Two-day State Power Ministers’ Conference concludes in New Delhi

One of the most successful, productive and outcome oriented State Power Ministers conference till date: Shri Piyush Goyal

Next State Power Ministers Conference to be held in Rajgir, Bihar

“Ït has been one of the most successful, productive and outcome oriented State Power Ministers conference till date”, said Shri Piyush Goyal, Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, while addressing the media on the concluding day of the two-day State Power Ministers’ Conference here today.

Informing about the outcomes of the conference, Shri Goyal stated that there was a wide consensus amongst all the Chief Ministers of States/UTs present to achieve the target of 24x7 affordable and quality power for all citizens of the country by December 2018, thereby reinforcing the Vadodara resolution.

Talking about conference as a forum for open minded discussion on issues of the respective sectors, Shri Goyal informed that certain new issues were also discussed during the conference. He informed that the issues included mandatory recycling of waste water from power plants for usage for drinking, better management of Dry Ash by encouraging setting up of cement plants in proximity of power plants for its consumption etc. The Minister said that all the states have collectively decided to work on deriving innovative solutions to the problems of the power and mining sectors.

Talking about discussions on power sector reforms, Shri Goyal informed that the Ministers agreed upon bringing about transparency in the Merit Order Dispatch and said that a mobile app would soon be launched in this regard by the Central Government. The session on Cyber Security included Government persuading the State Governments to encourage payment of electricity bills through the digital mode in order to increase transparency and better compliance.

While informing the media about the deliberations on environmental issues and their solutions through renewable energy, Shri Goyal said that the states have decided to encourage Renewable Power via grid integration, promotion of green energy corridors, energy efficient solar pumps for irrigation etc. The Minister also emphasised on ensuring seamless power to the industries so as to attract foreign investment in the sector. Further, the participants also discussed rationalisation of power tariff structure through better fuel linkages, transparent price discovery and promised to come up with a plan to benefit consumers soon.

Shri Goyal also announced that the next State Power Ministers Conference would be held in Rajgir, Bihar. Other dignitaries present on the occasion were Shri P.K. Pujari, Secretary Power, Shri Arun Kumar, Secretary Mines, Shri Rajeev Kapoor, Secretary MNRE along with other senior officers of State Governments and CPSUs.

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RM/VM/PS

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The Memorandum of Agreements (MoAs) for purchase of 1000 MW wind power under MNRE’s first wind auction Scheme were signed here today between PTC India, the trading company, and Discoms of Uttar Pradesh, Bihar, Jharkhand, Delhi, Odisha and Assam. The signing ceremony took place during the two days Conference of Power, New & Renewable Energy & Mines Ministers of States and UTs.

As per MoAs the Discoms of UP to buy 449.9 MW, Bihar- 200 MW, Jharkhand – 200 MW, Delhi – 100 MW, Assam – 50 MW and Odisha – 50MW of wind power for meeting their non-solar RPO.

The Letter of Award (LoA) to the successful wind power developers under the first wind auction scheme have been issued by Solar Energy Corporation of India (SECI) on 5 April 2017 and the projects are to be commissioned within 18 months from the date of issue of LoA.

This was the first time such auction process was done in the country for wind power through e-reverse auction and its success can be seen from the fact that a record low tariffs of Rs. 3.46 per kWh was obtained.

With the success of first wind auction scheme, MNRE today launched Scheme for another round of wind auction for 1000 MW capacity wind power projects.

The Scheme is open for all obligated entities purchasing wind power for compliance of their non-solar RPO. The differentiation between windy and non-windy States has been done away with. The SECI will sign Power Purchase Agreements with selected wind developers and back-to-back Power Sale Agreements with buying utilities.

Further, provision of 10% additional capacity for Central Public Sector Entities (CPSEs) has been kept under the Scheme without participation in the bidding, however, they have to supply wind power at lowest discovered tariff through bidding process.

BACKGROUND

Ministry sanctioned a Scheme for setting up of 1000 MW ISTS connected Wind Power Project on 14 June 2016 with the objective to encourage competitiveness through scaling up of project sizes and introduction of efficient and transparent e-bidding and e-auctioning processes.

RM/VM/PS

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HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, honoured 10 winners from 8 countries at the Mohammed bin Rashid Al Maktoum Global Award, which is worth USD 1 million. Also present was HH Mansoor bin Mohammed bin Rashid Al Maktoum. The Award was launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to encourage research centres, individuals and innovators from around the world to find innovative and sustainable solutions for clean-water scarcity around the world, using solar power. The award is overseen by the UAE Water Aid Foundation (Suqia), under the umbrella of the Mohammed bin Rashid Al Maktoum Global Initiatives. It has three main categories: Innovative Projects Award, Innovative Research and Development Award, and the Innovative Youth Award.

 

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170428005143/en/

 

Category Innovative Research & Development Award - National Institutions 3rd Place Petroleum Institu ...

Category Innovative Research & Development Award - National Institutions 3rd Place Petroleum Institute in Khalifa University, UAE (Photo: ME NewsWire)

The first place in the Innovative Research and Development Award – National Institutions category, was jointly-shared by Khalifa University for a dual-disinfection-modified biosand filter, coupled with a solar pasteuriser system, and Masdar Institute at Khalifa University for a solar desalination process using a perforated black fabric under a solar collector.

 

The first place in the Innovative Research and Development Award - International Institutions category, went to the Netherlands Organization for Applied Scientific Research (TNO), in cooperation with the Qatar General Electricity and Water Corporation (KAHRAMAA), for a solar-powered desalination technology based on TNO’s high-efficiency membrane distillation concept.

 

The first place in the Innovative Projects Award went to the Elemental Water Makers from the Netherlands, for a solar-powered Reverse Osmosis (RO) plant to produce drinking water.

 

Dr Marta Vivar from Spain won the Innovative Youth Award for a hybrid solar photovoltaic-photochemical system for water disinfection and electricity generation.

 

Al Tayer noted that hundreds of millions of children won’t have access to clean water in the future, and that girls now spend 200 million hours a day collecting water, which affects their education, according to UNICEF.

 

*Source: ME NewsWire

 

 

 

 
MULTIMEDIA AVAILABLE :
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The Vice President of India, Shri M. Hamid Ansari has said that Polish business looks for markets and business opportunities beyond Europe, India is a natural destination. He was addressing the Business Summit at the Ministry of Economic Development, Poland, today. The Prime Minister of Poland, Ms. Beata Szydło, the Deputy Prime Minister and Minister of Development and Finance, Mr. Jerzy Kwiecinski, the Minister of State for Micro, Small & Medium Enterprises, Shri Giriraj Singh and other dignitaries were present on the occasion.

 

The Vice President said that India’s 29 states now offer a climate of both cooperative and competitive federalism, with quantum improvements in investment conditions in different Indian states. The new policy initiatives taken by the Union government, such as Make in India, Skill India and Digital India schemes, present new business opportunities for Polish companies in areas such as defence, food processing, coal and mining, healthcare, pharmaceuticals, bio-technology and renewable energy.

 

Following is the text of Vice President's address:

 

"I am delighted to have this opportunity to address this business summit, which is aimed at furthering economic cooperation between India and Poland. India sees Poland as an important emerging economic partner, not just in Europe but in the world. Poland’s transformation over the last two decades has been remarkable; the growth of its economy impressive. This change is visible all around us.

 

Today, Poland is India’s largest economic partner in Central Europe with bilateral trade that has grown to US $ 2.8 billion in 2016. I understand that this marked a growth of nearly 25% over the level of trade in the previous year. Investments are growing rapidly in both directions. This strong economic interaction between India and Poland is an indicator of the growing economic strengths of our countries. As Polish business looks for markets and business opportunities beyond Europe, India is a natural destination.

 

With a growth rate of over 7%, despite the general global downturn, India today is not just the fastest growing major economy in the world, it is also one of the most open and welcoming destination for investments and technologies. A vibrant democracy of 1.3 billion people with a young, skilled workforce, India offers an aspirational middle class market of over 400 million people. The constant reforms in fiscal and investment facilitation policies are transforming the economic scenario in India. A landmark Goods and Services Tax reform, for instance, is aimed at making India a unified market, with all 29 states offering an identical and predictable tax environment. Increasing transparency and a liberalised investment climate now allows the smooth flow of FDI in sectors like defence, railways, civil aviation and pharmaceuticals. We have seen a strong global confidence in the India story, with a surge in Foreign Direct Investments, which reached over US $ 50 billion in 2016.

 

India’s 29 states now offer a climate of both cooperative and competitive federalism, with quantum improvements in investment conditions in different Indian states. Some Polish regions are already availing of the business opportunities that Indian states offer. The new policy initiatives taken by the Union government, such as Make in India, Skill India and Digital India schemes,  present new business opportunities for Polish companies in areas such as defence, food processing, coal and mining, healthcare, pharmaceuticals, bio-technology and renewable energy.

 

Cooperation in the education sector can become an important area of cooperation for us. India’s young are eager to seek educational opportunities that Poland offers. We already have some 2500 Indian students in Poland. These students add to the resources of Poland’s distinguished universities and will act as bridgeheads for our future engagements.

 

I understand that the delegation led by the Deputy Prime Minister, His Excellency Prof. Piotr Glinski that visited India in January for the Vibrant Gujarat Summit, had useful interactions with our political leadership and our business community. We have identified possible opportunities in sectors like food processing, mining, aerospace and defence. I am sure that the genius of our businessmen, on both sides, with their sense of adventure and innovation, will result in a many more mutually beneficial ventures. I wish this business summit all success.

 

Thank You."

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KSD/BK

 

 

Read more: India is a natural destination for markets and...

Rs 50,000 Crore to be invested for revival of closed fertilizer plants; Setting up of gas pipeline network to connect Eastern India to National Gas Grid

 

Investments in Eastern India to give fillip to Second Green Revolution in the Region

 

Talcher Fertilizer Plant to be revived with an investment of Rs 8,000 Cr

 

Rs 20,000 Cr investment for revival of Fertilizer Plants in Gorakhpur; Barauni & Sindri

 

Rs 13,000 Cr investment for 2650 KM Pradhan Mantri Urja Ganga Pipeline Project

 

LNG terminal at Dhamra with an investment of Rs 6,000 Cr

 

Minister of State (I/C) for Petroleum and Natural Gas, Shri Dharmendra Pradhan attended a joint meeting in the Chairmanship of Minister for Chemicals & Fertilizers and Parliamentary Affairs, Shri Ananthkumar on revival plans of closed fertilizers plants under Ministry of Chemicals and Fertilizers today. The meeting was also attended by Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Shri Piyush Goyal and Shri, MoS for Road Transport & Highways, Shipping, Chemical & Fertilizer, Shri Mansukh Mandaviya.

 

Addressing the media during a press conference, Shri Dharmendra Pradhan emphasized on Hon’ble Prime Minister’s vision for fast paced development of Eastern India which is a prerequisite for the overall development of India. He said that for fast pace development in Eastern India, massive infrastructure investment in an agri focused Eastern India will give a fillip to the Second Green Revolution in the region. Shri Pradhan said that massive investment to the tune of Rs 50,000 Crore is being undertaken for revival of closed fertilizer plants and setting up of gas pipeline network to connect Eastern India to the National Gas Grid.

 

Petroleum Minister informed that the key components of this infrastructure investment will be revival of Fertilizer Plants at Gorakhpur (Uttar Pradesh), Barauni (Bihar) and Sindri (Jharkhand), and Talcher (Odisha); Pradhan Mantri Urja Ganga pipeline of 2650 Km and setting up of LNG terminal at Dhamra (Odisha).

 

Shri Pradhan elaborated that Rs 20,000 Cr would be invested to revive Fertilizer Plants at Gorakhpur (Uttar Pradesh), Barauni (Bihar) and Sindri (Jharkhand).

 

Petroleum Minister said that the Talcher Fertilizer Plant in Odisha is being revived with an investment of Rs 8000 Cr by a consortium comprising FCI, GAIL, Rashtriya Chemical and Fertilizer Limited and Coal India Limited. This would be the first time a Fertilizer plant in India will be operated based on Coal Gasification technology.  

 

Production from these four major Fertilizer plants will ensure enhanced domestic fertilizer production and availability which will give an impetus to the vital agricultural sector there by aiding the Second Green Revolution. The ground work for these Plants is scheduled to commence in FY 2017-18.

 

Shri Pradhan informed that 2,650 km Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) Project, popularly known as ‘Pradhan Mantri Urja Ganga’, at a total investment of about Rs. 13,000 Crore is being implemented by GAIL (India) Ltd. The Pipeline passes through Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha. Construction work of this Pipeline Project in the state of Uttar Pradesh and Bihar has started.

 

            An LNG terminal is also being set up at Dhamra in Odisha with an investment of Rs 6,000 Crore, Shri Pradhan added.  

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RG

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“Remaining 4141 Villages to be Electrified by 2018”: Shri Piyush Goyal

“Power is the Fulcrum around which an Ecosystem can be created to give better quality of life to every citizen of India”: Shri Piyush Goyal

Minister Inaugurates State Power Ministers’ Conference in New Delhi

“Power is the fulcrum around which an ecosystem can be created to give better quality of life to every citizen of India”. While delivering the inaugural address at the two-day State Power Ministers’ Conference here today, Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Shri Piyush Goyal said that the objective of the conference is to review the work done in the sectors of power, coal, renewable energy and mining by State Governments/ Union Territories in last six months. Further, the conference intends to forge new policies for achieving the goal of providing 24x7 quality and affordable power for all in the stipulated time, upholding Prime Minister of India, Shri Narendra Modi’s vision of ‘New India’, Shri Goyal added.

Addressing the august gathering, the Minister stressed that this conference is an ‘Outcome focussed gathering’ while reiterating the resolution taken in last State Power Ministers’ conference in Vadodara to provide electricity to every household in the country by December 2018. He also noted that the challenges in achieving 24x7 Power for all are not over yet and in the next 3-4 months, a final push is needed to electrify remaining 4141 un-electrified villages in the country.

Talking about the transparency and accountability that a number of mobile apps and web portals have brought in the energy sector in India, Shri Goyal said that transparency has been a hallmark of this government. The Minister encouraged the esteemed gathering to put forward a collective, collaborative and cooperative approach of State and Central Government which will help in creating a corruption free power sector in the country.

The conference was attended by Ministers and senior government officers from 23 State/UT governments. Also present on the occasion were Shri P.K. Pujari, Secretary, Power, Shri Arun Kumar, Secretary, Mines, Shri Rajeev Kapoor, Secretary, New & renewable Energy along with senior officials of the Ministries and the CPSUs under them.

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RM/VM/PS

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India Ratings and Research (Ind-Ra) has assigned Mundra Solar PV Limited (MSPVL) a Long-Term Issuer Rating of 'IND BBB'.

The Outlook is Stable. A full list of rating actions is at the end of this commentary.

MSPVL is setting up a 1.2GW solar photovoltaic (PV) cell and module manufacturing capacity at the Adani Ports & Special Economic Zone, at a total cost of INR19.95bn. The project is likely to achieve a commercial operations date in April 2017.

KEY RATING DRIVERS

Strong Sponsors: MSPVL is promoted by Adani Green Energy Ltd, which is held by Adani Enterprises Ltd and Adani Properties Private Ltd in the ratio of 51:49. The group has a decade-long experience in the successful execution of large size and complex projects. Adani Enterprises Ltd has also given corporate guarantees against MSPVL’s rupee term loan till the achievement of COD or the creation of a debt service reserve account, whichever is later.

Limited Off-stake Risk: Off-take risk is manageable given the government of India’s thrust on the development of solar power projects in the country. It has set a target to reach 100GW of installed solar power capacity in India by 2022 (rooftop: 40GW; solar park: 20GW; grid-connected: 40GW). Adani group has been actively bidding for solar projects under different government schemes. The group has around 2GW of solar power capacity (two-thirds is under development). A significant portion of the proposed capacity is likely to be supplied to group projects in the solar power space. MSPVL has obtained an order of 350MW from Adani Green Energy Ltd. Ind-Ra also expects counterparty risk to be manageable as demand for MSPVL’s products would emanate from solar power projects particularly those projects where funds are arranged through debt and equity.

Strong DSCR: Ind-Ra expects a base case average debt service coverage ratio (DSCR) of 1.40x (minimum DSCR: 1.30x) over the loan tenor. However, the DSCR working includes a capital subsidy of INR3.31bn (20% of plant & machinery costs), to be received in FY18 (nine months from COD), and a production subsidy of 10% on cell manufacturing. In case the subsidies are not approved, the base case average DSCR is likely to be around 1.08x. The DSCR calculation does not include the three-month debt service reserve account proposed under the sanctioned bank facility.

Moderate Technology Risk: The three prevalent PV module types – thin film, mono-crystalline and multi-crystalline - have been in use since 1980. The evaluation has been in terms of efficiency, which comes from improvements in silicon purity, improvements in the process, a reduction in wafer thickness, use of multi bars etc. Most of the innovation solutions in the entire value chain are provided at the cell production level. MSPVL has set up a strong managerial and operational team which has relevant experience in the solar industry. It has also entered into agreements with world’s leading organisations in solar technology for technology transfer and process consultancy. MSPVL will also have a dedicated team for research and development of its product.

Moderate Commodity Price Risk: Prices of solar PV modules have corrected significantly over FY12-FY16. This correction mirrors the correction in solar wafer/silicon prices which is the raw material for manufacturing solar cells. The correction in solar wafer prices is mainly on account of a significant increase in silicon production. Also, the consumption of wafer per watt of cell has reduced significantly over the last couple of years which also helped in reduction of module prices. Despite the correction in the module prices, global PV manufacturing players have generated sufficient delta (realisation/Wp less cost of goods sold/Wp). Thus, the margins in the solar PV manufacturing space have been more sensitive to technology efficiency than the price, which has moved in tandem of raw material prices.

Commodity price risk is also limited as the inventory days are likely to be around 30 (base case 45 days). However, if the company enters into long-term contracts for the supply of wafers at fixed costs, this may make MSPVL susceptible to higher-than envisaged commodity price risk.

Highly Competitive Industry: The solar module industry has many large global players, with majority of the installed capacity based in China and Taiwan. In India, solar PV cell and module manufacturers have not kept pace with global players as they find it difficult to match their performance efficiency and cost efficiency with them. Indian players are much smaller in size, and thus do not have economies of scale. Also, many of these players have installed capacities during 2009-2010 when the capex cycle was at its peak, which led to significantly high capital costs for them.

Adani is setting up a large capacity which is comparable with its global peers’. It has an added advantage of having latest technology and installing it at the bottom of the capex cycle. The large scale of operations would provide it a competitive advantage for the procurement of raw materials. Also, the government of India is trying to support domestic manufacturers through policy measures such as the domestic content requirement for some of the projects bidding under Jawaharlal Nehru National Solar Mission.

No Operational Track Record: The ratings are also constrained by the lack of an operating track record of the project.

RATING SENSITIVITIES

Positive: Successful commissioning of the project within the envisaged time and cost and stabilisation of operations with DSCR above 1.4x could result in a positive rating action.

Negative: Any cost overrun or lower-than-envisaged capital and production subsidy could result in a negative rating action.

COMPANY PROFILE

MSPVL is setting up a 1.2GW cell and module manufacturing capacity - 900MW multi-crystalline, 200MW mono-crystalline and 100MW bifacial-mono module. The plant is located at the Adani Ports & Special Economic Zone, and is being developed by Mundra Solar Techno Park Pvt Ltd which is a subsidiary of Adani Ports and Special Economic Zone Limited (‘IND AA+’/Stable). MSPVL is also likely to benefit from the strategic location of plant from the import/ export perspective and the electronic manufacturing cluster and the eco-system being developed around the location.

MSPVL ratings:
- Long Term Issuer Rating: assigned ‘IND BBB’/Stable
- INR13,970m term loan facility: assigned ‘IND BBB’/Stable
- *Proposed INR1,210m fund based limits: assigned ‘Provisional IND BBB’/Stable and ‘Provisional IND A3+’

*The above ratings are provisional and shall be confirmed upon the sanction and execution of loan documents for the above facilities by MSPVL to the satisfaction of Ind-Ra.|

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