Power sector does not need any “crutches” in form of tax incentives as it is no longer facing any stress and can stand on its own, Union Power Minister Piyush Goyal has said.
The statement assumes significance in the run-up to the Union Budget as various sectors are seeking tax breaks and other incentives from Finance Minister Arun Jaitley.
“I believe that now we do’t have to have the crutches of tax incentives. We can stand on our own,” Goyal told PTI.
He was replying to a query on whether the Power Ministry will seek any tax incentives for the sector from Jaitley.
“Now the approach has been that my power sector can stand on its own. You have seen that with all transparency we have brought all costs down. Now the stress that is faced by the sector is by and large over,” Goyal said.
The Minister further said that the UDAY scheme will itself help save Rs 1.8 lakh crore annually within next three years and the savings will go to the people of India.
The government in November launched Ujwal Discom Assurance Yojana (UDAY) for revival of debt stressed power distribution companies.
The accumulated debt of these companies is over Rs 4 lakh crore and they suffer losses to the tune of over Rs 60,000 crore every year.
Under the scheme, 75 per cent of the debt of these firms will be taken over by the states which would issue bonds to repay the loans. The remaining debt will be repaid by discoms by issuing bonds guaranteed by states.
According to energy expert C P Krishnan, the power generating companies have been getting better tax incentives, but the issue is with discoms’ debt.
The cash strapped discoms are not able to buy power which is the main reason for generators running their plants at lower plant load factor as electricity cannot be stored, he said.
He was of the view that states have been giving subsidised or free power to certain category of consumers like farmer but they did not pay the discoms which resulted in mounting debt year after year.
However, he expressed hope that Centre may bring out some models of innovative financing for clean energy or other power projects to further boost the sector.
Urging Japanese companies to invest and manufacture products in India, Power Minister Piyush Goyal today said energy cooperation with Japan will be defining feature of bilateral relationship.
“Energy cooperation with Japan will be defining feature of our relationship,” Goyal said while addressing at the Institute of Energy Economics Japan in Tokyo today.
Goyal is on a visit to Japan to attend the 8th India-Japan Energy Dialogue from January 12 to 14. This is the first ministerial level visit from India to Japan after Japa’s Prime Minister Shinzo Abe visited India in December 2015.
“We invite Japanese companies to come to India, Make in India and Conserve Energy in India”, Goyal tweeted.
“Japan has 70-80 per cent of lighting from LEDs, we are targeting 100 per cent LED penetration in India by 2019,” a Power Ministry release quoted Goyal as saying.
Speaking on climate change, Goyal said, “USA & Europe with just 10-12 per cent of the world’s populations have contributed 50 per cent of green house gases emissions while India contributes only 2.5 per cent with 17 per cent of population.”
The developed countries should support the developing & emerging economies with green technology, low cost finance to keep energy costs affordable, he said.
“Climate justice demands that the developed world reassess its lifestyle and consumption of electricity and petroleum products”, Goyal added.
Earlier in the day, Goyal attended three roundtable conferences on Clean Coal Technologies and Efficient Coal Based Power Generation, Super-Efficient Appliances & LEDs and Energy Efficient Petroleum Refining- Energy Audit in Refineries.
He will also participate in two roundtable conferences to be held on the theme of Energy Storage Technologies and Smart Grids/Smart Meters on Thursday.
Earlier in the day Goyal tweeted, “South grid capacity increased 71 per cent in last 18 months. Investing Rs 42,950 crore to increase it by almost 3 times by 19-20 to ensure cheap power.”
OKYO: Japanese energy companies and financial institutions are looking to invest heavily in India, Power Minister Piyush Goyal said in Tokyo on Wednesday.
Goyal said companies and lenders in Japan have evinced interest in setting up big solar projects and equipment manufacturing lines in India, which is expected to quadruple electricity generation in the next 15 years, while their country does not offer a good growth proposition. He said the future ultra mega power projects (UMPPs) for which the government will invite bids also offer investment potential to foreign firms.
The minister met representatives of companies including SoftBank Corp, Toshiba Corp, Spower Corp, Fuji Electric and banks such as Bank of Tokyo, Sumitomo Mitsui Banking Corp and Mizuho Bank during the first two days of his government-cum-industry delegation to Tokyo.
India Inc, represented by industry lobby CII, is part of the delegation.
Goyal met manufacturers of solar wafers and cells on Wednesday to persuade them to set up manufacturing plants in India. On Thursday, he is scheduled to meet various financiers including JICA, Nippon Export & Insurance Investment and JBIC that are looking to tap into opportunities in India’s energy sector.
“The Japanese firms have realised that India offers a huge potential to world. The Japanese pension funds and insurance companies have a negative interest scenario,” Goyal said.
India’s energy production has an investment potential of $250 billion by 2019 and about $1 trillion by 2030, he said.
“In the last 25 years, if one assesses rupee, there is a CAGR depreciation of 3.5%, making rupee one of the most stable currencies in the world. This coupled with government commitment and Indian citizens’ aspirations offers a good potential,” the minister said.
Power Minister Piyush Goyal, who is on a three-day visit to Japan, tweeted after reaching Tokyo that “the visit’s focus will be on renewable energy, clean coal and energy efficiency”.
India and Japan will focus on renewable energy, clean coal and energy efficiency during the Strategic Energy Dialogue between the two nations in Tokyo, Power Minister Piyush Goyal said today.
Goyal, who is on a three-day visit to Japan, told PTI before leaving for Tokyo that the Strategic Energy Dialogue between the two countries is not about specific targets of investment but building technology partnerships and engagement for investment in different areas of energy, including coal and renewable energy.
Later he tweeted after reaching Tokyo that “the visit’s focus will be on renewable energy, clean coal and energy efficiency”. Goyal is also accompanied by a CII delegation which will participate in various discussions on key areas across the energy value chain including renewable, clean coal and energy efficiency. The visit comes at a time when India has set a target of 175 GW of renewable energy capacity by 2022.
“CII is privileged to lead a CEOs delegation as part of the 8th Indo-Japan Strategic Energy Dialogue from 12-14 January, 2016,” said CII National Committee on Renewable Energy Co-chairman Sumant Sinha who is also Chairman and CEO of RenewPower.
The delegation is being led by Sinha. “We could be looking at debt financing from various Japanese companies and we could also be looking at equity financing from various Japanese corporates. “We could also be looking at technology transfer in the areas of clean coal, energy storage and LED appliances among others,” he said.
There is a huge opportunity to further the energy cooperation across the energy value chain in key areas including energy efficiency, renewable energy, clean coal, smart grids between both the nations, he said.
He also exuded confidence that over the course of the next few days “we will be able to identify key areas for collaboration across the energy spectrum and take the discussion forward from the drawing board to reality”. Other members of the delegation include Jindal Steel & Power Ltd Managing Director & CEO Ravi Uppal, CLP India MD Rajiv Ranjan Mishra, Hindustan Power Projects Chairman Ratul Puri and Sun Group of Companies Vice-Chairman Uday Khemka.
Source Link: http://www.moneycontrol.com/news/economy/india-japan-to-focusclean-energy-goyal_4975701.html?utm_source=ref_article
Goyal further said the Centre is committed to support Andhra Pradesh in achieving its targets with respect to establishing clean energy projects in the state. Replying to query, he said the appointment of new CMD for NTPC is underway and the (ion committee is expected to come out with with its choice of candidate soon.
Confident that India will be able to keep power prices at lower levels with better demand-supply management systems, Power Minister Piyush Goyal said the prices may come down further.
“Business people will also have to model their business around the right price. They cannot run way with high prices. It is people of the country that would suffer. I am very delighted that the prices (of electricity) are very low and in the days to come we will continue to keep prices under control. Not though artificial controls. But through demand and supply management,” Goyal told PTI on the sidelines of Partnership Summit-2016 here.
Terming “one nation and one price”, he said for the first time in the history of India retail power was available at Rs 2.35 per unit as on December 29. “You could get power anywhere in the country at Rs 2.35. You may recall south India used to buy power at Rs 8 to Rs 10 (per unit). Sometimes it went up to Rs 15. Prices have come down significantly,” he added.
Earlier in his speech he said, state-owned power producer NTPC is setting up a 4,000 MW thermal power plant and 2250 MW solar power project in Andhra Pradesh. Goyal further said the Centre is committed to support Andhra Pradesh in achieving its targets with respect to establishing clean energy projects in the state. Replying to query, he said the appointment of new CMD for NTPC is underway and the (ion committee is expected to come out with with its choice of candidate soon.
NEW DELHI: The Cabinet is likely to approve by the first week of February a new power tariff policy with focus on clean energy, better regulation of discoms and faster roll out of investments, Power Minister Piyush Goyal has said.
“Last consultation process is going on. My own sense is that during this month we should be able to clear, or at best first week of next month,” Goyal told PTI when asked about the Cabinet approval for the new power tariff policy.
Besides encouraging faster roll-out of investment, the new policy will reflect a concern for environment and encourage renewable energy.
It will also look to strengthen regulatory mechanism so that discoms become more efficient and conscious towards their duties to consumers.
In 2006, the central government had approved the National Tariff Policy under the provisions of Electricity Act, 2003.
In September last year, Goyal had said: “We are finalising the contours of the (power) tariff policy. We will soon take the proposal for tariff policy to the Cabinet for approval.”
There was a buzz last month that the policy is going to be approved by the Cabinet. But that did not happen.
Explaining about delay in Cabinet approval, the minister explained, “My process in tariff has been very consultative. In fact on two occasions we have referred it back to the states to get their comments and amending it to make it more robust.”
He further said: “Now that we have a challenge to add 1.75 lakh MW of renewable energy, we are also bringing in certain more elements in tariff policy which will promote renewable energy.”
The minister also said: “We are brining in elements, which will promote Swachh Bharat Abhiyan and help waste to energy prosper in India. The certain new elements we decided to bring in.”
It will also promote Swachh Bharat initiative. Under the policy, the power plants will have to use processed municipal waste water available in their vicinity (in 100 km radius).
The proposed policy will bring in several unique aspects which have not been touched in the past. It will allow distribution companies to buy any amount of power produced from the waste.
The minister said, “What we are providing are two very important elements subject to the Cabinet nod. The suggestion is that wherever in the country the waste is converted into energy in an environment friendly manner, we are making it compulsory for that state to purchase that power so that we can encourage faster deployment of waste to energy plants and ensure that we do’t allow waste to ruin at the countryside.”
The minister further said: “Secondly we are trying to introduce the condition that wherever the waste water is generated particularly in urban areas, that if it is processed and converted into usable water (need not be portable) can be used by power plants like of NTPCBSE 0.57 %.”
“We are making it mandatory that any (power) plant in the vicinity of waste water treatment plant will procure the water from there and then the clean water then there is free, will go to serve the people of that city so that our people can get more fresh water,” he added.
The proposed policy aims to provide incentives to renewable energy projects as well as push for efficient use of power generated from conventional sources of energy like coal and others
MUMBAI: Power Minister Piyush Goyal said that the Prime Minister Narendra Modi government is confident and determined to deliver on the promises made in the result and there is no room for delays.
Goyal, who received the ET Award 2015 for business reformer of the year, said that his ministry is working at resolving the problems of the beleaguered power sector and aims to build scale which will boost the manufacturing sector and also have a positive impact on the services sector.
“We have had to scale up at a drastic scale because the aspirations of the people in India do not leave us with much time. This increase in scale will be able to capture manufacturing in India along with service sectors and many other sectors,” Goyal said.
“Ultimately it is the scale, transparency, innovative thinking and financing that would be able to make a difference and attract investment in this country,’ he said.
The minister said that states are voluntarily joining programme UDAY (Ujjwal Discom Assurance Yojana), introduced by his government to revive the struggling state owned distribution companies (discoms), giving hope that the health of these discoms will soon improve.
“In solar power, we started the process of reverse bidding and I have set up the roadmap to scale up from 2.5GW to 100GW in 2022. That’s the scale at which manufacturing becomes extremely attractive,” Goyal said.
He candidly shared that solar industry players were concerned when the reverse bidding was introduced as solar power was more expensive than thermal but soon the bids came down. “When we did the reverse bidding everybody was concerned as to who would buy the solar power. Reverse bidding got us bids at Rs 5.7/unit to Rs 5.5 and ultimately even to Rs 4.63. This has happened because we have scaled up, identified the pain points and identified the counter party risks,” he said.
After receiving the award, Goyal said that the award will encourage him and his colleagues to work harder to deliver on their promises.
Power Minister Piyush Goyal today exuded confidence that all states will join UDAY after Jharkhand became the first state to sign an MoU to avail benefits of the scheme meant for revival of debt-laden discoms.
“All states will come on board. It’s an optional scheme. Therefore, they get the confidence that we are not trying to impose anything,” Goyal told PTI in an interview.
“Ujjwal Discom Assurance Yojna (UDAY) is not decided in this (ministry) office. UDAY scheme has been created or crafted with great deal of consultations and collaborations of all the stakeholders. I think it is a living example Team India Prime Minister Narendra Modi has envisaged.”
Jharkhand today signed an agreement with the Power Ministry to join UDAY, which is seen to offer the state a net benefit of approximately Rs 5,300 crore.
The central and state governments and JBVNL (Jharkhand Bijli Vitran Nigam Ltd) signed the memorandum of understanding under the scheme — Ujjwal Discom Assurance Yojna — here today for operation and financial turnaround of JBVNL.
The signing ceremony was held in the presence of the Chief Minister of Jharkhand, Raghubar Das.
Goyal said that as many as 15 states have agreed to join the scheme covering 90 per cent of total power distribution companies’ debt (Rs 4.37 lakh crore).
Earlier in the day, terming UDAY as “a win-win scheme for all”, Power Secretary Pradeep Kumar Pujari said most of the MoUs will be signed in the next few weeks.
Asked whether UDAY will resolve all issues related to the power sector, Goyal said, “There is never a one-size-fits-all solution. Therefore, within UDAY, we will innovate when it comes to each state.”
Explaining further, he said, “The beauty of UDAY is it allows that kind of flexibility to work together with states for better solutions. But the end objective is 100 per cent affordable energy access 24×7 to every citizen of India.”
Goyal put a premium on transparency, saying “I am holding myself and all of us responsible and you will be monitoring our performance”.
“I am going to put MoUs in the public (domain). The entire ministry is working on transparency. I am quite confident that it will be a big solution to most of the problems,” the minister added.
He also threw open the scheme to those states that have not unbundled their transmission, generation and distribution business and find it difficult to join the scheme.
“They can go for UDAY. The element of transferring debt from discoms to states will not apply to them. But they will enjoy all other benefits,” he clarified.
There are some 12 states and UTs which are facing this issue.
Goyal underlined the need for a dialogue with the states and have a separate dispensation. “We will bring them on board hopefully this fiscal or maybe, in the next six months. They are smaller states or UTs and the pressure is not so immediate also,” he noted.
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