Gujarat retains top slot of states with most investment potential

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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.

Source : http://economictimes.indiatimes.com/articleshow/59661570.cms

Flat solar power tariff drops to all time low of Rs 3.15 per unit

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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.

Source:  http://www.businesstoday.in/current/economy-politics/solar-power-tariff-low-rs-3.15-per-unit/story/249884.html

India adds record 5,400MW wind power in 2016-17

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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.

Source: http://www.livemint.com/Industry/MR7TsTomt2C9Si1NriNsyM/India-adds-record-5400MW-wind-power-in-201617.html

India, UK set to sign GBP 1 bn biz deals

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India and the UK are expected to sign business deals exceeding GBP 1 billion (Rs 83,00 crore) during the three-day visit of British Prime Minister Theresa May, who is here on her first bilateral visit outside Europe since assuming office in July.

Describing her talks with Prime Minister Narendra Modi as good and productive, May said as leaders, they both were working to improve the livelihoods of their citizens creating jobs, developing skills, investing in infrastructure and supporting technologies of the future.Talking about Modi’s vision of smart cities, May said they have agreed on a new partnership that will bring together government, investors and experts to work together on urban development, unlocking opportunities worth GBP 2 billion for British businesses over the next five years.

This will focus on the dynamic state of Madhya Pradesh with plans for more smart cities than anywhere else and the historic city of Varanasi.

Four rupee-denominated bonds worth a total of 600 million pounds ($748 million) are expected to be listed in London in the next three months, Theresa May said.

The latest four bonds will provide financing to expand India’s highway and rail networks and meet its plans to boost energy efficiency and renewable energy, the government said.

They will be issued by Indian government-backed corporates Indian Railway Finance Corporation, Indian Renewable Energy Development Agency, Energy Efficiency Services Limited, and National Highways Authority of India by the end of January 2017. May said since July, more than 900 million pounds rupee-denominated bonds have been issued in London, equivalent of more than 70 percent of the global offshore market.

“This government will continue to work closely with both India and our financial services sector to ensure our growing rupee bond market continues to help finance India’s ambitious infrastructure investment plans,” May said in a statement. These rupee-denominated or masala bonds as they are called, unveiled in 2015, are an opportunity for Indian firms to raise money, while giving international investors access to higher yields in a zero-yield world.

They are also a way to borrow overseas, they are also an attempt to make the tightly-controlled rupee more widely available in global markets, similar to the way in which China has moved to sell more yuan debt to overseas investors. Alongside this, the UK has agreed to invest GBP 120 million in a joint fund that will leverage private sector investment from the City of London to finance Indian infrastructure.

Source: http://www.businesstoday.in/current/economy-politics/india-uk-set-to-sign-gbp-1-bn-biz-deals/story/239538.html

Tamil Nadu hits top slot in solar power capacity addition as south surges ahead

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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.

Source: http://www.thehindubusinessline.com/news/national/tamil-nadu-hits-top-slot-in-solar-power-capacity-addition-as-south-surges-ahead/article9018228.ece

Government lines up over Rs 17k crore to support rooftop solar projects

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The government has lined up almost $2.5 billion (about Rs 16,800 crore) for providing low cost finance to achieve the target of installing 40 GW grid-connected solar rooftop systems.

“The ministry is in negotiations with the KfW Development Bank to secure soft loans of 1 billion euro. They have already provided $100 million funding,” The Ministry of New and Renewable Energy (MNRE) Secretary Upendra Tripathy told reporters here.

The World Bank has committed a loan of $620 million, with the Asian Development Bank and the New Development Bank pledging $500 million and $250 million, respectively, he added.

“This will enable participating commercial banks such as SBI, PNB and Canara Bank to extend loan at or near base rates,” Tripathy said.

The secretary further said in the current fiscal, MNRE is trying to arrange an investment of Rs 6,000 crore for rooftop solar projects.

“The government is committed to encourage rooftop solar projects and Power and MNRE Minister Piyush Goyal will inaugurate a national workshop on Roof Top Solar Power on June 7,” he said.

This workshop will have presentations and discussions on various topics including best practices, innovative projects and major policy initiatives on projects, he added.

Besides senior government officials from the centre and states, the conference will also see participation from solar power project developers, channel partners as well as international agencies such as GIZ, KfW and USAID.

The power generated from solar rooftop plants installed even today is almost at par with the commercial tariff for consumers in many states. The cost of solar power is declining, while that of electricity from fossil fuels is rising.

Today, it is possible to generate solar power from rooftop systems at about Rs 6.5 per kilo watt hour, which is cheaper than power generated from diesel gensets and also cheaper than the cost at which most discoms make power available to industries and high-end domestic consumers.

On the issue of storage of solar power generated from rooftop systems, Tripathy said the government is working on providing some kind of subsidy for such projects.

Also there are plans for installing 15 minutes of storage in two projects in Andhra Pradesh and Madhya Pradesh.

 

Source: http://www.business-standard.com/article/economy-policy/govt-lines-up-over-rs-17k-crore-to-support-rooftop-solar-projects-116060301277_1.html

Clean energy projects get Rs 86,000 crore investment

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Renewable energy projects have received Rs 86,000 crore investment, most of it from private sector, in the last three years with Madhya Pradesh at top garnering Rs 14,313.80 crore.

“Most of the investment in renewable energy came from private sector. Total estimated investment in renewable energy power projects during the last three years is around Rs 86,000 crore,” New and Renewable Energy Minister Piyush Goyal said in a written reply to Lok Sabha today.

According to the statement, around 15,400 million units has been generated through solar power projects during the last three years.

Madhya Pradesh remained at the top, recording maximum investment in clean energy projects at Rs 14,313.80. It was followed by Maharashtra at Rs 13,743.01 crore, Rajasthan at Rs 11,632.96 crore, Karnataka at Rs 9,586.31 crore, Andhra Pradesh at Rs 9,539.12 crore, Tamil Nadu at Rs 8,961.28 crore and Gujarat at Rs 6,646.35 crore.

The minister also stated that Pondicherry, Laskhwadeep, Dadar & Nagar Haveli, Sikkim, Manipur, Meghalaya and Goa received no investment at all for renewable energy projects in last three years.

According to a separate reply to the House, as on March 31, 2016, a cumulative capacity of 42.76 GW has been installed from various renewable energy sources, which include 26.78 GW from Wind, 6.76 GW from solar, 4.27 from small hydro power and 4.95 GW from bio power.

In another reply to the House, the Maharashtra will require the maximum solar power generation capacity of 13,270 MW by 2021-22 as per tentative renewable purchase obligation (RPO) requirement estimated by the ministry.

The ministry has estimated 1,02,021 MW solar power generation capacity to be installed in the entire country by 2021-22.

After Maharashtra, Uttar Pradesh’s solar power generation capacity by 2021-22 as per RPO requirement would be the second highest at 12,124 MW followed by Gujarat at 9,796 MW, Tamil Nadu at 9,398 MW and Rajasthan 6,953 MW.

Under RPO, states are mandated by power regulators to have certain proportion of renewable energy capacity in their total power mix to promote clean and green sources like solar and wind.

The minister in another reply to the House stated that the new pithead thermal power plants have the lowest tariff of Rs 3.75 per unit in the first year of operation compared Rs 4.5 per unit for solar, Rs 4.6 for hydro, Rs 4.94 for atomic power and Rs 5.49 for non-pithed thermal plants.

However, the levellised tariff for hydro power plants is the lowest at Rs 4 per units compared Rs 4.5 for solar, Rs 5 for atomic power, Rs 4.57 for pithead based thermal power and Rs 7.57 per unit for non-pithead based thermal power plant.

Source:http://economictimes.indiatimes.com/articleshow/52125394.cms