Meeting the energy needs of our fast growing population and industrialisation processes has always been a pain point for any Government in India. One of the growing concerns which the country is grappling today is energy crisis. Electricity has become an essential tool for the sustenance of any economy or country. With the per capita consumption in the subcontinent touching approximately thousand kilowatts and ever increasing; the country has to focus on alleviating the growing concern of energy crisis. Besides, the question of providing this necessity at reasonable prices seems to be unanswered. Today, close to 400 million Indians are completely cut off from grid power, primarily due to inaccessible geography. While renewable energy seems to be a solution, higher investment costs come across to be a huge challenge. In such testing scenarios, innovation can be the polestar addressing the energy crunch of the nation. Inspired by this thinking, researchers at IBM undertook the initiative to ease the power shortage confronted by developing nations. They chose to take responsibility to differentiate themselves from the existing technologies by focusing on another environmental concern- e-waste. As suggested by a study in 2013, the operations of a big multinational IT company in India alone results in more than 10 tons of discarded e-waste. Scientists at India Research Lab, IBM took upon the challenge of turning e-waste into the nation’s advantage. Research scientists at IBM found that discarded laptop batteries still have enough power to keep an LED light on for more than 4 hours a day in a year, when fully charged. From this unconventional solution - UrJar, an IBM India project aims to benefit populations in developing nations where accessibility to reliable power is still a far sighted dream. Adoption of this technology commercially at a large scale can further incentivise the process of organised collection of e-waste. At present, it is estimated that 95 per cent of e-waste collection and recycling in the country is managed by the informal sector involving a network of local garbage dealers, posing safety concerns over disposal of hazardous wastes. Moreover, this solution eliminates the use of kerosene for lighting purposes resulting in reduction of greenhouse emissions by 2.7 kilograms per lamp IBM deployed this innovative solution: UrJar in five street-side shops in Bangalore (which were inaccessible to grid electricity) to understand it’s usability in a real world scenario. The results were gratifying as the users could easily meet their lighting requirements and were pleased by the long duration of backup power provided by the device. We would like to present this solution being a classic case of converting a biggest national challenge to address another; alleviation of energy poverty through reusing e-waste. Two birds with one stone. To conclude, IBM considers UrJar as a vision for not just dissemination but sustenance within the community to compliment the economic enticements with the technological characteristics. It has the potential to channel e-waste towards the alleviation of energy poverty, thus simultaneously providing a sustainable solution for both problems. The author, Vikas Chandan, is Research Scientist & Mohit Jain, Research Engineer, IBM Research Labs, India
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The government's 5 per cent stake sale in power sector lender PFC kicked off on Monday (27 July) with the issue getting subscribed 36 per cent in the initial hour of trade.The government is looking to raise over Rs 1,600 crore from sale of 6.60 crore shares in Power Finance Corp (PFC) through a one-day OFS route at a floor price of Rs 254 apiece.PFC is the second PSU to be divested in the current fiscal under the government's disinvestment programme. In April, government had sold 5 per cent stake in REC to garner Rs 1,550 crore.The share sale, which began at 0915 hours, received good response from institutional investors and portion reserved for them was subscribed 42 per cent by 1025 hrs.The portion reserved for retail investors, who are also getting 5 per cent price discount, was subscribed 11 per cent, as per the stock exchange data.Overall, the Offer was subscribed 36 per cent and the subscription may rise further during the day as bidding will continue till 1530 hrs.As against a floor price of Rs 254 a share for the OFS, PFC shares were trading at Rs 257.70. The current market price was, however, down 0.71 per cent over previous close on BSE.The floor price of Rs 254 a share was at a discount of 2.14 per cent over Friday's closing price of Rs 259.55.At the floor price, the government is expected to mobilise around Rs 1,676 crore through the divestment.At present, government holds 72.80 per cent equity in Power Finance Corporation. After sale of 6.60 crore shares representing 5 per cent stake on offer, government's holding will be reduced to 67.80 per cent.PFC is the first disinvestment under the modified OFS rules of Sebi under which companies are allowed to disclose stake sale plans two 'banking' days ahead of the issue.The Department of Disinvestment had approached Sebi in March saying they do not want trading days in-between the announcement and stake sale.Earlier, the companies were required to give an advance notice of two trading days before the OFS, which the government says gave scope for speculators to beat down the share price of the disinvestment-bound PSU.The Department has a Rs 69,500-crore target from PSU disinvestment in the current fiscal, of which Rs 41,000 crore would come from minority stake sale and Rs 28,500 crore from strategic stake sale.As much as 20 per cent of the issue size is reserved for retail investors and 25 per cent for mutual funds and domestic insurance companies.The remaining portion is left for institutional investors, which are usually lapped up mostly by domestic financial institutions and foreign funds.(PTI)
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Oil prices fell on Monday (27 July) after closing the previous session at their lowest levels since March on renewed oversupply concerns from the United States and Iraq, although a weaker dollar helped to limit deeper losses.Investors are looking to the US Federal Reserve for direction this week. The central bank starts a two-day policy meeting on Tuesday that could result in a September interest rate hike that would strengthen the greenback."The markets are looking for price guidance from Janet & Co," said Ben Le Brun, market analyst at Sydney's OptionsXpress, referring to Fed Chair Janet Yellen and the bank."There is scope for the dollar bulls to be disappointed this week (which) might be a driver for oil prices and the commodities complex overall," Le Brun said.A weaker dollar makes dollar-denominated commodities, including oil, cheaper for consumers using other currencies.Brent crude for September fell 6 cents to $54.56 a barrel as of 0340 GMT after dropping 65 cents in the previous session to $54.62, its lowest close since March 19.U.S. crude for September was down 12 cents at $48.02, after briefly dropping below $48 a barrel. U.S. oil fell 31 cents in the previous session to $48.14, its lowest settlement since March 31.Sparking new worries about a global glut, US oil producers added 21 drilling rigs last week, the biggest rise since April 2014, according to Baker Hughes.The increase in drilling activity came despite a 21 per cent collapse in US crude prices from about $61 a barrel in mid-June. A 20 per cent downturn is considered by many traders to constitute a bear market.In Iraq, exports from its southern oilfields are on course for a new monthly record, having topped 3 million barrels per day so far this month, according to loading data and an industry source.The expectation of continued abundant oil supplies, including an output increase from Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries, led the National Australia Bank on Monday to revise its oil price forecasts in a monthly report."We now expect oil prices to stay below $70 a barrel for the rest of 2015 and 2016," the bank said.Speculators cut long bets on US crude futures and options to the lowest level in five years last week, the US Commodity Futures Trading Commission said on Friday.(Reuters)
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State-owned Oil and Natural Gas Corp (ONGC) plans to invest over $8.8 billion in bringing to production its much-touted KG-basin oil and gas discoveries by 2018-19. ONGC has divided 12 oil and gas finds in the block KG-DWN-98/2 or KG-D5 and gas discovery in an adjacent G-4 block the Bay of Bengal into three clusters to quickly bring them to production, a senior company official said. The 7,294.6 sq km deepsea KG-D5 block has been broadly categorised into Northern Discovery Area (NDA - 3,800.6 sq km) and Southern Discovery Area (SDA - 3,494 sq km). The company plans to develop the 11 oil and gas finds in the NDA together with one gas find in G-4 block at an investment of USD 8.843 billion, he said. "The investment will be for drilling 45 development wells, an array of sub-sea pipelines carrying gas to a fixed platform for processing and a pipeline to carry gas form it to an onshore terminal. Oil will be transported to a floating production system (FPSO) that will transfer it to ships for taking to refineries," he said. ONGC plans to develop the discoveries in the block in three clusters -- 14.5 million standard cubic meters per day of gas for 15 years from Cluster-1 comprising of D&E finds of NDA in KG-D5 block and G-4 find in the a neighbouring area. Cluster-2A mainly comprises of oil finds of A2, P1, M3, M1 and G-2-2 in NDA which can produce 75,000 barrels per day (3.75 million tonnes per annum). Cluster 2B, which is made up of four gas finds -- R1, U3, U1, and A1 in NDA -- envisages a peak output of 14 mmscmd of gas, with cumulative production of 32.5 bcm of gas in 14 years. "We plan to get first gas by mid-2018 and first oil by mid-2019," he said. Cluster-3 is the UD-1 gas discovery in SDA. "UD-1 lies in water depth of 2400-3200 meters and there is no technology to produce from such depths. And so Cluster-3 is presently not being pursued for development," he said. Gas produced from Cluster-1 is proposed to be taken to a Fixed Platform in shallow water depths through an 18-inch, 16.1 km pipeline and treated and subsequently evacuated to Odalarevu onshore terminal in Andhra Pradesh through 20-inch, 35.5 km pipeline for sales. Oil produced from Cluster-2 is proposed to be taken on to an FPSO (Floating Production Storage and Offloading) anchored in high-sea through an 18-inch, 21.5 km pipeline. While oil will then be transfered to tankers for transportation to refineries, gas produced alongside will be evacuated on to Fixed platform through an 18-inch, 21.4 km pipeline. The official said there is an existing terminal at Odalarevu, for processing of hydrocarbons received from offshore fields: G-1, Vasishta and S-I. (Agencies)
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The corridors would be managed from two centralised locations for which Ahmedabad and Allahabd had been chosen, reports Ashish SinhaPrime Minister Narendra Modi wants the two dedicated freight corridors, west and east, completed in time even as the government is planning for more such lines, said Manoj Sinha, the State railway minister at an Assocham event on Friday (July 24). Inaugurating the conference on “Dedicated Freight Corridors-Challenges and Opportunities” Sinha said that despite several problems being faced in this the railways had “full confidence” of completing the in time. He pointed out that the Allahabad-Mughalsarai sector of the eastern corridor would be completed faster. The corridors would be managed from two centralised locations for which Ahmedabad and Allahabd had been chosen, Sinha disclosed at an Assocham event. Listing the advantages of the DFCs, the Minister pointed out that the corridors would be utilizing the latest technology in rail transportation enabling average speed of freight trains to be raised from 25 kmph to 80 kmph and then 100 kmph. The corridors would use high horse power engines for haulage and specially designed wagons, said Mr. Sinha. Elaborating on this Hemant Kumar, Member (Mechanical) Railway Board and Adesh Sharma, MD, DFCCIL, explained that these dedicated high speed corridors would help overcome the high capacity constraints currently experienced on the western and eastern trunk lines and the four diagonals. They would improve delivery time of freight. These corridors would also help reduce reduce carbon dioxide emissions by a million tons. Despite problems of land acquisition, 85 per cent of land acquisition had been completed in the eastern Dedicated Freight Corridor (DFC) project. All the corridors would be completed by 2019. Total fund requirement has shot up to Rs 80,000 crores. The DFCs could take care of 800 billion ton-kms of traffic. They would provide guaranteed transit time for freight delivery, said Sharma. ashish.sinha@businessworld.in
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Ashish SinhaExploiting the underutilised bilaterals and taking advantage of the open sky for the SAARC nations can give a fillip to the tourism sector in India, said the Civil Aviation minister Ashok Gajapathi Raju on Thursday (23 July). Sending out a strong message to Indian carriers, the civil aviation minister said domestic airlines, both public and private ones, need to "pull up their socks" with regard to utilisation of bilaterals. "As far as I know, India has lot of unused bilaterals and so just Indian players need to pull up their socks... Of course, foreign carriers are going to ask for more bilaterals," Raju said. A bilateral transport pact or air services agreement, allows flight services between two countries. "A solution is that Indian players start using Indian bilaterals... Almost all the private airlines are also sitting on bilaterals. So, I guess this problem has to be addressed," Raju said. The Minister said he has been requesting airlines to use the bilaterals because if they don't, then India loses out. Raju said that tourism sector needed the Central and State governments to work in harmony with the private sector. He urged the industry to share an actionable paper with his Ministry to take forward the agenda of promoting the sector. The civil aviation minister was speaking at a tourism conference organised by FICCI in partnership with the Ministry of Tourism, Government of India and Tourism Finance Corporation of India (TFCI). Speaking on the occasion, Dr Mahesh Sharma, the minister of State (IC), Tourism ministry said that the highest priority should be accorded to improving India’s perception abroad. As a country, India must be looked at as a congenial and conducive environment by foreign tourists. He added that it was imperative for citizens to cherish the country’s heritage and communicate its richness to visitors. Sharma said that for tourism to thrive it was essential that infrastructure development and regional connectivity went hand-in-hand. Ministries and States need to come on-board for this and issues related to the sector must be resolved within a stipulated timeframe in a single window approach, he added. Speaking on medical tourism, Dr. Sharma said that India has lagged behind in medical tourism despite its competitive pricing of health care delivery. For instance, a heart surgery may cost a person in Europe around Rs. 15-20 lakh but in India the same would cost approximately Rs. 2 lakh. Yet, we have not been able to realize the true potential as the sector remains unorganized, he added. To promote tourist destinations, Dr. Sharma proposed that visual presentations and interactive audio-visual media should be employed to make the experience of visitors to heritage sites and monuments lively and engrossing. He added that social interaction needs to be revived to showcase India’s heritage on the global platform. Dr Jyotsna Suri, President, FICCI, said that foreign tourist arrivals in India in 2014 was 7.7 million with a foreign exchange earning of Rs. 120083 crore. Indian tourism grew at 10.6% while the world tourism at 4.4%. With this projected growth, the country witnesses a void as the infrastructure struggles to cope with the demand in tourism. She added that TIM has been conceptualized with the aim to bridge this gap by bringing together the policy makers and investors on the same platform.
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Britain's Cairn Energy Plc is set to vote against Vedanta Ltd's $2.3 billion buyout offer for Cairn India's minority shareholders, the Financial Times said on Wednesday, citing people familiar with the situation. Cairn Energy's objections were over "fundamental disagreements over valuations", and its preference for "holding an investment in an energy company rather than a distributed resources group," the newspaper said, citing one person with direct knowledge of the matter. News of Cairn Energy's objections comes a day after Cairn India chief Mayank Ashar said the merger was on track. Spokespeople for Vedanta and Cairn India could not be immediately reached for comment outside business hours. A spokesman for Cairn Energy said the company had no comment on the report. Ex-parent Cairn Energy is the single largest minority shareholder in Cairn India in which Vedanta already has a 59.88 percent stake. State-owned insurer Life Insurance Corp (LIC), Cairn India's second-largest minority shareholder, and which together with Cairn Energy controls about 19 percent of the Indian company, had earlier expressed reservations about the deal. The deal is being seen by many as a test for India's new shareholder protection law, which requires an approval of more than half of the minority shareholders to go through. (Reuters)
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Solar power is likely to become cheaper than or equivalent to conventional thermal energy prices over the next two to three years and reach Rs 4/kWh-Rs4.5/kWh by FY18, says India Ratings and Research (Ind-Ra). This will be driven by a decline in capital costs (solar modules and other balance of plant), an increase in efficiency and a shift towards large solar photovoltaic projects leading to the economies of scale and lower return expectations by developers. According to International Renewable Energy Agency, solar photovoltaic prices have fallen nearly 80 per cent since 2008. Additionally, solar module efficiency has witnessed an annual increase of 3.5-4.5 per cent. The increasing size of projects to 10MW and above from 5MW earlier also leads to the economies of scale in component procurement and better absorption of fixed costs. Moreover, the return expectation of developers is likely to moderate as the market matures, leading to a reduction in overall tariffs. The recent solar bids conducted by MP Power Management Company Limited with per unit prices reaching as low as INR5.05/kWh are suggestive of the above trends. Globally in a recent bid, NV Energy, a Nevada utility, agreed to purchase 100MW solar power under a fixed-price 20-year power purchase agreement at 3.87cents/kWh (INR2.43/kWh). Ind-Ra expects a strong pick-up in solar power installations over the next four-five years, driven both by the government impetus of 100GW of solar power by FY22 (60GW through grid connected solar projects) and a decline in solar power generation costs. These factors will increase the affordability of solar power for distribution companies and eliminate the requirement of government support by way of subsidies or viability gap funding (VGF). Ind-Ra sees a limited possibility of support by way of VGF, greater focus on infrastructure creation for the evacuation of solar power and higher possibility of distribution companies meeting their renewable purchase obligation. The solar space has already seen a significant decline in tariffs. Solar tariffs declined to Rs 7.49/kWh-Rs 9.44/kWh in in Jawaharlal Nehru National Solar Mission phase I, Batch II during FY12 from Rs 10.95/kWh-Rs 12.76/kWh during FY11. In phase II, Batch I, the concept of VGF was introduced and the tariffs declined to Rs 5.45/kWh. However, the current tariffs are even lower than those offered by through VGF. The recent coal-based bids for the purchase of thermal power by Andhra Pradesh saw tariffs in the range of Rs 4.27/kWh-Rs 4.98/kWh, only 1-14 per cent lower than the solar tariff of Rs 5.05/kWh bid recently in the MP Power Management Company power purchase tender. The feed-in-tariffs (FITs), outlined by respective state electricity regulatory commissions based on the cost-plus return on equity model, have also seen a significant decline. FIT for solar energy in Gujarat was lowered to Rs 8.03/kWh in FY15 from Rs 12.54/kWh in 2010. FIT for solar energy in Rajasthan has been declined to Rs 6.74/kWh for FY16 from Rs 15.32/kWh in FY11.
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