Enfinity Philippines Renewable Resources Inc., a subsidiary of Enfinity N.V. a leading solar energy developer in Philippines has appointed India’s leading Solar EPC Sterling and Wilson to set up their 28.6 MW solar photovoltaic power plant in Sanroque, Digos, Davao, Philippines. In a major boost to the ‘Make in India’ campaign SWL has gone one step further by winning this project in the global solar market against big competition and proving that an Indian Solar EPC can compete globally and proudly say ‘Installed by India’. Sterling and Wilson, which began its operations in 1927 as Wilson Electric Works, is a group company of the 150 year old $2.5 billion business conglomerate - Shapoorji Pallonji Group, and is one of India’s leading MEP services provider. India’s growing reputation as a technically competent, quality conscious, and cost effective solutions provider has been further enhanced as Sterling and Wilson was selected ahead of well entrenched international solar EPC’s to partner Enfinity in setting up its solar power plant. This project will be constructed under the Department of Energy (DOE) Philippines Solar Power Procurement Program under the Feed-in-Tariff mechanism. The solar power plant capacity is expected to be around 28.6 MW (DC) / 24.75 (AC). The output power will be evacuated through a 69 kV substation and overhead transmission line of 8 kms to the nearest NGCP substation. Sterling and Wilson will use Hanwha’s Solar one modules of 310 Wp power rating with central inverter solution for this project. Speaking on the solar power plant to be set up for Enfinity Philippines Renewable Resources Inc. Bikesh Ogra, President, Sterling and Wilson, Electrical & Solar Business said, “The fact that we are one of the only Indian Solar EPC to have already set up solar projects in the International market gives us immense motivation to work harder. With human assets of nearly 3500 technically proficient people working from India and abroad, we possess an inherent strength to execute international Solar projects in an efficient and cost effective manner. We are confident that our superior engineering capabilities, experience, and expertise in setting up solar power plants internationally will enable us to deliver Enfinity Philippines Renewable Resources Inc. with a solar solution that will exceed predicted plant performance levels.” No terrains are too tough for Sterling & Wilson when it comes to setting up efficient solar power plants. Technologically advanced services and comprehensive know how of thin film, mono crystalline, and polycrystalline modules; along with different foundation of ramming and rafting type leads the organization to provide best solutions to its customers internationally. SWL will brave incessant rainfall, cyclones, land divided by creeks, and thunderstorms to deliver the project within six months from the beginning of July 2015. Based on the site recce report and engineering interactions with Enfinity Technics Global, Sterling and Wilson will install pipe culverts for road crossing at 4 locations where the project intersects with a creek. Sterling and Wilson has also suggested a piling foundation for structures as the land has significant presence of boulders. The structural design will take into consideration high wind speeds of up to 200 km/hr and cyclones that are common phenomenon in this region. As the creek divides the plant, the array layout will be prepared as per site contours without affecting the generation as well natural water flow. The drainage system will be provided for discharge of rainwater into the existing natural stream.
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India's road sector may be on the path to revival with lots of initiatives being announced to aid the languishing sector, says India Ratings and Research (Ind-Ra). Rescheduling of premiums and the 5:25 refinancing schemes have provided some respite to SPVs with a hope of restoring their financial health. The introduction of the hybrid annuity model and infrastructure debt funds further highlights the government’s focus on addressing the rising need for devising an efficient and flexible financing path.The budgetary allocation to the road sector for FY16 has also been increased by a staggering 125%; however, channelising these funds in the right direction at the right time coupled with the timely implementation of reforms will be key to the revival of the sector.India Ratings and Research (Ind-Ra) believes that policy initiatives in the recent past will act as stepping stones to the revival of the highway sector. Rescheduling of premiums and the 5:25 refinancing schemes have provided some respite to SPVs with a forlorn hope of restoring their financial health. The introduction of the hybrid annuity model and infrastructure debt funds further highlights the government’s focus on addressing the rising need for devising an efficient and flexible financing path.The budgetary allocation to the road sector for FY16 has also been increased by a staggering 125%; however, channelising these funds in the right direction at the right time coupled with the timely implementation of reforms will be key to the revival of the sector.Improved SPV-level performance: Ind-Ra's analysis shows that road projects executed on public private partnership (PPP) model generate an average EBITDA margin of 75-80 per cent, but have a high leverage (9x in some cases) due to the compressed amortisation schedule. Cumulatively in FY15, all SPVs of certain sponsors witnessed a 25 per cent yoy spike in toll revenue. While the last two years witnessed declining traffic mainly due to the slow economic recovery, toll hikes driven by high inflation have been a saving grace for most toll road projects. In IndRa's portfolio, annual toll rate growth of 6-8 per cent offset the 2-3 per cent fall in traffic, netting annual revenue growth between 4-5 per cent. Novel Structures to Aid Financing: Recognising the need for increased and improved financing, the hybrid model was introduced by the government as a hybrid between the engineering, procurement and construction (EPC) and the build, operate and transfer (BOT) models. Acknowledging the need for incremental sources of financing, Infrastructure debt funds (IDFs) were set up to refinance existing bank loans and take over the existing debt. While the former is likely to ease funding risk, the latter mobilises long-term funds with insurance and pension funds to create a secondary debt market for infrastructure assets. Budgetary Thrust - A Positive: Recognising the major slippages in the infra space during the last decade, the budgetary allocation for FY16 was increased by a whopping 48% to Rs 429 billion in the Union Budget. Channelising this in the right manner and on a timely basis would be crucial for the sector to witness an uptick in the pick-up of orders. Rs 2.2 trillion Capital Needed: An outlay of around Rs 2.21 trillion (at current costs) would be required for the completion of pending projects planned under the National Highway Development Project (NHDP). For a debt/equity blend of 70/30, the estimated investmentwould necessitate a bank borrowing of around Rs 1.55 trillion and an equity commitment of Rs 0.66 trillion. This could however change depending on which model (EPC or PPP) is adopted to award contracts. In essence, the focus on mobilising such quantum of funds in a timely manner will be crucial. Need for Improved Execution: It could take a decade to complete the balance road projects targeted under NHDP if road projects are executed at the historical average rate, says Ind-Ra. The pace of project execution by NHAI was sluggish at 5.6km/day on an average during the past five years. Daily road construction dropped to 4.1km in FY15 from an all-time high of 7.4km in FY13 (FY14: 5.21km).
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State-run power equipment maker Bharat Heavy Electricals Ltd (BHEL) on Friday (7 August) reported a 82.48% plunge in standalone net profit at Rs 33.89 crore for the quarter ended June 30, due to lower sales.The PSU firm had reported a net profit of Rs 193.50 crore in the corresponding quarter of the previous fiscal, BHEL said in a regulatory filing.Net sales during the quarter were at Rs 4,280.76 crore, registering a decline of 15.5%.The company's net sales in the year-ago period stood at Rs 5,067.59 crore.BHEL's revenue from the power sector declined to Rs 3,357.13 crore during the quarter from Rs 4,144.16 crore in the year-ago period."The company has an outstanding order book position of about Rs 1,16,200 crore at the end of Quarter 1/2015-16," the company said.BHEL had signed three agreements with Kazakh companies during Prime Minister Narendra Modi's recent visit to the country.The first pact was signed with JSC Samruk Energy, the national power utility of Kazakhstan which has a major share in Kazakh's power sector, BHEL said in a statement last month.Company's shares were trading at Rs 258.00 apiece on BSE in late afternoon trade, down 8.58%.(PTI)
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Backing the controversy-hit Indian mining giant Adani's coal mine venture in Australia, Prime Minister Tony Abbott has said the 16.5 billion dollar project was "vitally important" and "sabotaging" of such developmental plans using legal means was "dangerous" for the country. "If the courts can be turned into a means of sabotaging projects which are striving to meet the highest environmental standards, then we have a real problem as a nation," he said. "We can't become a nation of naysayers; we have to remain a nation that gives people a fair go if they play by the rules," Abbott said. His remarks came after a court this week revoked the environmental approval for the Adani project, which aims to build one of the world's largest coal mine in Queensland, opposed by green groups and local residents. Commonwealth Bank of Australia, the country's largest lender, has ended its role as financial adviser to Adani Mining's multibillion dollar Carmichael Mine, in a further blow to the controversial project. Environmentalists hailed the CBA's decision and said it cast more doubt on the project's future. In his strongest defence yet of coal production in Australia, Abbott stated that the overturning of the proposed Queensland Carmichael mega coal mine project means courts can be used to "sabotage" worthy projects. "As a country we must, in principle, favour projects like this," he told The Australian newspaper. "This is a vitally important project for the economic development of Queensland and it's absolutely critical for the human welfare literally of tens of millions of people in India," the Prime Minister said. Abbott said he is "frustrated" at the court's decision and asserted that the projects like Adani mine were too vital to be hindered by red tape. "If we get to the stage where the rules are such that projects like this can be endlessly frustrated, that's dangerous for our country and it's tragic for the wider world," Abbott said. "So we've got to get these projects right...but once they are fully complying with high environmental standards, let them go ahead. While it's absolutely true that we want the highest environmental standards to apply to projects in Australia, and while it's absolutely true that people have a right to go to court, this is a US$21 billion investment, it will create 10,000 jobs in Queensland and elsewhere in our country," he said. Abbott also said the mine would have a positive impact in India, where Adani is headquartered. "Let them go ahead for the workers of Australia and for the people of countries like India who right at the moment have no electricity. Imagine what it's like to live in the modern world with no electricity," the Prime Minister said. "Australian resources can give them electricity and the interesting thing about Australian resources is that invariably they're much better for the environment than the alternative," he added. (Agencies)
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Commonwealth Bank of Australia, the country's largest lender, has ended its role as financial adviser to Indian conglomerate Adani Mining's multibillion dollar Carmichael Mine, a further blow to the controversial project. The exit of CBA comes hard on the heels of a court decision on Wednesday revoking the Australian government's environmental approval for the coal mine, which at an estimated cost of up to $16 billion, is one of the world's biggest under construction. "We confirm that our advisory role has concluded. Due to client confidentiality we are unable to comment further," a CBA spokesman said. The development was first reported by Fairfax Media. Environmentalists hailed the CBA's decision and said it cast more doubt on the project's future. "As an adviser, Commonwealth Bank was in line to be a leading lender to Adani's Carmichael mega coal mine," said Julien Vincent, Executive Director at environmental campaigning group Market Forces. "Adani has not just lost hundreds of millions of dollars in debt finance that CBA could have brought, but the credibility that a major Australian institution's support brought to the project. That's a bigger, more embarrassing blow and could cost this project billions of dollars." "Eleven banks around the world have ruled out involvement in the Galilee Basin coal mines exporting through the Reef. With the US, China, Europe and India increasingly embracing renewables and the coal price in structural decline, pouring money into this dying industry doesn't make sense," said Senator Larissa Waters, Australian Greens deputy leader and climate spokesperson. Adani, which had suspended work in a number of areas on the mine because of delays in obtaining government approvals, said it had ended the bank's mandate over the holdups. "In the event the (government) approvals framework is not further undermined by activists seeking to exploit legal loopholes - thus enabling the project and the thousands of jobs and billions of dollars of investment it would bring to be delivered - Adani would happily work with the bank in future." (Agencies)
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Modi’s Swachh Bharat vision remains a far-fetched dream until critical issues in solid waste management are tackledBy Monica Behura & Sonal KhetarpalIndia’s sprawling cities generate over 100 million tonnes of solid waste a year. Yet, estimates are that an alarming 40 per cent of municipal waste remains outright uncollected. In most parts of the country, there is nothing by way of processing facilities, leaving municipalities to resort to the haphazard dumping of waste at landfills. Missing from this festering picture is the proper segregation of waste, storage facilities and recycling. The result: rising pollution and contamination as critical problems in solid waste management (SWM) cry out for a solution.Realising the ongoing impact of waste on society and the environment in India, the government launched its Swachh Bharat mission last year. Its objective is to improve SWM practices leveraging modern technologies. The mission targets the achievement by 2018-19 of scientific SWM in 4,041 cities and towns impacting 30.6 crore people.Capacity GapsWhile Swachh Bharat is an ambitious plan, its implementation is proving a challenge starting from the Centre and state policy level down to the municipalities. “There is a capacity gap at the municipal level,” says Ajay Pandey, partner at Thinkthrough Consulting, a consultancy firm on social development issues including SWM. “Poorly-managed urban waste is not just an environmental menace but an opportunity cost. Urban planners and the government must look at scaling up the waste to energy models.”Growing urbanisation and industrialisation are leading to acute problems related to solid waste. In Delhi, 8,360 million tonnes (MT) of waste is emitted daily. The Municipal Corporation of Delhi has projects in the pipeline to set up a plant for processing 2,000 MT of waste using methane hybrid gas technology, in Okhla, according to an official. Similarly, Bangalore emits 4,000 MT of waste everyday, but only 1,500 tonnes are recycled in waste management plants, while 2,500 MT still needs to be processed. Clearly, city municipalities are incapable of disposing and processing all urban waste.Bruhat Bangalore Mahanagara Palike administrator P.M. Vijaybhaskar says, “The landfills are overflowing, creating health hazards in urban localities, so we have plans to invest Rs 400 crore on six waste processing units. We will collaborate with Hoteliers Association for a PPP project to recycle 100 tonnes of wasteinto biogas.”Know-how NeededBarring a few progressive municipal corporations in India, all other local bodies lack relevant expertise to initiate the proper handling of solid waste. “These local bodies lack technical, managerial, administrative, financial resources, and adequate institutional arrangements,” says A. K. Sahu, president, National Solid Waste Association of India. “It requires coordination between departments and institutions, urban development department, PWD and the government,” he adds.“One of the key challenges India is faceing today is an explosive increase in waste generation due to unplanned urbanisation, 50 per cent of which is biodegradable,” says Jaijit Bhattacharya, partner, Infrastructure & Government Services, KPMG India. Due to lack of segregation and other systemic woes, centralised waste management approaches have failed miserably. The government must ensure flexible institutional mechanisms for efficiency in decision making, according to other analysts. POWER POTENTIALThere is great scope for energy generation from garbage and fossil fuel displacementOne of the major pain points is the non-availability of standard government guidelines on waste disposal. Vikas Guliani, vice-president, A2Z Infra Engineering, whose waste management division has brought down the cost of waste disposal substantially by indigenising the waste-to-energy technology, says, “Many bi-products and integrated business plans for additional revenue streams can work in the SWM business from sales of organic compost, refuse-derived fuel, waste to energy plants, provided they are well backed by the government’s financial grants and subsidies, support and framework. These stress areas make it difficult for companies like us to run the waste processing plants and W2E plants effectively and also to scale the business.”Indian cities have generated 55.69 MT Municipal Solid Waste (MSW) so far this year, and 90 per cent of it goes to illegal landfills, causing epidemics and ground water contamination. As a result, dengue is at an all-time high with a 100 per cent jump since 2011, especially in southern India, where there is a total breakdown of the waste management machinery. If it is not solved, by 2025 the total land taken up by landfills could cross 1,000 sq. km and their greenhouse gas emissions alone could be higher than the total greenhouse gas emissions of Germany or Brazil.Some environment experts believe that urban communities and households should be incentivised for segregating waste at source: waste management agencies should be rewarded on the basis of quality of output and penalised otherwise. Waste management firms have a separate set of issues with the government and believe they do not get the support they deserve. “The main reason for the difficulties faced by the waste management industry is that the municipal corporations do not want to pay the processing fees to private waste management companies,” says Irfan Furniturewala, chairman of Hanjer Biotech Energies, once a leading waste management firm, but with the mounting losses, the firm shut down its 16 plants in 2013. He says, “It is not in line with the global practice of the business. In fact, the urban development ministry should fund the municipal corporations so that they are able to pay the tipping fees. Second is the perception of the government with respect to the PPP agreement. It should see the private entrepreneurs as partners rather than the traditional relationship of contractor and a client.”Building It InProperty developers are increasingly becoming aware of the importance of waste management facilities for their housing and commercial projects. For example, looking at the situation of the landfill sites in Delhi, Noida does not have a landfill site and so finds it difficult to dispose nearly 400 tonnes of garbage daily, which is dumped at two unofficial sites.Many realty players like DLF, Gaursons India and Ansals API firms are now installing waste management systems inside residential and commercial properties built by them. “At Gaur City, waste will be segregated by residents in two bins and then picked up from each household to be put in the waste recycling machine that will convert the biodegradable waste into manure,” says Manoj Gaur, MD, Gaursons India. “This way, we will be able to control waste and also produce manure for the greenery inside the township.”While segregation of waste is a major issue, some private firms are working on innovative solutions. Waste management firms like Green Nerds Solution have developed Automatic Garbage Mould technology in Karnataka. It enables segregation and processing of 5-50 tonnes of waste per day. “Till now, we have 35-40 successful installations across municipalities in Karnataka, says Nidhish Shetty, co-founder & director, Green Nerds Solution. “The reason we haven’t been able to scale is because every sale needs minimum four to five visits per municipal corporation, and we have to follow the complete tendering process for every order. What would have been better is if the government had a centralised bulk procurement model to support and scale innovative products. Currently, the only option is to look at scale in the private sector.”Shetty believes that research on using indigenous technological solutions to dispose of waste should be done in India. Infrastructure and funding from the government and from venture capitalists should help to bring innovative technology solutions. Until then, the Swachh Bharat vision is buried under festering mountains of waste. monica@businessworld.in @monicabehurasonal@businessworld.in @sonalkhetarpal7(This story was published in BW | Businessworld Issue Dated 24-08-2015)
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An Australian court on Wednesday revoked the government's environmental approval for one of the world's biggest coal mines under construction in the Australian outback by Indian conglomerate Adani Mining. Environmentalists hailed the ruling against the controversial Carmichael mine as another setback for the project, estimated to cost up to $16 billion, which they say threatens two vulnerable species and will endanger the Great Barrier Reef. Adani, which recently suspended work in a number of areas on the mine as it awaits government approvals, attributed the ruling to a "technical legal error" and said it was confident the matter would be rectified. The Federal court ruled that the environmental approval granted to Adani in July 2014 by Australian Environment Minister Greg Hunt's office failed to include conditions to protect the yakka skink and ornamental snake. The Environment Department said Hunt would reconsider his approval in six to eight weeks, after taking into account an assessment of the impact on the two species. The challenge was launched by Mackay Conservation Group in January. Adani, which wants to ship millions tonnes of coal a year to India, has battled environmental opposition since starting work on the mine five years ago. "It's not project dead because of a stuff up by the environment department," Adani spokesman Andrew Porter told Reuters. Proponents argue the project is needed if Indian Prime Minister Narendra Modi is to keep his promise to bring electricity to hundreds of millions of people presently living off the grid. In April, French banks BNP Paribas and Credit Agricole said they did not intend to provide financing for coal mining in the Galilee Basin, joining several other European banks that have ruled out involvement on environmental grounds. Adani rival GVK is also seeking approvals to dig a mine in the basin, a 247,000-square kilometere expanse in north-eastern Australia. Adani said in a statement emailed to Reuters that it had been advised that a "technical legal vulnerability" had arisen because certain documents were not presented by the environment department in finalising the approval. "Adani is confident the conditions imposed on the existing approval are robust and appropriate once the technicality is addressed," the company said. The Environment Department said a "technical administrative matter" had arisen in the way advice was provided to the minister. "Without pre-empting a final decision about the project, the department expects that it will take six to eight weeks to prepare its advice and the supporting documentation, and for the minister to reconsider his final decision," the department said on its website. (Reuters)
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Haider Ali KhanThe Central Bureau of Investigation (CBI) has informed a special court that Loop Telecom Ltd (LTL) was a front company for Essar Tele Holding Limited (ETHL) to bag 2G spectrum licences. It was against the provisions of Unified Access Services Licences (UASL) guidelines.Special public prosecutor Anand Grover said that violation of clause 8 of UASL guidelines by the accused firms was a crucial factor. As per clause 8 of UASL guidelines, no single company or legal person, either directly or through its associates, shall have 10 per cent or more equity holding in more than one Licensee Company in the same service area for same service. He also told Special CBI Judge O P Saini that purpose of clause 8 of UASL guidelines was to encourage competition in the telecom sector which was violated in this case. CBI had earlier told the court that accused firm LTL was used by Essar Group of companies to acquire 2G licences by circumventing the procedures. Essar group promoters Ravi Ruia and Anshuman Ruia, Loop Telecom promoters, Kiran Khaitan, her husband I P Khaitan and Essar Group Director Vikash Saraf are facing trial in this case along with three telecom firms, LTL, Loop Mobile India Ltd and ETHL. CBI had earlier argued that Essar Group had directly funded majority of the money involved in the transactions and as per documents available on record. CBI had filed charge sheet against these accused on 12 December 2011 alleging they had cheated the Department of Telecommunication by using Loop Telecom as a front to secure 2G licences in 2008.The 2G scam broke around the end of 2010 along with the leaked Radia tapes. Initially, the UPA regime strongly denied any wrong doing and claimed that there was “ Zero Loss” to the exchequer on account of spectrum allocations. Subsequently, the Supreme Court monitored a CBI investigation. The former telecom minister A. Raja and DMK leader and daughter of M. Karunanidhi spent time behind bars are being tried.
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