Prime Minister Shinzo Abe is visiting India nearly two months after operationalisation of the historic Indo-Japan civil nuclear deal, which has added a new dimension to bilateral ties that could scarcely be imagined in the wake of the 2011 Fukushima tragedy.
The journey traversed by the two nations over the past six years reflects growing confidence in each other and depth of the strategic partnership.
Japan and India signed a memorandum of understanding for civil nuclear cooperation in December 2015, when Abe was in Delhi for the annual bilateral summit, overcoming reservations over India’s status as a nation which has not signed the Non-Proliferation Treaty.
This was transformed into a deal in November last year when PM Narendra Modi was in Tokyo for the summit.
Subsequently the Japanese government got approval from the Diet (parliament) for the nuclear deal with India.The landmark deal came into force in July this year with the completion of necessary formalities in both countries. This will enable Japan to export nuclear power plant technology as well as provide finance for nuclear power plants in India.
Besides, Japan will assist India in nuclear waste management and may undertake joint manufacture of nuclear power plant components under Make in India initiative, people familiar with the development told ET. Growing civil nuclear ties will be highlighted during Abe’s trip as one of the key elements of Indo-Japan strategic partnership, they said.
Japanese conglomerate Toshiba, which owns US-based Westinghouse, will have a major role when the US nuclear firm supplies technology for the set of six reactors in Andhra Pradesh following its bankruptcy.
Westinghouse, which was to set up six nuclear reactors in Andhra Pradesh, will supply technology while construction will be undertaken by an Indian partner. This was discussed as a way out during Modi’s visit to Washington, D.C. for ensuring the presence of Westinghouse in India following the troubles the company faced over bankruptcy.
The finance for the project from the US Exim Bank remains intact and the initiative may kick-start only in 2018. Westinghouse, which was acquired by Japanese conglomerate Toshiba in 2006 for $5.4 billion, had filed for bankruptcy in March this year. HitachiBSE 2.80 %, another Japanese firm, has a stake in GE, which is also proposed to set up reactors in India.
ET View: Enhance areas of partnership
The partnership in space, like that on the African continent, will give a new dimension to the longstanding India-Japan ties. It makes sense for India to partner with Japan to focus such opportunities in areas where the two countries have complementary strengths. The space partnership will serve as another plank in the effort to present a counter to Beijing. For New Delhi, it is also a spring board for a bigger role in the global arena. India must seize this opportunity with a clear plan.
Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.
Gujarat has retained the top position in the list of 21 states and UTs with most investment potential, according to a report by economic think-tank NCAER.
Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.
The ranking of 20 states and one Union Territory of Delhi was based on six pillars — labour, infrastructure, economic climate, governance and political stability, perceptions and land — and 51 sub-indicators.
While Gujarat topped in economic climate and perceptions, Delhi ranked one in infrastructure. While Tamil Nadu topped the chart in labour issues, Madhya Pradesh ranked one in land pillar.
The National Council of Applied Economic Research (NCAER) State Investment Potential Index (N-SIPI 2017) report ranks states on their competitiveness in business and their investment climate.
Compared to 2016, Gujarat and Delhi again top the list of states, while Haryana and Telangana have moved rapidly up the ranks to finish among the top five, it said.
NCAER Director-General Shekhar Shah said: “Investment opportunities are expanding in India in all sectors. The GST will weave India’s states together in ways that has not been possible before”.
Further the report said that although Bihar, Uttar Pradesh and West Bengal are ranked among the least favourable states for investment, they rank higher under individual pillars.
Indira Iyer, the team leader for the 2017 N-SIPI, stated that as per the report, “corruption” continues to be the number one constraint faced by businesses.
However, she said, the 2017 N-SIPI reports a decline in the percentage of respondents citing corruption as a constraint to conducting business from 79 per cent in 2016 to 57 per cent in 2017.
Getting approvals for starting a business is still the second-most pressing constraint faced by businesses in 2017 as was the case in 2016, she added.
Talking about this index, Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said these reports are aiding states in improving the business climate and attracting investors.
The levelised solar power tariff has dropped to all time low of Rs 3.15 per unit in an auction of a 250 MW project at Kadapa in Andhra Pradesh.
Earlier in February, the lower capital expenditure and cheaper credit had pulled down solar tariff to a new low of Rs 2.97 per unit for the first year in an auction conducted for 750 MW capacity in Rewa Solar Park in Madhya Pradesh.
However, the levelised tariff for Rewa project worked out to be Rs 3.30 per unit.
“The price bid opened and reverse auction carried out for 250 MW (1×250) solar project at Kadapa in AP under developer mode. Solairdirect has won this project with quoted levelised tariff of Rs 3.15/KWh,” a senior official said.
The official said, “Rewa Ultra Mega Solar record of levelised tariff is RS 3.30 which has been broken by NTPC auction today.”
Commenting on this Power Minister Piyush Goyal has tweeted, “Clean affordable power for all: Solar achieves another record low of Rs 3.15/ unit (flat rate) during auction in Kadapa, AP by NTPC.”
In Januray last year, solar power tariff had dropped to a new low, with Finland-based energy firm Fortum Finnsurya Energy quoting Rs 4.34 a unit to bag the mandate to set up a 70-MW solar plant under NTPC’s Bhadla Solar Park tender.
In November 2015, the tariff had touched Rs 4.63 per unit following aggressive bidding by US-based SunEdison, the world’s biggest developer of renewable energy power plants.
During 2016-17, leading states in wind power capacity addition were Andhra Pradesh, Gujarat and Karnataka.
India added a record 5,400 megawatts (MW) of wind power in 2016-17, exceeding its 4,000MW target.
“This year’s achievement surpassed the previous higher capacity addition of 3,423MW achieved in the previous year,” the ministry of new renewable energy said a statement on Sunday.
Of about 50,018MW of installed renewable power across the country, over 55% is wind power.
In India, which is the biggest greenhouse gas emitter after the US and China, renewable energy currently accounts for about 16% of the total installed capacity of 315,426MW.
During 2016-17, the leading states in the wind power capacity addition were Andhra Pradesh at 2,190MW, followed by Gujarat at 1,275MW and Karnataka at 882MW.
In addition, Madhya Pradesh, Rajasthan, Tamil Nadu, Maharashtra, Telangana and Kerala reported 357MW, 288MW, 262MW, 118MW, 23MW and 8MW wind power capacity addition respectively during the same period.
At the Paris Climate Summit in December, India promised to achieve 175GW of renewable energy capacity by 2022. This includes 60GW from wind power, 100GW from solar power, 10GW from biomass and 5GW from small hydro projects.
It also promised to achieve 40% of its electricity generation capacity from non-fossil fuel based energy resources by 2030.
In the last couple of years, India has not only seen record low tariffs for solar power but wind power too has seen a significant drop in tariffs. In February, solar power tariffs hit a record low of Rs2.97 per kilowatt hour (kWh)and wind power tariff reached Rs3.46 kWh.
Even though wind leads India’s renewable power sector, it has huge growth potential. According to government estimates, the onshore wind power potential alone is about 302GW. But there are several problems plaguing the sector.
For instance, the government has been concerned about squatters blocking good wind potential sites, inordinate delays in signing of power purchase agreements, timely payments and distribution firms shying away from procuring electricity generated from wind energy projects. In January, the ministry held a meeting with the states to sort out these issues.
The ministry has also taken several other policy initiatives, including introducing bidding in the wind energy sector and drafting a wind-solar hybrid policy.
It has also come out with a ‘National Offshore Wind Energy Policy’, aiming to harness wind power along India’s 7,600 km coastline. Preliminary estimates show the Gujarat coastline has the potential to generate around 106,000MW of offshore wind energy and Tamil Nadu about 60,000MW.
A man is silhouetted against the logo of the World Bank at the main venue for the International Monetary Fund (IMF) and World Bank annual meeting in Tokyo October 10, 2012. REUTERS/Kim Kyung-Hoon
As the World Bank looks set to release its annual ranking of countries in the ease of doing business later this week, India expects to improve its position from last year’s 130 out of 189 economies. The optimism stems from the fact that, for a second straight year, the country expects its ranking in “getting electricity’’ to improve substantially on the back of some “remarkable work” done by states, a senior government official told FE.
Last year, India was placed at 70 of the 189 countries in “getting electricity”, compared with 99 in the previous year. This had helped the country improve its ranking in the overall ease of doing business by 4 notches.
The government also believes that its “targeted intervention” to improve performance in difficult parameters — including dealing with construction permits and enforcing contracts — where the country has been faring badly for years now will start to pay, the official said.
So while it will take some time to correct the course in certain legacy issues, especially in enforcing contracts, the DIPP believes the much-improved performance of states will be reflected in the country’s ranking for the years to come.
For instance, while only two states (Gujarat and Andhra Pradesh) had scored over 70% in a 98-point action plan for the ease of doing business — jointly decided by them and the Centre — last year, as many as 16 states have scored over 70% so far this year, that too on a 340-point action plan, showed the latest data by the Department of Industrial Policy and Promotion (DIPP). Importantly, 10 states have scored over 90% so far this year (Andhra Pradesh and Telangana top the charts in 2016, each scoring over 99%).
The latest ranking of the World Bank takes into account reforms done up to the end of May, except in case of taxation.
The performance in access to electricity has been impressive, the official said. For instance, in Mumbai, the time required for getting a new electricity connection has been reduced to an average of around 15 days from 67 days earlier. The number of procedures involved has been cut down to just 3 from 7. Similarly, in Delhi, people can get connections in just 15 days now from as many as 140 days a few years earlier. The number of document required has been reduced to just 2 from 7 earlier. Access to electricity is crucial as it also has bearing on performance in some other aspects of the ease of doing business.
In “dealing with construction permits”, where the country was ranked at 183 of the 189 countries, the performance has improved. For instance, in Delhi and Mumbai, common online application form has been adopted for seeking construction permits. People don’t have to get no-objection certificates from anyone, as municipal corporations will get these certificates for them online. Earlier, some 18 no-objection certificates from different departments were required to be obtained by individuals for getting construction permits.
Also, in a metro like Delhi which has traditionally fared badly in handling construction permits, the documents required for this purpose has now been cut to just 14 from 39 earlier. Nine departments involved in the process of the sanction of buildings have been integrated online. The drawing of the construction plan is “auto-checked” by a software and no site inspection is necessary. Reforms on this parameter have been even quicker in other parts of the country.
On enforcing contracts in which India was placed at 178, the government has decided to set up commercial courts in a big way after the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill was signed into a law on January 1.
Although the exact data on the formation of such courts are yet to be compiled precisely, roughly a dozen such courts are learnt to have been set up, especially in Delhi, Mumbai, Gujarat and Himachal Pradesh, to settle high-value business disputes.
All pending suits and applications on commercial disputes involving a claim of Rs 1 crore or more in high courts and civil courts will be transferred to the relevant commercial division or courts. The decision to set up such courts is in sync with the Narendra Modi government’s aim of making India a global arbitration hub. The government plans to introduce e-summon system and efforts are on to expedite the process of getting a verdict, said the official.
To boost cross-border trade, the number of documents required for trade has been restricted to just 2-3 from as many as a dozen in certain cases earlier. Importantly, the finance ministry is learnt to have sanctioned Rs 2,500 crore for the upgrade of the IT and some other systems of the Customs departments.
Tamil Nadu has now reached Number One position in solar power capacity addition.
India’s total installed solar capacity has grown by over 80 per cent in the last 12 months to reach 8,100 MW.
“Out of the 3,600 MW capacity added during this period, 2,700 MW has come from four southern States – with Tamil Nadu alone adding over 1,200 MW on the back of a generous feed-in-tariff of ₹7.01/kWh. Tamil Nadu now ranks number one for commissioned capacity in both wind and solar,” according to Bridge to India, a global solar energy consulting firm.
The State now ranks No.1 for commissioned capacity in both wind and solar.
As of date, Tamil Nadu leads the solar capacity addition table with an installed capacity of 1,368 MW, followed by Rajasthan (1,307 MW), Gujarat (1,112 MW), Andhra Pradesh (961 MW), Telangana (923 MW) and Madhya Pradesh (756 MW).
Presently, those six States account for 80 per cent of the solar capacity added in India. The remaining 23 States including some of the largest power consuming states like Maharashtra, Karnataka and Uttar Pradesh, account for just 20 per cent of the installed capacity.
In the initial phase of solar sector development in India, until 2014, bulk of solar capacity addition came up in Rajasthan, Gujarat and Madhya Pradesh (about 57 per cent). But, the Southern states have taken a decisive lead in the last year, driven primarily by their growing power needs.
According to estimates based on the completed tenders totalling over 14,000 MW, the present trend is likely to continue over the next two years, with the southern States accounting for 60 per cent of this pipeline.
Tamil Nadu has proposed to increase the solar power further to 5,000 MW in a phased manner in the next five years. It plans to add about 1,200 MW of solar units in this fiscal alone, according to a document of state energy department.
The State’s total renewable power capacity is close to 10,000 MW with wind accounting for about 79 per cent of it.
Chinese smartphone maker Xiaomi today said it is looking to set up two more manufacturing facilities in India through its Taiwanese contract manufacturer Foxconn Technology Group.
Manu Jain, Xiaomi’s India Chief, said they are in talks with various state governments for finalising the land and other issues for the plants.
In August last year, Xiaomi, together with Foxconn, started assembling phones locally in Chittoor district of Andhra Pradesh.
“We have not finalised the locations for the facility yet. We are talking to multiple governments to see where we should be setting up (the plants). The factories are owned and operated by Foxconn, but dedicatedly (make production) for us. It is not a joint venture. We have some sort of financial arrangement between us,” Jain said.
Jain said the company may also launch air purifiers in India before the beginning of winter season.
“We think that it is a category which is about to take off. We are trying to bring that this year. The perfect time to launch is before winter, because that is when fog combines with smoke and becomes smog,” he said.
Xiaomi, which presently registers 90 per cent of its sales from online channel in India, is planning to double offline presence over the next few months.
Xiaomi recently launched Redmi 3S and Redmi 3S Prime in the country priced at Rs 6,999 and Rs 8,999, respectively. The phones will be initially available at Mi.com and Flipkart. The handset maker sells over one million phones a quarter in the country.
Prime Minister Shinzo Abe is visiting India nearly two months after operationalisation of the historic Indo-Japan civil nuclear deal, which has added a new dimension to bilateral ties that could scarcely be imagined in the wake of the 2011 Fukushima tragedy.
