flight under the RCS is expected to be operated by January 2017. The Udan scheme, meant to enhance air passenger traffic in the country by stimulating demand on regional routes, will be in operation for a period of 10 years, provide air connectivity to unserved and remote routes with airfare being capped at Rs 2,500 for an hour’s journey of around 500 km. The RCS is expected to support airlines by providing direct financial support namely VGF (viability gap funding), which would be given to the interested airlines to kick off operations to an un-served or underserved airport, and also keep passenger fares affordable. The central government is expected to provide concessions in the form of reduced excise duty and service tax, whereas state governments will have to lower the VAT (value added tax) on ATF (air turbine fuel) to one per cent or less. Besides, the state governments would not charge on security and fire services while electricity, water and other utilities would be provided at concessional rates. Minister of State Sinha elaborated that through Udan, the central government is also working to expand the aviation map of India from 75 to 150 airports, adding that the Kanpur and Bhatinda airports have become operational under the scheme. Among other highlights of 2016 — the government has initiated a trial run for “non-stamping” of passengers’ baggage tags at the time of boarding the aircraft at six airports to facilitate hassle-free movement of passengers with hand baggage. In other major developments, the government appointed B.S. Bhullar as chief of the country’s civil aviation regulator, DGCA. Mario Addison Jersey
Government okays Rs 11,000 crore road projects for Left-wing hit areas
The government has approved an over Rs 11,000-crore project to construct all-weather roads and improve connectivity for security reasons in nearly 40 districts worst hit by the Left-wing extremism and violence. Approved by the Cabinet Committee on Economic Affairs (CCEA), the ‘Road Connectivity Project for Left Wing Extremism Affected Areas’ will provide connectivity in 35 worst affected LWE districts – which account for 90 per cent of total LWE violence in the country – and 9 adjoining districts, critical from security angle. To be implemented as a vertical under the Pradhan Mantri Gram Sadak Yojana, more than 5,400 kilometres of road would be constructed/upgraded and 126 bridges/cross drainage works would be taken up at an estimated cost of Rs 11,724.53 crore. The roads will be operable through the year, irrespective of weather conditions. The fund sharing for the LWE road project will be same as the PMGSY – in the ratio of 60:40 between the Centre and states for all states except for North Eastern and three Himalayan States (Jammu & Kashmir, Himachal Pradesh and Uttarakhand) for which it is 90:10. Finance Ministry will allocate Rs 7,034.72 crore to the Ministry of Rural Development for the project during the implementation period 2016-17 to 2019-20. Ministry of Rural Development will be the responsible for sponsoring and implementing the project. The roads taken up under the scheme would include Other District Roads (ODRs), Village Roads (VRs) and upgrading of the existing Major District Roads (MDRs), that are critical from the security point of view. Bridges up to a span of 100 metres, critical from security angle, would also be funded on these roads. National and state highways have been excluded from the project. The roads to be constructed under the scheme have been identified by the Ministry of Home Affairs in consultation with the state governments and security agencies. PMGSY was launched in 2000 as a centrally-sponsored scheme with the objective to provide all-weather road connectivity to all eligible unconnected habitations in the rural areas. Troy Hill Jersey
Demonetisation: NHAI to pay Rs 922 crore for toll loss
The National Highways Authority of India (NHAI) will shell out Rs 922 crore to private highway operators for the toll revenue loss they incurred due to suspension of user charge collection from the afternoon of November 9 to the midnight of December 2. Toll collection was suspended across all national highways in the country following demonetisation of Rs 500 and Rs 1,000 currency notes on November 8. NHAI has moved a proposal to compensate private highway operators “to boost the confidence of private investors”, give “immediate relief ” to already stressed developers and to provide a safeguard against bank loans becoming nonperforming assets. The proposal needs the nod of the Cabinet committee on economic affairs for the fund to be released. The NHAI proposal says that the compensation payment has arisen solely on account of the government decision. The highway authority has worked out the compensation based on the average daily collection in October. Though this works out to be Rs 1,212 crore for all the 317 toll plazas, revenue loss of projects on public-privatepartnership (PPP) is estimated around Rs 922 crore. “The balance estimated loss of about Rs 290 crore is in respect of public funded/annuity projects, which vest in NHAI and for which the compensation amount does not have to be paid out,” the highway authority says in its proposal. At present, the contract conditions for each project specify how interim compensation can be paid in case of such loss due to government decision and how the tolling period of a project can be extended. But NHAI said working out such details of each project would be cumbersome and there is a fear that there would be huge claims and litigations by private players at a later stage. NHAI added that all those operators who take the onetime compensation will execute an agreement with the authority stating that they will forgo any other claim, including that for extension of toll period. Nickell Robey-Coleman Authentic Jersey
New places, newer planes
2017 promises to be action-packed for domestic flyers right from the start. This is mainly because of the government’s ambitious Udey Desh Ka Aam Nagrik, or UDAN scheme, which wants to take aviation to those living in Tier II and Tier III cities. The UDAN scheme is part of the National Civil Aviation policy that was released by the Ministry of Civil Aviation in July 2016. One of the main objectives of the policy is to enhance regional air connectivity through fiscal support and infrastructure development. The Centre has fixed January 27, 2017 as D-day for opening the technical bids for players interested in operating under UDAN. While the date for selection has not been announced yet, it is expected to be soon as the proposal has the backing of the who’s who in the government. The Centre and States have come forward to provide subsidies to those operators who are willing to offer an one-hour flight between Tier II and Tier III cities at ?2,500. Maharashtra, Gujarat, Puducherry, Andhra Pradesh, Madhya Pradesh and Uttrakhand are among the 11 States and Union Territories that have signed up for UDAN. Needless to say the scheme is expected to see the entry of new players. Analysts feel that for the scheme to be successful and viable a small aircraft having the capacity to seat about 20 passengers per flight is ideal. New operators are expected to induct such aircraft in their fleet for starting operations. Andrew Whitworth Jersey
Delhi: Soon, no entry for airport staff without Aadhaar
Ahead of Republic Day, Central Industrial Security Force has thrown a security blanket in and around Indira Gandhi International Airport. As part of a new initiative, after January 1, all airport entry passes will be issued only on the basis of Aadhaar number. All employees have been asked to carry their Aadhaar cards for access to the building. CISF DG O P Singh said that the step was necessary to avoid unauthorised entry. There has been a spurt in incidents of trespass with people entering the premises using forged passes. When the new rule comes into effect, more than 25,000 employees working at the airport, including porters, housekeeping members, loaders and ground staff, will be under close watch. Singh told TOI: “These passes are renewed every year. The deadline for renewing passes that were expiring this month has been extended to March 31. For others, carrying Aadhaar will be mandatory.” The step has been taken in consultation with Bureau of Civil Aviation Security. Mason Foster Authentic Jersey
Aviation in 2016: Flight airborne; ATF price, congestion cloud outlook
Year 2016 could be termed a win-win time for flyers as low airfares allowed more passengers to travel even as a host of passenger-centric measures were taken to enhance the flying experience such as the cap on ticket cancellation charges levied by airlines. Domestic air traffic grew at 23 per cent to a record 9 crore from January-November this year, as per Directorate General of Civil Aviation (DGCA) estimates. According to International Air Transport Association (IATA), India’s air traffic grew at a significantly higher rate even in October when air traffic growth moderated in other countries such as China (14.1 per cent), Brazil (-5.5 per cent), Russia (2.5 per cent) and Japan (0.8 per cent). A dip in aviation turbine fuel prices by eight per cent on an average in 2016 allowed airlines to offer fares that were lower by about 14 per cent. Aviation turbine fuel cost contributes about 40 per cent of the total cost of the operations of airlines. Zach Parise Jersey
Aviation safety: Before two close shaves, many compliance violations
Two close calls on Tuesday buttress the need to redouble the focus on safety checks in the country’s aviation sector. For flyers though, the cause of worry is the fact that every third day, on an average, there was a reported irregularity by an airline pilot during the last year and the first ten months of this year. These were largely violations pertaining to breathalyser testing, flight and duty time limitations (FDTL) breaches and violations of cockpit and cabin discipline rules. According to DGCA data, a total of 208 irregularities by pilots of various airlines was reported over the last year and in the current year 2016, alongside a total of 15 irregularities by airlines during the period. Officials indicated that in all these cases, “relevant enforcement action” has been taken against the pilots and the airlines concerned. The bulk of the irregularities last year were related to breathalyser testing violations, with Jet Airways, Indigo and Air India reporting the highest number of cases. This year, till October 31, the bulk of reported cases involved FDTL violations, with Spice Jet logging the highest number of irregularities, alongside violations related to breathalyser testing, where Air India and Jet Airways reported the maximum number of cases. Worrying still is the fact that during the first ten months this year, a total of 38 pilots and 113 cabin crew tested alcohol-positive during the pre-flight medical examination for consumption of alcohol. Data collated over a longer time frame — over the last three years and the first ten months of this year — showed a total of 409 safety violations by the flight crew of Scheduled Operators, Non-scheduled Operators and general aviation that were reported to the DGCA. These include deficiencies in ramp procedures, violations of PPC (Pilot Proficiency Check), non-compliance for FDTL requirements, non-compliance of pre-flight medical requirements, crew over-logging training hours and unauthorised entry into cockpit. The incidents include a recent surveillance carried out by DGCA, where it was found that one of the scheduled airline was not strictly adhering to the regulatory requirements regarding breath analyzer check as laid down in the Civil Aviation Requirements (CAR). Officials said that in cases involving crew members testing alcohol-positive, in accordance with the provisions of CAR (Section 5 Series F Part-III, Issue-III), the DGCA had suspended privileges of license of pilots and privileges of authorisation of cabin crew and the airlines have been forced to ground all these pilots and cabin crew. Zach Parise Authentic Jersey
Panel examines direct subsidy transfer for electricity consumers; Report in a month
After cooking gas, consumers may now get direct subsidy on electricity. An expert panel comprising senior officials from states and industry is studying the matter and will present its report to the power ministry next month. The expert committee, set up by the ministry to suggest ways to increase electricity demand and consumption, is examining subsidising the target consumers in a manner similar to what has been done in the case of LPG cylinders for plugging leakages and bringing down the subsidy burden. The Niti Aayog and industry experts have been advocating the scheme to lower subsidy, prevent its misuse and strengthening power distribution utilities. The committee comprises principal energy secretaries of states like Madhya Pradesh, Gujarat, Uttar Pradesh and energy secretaries of Tamil Nadu and Bihar, besides top officials of the Central Electricity Regulatory Commission and the Central Electricity Authority. Under the direct benefit transfer scheme for cooking fuel, LPG cylinders are sold at market rates after which bank accounts of the consumers eligible for subsidy are credited with the amount of subsidy. “Currently, subsidy is calculated as the difference between energy sold and amount collected. If the direct benefit transfer scheme is implemented, only the actual consumption, and not power pilferage and losses, will be subsidised,“ a senior official part of the committee told ET on the condition of anonymity. The committee is in the process of finalising its recommendations which will be sent to the power ministry for action, he said.State governments give subsidies to power distribution utilities for selling electricity to consumers at less than the procurement cost or for free in some cases. However, subsidy payments by states are not made regularly , adding to the financial woes of distribution utilities. “In fair business practice, state electricity regulators declare subsidy amount at the beginning of every financial year and the state governments are obligated to make quarterly payments to electricity distribution companies. But when the subsidy payment is delayed, financial conditions of discoms deteriorate,“ the official said. Chris Carpenter Womens Jersey
India traded 251,000 Renewable Energy Certificates in December, says IEX
A total of 2.51 lakh renewable energy certificates (RECs) were traded in December, power exchange IEX said. “A total of 2.51 lakh RECs were traded in the REC trading session held on 28th December, 2016 at IEX,” it said in a statement. Power distribution companies as well as open access and captive consumers are under obligation to buy RECs from renewable energy producers under RPO mandated by central/state regulatory commissions. RECs are aimed at providing an easier avenue for various entities, including power distribution companies, to meet their green energy obligations. Two power exchanges — Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), approved by the Central Electricity Regulatory Commission — hold auction of RECs on the last Wednesday of every month. “Since the beginning of this fiscal (April-December), IEX has traded 17.85 lakh RECs,” the statement said. “On 28th December, 2016 a total of 2.51 lakh RECs were traded an increase of over 43 per cent over 17.50 lakh RECs traded in the previous month of the same fiscal,” the statement added. The purchase this month has been on account of few utilities such as BSES Rajdhani, DVC and BEST Undertaking. Further, obligated captive power and open access consumers also contributed in this trading session, it said. A total of 1,291 participants traded at IEX with 802 participants in non-solar segment and 489 participants in the solar segment. Overall, a total of 3,386 participants are registered in the REC segment at IEX. Of this, 851 are Eligible Entities (RE Generators) 2,516 are Obligated Entities (Discoms, Open Access Consumers and Captive Generators) and 19 are registered as voluntary entities. Zach Parise Authentic Jersey