WCA March 2016

India Insight

Addressing the power deficit The energy-deficient state of Uttar Pradesh has drafted a solar mini-grid policy to provide electricity to rural areas, while Uttar Pradesh Electricity Regulatory Commission (UPERC) has initiated discussions on the electrification of remote villages through the mini-grids. Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) director Dr Kajal said: “The mini-grid policy is ready. The energy department will soon send it to the state cabinet for approval.” Apart from public sector firms, private companies will be encouraged to establish mini-grid projects ranging from 10kW to 500kW. A consumer will be able to draw power from these independent grids when the main grid fails to meet demand. It will also help millions of households yet to be linked with the conventional power grid. In a recent meeting, chaired by UPERC chief Desh Deepak Verma, it was decided to grant special status to mini-grids as they would facilitate rural consumers who do not have access to a reliable electricity supply. Solar grids will also help in reducing UP’s carbon footprint. Issues such as tariff regulation, minimum supply commitment, and compatibility with distribution companies and safeguarding of investment will be resolved when the state government approves the policy draft. UP has a power supply deficit of around 2,000MW. The state government has set a target of 500MW of solar power projects in the next two years, aided by major private investment. “We have signed many power purchase agreements in this regard,” Dr Kajal confirmed. Government of Uttar Pradesh – India Website : www.up.gov.in Customs duty call The Steel Wire Manufacturers Association of India (SWMAI) is calling for a heavy reduction in customs duty on wire rods. The newly elected president of the association, Vijay K Vedmutha, believes that a zero customs duty would help the industry procure raw materials at globally competitive prices, and cater to both domestic and international demand for steel wires. Mr Vedmutha added that industrial growth in developing economies is a major growth driver for the steel wire industry. “There is a plethora of growth opportunities for [the] Indian steel wire market. Rapidly expanding construction, infrastructure, telecom and manufacturing industries bode

well…and low oil prices would also act as a factor to generate overall positive net impact on growth,” Mr Vedmutha said in a statement issued by the SWMAI. He maintains that the proposed Steel and Steel Products (Quality Control) Order, 2015, will lead to rising costs of steel inputs which, in turn, will make the products of micro, small and medium enterprises uncompetitive. Steel Wire Manufacturers Association of India – India

Website : www.swmai.org Brake bugs

Mumbai’s suburban local trains have been hit by a red ant infestation. The insects recently attacked the cables and insulators of a train’s electro-pneumatic brakes, forcing the driver to use the secondary brake system. “There is no need to panic as the braking system is foolproof. There are three other brakes to ensure that there are no problems in the running of the train. “Ants are difficult to control, but regular pest control is carried out,” assured Narendra Patil, chief PRO of Central Railway. Every 18 months, all brake cables undergo pest control during regular overhauling. Apart from this the authorities try to ensure that there are no anthills inside the car shed, where trains are parked in large numbers. Central Railway – India Website : www.cr.indianrailways.gov.in Solar bids hit new low After several delays, the Indian National Thermal Power Corporation (NTPC) is calling for tenders under the 3,000MW Phase II Batch 2 JNNSM programme. The first auction under this batch closed with SunEdison placing the winning bid of Rs4.63/kWh for a 500MW solar project in Andhra Pradesh. This bid is the lowest made in India to date. “Bids are falling faster than component costs and there is a concern that this is a race to the bottom for solar bids in India,” said Raj Prabhu, CEO and co-founder of Mercom Capital Group. “The pent-up demand due to auction delays is leading to aggressive bidding in an effort to capture market share with an assumption that component costs will continue to fall, no matter what. This is a risky strategy considering the global market trends over the next 12 months.” There are around 5,500MW of projects due to be auctioned within the next few months, from the NTPC and the Solar Energy Corporation of India (SECI). Indian National Thermal Power Corporation – India Website : www.ntpc.co.in

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Wire & Cable ASIA – March/April 2016