Annual Report 2017 - 2018 · 2019-07-09 · Shri Jigar Shah Treasurer 8-9, Shivalik Plaza, Opp. AMA IIM Road, Ambawadi Ahmedabad 380015 Phone : 079-26303064, 26303074 Email : [email protected]

22 nd Annua l Repor t 2017 - 2018

COUNCIL MEMBERS

Shri Amar VariawaShri S BabuShri T BalachandranShri Balram MehtaDr. V Bapeshwar Rao Shri Chandra Shekhar Khunteta

AUDITORSM/s N A Jayaraman & Co.Chartered Accountants9, Cedar Wood,11, 4th Main RoadRaja AnnamalaipuramChennai 600028

BANKERSTamilnad Mercantile Bank Ltd. Mount Road Branch738, Anna Salai, Chennai 600002

HDFC Bank Ltd.ITC Centre, 759, Anna Salai, Chennai 600002

Axis Bank Ltd., Anna Salai Branch225, Anna Salai, Opp. Spencer Plaza, Chennai 600002

NATIONAL OFFICEDoor E, 6th Floor, Shakti Towers-1 766, Anna Salai Chennai – 600 002.

Phone: 044 - 4550 4036 / 4550 4281Email: [email protected], website: www.windpro.org

OFFICE BEARERS

Prof. Dr. K Kasthurirangaian Chairman Shri Rajiv B Samant Vice Chairman Shri P P Gupta Vice ChairmanShri Chetan Mehra Honorary SecretaryShri A Raja Sukumar Honorary Treasurer

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Indian Wind Power Association22nd Annual Report and Audited Accounts 2017-2018

NATIONAL COUNCIL

Shri T S Jayachandran Shri R KannanDr. N Karuna MoorthyShri V K KrishnanShri Manoj MishraShri K R NairShri Rajan Deb

Shri Rajsekhar BudhavarapuShri K Ravi Kumar ReddyShri U B Reddy Shri S SenguttuvanShri K V S SubrahmanyamDr. R Venkatesh

REGIONAL / STATE COUNCIL OFFICES

ANDHRA PRADESH & TELANGANASTATE COUNCIL

Of�ce BearersShri K Ravi Kumar Reddy PresidentShri B Narasimha Rao Vice PresidentShri S Sri Murali SecretaryShri A V Bhargava Treasurer

PMR Plaza, Plot No.3H.No.6-3-680/8/3, 2nd Floor,Thakur Mansion Lane, SomajigudaHyderabad 500082Phone : 040-23412312, 23412313Mobile : 09866862458Email : [email protected]

GUJARAT STATE COUNCIL

Of�ce BearersShri Manoj Mishra PresidentDr. N Karunamoorthy Vice PresidentShri Dilbag Sharma SecretaryShri Jigar Shah Treasurer

8-9, Shivalik Plaza, Opp. AMAIIM Road, AmbawadiAhmedabad 380015 Phone : 079-26303064, 26303074Email : [email protected]

NORTHERN REGIONAL COUNCIL

Of�ce BearersShri K R Nair PresidentShri Rajsekhar Budhavarapu Vice PresidentShri Balram Mehta SecretaryShri C M Jain Treasurer

GF 28, World Trade CentreConnaught PlaceNew Delhi 110001Phone : 011 – 4904 0260Email : [email protected]

MAHARASHTRA STATE COUNCIL

Of�ce BearersShri G N Kamath PresidentShri Arvind Prasad Vice PresidentShri Sivanarayana Venkat Gavadhakatla SecretarySmt. Purva Sood Treasurer

No. 214, Empire House, Ent. A K Marg, Dr. D N Road, FortMumbai 400 001Phone : 022 - 22071501 (6 lines)Fax : 022 - 2207 1519 / 22071512Email : [email protected]

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RAJASTHAN STATE COUNCIL

Of�ce BearersShri ManakTalera PresidentShri Rajendra Vyas Vice PresidentShri Chandra Shekhar Khunteta SecretaryShri Anil Saboo Treasurer

c/o INDOCOT, A - 27 / 13, Kanti Chandra Road,Bani Park, Jaipur Rajasthan 302 016Phone : 0141 - 2205 796 / 2205 797Fax : 0141 - 2205 795Email : [email protected]

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KARNATAKA STATE COUNCIL

Of�ce BearersShri U B Reddy PresidentShri K V S Subrahmanyam Vice PresidentShri Romesh Mattoo SecretarySmt. Mangaljyoti Treasurer

c/o Enerfra Projects (India) P Ltd.No. 7, Raj Classic, 2nd Floor, 1st BlockDr. Rajkumar Road, Rajaji NagarBengaluru 560 010Phone : 9916025057Email : [email protected]


ANNUAL REPORT TO THE MEMBERS FOR THE YEAR 2017 -18

IWPA takes pleasure in presenting the Twenty-second Annual Report to the members covering the period from April 2017 to March 2018 and the Audited Statements of Accounts for the financial year ended March 31, 2018.

RECENT CHANGES & TRANSFORMATION:- The wind industry is going through various challenges and transformation. We have moved from the Feed-in-Tariff regime to a reverse bidding process and have seen tariffs fall drastically. The issues plaguing our members on evacuation of wind energy generated and delay in payment by Discoms. The payment position in States like Rajasthan has improved considerably thanks to the efforts of the Office bearers and members of the IWPA Rajasthan State Council; but evacuation issues persist in Rajasthan due to infrastructural constraints of transmission lines especially the connection to Jodhpur. The delay in payment in Tamil Nadu persists while evacuation during the year of report, had generally improved. Record levels of evacuation were accomplished in Tamil Nadu during the year of report. A new record in wind energy evacuation was set on August 04, 2017, when TANGEDCO evacuated 102.579 million units. At 4772 MW

The Government of India is confident of not only achieving the target of 175 GW by 2022 but has set its sight higher on reaching 225 GW by 2022. Such a positive statement from the Government augurs well for the RE stakeholders.

FEED-IN-TARIFF FOR PROJECTS BELOW 25 MW:- The Government had announced a couple of years back that the tariff of Renewables would be brought down to compete with conventional energy sources. The Government should be complimented for successfully accomplishing it. Wind tariff during the year of report had reached as low as Rs.2.44 during the SECI Bhadla Reverse Bidding that took place in May 2017. In the same month Solar Tariff also fell to Rs. 2.44. While this is a good move for the growth of Renewables, your Association has requested for continuing the Feed-in-Tariff regime for wind power projects below 25 MW. This will help not only the small and medium installations mostly for captive use, but would also ensure a balanced and inclusive growth. MNRE has subsequently sent directives to all the States that FiT should be followed for installations of less than 25 MW.

COST OF POLLUTION:- Your Association has time and again brought to the notice of the policy makers that the tariff among the various energy mix should not be compared in isolation. If we want to effectively combat climate change, improve the general health of the members of the society, it is time that we go beyond these numbers and put a cost for the externalities.

If we add the costs for:a) defacing mother earth in the process of excavating coal; b) the pollution caused to the environment and the ground water by mining for coal;c) the cost for emissions in generating Thermal power;d) the cost for usage of water for generating Thermal power, etc. e) the cost of corrective measures to restore environment and human health standards.f) the cost of water used.

not taking into account we are using up a finite source of fossil fuel, then the cost of one unit of Thermal power will be several times the cost of generating power through Renewable Energy. Only when this concept is internalized by the policy and decision makers, will RE get the desired thrust.

We are glad that MNRE has commissioned a study on “Economic Rate of Return for various RE technologies”. According to the draft report, one unit of electricity produced from any RE source would be able to reduce pollution-based damage cost amounting to Rs. 1.07. This has to be given wide publicity and create awareness of the tangible benefits of adopting RE.

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Though wind power projects of 4,110 MW have been auctioned during the year,2017-18 installations added up to only 1,762.24 MW. This lag between the quantum of auction and the actual installations taking place on the ground need to be addressed. The evacuation issues and delay in payments have also to be taken up seriously by the Central Government with the respective State Governments to keep the momentum of increase in Renewables going.

FORECASTING:- During the year, PGCIL (Power Grid Corporation of India Ltd.) has awarded the contract for establishment of REMC (Renewable Energy Management Centre) for the Southern Region.

During the second week of June 2017, your Association got feedback from TANGEDCO that NIWE’s forecast had deviation of more than 1000 MW based on TANGEDCO’s incorrect data from field and therefore, they had resort to backdown which was in the order of 20 to 30%. Discussions were held to find out why these deviations of inadequate arrival of data from field occurred and corrective actions were taken by IWPA. As part of the exercise of improving the forecast a team comprising of officials from TANGEDCO, NIWE, Vortex and IWPA visited a few Substations in the Tirunelveli region on June 19, 2017.

Mr. Michael Davidson, a PhD scholar from MIT, USA visited IWPA and TNEB on July 05, 2017, to understand the RE integration challenges in terms of grid operations and electricity market design in the States of Gujarat and Tamil Nadu. He made a presentation on “Integrating RE in electricity markets: experiences in the US and EU”. Director Operations and other senior Engineers of TANGEDCO and TANTRANSCO were present.

TOURS:- To update themselves of developments in USA :- A team of officials from IWPA and senior officials of TANGEDCO including the CMD TANGEDCO had attended the conference on Energy Storage at San Diego, USA (ESNA 2017) and also visited NREL (National Renewable Energy Laboratory), Denver, Colorado, USA during August 08 – 11, 2017.

It was indeed encouraging when the CMD of TANGEDCO at an International Conference of large-scale integration of RE in India, held at New Delhi on September 06 to 08, 2017, publicly acknowledged the success of the Forecasting project in Tamil Nadu set up with your support.

COORDINATION COMMITTEE MEETS :- Your Association had impressed upon the senior officials at TANGEDCO to resume the monthly meetings for addressing the grievances of generators and stakeholders. This had helped resolve a number of issues expeditiously.

VISIT TO GUJARAT:- Your Association had funded and arranged a field trip to Gujarat by a delegation of TANGEDCO and NIWE engineers (November 03-04, 2017). Seven Engineers from TNEB and two officials each from NIWE and IWPA undertook the field visit to Gujarat to study the systems prevailing at the SLDC Baroda and the sub-SLDCs at Jetpur and Gandhinagar. The key takeaway of the visit was that the planning of network for wind installations in Gujarat is done in advance. Before commissioning of the wind farm, a system study is undertaken and transmission planning and periodic review meetings are organized. Consequently, no load shedding nor generation shedding is done.

MEET OF AMC PROVIDERS:- With the fall in tariff and the transition from FiT to auction, generators and turbine manufacturers, have to be proactive in finding ways and means to reduce costs. One large component of cost is the AMC cost. Your Association has taken the initiative in organizing for the first time in India an AMC Meet at Coimbatore on November 11, 2017, for AMC Service Providers. The OEMs are now willing to take multi-brand servicing.

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NREL TEAM VISITS INDIA:- As part of the knowledge sharing exercise, your Association had funded the trip of a team of Engineers from NREL (National Renewable Laboratory), Denver Colorado. The NREL is a premier institute based in Denver USA which offers consultancy and cutting-edge technology for RE integration around the world. The NREL officials had interaction with TNEB officials for five days between January 17 – 20, 2018.

WORKSHOP ON FORECASTING & RE INTEGRATION AT CHENNAI:- Your Association has successfully organized two International Workshops at Chennai on January 22 & 23, 2018. 1. Current Practices in Wind & Solar Forecasting 2. 99+ Grid Availability for RE Integration

The Workshop on Forecasting was jointly organized with NIWE and the Workshop on RE Integration was jointly organized with TNEB. More than 200 participants had benefitted. Representatives from SLDCs, RLDCs, RPCs, SERCs, MNRE, a few IPPs, wind turbine manufacturers and officials from utilities were present. The NREL team which was present during a week-long interaction with TNEB officials had also contributed significantly in both the days’ proceedings. The gist of the presentation is published in WINDPRO Journals (February & March 2018) and the entire proceedings have been uploaded in the IWPA’s website.

RESEARCH:- Your Association has joined TANGEDCO and some IPPs to fund research to Coimbatore Institute of Technology in energy output levelisation at wind mill using energy storage.

During the year we had lost one of the founders and former Chairman of your Association, Shri P R Ramasubrahmaneya Rajha.

Global Wind Power ProgressIn 2018, the annual wind energy installation was 53 GW resulting in a global cumulative wind power installation of about 539 GW. The main contributors to the new additions this year were China – 19 GW; USA – 7 GW and Germany 6 GW. There was a decline in China and USA compared to the previous year. But Germany maintained its previous year’s figure of 6 GW.

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Indian Wind Power scenarioIndia added 1.8 GW wind energy installations during 2017-18. In 2017 -18 the installation has been dismal compared to 5.3 GW additions in 2016-17. Around 0.76 GW amounting to 44% of the installations during the year was contributed by Karnataka. Andhra Pradesh & Tamil Nadu who had added 0.344 GW (20%) and 0.335 GW (19%) respectively. The cumulative total of installed capacity of WEGs in the country is in excess of 34 GW as of March 31, 2017.

Your AssociationYour Association was set up in 1996 with 21 members only. It has grown in strength over the years and has completed twenty-one years and now has 1,517 members spread all over India. Out of which 1,416 members are generating members owning and operating 14 GW. The other 101 members are wind turbine manufacturers, ancillary equipment manufacturers, service providers, institutional members and Honorary Members. Your Association is the second largest Association of wind energy stakeholders in the world after GWEA (German Wind Energy Association), Berlin. We have noticed a disturbing trend in our membership base. The small generators owning one or few wind mills are finding it uneconomical to maintain it and they are selling to large IPPs. As a result, there has been a drop in the strength of small ownership.

Your Association is dedicated to the promotion and development of wind power in India. Since its inception IWPA has worked consistently towards removing barriers to wind power development and creation of an enabling regulatory and policy environment for investments in this sector. Your Association is also working closely with regulatory agencies and several national industry bodies such as Ministry of New and Renewable Energy, Indian Renewable Energy Development Agency, National Institute of Wind Energy, Ministry of Power, Ministry of Environment and Forests, Confederation of Indian Industry, Central Electricity Regulatory Commissions, State Electricity Regulatory Commissions, State Utilities, etc. Your Association is also the part of global wind power development by joining hands with the World Wind Energy Association, Bonn, Germany.

IWPA's presence in various forumsThe Chairman of IWPA, Prof. Dr. K Kasthurirangaian works in the following positions in various forums on your behalf

• Honorary Vice President (for life), World Wind Energy Association, Bonn, Germany • Member of the RLMM Committee of the MNRE at NIWE (National Institute of Wind Energy) for approving the wind turbines for installation in India. • Grid Integration Review Committee of Government of India & USAID Advisory group• Member of the TNEB Task Force for Wind Energy Evacuation• Renewable Energy Committee of CII. National Council Member of CII• Member on CII Task Force on Wind Energy, New Delhi

Activities of various State Councils of the Association

INVESTORS’ MEET AT JAIPUR ON April 24, 2017: An Investors cum Members Meet was conducted at Jaipur on April 24, 2017 which was attended by 39 members. Shri R K Srivastawa, CEO & Wholetime Director RUVNL (Rajasthan Urja Vikas Nigam Ltd.) was the Chief Guest. Shri B K Dosi IAS, Managing Director, Rajasthan Renewable Energy Corporation Ltd. was the Guest of Honour. Shri Srivastawa thanked the IWPA members for cooperating with RUVNL and accepting 50% of the Late Payment Surcharge in settling the payment issue. He said that the Wind forecast is not up to the mark and the variation is 30% to 40%, to reduce this, utilities and investors should work together. They are interested to develop wind energy in the State. He said that evacuation problem is partly due to huge addition to wind power recently; to accommodate wind power, thermal plant PLF has been brought down. He assured that as far as wind is concerned they are not backing down without reason and requested the generators to give an accurate forecast. He said that knowledge sharing forums like Seminars, Training Classes are welcome.

Shri Dosi mentioned that tariff especially for solar is dropping drastically and if wind energy is to remain in contention that the tariff for wind should also come down even if it means a drastic reduction in the cost of wind turbines. He mentioned that balancing the variable wind energy in the system is quite challenging. He appealed to the generators to improve the accuracy of the forecasting.

Members later asked questions and clarifications for which both Shri Dosi as well as Shri Srivastawa responded. Members requested that the AKAL Substation should be developed to reduce the incidents of backing down of wind generation.

The interaction ended on a positive note with the officials assuring that they are open to the suggestions put forth by IWPA especially regarding the optimal evacuation of wind power.

INVESTORS’ MEET AT TAMIL NADU ON June 03, 2017: An Investors cum Members Meet was conducted at Coimbatore on June 03, 2017 which was attended by 75 members. IWPA Chairman Prof. Dr. K Kasthurirangaian presided over the Twenty First Annual General Meeting and welcomed the gathering. He said that growth of wind energy in India and globally is good this year. Central and State Governments now are helpful for Renewable Energy. Wind Energy has problem is all states, which we are solving one by one. We have won a case on Time Value of Money which will benefit our members. After 11 years we won the case at Supreme Court. All the benefits we are not seeking through Court. Wherever possible it is done by good will. Example is evacuation through Forecasting & Scheduling Services and better relations with TNEB. In the days to come we hope to have better evacuation of Wind Energy.

INVESTORS’ MEET AT NEW DELHI ON September 05, 2017: An Investors' cum Members' Meet was conducted at New Delhi on September 05, 2017 which was attended by 30 members. Prof. Dr. K Kasthurirangaian, Chairman of IWPA mentioned that NRC is always active under the Presidentship of Shri K R Nair and other Office Bearers. Delhi is the power centre but it has no wind mills. Wind mills are located largely in the South and West. The media in Delhi is not quite aware of the issues faced by the wind industry but the major policy decisions are taken in Delhi.

Ms. Varsha Joshi IAS, former Joint Secretary of MNRE had visited South many times and did contribute substantially for the development of the wind energy. The SLDC in Tamil Nadu have become more RE friendly. Ms. Varsha Joshi played a large role in this change in mindset of the Discoms, he said. He hoped that MNRE will help more in the future. He said that we must be prepared for sacrifices in future for the development of wind energy. Storage of energy is going to play a vital role in the future energy scenario, he added.

INVESTORS’ MEET AT HYDERABAD ON October 31, 2017: An Investors' cum Members' Meet was conducted at Hyderabad on October 31, 2017 which was attended by 44 members. Mr. Prasad, a senior official of Mytrah Energy made a presentation on forecasting & scheduling. He informed that wind energy absorption into the grid will be impossible without forecasting & scheduling in future. Though States like Tamil Nadu, etc. have already started the process, there is still scope for improving the accuracy of forecasting & scheduling. An active debate followed on the subject and the participation was good.

INVESTORS’ MEET AT MUMBAI ON December 19, 2017: An Investors cum Members Meet was conducted at Mumbai on December 19, 2017 which was attended by 35 members. Shri Vivek Pandey, Chief Manager WRLDC was the Chief Guest. Mr. Vivek Pandey, Chief Manager WRLDC made a comprehensive presentation on Grid Management He stressed on the need of every Stake Holder to work together for a sustainable development. When one works with total commitment and involvement in the welfare of a larger interest it actually comes back in some form to cater to individual interest also. He stressed on the need of nominating a nodal person for the Association who could interact more frequently with the utilities and help resolve issues and expedite matters. He suggested that cooperation and collaboration is more fruitful than confrontation and litigation.

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MEMBERS' MEET AT BENGALURU ON February 09, 2018: A Members' Meet was conducted at Bengaluru on February 09, 2018 which was attended by 35 members. Ms Jaquelin Cochran, Senior Energy Analyst, National Renewable Energy Laboratory (NREL) was the Chief Guest. Ms Jaquelin Cochran spoke about ‘Greening the Grid’ the joint program of USAID and Ministry of Power aimed at managing issues arising out of large-scale integration of wind and solar to the Indian power grid.

National Council MeetingsSeven National Council Meetings were conducted during the year to discuss the various issues at National and State level. The meetings were held at different places like Jaipur, Coimbatore, Chennai, Delhi, Hyderabad, Ahmedabad Mumbai and Bengaluru.

Issues addressed by your AssociationFollowing is the gist of the various issues for which representations and delegations were made by the State Councils

IWPA - Andhra Pradesh & Telangana State Council:

Submission to the Secretary, APERC on the petition (O.P No.1 of 2017) filed by APSPDCL & APEPDCL seeking the commission to incorporate clause 20 of Regulation 1 of 2015 of Hon’ble APERC in the tariff orders dated 01.08.2015 and 26.03.2016 passed by the Hon’ble Commission for wind power projects.

Submission to the Secretary, APERC on the petition (O.P No. 5 of 2017) filed by APSPDCL & APEPDCL seeking the commission to curtail or to limit the control period of the APERC Regulation No. 1 of 2015 up to 31.03.2017 and also to determine the tariff for WPP for the FY 2017-18 considering the market discovered price by formulating the appropriate procedure.

Submission to the CGM, APSPDCL on returning of 41 Nos of PPA’s signed by various developers and instructions to field officers not to take the JMRs until further instruction

Submission to the CMD, APTRANSCO , requesting for formulating a procedure for returning the BG submitted by wind developers towards the security deposit on achieving the project commissioning.

Submission to the secretary, MNRE , requesting him to extend the time line for reverse auction for 1000 MW ISTS connected Wind Power Projects ( Tranche II) to be conducted on 4th October , 2017.

Submission to the Principal Secretary, Energy , requesting him to release of withheld payments for the 41 Nos of consented PPA’s entered with the wind developers.

Submission to the Secretary, MNRE , requesting for suitable directions to the Government of Andhra Pradesh to adhere with policy announced, agreements entered and PPA clauses signed by AP DISCOMS with wind power developers.

Submission to the Secretary, MNRE , requesting for considering including of zone wise bidding and tariff, while issuance of guidelines for wind auction under Section No. 63 of Electricity Act, 2003.

Submission to the Scientist –C, Wind Power Division, MNRE about the details of PPA where the projects are under threat of renegotiation in the state of Andhra Pradesh and Telangana upon their request.

Submission to the Secretary, MNRE , requesting for considering amendments to the guidelines issued under section 63 of the Electricity Act dated 8.12.2017, for including of zone wise bidding.

Submission to the Secretary, Ministry of Power and The Secretary, MNRE , requesting for grant of waiver of ISTS charges and losses to all Developers / Generators as per cl . 6.4(6) of the National Tariff Policy 2016.

Submission to the Secretary, Ministry of Power and The Secretary, MNRE , requesting for determination of tariff to act as ceiling in the category as per National Tariff Policy 2016.

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Submission to the Secretary, Ministry of Power, requesting for amendment of the Order of Ministry of Power, GOI issued vide no. 23/12/2016-R&R, dated 13th Feb 2018, so as to include grant of waiver of ISTS charges and losses to all Developers / Generators ( Solar & Wind ) as per Cl. 6.4(6) of the National Tariff Policy 2016.

Submission to the Secretary, MNRE, requesting for a separate policy to promote Pump Hydro Storage to inject, integrate and balancing of Renewable Power in Power Grid.

STATUS OF RENEWABLE ENERGY POWER PROJECTS COMMISSIONED IN ANDHRA PRADESH STATE AS ON 31.03.2017

Resource Cumulative Capacity Cumulative capacity commissioned capacity commissioned during 2017-18 commissioned up to 2016-17 (in MW) (in MW) (in MW)

Wind Power 3603.32 348.10 3951.87

Solar Power (GOI) 1196.426 150.00 1346.426

Solar Power (State Policy) 684.45 117.00 801.45

Small Hydro 89.098 14.00 103.98

Biomass Based 171.25 - 171.25Biomass Energy Co-generation(Non-Bagasse) (Captive use only) 55.15 10.3 65.45

Co-Generation with Bagasse 206.95 - 206.95

Municipal Solid Waste 6.15 - 6.15

Industrial waste 40.01 - 40.01

TOTAL 6053.254 639.40 6692.654

IWPA- Gujarat State Council (GSC):

The Regulatory Commission had fixed a tariff of Rs. 4.15 but in view of the fall in tariff discovered through reverse bidding, the utility is signing PPAs if the developer is ready to accept a tariff of Rs. 3.46. A few developers have signed PPA at Rs. 3.46.

Approximately 74 MW of installations were commissioned after signing a conditional PPA by the members. The condition is that they have to agree for the discovered tariff that may result during the competitive bidding of 500 MW.

Representations were made at the MNRE meeting held on November 02, 2017 to frame guidelines for bidding to give equal opportunity to all states.

IWPA – Karnataka State Council (KSC):

Comments submitted onKERC Discussion paperon Revision of Generic tariff for wind energy

Comments submitted on KERC Discussion paper on Wheeling& Banking charges

Submissions made to KERC proposal to levy transmission charges on R E projects

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Represented to MNRE against KERC Order mandating all procurement by distribution licensees only through competitive reverse bidding.

Took up implementation issues of Forecasting & Scheduling with KERC and SLDC Represented to SLDC regarding DSM Charges Comments submitted on KERC Discussion paper on revision of generic tariff Represented to ACS Energy and Chief Secretary for reducing exorbitant Time Extension Fee Represented to Principal Secretary Panchayat Raj and Chief Secretary and got the Panchayat Tax reduced to a

reasonable level. Took up the delay in clearance of files in government departments with ACS Energy. Submitted letter to CS seeking exemption from conversion of agricultural land under Sec 109 of Karnataka Land

Reforms Act Represented to Revenue Secretary against GO restricting C & D class land to govt projects only. Represented to KERC againstrestriction of Banking period and enhancement of Wheeling charges Represented to Chairman KREDL urging the nodal agency to play a proactive role in getting clearances. Represented against non- approval of signedPPAs by KERC to MNRE. Made the Karnataka government issue direction to KERC under Sec 108 of Electricity Act to approve the already

signed PPAs Comments submitted onKERC proposal for levy of additional surcharge on Opens Access consumers Comments submitted to KERC draft amendments to RPO Regulations Took up the matter of reduction of FiT by KERC before expiry of control period with MNRE.

IWPA – Maharashtra State Council (MSC):

Civil Appeal No. 10322 of 2010 filed by MSEDCL in the Supreme Court. This pertains to the appeal made by IWPA for interest on delayed payments prior to 2006, when MSEDCL was not accepting invoices on a monthly basis as per established procedures. The delay in acceptance of invoices though raised in time by the investors was assumed by MSEDCL to be the date of submission of invoice and interest on delayed payments was calculated from the date of invoice that was accepted by MSEDCL and not when submitted by the member. Though interest was partly paid for the delayed payments by MSEDCL the full amount of interest due to the members was with held. On an appeal made by IWPA at APTEL the payment of full interest by MSEDCL was decided in IWPA’s favour. MSEDCL preferred to appeal against the APTEL order in the Supreme Court under the above civil appeal. They were required to deposit Rs.5.53 crore which was the aggregate amount of interest payable as per their own estimate. The matter is still pending in the Supreme Court and may take quite some time before the matter is settled.

Civil Appeal 5708 of 2015 filed by MSEDCL in the Supreme Court. This matter pertains to an old issue where MSEDCL denied open access to consumers sourcing conventional/ wind power from multiple generators. This was contested by IWPA as well as a Solar Power Association at MERC and subsequently at APTEL. The order passed by APTEL was in favour of the Renewable Energy Associations. However MSEDCL has not accepted the APTEL order and filed a civil appeal in Supreme Court. A number of hearings have already taken place and the next hearing is scheduled for 22-01-2018. However, the APTEL order continues to be in force if and until the Supreme Court gives a negative verdict. Members have therefore enjoyed the benefit of supplying power to their consumers who also source power from conventional or other sources.

Civil appeal No. 1578 of 2017 filed by MSEDCL in the Supreme Court. This item refers to the petition originally filed by our Association to MERC regarding non-signing of PPA during 2013-14. On our representation MSEDCL later agreed to sign the PPA but with 2 contentious clauses of right of first refusal for extension of the PPA after

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the 13 year term and effecting payment against generation proceeds at their convenience without any liability for interest payment on the delay in payment of Members’ dues. Our appeal was disposed of by both MERC and APTEL in our favour. But MSEDCL has preferred to approach the Supreme Court to contest the order of APTEL.

Petition to CERC on retrospective issuance of REC. MSEDCL had been delaying granting of open access during 2015-16 as well as 2016-17. The open access was finally issued after representation to MERC after a delay of 6 to 12 months. Though credit for the units generated from April on the financial year was retrospectively given to the open access consumers, applications for REC issuances could be made only 8 - 12 months after the generation month. Under REC regulations applications made 6 months after the generation month could not be entertained by the central agency and the REC issuance was denied to such open access generators. IWPA approached CERC with a petition for retrospective issuance of REC since the delay in the application was outside the control of the generator. This was caused by an illegal denial of open access by the concerned utility. Our petition for the year 2015-16 was disposed of in our favour and NLDC was asked to issue RECs from the beginning of the financial year irrespective of the delay in submission of the application. Our petition for the year 2016-17 is under consideration by CERC. Final hearing may be held within 1 to 2 months.

Payments to generator from the distribution company MSEDLC had been inordinately delayed by as much as 1 to 3 years. In some cases mainly investments by IPPs MSEDCL had raised disputes over signing of the PPAs and power was fed into the grid for 2 to 3 years without receiving any payment. The normal payments where PPAs were already in place were also delayed to the extent of 8-10 months. A representation was made to MSEDCL and the issue taken up at highest levels of the government for expeditious payment of all outstanding dues. Your association along with other wind power association had a series of meetings at the highest levels in MSEDCL as well as Ministry of Renewable Energy. The final outcome was a satisfactory resolution of our grievances and payment was received for the generation month up to the generation month of March 2017 by 30-09-2017.

The Government is contemplating on a State bid of 500 MW with a cap of Rs. 3/-. This matter is taken up with Secretary MNRE that the cap should not be mentioned in the bidding since it restricts the freedom in price discovery.

IWPA – Northern Regional Council (NRC):

Obtained a stay from Supreme Court for reduction in REC prices and filed a petition against the APTEL order.

Submitted suggestions for ‘Repowering’ to MNRE. On IWPA’s request, MNRE has agreed to cover the cost of augmentation of the grid due to ‘Repowering’. The matter is being followed up with MNRE. IWPA is trying to put utilities and MNRE together for discussions.

The policy for Wind-Solar Hybrid has been announced by MNRE.

NRC has filed 17 petitions for implementation of REC.

IWPA – Rajasthan State Council (RSC):

The payment by Discoms was cleared with an interest of 7.5%.

Members who have given their consent for receiving only 50% of the late payment surcharge for the arrears, the Discoms have cleared the dues up to date. 95% of the members have availed of this facility.

The backing down had resulted in an estimated loss of 5% to the generators. Representations were made for maximum evacuation.

Representations were made for a favourable wind policy in Rajasthan.

Rajasthan is likely to come out with a bidding of 500 MW at State level where installation of wind mills at Rajasthan only will be considered.

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IWPA – Tamil Nadu: Members had agreed and pledged their support for TANGEDCO’s AMR (Automated Meter Reading) Project.

The evacuation was excellent due to the implementation of forecasting and scheduling project and 2 billion units was evacuated during April to June 2018 which was one and half times more than the corresponding period of the previous year.

The National Council decided to file a writ at the High Court of Madras to direct the TNERC to fix the revised tariff based on Time Value of Money. In response to our writ, the High Court of Madras has given a judgment directing TNERC to re-determine the tariff within two months as per APTEL’s order.

As TANGEDCO is not permitting change over from sale to board to captive use, the National Council decided to challenge this with a writ at High Court of Madras.

Representation was made to MNRE / SEBs to exempt compliance of LVRT for KW class wind turbines.

A meeting was organized with MNRE officials on September 04, 2017. Difficulties experienced by different states viz. poor evacuation; delay in payment; dishonoring PPAs; reduction of tariff for wind energy sold were presented at the meeting.

Execution petition was filed at High Court of Madras for interest payment at 10%.

IWPA funded for the Research Project by Coimbatore Institute of Technology in collaboration with Directorate of Science & Technology, Government of India and University of California, USA. This project is to develop windmill with levelized output using energy storage project by which the wind energy will be made to give a steady output by suitable storage arrangement.

As 30% to 35% of wind energy produced in Tamil Nadu will be banked for subsequent adjustment and, therefore, all efforts are taken to ensure that Banking has to be retained.

IWPA facilitated a team of TNEB Engineers and officials of NIWE for a field trip to Gujarat to enable them to learn how Gujarat is absorbing the entire wind energy into the grid without backing down.

As there was disparity in payments made by Udumalpet and Tirunelveli circles, a representation was made at the task force meeting on January 05, 2018 at TNEB.

TNEB has been apprised of the importance of RPO compliance. If TNEB consents to the arrangement of RPO, then the Association would make a counter request to TNEB to accord “Must Run” status of wind energy and continue the Banking facility.

A representation has been made to TNEB to permit “Sale to Board” installation against Feed-in-tariff for installations less than 25 MW.

Submitted comments to Central Electricity Authority on ensuring electrical safety in wind farms.

Requested through letter to CMD TNEB to revise the TANGEDCO’s circular on clarification for verification of norms of captive generating plants for wheeling of wind energy.

Submitted comments to Central Electricity Regulatory Commission on Staff Paper on Introduction of Electricity Storage System in India.

Submitted letter to the Chief Engineer NCES TANGEDCO requesting to complete the AMR project at an early date.

Submitted comments / suggestions to MNRE on MNRE draft guidelines for procurement of wind power through bidding process.

Submitted letter to CMD TNEB requesting to simplify allocation of energy generated from WEG - not complicate compliance.

Submitted letter to the Director General NIWE requesting for scaling up forecasting accuracy. Submitted comments to TNERC on draft TNERC amendment to supply code.

15


Submitted comments to TNERC on draft TNERC (Terms and Conditions for Determination of Tariff) Regulations, 2005.

Sent comments to CE NCES TNEB on Discrepancies in the working instructions issued by CE NCES. By letter to CMD TNEB requested to avoid backing out of wind energy. Written letter to the Secretary TNERC requesting to issue orders on pooled cost of power purchase payable by

TANGEDCO for the years 2016-17 and 2017-18 under TNERC (Renewable Energy Purchase Obligation) Regulations, 2010.

Submitted letter to the Secretary MNRE requesting norms for Repowering of Wind Farms. Submitted comments to TNERC on SLDC petition for determination of ARR and SLDC charges. Representation made to Ministry of Power issues pertaining to open access. Submitted letter to Gujarat Urja Vikas Nigam Ltd. on new wind energy bid guidelines issued by MNRE. Emailed comments to TNERC on draft TNERC (Forecasting, Scheduling & Deviation Settlement and related

matters for Solar and Wind Generation) Regulations, 2017. Appealed in letter to CMD TNEB on encashment of unutilized banked energy – kept in abeyance for years

2014-15, 2015-16 & 2016-17 by TANGEDCO linking it to verification of captive norms. Submitted comments to TNERC on consultative paper on wind energy tariff and allied issues.

Future prospectsWind energy is pollution-free, has no fuel cost and does not require water at all. In a situation where water scarcity is real and it is estimated by Niti Aayog that by 2030, the demand for water in India will be double the available supply. In such a scenario the importance of wind power gets accentuated. Government of India has done an excellent job in bringing down the price of Renewables to match or compete with the cost of energy generated through conventional sources. The following measures need to be in place if we are to proceed in the right direction and achieve the target set by the Government.

The Forecasting techniques for wind and solar should be taken to the next level to improve its accuracy. Right now, NIWE is using the Statistical and Physical model with a hybrid of these two techniques. It is time that the Government encourages NIWE in collaborating with entities that are specialized in AI (Artificial Intelligence), Deep Learning, Machine Learning, etc.

To implement AI and other latest algorithm, data from field flow should be near perfect. The Government should encourage, assist and give rewards to States that sets up metering infrastructure and runs it to ensure the flow of comprehensive and real-time data which is crucial for having a robust and reliable forecasting mechanism.

To set up urgently, balancing / spinning reserves, and Megawatt-scale storage facilities. MNRE could come up with appropriate strategies.

The Repowering policy should be relooked. Central Government should as a policy to come forward to meet the cost of additional infrastructure required from National clean energy fund. Detailed instructions to be given so that the States can have uniform policies and procedures for effective implementation.

The Wind Solar hybrid policy should be made implementable as early as possible. SECI should be renamed as RECI (Renewable Energy Corporation of India). Instead of starting another

organization to cater to wind energy development on the lines of Solar, SECI could be given the responsibility of both wind and solar. The mandate of the SECI has recently been broadened to cover the entire renewable energy domain. Since the basic techniques for Forecasting of Wind and Solar are similar, this Corporation viz. RECI & Power grid should facilitate and accelerate the process of NIWE having a Center of Excellence in Forecasting. This organization should help in drafting a suitable RE Law for the country. Presently the regulations appear fine and dandy but is not implementable because of certain clauses that sneak in which dilute the entire purpose and

16

intent of the regulation. RECI should keep its antenna up and look for such dilutions which indeed put spokes in the efficacy of Regulations. RECI could also ensure that Wind and Solar energy to be used when building the charging infrastructure for EVs (Electric Vehicles). Today precious clean green energy continues to be backed down and this could be set right.

Passing of a Renewable Energy Law. There are some who are of the opinion that the RE Law would be in conflict with the existing Electricity Act which is not correct. We should learn lessons from China. Today China is a leader in Renewables and this is largely due to the RE Law it has enacted. It is high time that India passes a law exclusively for promoting RE. This law will take care of a many aspects like making RPO mandatory, etc. and would act as a catalyst for quickening the adoption of Renewables in the country.

We are yet to harness off-shore potential. India could benefit from the immense wind energy potential for a sustainable source of electricity generation. This could be realized with proper Regulations and RE Law.

Stefan Gsänger, WWEA Secretary General: “The general, robust growth of wind power around the world which goes hand in hand with further geographic diversification is very encouraging. New world regions such as Latin America and most recently also Africa are playing an important role in this dynamic development. Obviously, many governments have understood that wind power brings great benefits to their societies, as it is emission-free, cheap, domestic and accessible to all and offers a very attractive pathway to achieving the Paris agreement. However, signs of weakness in particular in Europe are a matter of concern. The European Union and its member states should urgently reinforce their efforts to deploy wind power as part of an overall renewable energy strategy and to work out a roadmap for a 100% renewable energy future.”

Thanks Giving:- The Association expresses its sincere gratitude to all its members for their continued support. It would have not been possible at all to conduct various events but for the active support of the members.

The Association would also like to thank the Hon’ble Minister Shri R K Singh, Shri Anand Kumar, IAS, Secretary and Shri Bhanu Pratap Yadav, Joint Secretary and other officials of the Ministry of New and Renewable Energy, Ministry of Power and Ministry of Environment and Forests, Chairman of various State Electricity Boards, Confederation of Indian Industry, Tamil Nadu Energy Development Agency, Karnataka Renewable Energy Development Ltd, Non-Conventional Energy Development Council of Andhra Pradesh& Telangana, Gujarat Energy development agency, Rajasthan Renewable Energy Corporation Ltd., and other such State Government Bodies, who were helpful and provided guidance from time to time. The Association would like to thank the help and guidance of Dr. K Balaraman Director-General NIWE,Mr.K.Boopathy,Mr.Sajan Antony Mathew, Mr.A.G.Rangaraj and all those in wind forecasting department.

The Association also thanks CERC and the various State Electricity Regulatory Commissions for coming out with comprehensive orders on renewable energy procurement and allied issues which facilitates growth of the wind power sector in the country. IWPA is grateful to SRPC, SRLDC, WRLDC, NRLDC, POSOCO, Director (Operation) & SE (REMC) & all personnel of SLDC of TNEB who were instrumental in absorbing most of the wind generation. Thanks are due to the press and media who have been supportive in giving coverage of the various issues and problems faced by our members.

The Association takes this opportunity to express its gratitude to the various authors who had contributed articles for the monthly magazine and the wind turbine manufacturers who had extended their advertisement support for the magazine and for sponsoring various events. Thanks also to the expert speakers in the Workshops and Conferences arranged by IWPA. Your Association gratefully acknowledges the support of sister associations viz. SIMA, TASMA, CODISSIA, IWTMA & the like, ancillary equipment manufacturers, service providers, members of the staff of our Association.


17

The Association records its appreciation for the services rendered by Shri S V Arumugam, Vice Chairman IWPA for the development of IWPA during 1998 to 2017 and till date.

Special thanks to Dr. M Sai Kumar IAS CMD TANGEDCO for the new record levels of evacuation in Tamil Nadu which has set a high standard for other wind States to follow.

Our thanks to one and all who have supported and guided IWPA.Chetan Mehra

Honorary SecretaryPlace : Chennai Date : August 04, 2018

18

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF M/s. INDIAN WIND POWER ASSOCIATION

Report on the Financial Statements

We have audited the accompanying financial statements of M/s. INDIAN WIND POWER ASSOCIATION, which comprise the

Balance Sheet as at March 31, 2018, and the Income and Expenditure Account and Cash Flow Statement for the year then

ended, and a summary of significant accounting policies and other explanatory information.

Association’s Responsibility for the Financial Statements

Association is responsible for the preparation of these financial statements that gives a true and fair view of the financial

position, financial performance and cash flows of the Association in accordance with accounting principles generally

accepted in India, including the Accounting Standards issued by the Institute of Chartered Accountants of India. This

responsibility also includes maintenance of adequate accounting records for safeguarding the assets of the association and

for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies;

making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of

adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the

accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view

and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in

accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards

require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about

whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the Association’s preparation and fair presentation of the financial statements in order

to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on

whether the association has in place an adequate internal financial control system over financial reporting and the operating

effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of the accounting estimates made by Association, as well as evaluating the overall presentation of the

financial statements.

19


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial

statements give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of

affairs of the association as at March 31, 2018, and its surplus and its cash flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements

Further, we report that:

a. we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary

for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Association, so far as it appears from

our examination of those books;

c. the Balance Sheet, the Income and Expenditure Account and Cash Flow Statement dealt with by this Report are in

agreement with the books of account;

d. in our opinion, the Balance Sheet, Income and Expenditure Account and Cash Flow Statement comply with the

Accounting Standards issued by the Institute of Chartered Accountants of India.

For N.A. JAYARAMAN & CO. Chartered Accountants FRN 001310S

(R. PALANIAPPAN) ProprietorPlace: Jaipur Membership No. 205112Date : 20.06.2018

20

INDIAN WIND POWER ASSOCIATION - CHENNAIBALANCE SHEET AS AT 31st MARCH 2018

As at As at SOURCES OF FUNDS SCHEDULES 31.03.2018 31.03.2017 ` `

General Fund I 8,04,69,171 7,17,28,959Subscription and Other Advances II 2,30,66,955 1,67,38,682Sundry Payable 45,48,254 47,73,311Outstanding Expenses 6,29,383 5,25,080

Total 10,87,13,763 9,37,66,032

APPLICATION OF FUNDS

Fixed Assets III 4,10,89,115 4,17,03,351Advances and Deposits IV 5,08,11,346 3,66,68,185Interest Accrued 4,30,753 2,98,656Subscription and Tariff Receivables V 32,86,957 51,73,067Tax Deducted at Source 83,70,010 50,93,306Cash and Bank Balances VI 47,25,582 48,29,467

Total 10,87,13,763 9,37,66,032

Significant Accounting Policies VII

As per our report of even date annexed

For N.A.JAYARAMAN & COChartered Accountants

FRN.:001310S

R. PALANIAPPANProprietorM.No.205112

Place : JaipurDate : 20.06.2018

Prof. Dr. K KasthoorirangaianChairman

National Council Members

21




As per our report of even date annexed

For N.A.JAYARAMAN & COChartered Accountants

FRN.:001310S



INDIAN WIND POWER ASSOCIATION - CHENNAIIncome and Expenditure Account for the year ended 31st March 2018

31.03.2018 31.03.2017 ` ` INCOME Admission Fees 2,36,000 5,34,000 Subscription 1,41,45,996 1,21,38,814 Interest 40,12,754 27,24,999 Journal Income 12,68,127 21,60,000 Miscellaneous Income 695 3,410 Rent 13,25,172 12,29,172

Total 2,09,88,744 1,87,90,395

EXPENDITURE Rent 60,000 60,000 Salaries and Allowances 47,51,800 41,49,950 Travelling and Conveyance 55,689 2,26,577 Printing and Stationery 42,399 71,434 Postage and Telephone 2,16,694 2,12,897 General Expenses 8,72,709 10,96,783 Audit Fees 1,25,000 1,10,000 AGM Expenses 4,93,740 4,69,128 Seminar and Meeting Expenses 30,30,731 19,52,698 Journal Expenses 14,83,996 15,61,475 Consultancy Fees --- 15,000 Depreciation 11,15,774 11,22,510 Excess of Income Over Expenditure 87,40,212 77,41,943

Total 2,09,88,744 1,87,90,395

22

INDIAN WIND POWER ASSOCIATION - CHENNAICASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018

2017 - 2018 2016 - 2017 ` `

A. CASH FLOW FROM OPERATING ACTIVITIESExcess of Income Over Expenditure 87,40,212 77,41,943

Adjustments for:

Depreciation 11,15,774 11,22,510

Interest Received (40,12,754) (27,24,999)

Operating Profit Before Working Capital Changes 58,43,232 61,39,454

Adjustments for:

Subscription & Other Advances 63,28,273 67,63,081

Outstanding Expenses & Sundry Payable (1,20,754) 5,01,991

Advances & Deposits (1,41,43,161) (1,24,74,978)

Other Receivables (34,08,801) (22,33,721)

Subscription & Tariff Receivables 18,86,110 (23,48,597)

Cash (used in) / Generated from Operations (36,15,101) (36,52,770)

Income Tax Paid -- --

Net Cash (used in) / Generated from Operating Activity A (36,15,101) (36,52,770)B. CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets (5,01,538) (1,56,63,872)

Interest Received 40,12,754 27,24,999

Net Cash (used in) / from Investing Activities B 35,11,216 (1,29,38,873)

C. CASH FLOW FROM FINANCING ACTIVITIESNet Cash from / (used) in Financing Activities C -- --Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) (1,03,885) (1,65,91,643)Opening balance of Cash and Cash Equivalents D 48,29,467 2,14,21,110Closing balance of Cash and Cash Equivalents E 47,25,582 48,29,467Net Increase / (Decrease) in Cash and Cash Equivalents (E-D) (1,03,885) (1,65,91,643)

As per our report of even date annexedFor N.A.JAYARAMAN & COChartered AccountantsFRN.:001310S





23


INDIAN WIND POWER ASSOCIATION - CHENNAISCHEDULES TO THE BALANCE SHEET

As at As at 31.03.2018 31.03.2017SCHEDULE - I ` `

GENERAL FUND:(A) FREE RESERVE :Opening Balance 7,17,28,959 6,39,87,016Add: For the Year 25,34,076 77,41,943 7,42,63,035 7,17,28,959(B) ACCUMULATED RESERVE :For the Year 62,06,136 - Balance 8,04,69,171 7,17,28,959

SCHEDULE - IISUBSCRIPTION AND OTHER ADVANCES:Excess Subscription Refundable 2,73,940 1,77,792Awards For Best Performing Wind Farms 10,45,112 10,45,112Advance Legal Fees 5,88,360 2,37,995Forecasting Evacaution Fee 2,01,59,086 1,43,77,326Other Advances 7,04,207 6,04,207Rental Advance 2,96,250 2,96,250

Total 2,30,66,955 1,67,38,682

SCHEDULE - IVADVANCES AND DEPOSITS:Lakshmi Vilas Bank - FD 1,30,00,000 1,30,00,000Citi Union Bank - FD 25,00,000 25,00,000Tamilnad Mercantile Bank - FD 1,41,00,000 1,41,00,000Vijaya Bank - FD 22,11,346 20,68,185Stock Holding Corporation of India Ltd. -FD 1,90,00,000 50,00,000

Total 5,08,11,346 3,66,68,185

24

INDIAN WIND POWER ASSOCIATION - CHENNAISCHEDULES TO THE BALANCE SHEET

As at As at 31.03.2018 31.03.2017 ` `

SCHEDULE - V

SUBSCRIPTION AND TARIFF RECEIVABLE :Advertisement Tariff Receivable 24,43,392 26,04,750Sundry Receivables 2,41,717 2,30,183GST Input 6,01,848 23,38,134

Total 32,86,957 51,73,067

SCHEDULE - VI

CASH AND BANK BALANCES :Cash Balance 1,51,372 2,03,385Bank Balances 45,74,210 46,26,082

Total 47,25,582 48,29,467

25


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26

INDIAN WIND POWER ASSOCIATIONSCHEDULES FORMING PART OF ACCOUNTS

FOR THE YEAR ENDED 31st MARCH 2018

SCHEDULE - VII:

Summary of signi�cant accounting policies

1) Accounting ConventionThe financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India to comply with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements are prepared under the historical cost convention on going concern and on accrual basis unless otherwise stated. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2) Use of EstimatesThe presentation of financial Statements in accordance with Generally Accepted Accounting Principles in India requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year.

3) Cash Flow StatementCash flows are reported using indirect method, whereby net surplus is adjusted for the effects of transactions of non - cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the association are segregated based on the available information.

4) InvestmentsInvestments in the form of deposits with banks and financial institutions. The investments are available for use freely at the discretion of the Association.

5) Revenue RecognitionInterest on Fixed Deposits is recognized using time proportion basis taking into account the amount outstanding and the rates applicable.

6) Fixed Assets and Depreciation i. Fixed assets are stated at cost less depreciation.ii. The Bharat Hotels Limited is the licensee for Leasehold Properties/Rights to use by virtue of a licence granted in its favour for a period of 99 years with effect from 11.03.1981 in terms of the Licence Deed entered into between New Delhi Municipal Committee and the Bharat Hotels Limited. The cost of Leasehold Properties are amortised over the remaining lease period. Depreciation on all other fixed assets are provided on a written down value method as per the rates prescribed by the Income Tax Act.

27


7) Foreign Currency TransactionTransactions in Foreign currency are accounted at the exchange rates prevailing at the time of transaction. Monetary assets and liabilities in foreign currencies are accounted at the rates of exchange prevailing at the balance sheet date. Exchange difference arising on the settlement of monetary items are included in the statement of income and expenditure.

8) Impairment of assetsThe carrying value of assets at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the statement of income and expenditure.

9) Cash and cash equivalentsCash and cash equivalents comprise of cash on hand and balance in current and savings deposits accounts with banks.

OTHER DISCLOSURES:

1) Out of ` 12,68,127/- being the Advertisement Income for the financial year 2017-2018, some members have not paid their dues throughout the year amounting to ` 3,17,475/-. But Advertisement being published every month.

2) The Income Tax Assessment has been completed upto Assessment Year 2014-2015. The Association has preferred an appeal before the Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13, against the order of the Assessing Officer. The Commissioner of Income Tax (Appeals) has allowed appeal and passed the order in favour of the Association.


(R. PALANIAPPAN) Proprietor Membership No. 205112 Place : JaipurDate : 20.06.2018

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7) Foreign Currency TransactionTransactions in Foreign currency are accounted at the exchange rates prevailing at the time of transaction. Monetary assets and liabilities in foreign currencies are accounted at the rates of exchange prevailing at the balance sheet date. Exchange difference arising on the settlement of monetary items are included in the statement of income and expenditure.

8) Impairment of assetsThe carrying value of assets at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the statement of income and expenditure.

9) Cash and cash equivalentsCash and cash equivalents comprise of cash on hand and balance in current and savings deposits accounts with banks.

OTHER DISCLOSURES:

1) Out of ` 12,68,127/- being the Advertisement Income for the financial year 2017-2018, some members have not paid their dues throughout the year amounting to ` 3,17,475/-. But Advertisement being published every month.

2) The Income Tax Assessment has been completed upto Assessment Year 2014-2015. The Association has preferred an appeal before the Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13, against the order of the Assessing Officer. The Commissioner of Income Tax (Appeals) has allowed appeal and passed the order in favour of the Association.


(R. PALANIAPPAN) Proprietor Membership No. 205112 Place : JaipurDate : 20.06.2018

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Documents

Annual Report 2017 - 2018 · 2019-07-09 · Shri Jigar Shah Treasurer 8-9, Shivalik Plaza, Opp. AMA IIM Road, Ambawadi Ahmedabad 380015 Phone : 079-26303064, 26303074 Email : [email protected]