India may consider consolidating some of the country’s banks into three to five large banks to support manufacturers and exporters to compete with the best in the global market, Union Minister Piyush Goyal said today.
“India has created over the years many banks and none of them are of international standards,” said Goyal, Minister of State for Power, Coal, New and Renewable Energy, addressing a seminar in Singapore via video-conferencing.
“There is a possibility of consolidating some of the country’s banks into three to five large banks to support India’s manufacturers and exporters to compete among the best in the global market,” said Goyal.
India currently has around 28 public sector banks that needs to be consolidated, Goyal said.
India needs more focused or specialised banks in the niche consumer segment.
“There is room for banks both at the top and at the bottom,” said Goyal, responding to a question on Indian banking sector in a dialogue with Singapore-based business community at the ‘Emerging India Forum 2016’ conference organised in Singapore.
Apart from major public sector banks there are also a number of smaller players in the cooperative sectors – regional and rural banks and the chain goes down the line to service the rural sector, he said.
“We need really a two sets of banks, large ones which can work in the international space and another set which can reach out to the people at the bottom of the pyramid in the rural areas where people would otherwise be intimidate,” he said.
The forum was attended by some 300 Singapore-based Indian businessmen.
The Centre’s Domestic Efficient Lighting Programme will result in savings of up to USD 6.5 billion annually through energy efficiency and also help reduce carbon dioxide emission by 80 million tonnes (MT), Power and Coal Minister Piyush Goyal said Thursday.
“Energy efficiency has been a serious priority of this government. In fact, it has more potential than any other programme. The LED programme can lead to a USD 6.5 billion savings and reduction of 80 MT carbon dioxide emission per year,” Goyal said at the India Today Conclave here.
The government initiated the Domestic Efficient Lighting Programme (DELP) last year under which it has already provided over 7.9 crore LED bulbs to families through power distribution companies through an EMI of Rs 10 per month per each bulb. The discoms add the EMI to consumers’ electricity bills.
Through bulk tendering, the government has reduced the procurement price of these LED bulbs to Rs 64.41 in January 2016 from the market rate of Rs 310 in February 2014.
Goyal, who also holds the portfolio of New and Renewable Energy, said the government will achieve its target to electrify 18,452 villages within the set deadline.
The government has so far electrified over 6,700 villages out of the total 18,452 unelectrified villages, and with 409 days still to go, the target will be achieved, he said.
Prime Minister Narendra Modi in his Independence Day speech last year announced the initiative to electrify these 18,452 villages in 1,000 days – by May 2018.
Explaining the benefits of the Ujwal Discom Assurance Yojana (UDAY), the Minister said: “I am confident that by 2019 every state discom will make profits,” he said.
The Centre had launched the UDAY scheme in November 2015 for the revival of power distribution companies across India, which have cumulative debt of over Rs 4.37 lakh crore.
Referring to the debate on intolerance, Goyal said: The Prime Minister is intolerant about underperformance. He is intolerant about failure. What he needs is clear outcomes and he is setting very aggressive goals for all of us and that percolates down in the system.”
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After scrapping the auction for stranded gas based power project for subsidy to buy expensive R-LNG, Power Minister Piyush Goyal said that the PSDF scheme is aimed at providing fair opportunity to all.
“The objective (of gas auction under PSDF) is that everybody must get fair opportunity,” Goyal told reporters on the sidelines of a function to release a report “Scaling Up Private Investment in Rooftop Solar”.
The auction for the 8 mmscmd gas is now scheduled for Sunday for which technical bids will be received on Saturday. There will be no auction for DGPs because only two bidders applied.
Bidders will be allowed to quote negative subsidy. It means that these power plants will pay premium for buying this gas which was to be supplied on subsidy.
When asked about the incentives to these power plants in absence of subsidy component under the auction, Goyal refrained from divulging more detail saying “I know as much as you know. The empowered committee will decide on this.”
Yesterday, the Empowered Pool Management Committee (EPMC), the nodal authority for this auction had decided to scrap the auction for stranded gas-based power projects (SGP) held on Tuesday in backdrop of bids hitting zero (subsidy) within minutes of the start of bidding.
However, a senior official said that the incentives other than subsidy, like waiver of levies, lower transportation cost and assured supplied for a period of six month under the auction will attract the power plants to bid for gas under this auction.
There are some market experts who feel that the auction may get tepid response if government does not add sweetener to the offers under this auction as these plants have anyway an option to buy gas from open market.
This gas subsidy is being provided under Power System Development Fund (PSDF), a scheme which was started by the government last year to revive the gas-based capacity of 24,150 mw, including 14,305 mw of SGPs and 9,845 mw of Domestic Gas Power projects (DGP) getting sub-optimal supplies of fuel.
The PSDF outlay for the support from PSDF was fixed at Rs 7,500 crore (Rs 3,500 crore and Rs 4,000 crore for the year 2015-16 and 2016-17 respectively).
Auctions for the 1st phase (June 1 to September 30, 2015) of PSDF Support to gas-based power plants was held in the months of May 2015. A combined total of 10,270 MW plants were able to secure gas allocation. The entire process was completed in less than a month and gas supply by GAIL started on June 1, 2015.
Auctions for 2nd Phase (October 1, 2015 to March 31, 2016) were held in the month of September 2015 and helped in revival of gas-based generation plants with installed capacity of 11,717.72 MW. Total incremental electricity expected to be generated under phase II is 12,472.6 million units.
The plants rarely use costly imported gas as power produced from R-LNG costs much more than that from a domestic coal-fired plant or a domestic gas-fired plant.
NEW DELHI: Power Minister Piyush Goyal today strongly advocated the need for India to adopt smart grids and concepts to improve energy access for ensuring that power reaches all in the country.
He asked policymakers and stakeholders to work towards efficient networks to ensure 24X7 affordable energy to every citizen.
“Do it smart to do it right. Every dimension of human existence can be transformed with quality power and energy. Smart grids and smart meters are the first step for India to become a smart country,” Goyal said at the India Smart Grid Week 2016, organised by India Smart Grid Forum.
“Smart grids are extremely important to reach to the last man on the bottom of the pyramid. Hence, we need to have innovative solutions that are cost effective, technology- enabled and giving equal opportunity to all. Both technology and quality are non-negotiable for us,” he said.
The goal is to have smart meters in every establishment and home in India, he said.
“This means business opportunity to install 250 million smart meters in the country in next three and half
year. We want the smart meters to be priced at Rs 999 or below. For us figure 9 is extremely important as we targeted to make LEDs at Rs 99, we today buy it at much below Rs 99,” the minister added.
NEW DELHI: Power Minister Piyush Goyal today called upon African nations to join the International Solar Alliance (ISA) to promote the renewable source of energy across the globe.
“African countries would benefit immensely by joining the ISA that is headquartered in New Delhi,” Goyal said while addressing the 11th CII-Exim Bank Conclave on India-Africa Project Partnership here.
Exim Bank, the minister said, would explain the finer aspects of ISA to African governments and also work towards engagement of Indian companies for solar projects in Africa through the line of credit (LoC) route.
He suggested that India and Africa should deepen partnerships for development of micro grids and off grids as part of efforts for realisation of U’s Sustainability Development Goals (SDGs) well before year 2030.
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