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A P R I L 2 0 1 1 | SEARCH - THE INDUSTRIAL SOURCEBOOK 23

EDITORIAL

Archana [email protected]

ower may be the chosen word for the season as it more than often finds itself in every heated conversation, thanks to the election mode that some states are in and majorly, due to the rise in the mercury levels. And anything with power be it the presence, the absence or quality, it does get tough to fathom the boundaries of the electricity generating power or the power generated due to elections. Such is power play, but the

ultimate power is to empower, which the sector as well as the states need to get right.Letting the power attached to the elections aside, power as an enabling sector is what

has caught our attention for this issue apart from other topics covered. And this attention on power as a sector is a well deserved one, for the promise it holds, for the prospects it can enhance and for the profits it can generate for the entire nation.

And it is not as if the criticality of interests and investments that the sector requires has missed the attention of the industry and the investors going by the kind of investment that this sector has generated. Like the 10,000 crore of investment that is pledged by the joint venture between BHEL, NTPC and Indira Gandhi Centre for Atomic Research to set up an 800-MW coal-fired power project based on a more efficient, advanced and ultra-supercritical thermal power technology. The venture aims to cut the rising costs of imports for energy needs.

There are many more investments spread far and wide covering the length and breadth of India. So, why is our country still power stressed? As experts point out and as you will be reading it in detail in this issue, power generation in India is not an isolated aspect in the national power scenario. It faces challenges not only due to factors within the generating fraternity, but also due to the two other components transmission and distribution.

The industry focus of this issue is positioned to fetch you all the answers, among others, as to how the biggest challenge facing the power sector in India is the mismatch between generation and transmission. It is not that we are not producing enough; but the success lies in the final consumer getting all this generated power, which unfortunately, is not happening. As is rightly said, every unit saved is equal to two units of power generated.

This issue gathers all the more significance as it talks about the telecom equipment sector, another major power pillar, which will perch India to a strategic and strong position in the global marketplace.

India has been able to drive innovation when it comes to software services in the telecom space. But the results are not so encouraging when it comes to developing telecom equipment. To become an important player in the global telecom space, India has to create a synergetic telecom ecosystem and build globally competitive product companies across the telecom value chain. Read more about the opportunities that this sector will ring in Happy reading!

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24 SEARCH - THE INDUSTRIAL SOURCEBOOK | A P R I L 2 0 1 1

Union Budget 2011-12 | Pg 72

KEY TAKEAWAYS

EmpoweringIndustrial Growth

Union Budget 2011 was all about fiscal consolidation to rein in fiscal deficit. It was a roadmap for the implementation of Goods and Service Tax and a rationalisation of taxes on both corporate as well as personal tax levels. All in all, the Budget was a balanced one. It not only touched upon serious issues such as rising food & crude prices, but also focussed on growth and reforms. A sneak peek into the key takeaways...

CONTENTS

23 EDITORIAL Power Play

SPOTLIGHT124 Essar Coal Bed Methane (CBM) Site, Durgapur Clean Better Modern Fuel Pioneer

START-UP STRATEGIES140 CTech Labs On An Eco Route To Success

SHIPBUILDING MILESTONES132 Worlds Largest Heavy Lift Vessel MV Svenja: A Notch Above The World

NEWS, VIEWS & ANALYSIS36 Latest Happenings In The World Of Manufacturing

46 OPEN PAGE: OPINIONS, ILLUSTRATIONS & INVESTMENTS

MANUFACTURING ZONE

BUDGET BYTESRevisiting India Growth Story

86

This Is The Right Time To Wake Up And Start Thinking DifferentlyGK PILLAI, CMD, Heavy Engineering Corporation (HEC)

PPg 116g 116

VIEW FROM THE TOP

SHOP FLOOR INNOVATIONS144 Workplace Ergonomics The Ergonomics Of Innovation150 Klber Lubrication India

Using Innovation To Tackle Space Constraints


PRODUCT UPDATE

CONTENTSSPECIALS IN THIS ISSUE

248 PRODUCT INDEX Alphabetical Listing Of Products Presented In The Issue

258 ADVERTISERS LIST Advertisers List In Chronological Order

PRODUCT UPDATE194 New Launches Latest Products In The Offing198 Power Transmission & Distribution Latest Products In Power Transmission & Distribution206 Telecom Equipment Latest Products In Telecom Equipment212 Hannover Messe Latest Products In Hannover Messe218 Madhya Pradesh Latest Products In Madhya Pradesh222 General Products Rolling Out The Best-in-class242 International Products Showcasing Product In A Global Arena

CURTAIN RAISER180 Hannover Messe 2011 Of Global Synergies & Fortunes184 Blech India 2011 Invigorating The Indian Sheetmetal Industry186 Diemould India South 2011 Moulding Success In A Buoyant Economy189 Automation Expo 2011 One-stop Source For Automation Solutions

REPORT190 SME India Outlook 2011 Lending SMEs A Tech Edge

INDUSTRY UPDATEPower Generation, Transmission & Distribution

50 Power Generation Real Challenges Hindering Lofty

Dreams

54 Transmission And Distribution Tackling The Power Crisis60 Green Power Clean Coal Technology For

Green Power

68 Investments Ahoy! The Power Boosters

INSIGHTS & OUTLOOKTelecom Equipment

Interview

94 Indian Manufacturers Are All Set To Take Up The Challenge

NK Goyal, President, Communications and Manufacturing Association of India (CMAI)

96 Telecommunication Equipment Enhancing Manufacturing

Competency

104 Telecommunication Equipment Manufacturing

India Calling: Time To Ring In A New Era

110 Telecom Manufacturing Superpowers Whats Stopping India From

Outperforming China?

TRADE SHOW TRACKER192 Spruced Up Events & Engagements Calendar

INVESTMENT DESTINATIONMadhya Pradesh

160 Madhya Pradesh Investments Abound Of Prospects & Possibilities

164 Industrial Landscape Of MP Capturing Opportunities & Keeping Up Promises

170 Ancillary Advantage Steering The Growth Wheels

Interviews

176 Government Should Develop Innovative Marketing Campaigns To Build Brand MP

Ashok Jaiswal, President, Association of Industries, Madhya Pradesh

178 The States Central Location Offers Immense Advantages To Investors

Gautam Kothari, President, Pithampur Audhyogik Sangathan

SME ADVANTAGE154 Financing Trends Capacity Building Through Innovative Financing


NEWS, VIEWS & ANALYSISNEWS, VIEWS & ANALYSISL A T E S T H A P P E N I N G S I N T H E W O R L D O F M A N U F A C T U R I N G

BHEL GETS `1,445 CR CONTRACT FROM

APGENCO

WIND ENERGY GAMESA

ANNOUNCES 60 MILLION INDIA

EXPANSION

`1,000 CRORE INNOVATION FUND IN THREE MONTHS

The National Innovation Council (NIC) will create a `1,000 crore national innovation fund in two to three months to provide venture capital for early-stage innovations, according to Arun Maira, Member, NIC & the Planning Commission.

The fund would be used to support new ideas with a potential to bridge developmental gaps in health, education, urban & rural infrastructure, transport and sanitation, Maira said.

The 17-member NIC headed by Sam Pitroda, Adviser to the Prime Minister, was set up in August last year, following the mid-term appraisal of the 11th Five Year Plan that found slow progress in social indicators as compared with the GDP growth rate.

The council, which functions within the Prime Ministers Office, has been mandated to prepare a road map for a decade of innovation 2010-2020 and to evolve an Indian model of innovation to meet national goals.

MARUTI PLANS ITS THIRD PLANT IN

ROHTAKA high-utilisation level and robust demand is leading the countrys largest car maker Maruti to set up its third manufacturing plant at Rohtak. This plant is likely to have a capacity of six lakh units per annum.

The Rohtak plant will be spread over 600 acre, which is double the size of the Gurgaon facility that is spread over 300 acre. This fits into Marutis strategy to hike its capacity beyond 20 lakh cars per year. It is estamated that the company may invest close to `1,000 crore for setting up such kind of capacity.

Maruti currently has a capacity of 12 lakh units divided between Gurgaon and Manesar. The Rohtak facility would increase its current capacity by almost 50 per cent. Maruti already houses a R&D facility in Rohtak and a firm decision on setting up the third plant might be taken in next 10 to 12 months.

Maruti is also expanding its capacity at Manesar, which will be completed by 2012 end or early 2013. Maruti has earmarked an investment outlay of `2,000 crore for expansion of its Manesar facility.

BOSCH PLANS `13 BILLION CAPEX OVER THREE YEARS

Auto parts maker Bosch has plans of a capex of more than ` 13 billion over the next three years to meet the demands of Indias fast-growing automotive sector. Auto sales in India hit a record high in January, defying expectations of a slowdown, powered by a growing middle-class, easier access to loans and a wider choice of models.

In 2010, vehicle sales in India, one of the fastest-growing auto markets in the world, grew 31 per cent and now, auto parts makers have ambitious plans to escalate production. Bosch officials also said that its October-December net grew 33 per cent to `2.1 billion. Bosch is a leading supplier of technology and services, and has a strong presence in the country at numerous locations in diverse industry segments

JAMNA AUTO TO SET UP PLANTS IN HOSUR & CHENNAI

Auto component maker Jamna Auto recently revealed its plans to set up two new manufacturing units at Hosur and Chennai to produce parts for commercial vehicles, entailing a total investment of `80 crore. The Hosur facility is being set up to manufacture parabolic springs and the plant is expected to go onstream in December 2011, a company official said.

The new plant at Chennai will manufacture air suspension, bogey suspension and lift axles. Commercial production is expected to commence from July 2011, the official added.

Jamna Auto has gone for a major capacity expansion for parabolic springs to meet the demand of major commercial vehicle manufacturers Daimler India, Ashok Leyland, Renault-Nissan and Leyland-Nissan. Also, Tata Motors requirement of parabolic springs is being met by the companys Malanpur plant in Madhya Pradesh.

Explaining the reasons for setting up the two new plants in South India, Randeep Jauhar, CEO, Jamna Auto, said that the region has been a key region for these auto makers. As a strategic initiative, we have decided to expand our manufacturing presence in this region. It will not only enable us to gain proximity to our customers, but would also enable us to provide cost-efficient quality products, he added.

PARLIAMENT PANEL COMES DOWN ON SEZ CONCEPT

A House panel has pilloried the Special Economic Zone (SEZ) scheme, contending that its continuation in its present form needs serious reconsideration in the wake of the persistent complaints claiming that the SEZ has degenerated into a scheme to garner land at advantageous prices and obviate taxes without expected multiplier benefits.

The Public Accounts Committee (PAC) on SEZ said that its detailed examination of the scheme has revealed a number of deficiencies, which include system as well as compliance weaknesses relating to policy and procedures governing the management and functioning of SEZ units. During the course of the probe, the committee detected that out of an overall export of `7,149.23 crore made by 22 SEZ units across the country, the actual export content was only `1,999.27 crore and the rest `5,149.96 crore was related to Domestic Tariff Area (DTA) earnings. Even as the committee was apprised that the percentage of deemed exports and the DTA sales were minimal, it, nonetheless, found that the actual physical export, which augments the foreign exchange earnings was quite dismal. Hence, it urged the Commerce Ministry to restrict reckoning of deemed exports by an appropriate scale for the purpose of calculating Net Foreign Exchange Earnings (NFEs) with a view to reduce the misuse of the scheme. The committee also found that 41 SEZ units had functioned in contravention of the conditions that were stipulated in the Letter of Permission leading to considerable loss of revenue.

NEWS, VIEWS & ANALYSIS


NEWS, VIEWS & ANALYSISL A T E S T H A P P E N I N G S I N T H E W O R L D O F M A N U F A C T U R I N G

RELIANCE MAY RAISE D6 BLOCK GAS

OUTPUT IN APRILReliance Industries is likely to raise gas output from its east coast blocks to 67 million metric standard cubic metre a day (mmscmd) by April, after four more wells start production, the energy regulator Directorate General of Hydrocarbons (DGH) said. Current gas output from Reliances D6 block in the Krishna-Godavari basin stands at 53 mmscmd, said SK Srivastava, Director General, DGH.

In January, the Indian energy giant posted its highest-ever quarterly profit as refining margins surged, but concerns over the groups gas production have put a dampener on the outlook for the company for several months.

Reliance is pumping less than the 60 mmscmd it pumped last year, although the countrys DGH had said that the earlier output could rise by April, and far lower than its peak capacity of 80 mmscmd.

INDIA TO FACE HUGE COAL

SHORTAGE BY 2021-22

The government finally admitted that the country will face a huge shortfall of 269 million tonne of coal by 2021-22 as the coal producing entities have failed to keep pace with the demand as well as economic growth. In the last 8-10 years, the economy grew at a much faster pace as compared to the coal production even as Coal India registered a growth of 7-8 per cent. We are trying to adopt different technologies, which are more efficient in coal usage to meet the demand, Coal Minister Sriprakash Jaiswal said in the Lok Sabha during the Question Hour.

According to estimates, the demand for coal in 2021-22 is projected at 1,353 mt against the production assessment at 1,084 mt, leaving a shortfall of 269 mt. In view of the widening demand-supply gap of coal, the country is unlikely to become self-reliant in meeting the demand of coal indigenously in the near future, said Jaiswal. He also informed the House that several states were allocated coal blocks more than five years ago, but they are yet to begin production. Chhattisgarh was allocated nine coal blocks more than five years ago, Maharashtra was given seven blocks and Madhya Pradesh 10 blocks, he said adding that unfortunately production has not begun at any of these blocks.

In view of India producing only 10 per cent of good quality coal, it has been placed under the Open General Licence scheme so that industries such as sponge iron, steel and power producers could import good coal according to their demand.

APOLLO TYRES UPS NEW PLANT INVESTMENT TO `2,100 CRORE

Apollo Tyres is on an expansion drive. The company has recently signed a supplementary memorandum of understanding (MoU) with the Tamil Nadu Government to scale up its investment in a new plant at Oragadam near here from `1,650 crore to `2,100 crore.

Apollo Tyres had initially planned to invest only `450 crore in the new plant. However, according to the State Government, the company revised its investment plans so as to roll out 6,000 radial tyres for trucks and buses and 8,000 radial tyres for cars per day.

The supplementary MoU, incorporating the revised incentives offered by the State Government to the company, was signed by Rajeev Ranjan, Principal Secretary, Industries Department, and K Prabhakar, Chief Projects, Apollo Tyres, in the presence of Honble Deputy Chief Minister MK Stalin. A bulk of the radial tyre demand in India is met through imports.

VOLVO GEARS UP INDIA BUSINESS

WITH AUTO TRANSMISSION BUS

Volvo Buses announced the launch of a new multi-axle bus with automatic transmission, and expects to consolidate its India operations by expanding manufacturing facility and stepping up exports. Showcasing the Volvo 9400 Multi-axle bus with its patented I-shift technology, the company officials said that it has begun supplying it to South Africa and has secured repeat orders. Akash Passey, MD, Volvo Buses India, said the new multi-axle automatic transmission buses would appeal to fleet operators, as they not only enhance driving pleasure, but also help save fuel costs due to the transmission efficiency. This is sure to appeal to bulk buyers particularly those who offer inter-city transport, including to state road transport corporations.

The current manufacturing capacity has made it tough for us to meet the demand in the market. With this expansion, we would be able to step up exports, which we started last year with about five per cent, to 25 per cent. This would be mainly to South Africa and South Asia regions, he said.

TATA STEEL PLANS TO EXPAND GERMAN

AUTO UNITTata Steel Europe is planning to double the capacity of its German-based automotive service centre by installing a new slitting line expected to come up by 2012.

The new slitting line will have a capacity of 1,40,000 tonne per annum (tpa) and will take the total capacity of Service Center Gelsenkirchen GmbH in Germany from 225,000 tpa now to 365,000 tpa.

Jochen Hoefges, GM, Service Center Gelsenkirchen, in a press release issued by the company, said, Our strategy towards the automotive sector is to increase the volume and technical innovation of the products we offer. The new slitting line will raise the service centres capacity as well as its product portfolio, establishing an Automotive Centre of Excellence.

The company has earmarked an investment of 8.6 million for the expansion of its Gelsenkirchen site. This site was established in 2000 to serve the German auto market with 90 per cent of the facilitys output being supplied to the automotive industry. Tata Steel recently went into a joint venture with Japanese steel major Nippon Steel to set up a three million tpa auto-grade steel plant at its existing facility in Jamshedpur. The steel company also recently signed an agreement with New Millennium Capital Corp, a Canadian company, to develop two iron ore projects located in Labrador and Quebec. The total project cost will be worth `22,000 crore. It would be developed by a joint venture company between Tata and New Millennium Corp of which Tata is likely to hold 80 per cent. The two sites together are expected to annually produce 22 million tonne of iron ore.



GAS OUTPUT FROM RILs EAST COAST

BLOCK TO RISE 9%

MINING SECTOR FDI AT $729 MILLION

FROM APRIL 2007-DECEMBER 2010

ESSAR TO ACQUIRE MAJORITY STAKE

IN ZIMBABWE IRON AND STEEL

COMPANYEssar group has reached a deal to acquire majority stake in Zimbabwe Iron and Steel Company (ZISCO) and would invest an estimated $750 million for the revival of the African nations state-run steel maker.

A company official said, Essar Africa Holdings has reached an agreement with the Government of Zimbabwe for revival of ZISCO. While Essar did not disclose the investment amount, it is likely that they would make an initial investment of $750 million to help restart operations at the Zimbabwe firm, which had ceased operations due to capital constraints.

Last year, the Zimbabwe Government had agreed to sell its majority stake in ZISCO and even launched a public tender for the same.

As per the deal, Essar Africa Holdings and Zimbabwe Government would set up two joint venture companies that would acquire all the steel and mining related assets and liabilities of ZISCO and its subsidiaries. Essar and Zimbabwe Government would own 60 per cent and 40 per cent stake respectively in the steel JV. On the other hand, the minerals JV will be owned 80 per cent by Essar and 20 per cent by the government of Zimbabwe.

INDIA STILL LAGGARD IN PER CAPITA

MANUFACTURINGIndias level of industrialisation is very low despite it emerging as one of the top 10 manufacturers of the world, UN data shows. The countrys per capita manufactured value added a measure of income generated by the manufacturing sector per person was one-eighth of Chinas and one-sixth of Brazils in 2010, the two other developing countries in the group of top 10, according to statistics released by the United Nations Industrial Development Organisation (UNIDO).

Experts say that the data reinforces the need to increase the manufacturing sectors contribution to the GDP from 16 per cent to 25 per cent over the next decade, as announced by Honble Finance Minister Pranab Mukherjee in his budget speech, as concrete economic growth will only come from industry and not services.

India has shown an impressive annual average growth in manufacturing, second only to China, at 7.1 per cent over the last decade and has increased its share in world manufacturing from 1.1 per cent to 1.8 per cent in the period, UNIDOs statistics show. However, an increase in Indias population over the same period has taken away the shine.

COLE-PARMER HOSTED SEMINAR

FOR THE SCIENTIFIC AND PROCESS

INDUSTRYCole-Parmer, a worldwide leader with 50 years of experience in providing fluid handling solutions to the Scientific and Process Industry, hosted a multi-city seminar on Metering Pump Technology and its Advancement. The objective of seminar was to share Cole-Parmers unrivalled global expertise with the Indian scientific fraternity and help them discover how to optimise their existing process and get an inside line on upcoming technology breakthroughs and product releases.

The event witnessed the presence of the best minds from the Industry of biotech, pharmaceuticals, paint & pigments, chemical, automobile, water treatment, food & beverage, academics and research. On the occasion, Rakesh Aggarwal, Director Operations, Cole-Parmer India, said. Today industries collaborate with Cole-Parmer for their discovery, product development and scale-up. This seminar is one of the initiatives we take, to come closer to the customers and partner in their R&D and process development. The diversified content of the seminar makes the customer well versed with the latest technology and its advancement, which gives them a perfect opportunity to re-energise their existing process through leading advice from our global experts.

The seminar successfully ended with an interactive session on other fluid handling offerings/services by Cole-Parmer such as mixing, filtration and bioprocess validation.

Kirloskar Brothers (KBL) announced the manufacture of the largest horizontal split-case pump for the Indian market. The order was received from Bharat Heavy Electricals (BHEL) for the 700-MW power station of Gujarat Pipavav Power Company (GPPC), a subsidiary of the Gujarat State Petroleum Corporation (GSPC). The pump has been successfully tested at Kirloskarvadi in presence of the BHEL team. The pump is indeed a monster, weighing about 26 tonne and is more than 4 metre high. The

pump, model UPH 1200/160 M develops a flow of 7,000 litres per second at a head of 27.5 metre and will be coupled to an electric motor of 2,700 KW running at 425 RPM. Pump casing material is austenitic iron with stainless steel impeller and shaft. The pump is designed for handling sea water and complies with all specified critical requirements of the system.

It boasts of several high technology features with enhanced bearing life, minimal downtime, low maintenance costs and high

efficiency resulting in lower energy consumption and leading to lowest lifecycle cost or lowest total cost of ownership. Ravindra Pande, VP & Sector Head, KBL, said, Technological innovation has always been the key driving force for KBL. I am confident that this will strengthen KBLs leadership position and set a new benchmark for the pump industry. This is the largest horizontal split case pump that we have manufactured for an installation in India.

KBL MANUFACTURES THE LARGEST HORIZONTAL SPLIT CASE PUMP FOR CIRCULATING WATER DUTY IN A POWER PLANT IN INDIA



COUNTERFEIT AUTO PARTS COSTING GOVERNMENT

`2,200 CRORE PER ANNUM

EXPORTS JUMP 50 PER CENT TO $23.6 BN IN FEB

Indias exports went up by 49.8 per cent year-on-year to $23.6 billion in February on the back of increased demand from markets such as North America, Asia and Africa. During April-February 2010-11, the countrys merchandise shipments grew by 31.4 per cent to $208.2 billion, surpassing the target of $200 billion for the entire 2010-11 fiscal.

We have crossed the $200-billion mark. The current forecast for the year is $230-235 billion, said Commerce Secretary Rahul Khullar. In February, the imports also went up by 21.2 per cent to $31.7 billion, leaving a trade gap of $8.1 billion.

During April-February 2010-11, imports grew by 18 per cent to $305.3 billion. During the 11-month period, the trade deficit amounted to $97.1 billion. We will end up (the fiscal) closer to $350 billion imports, Khullar said.

The export sectors that performed well during April-February this fiscal include gems & jewellery, engineering, readymade garments, cotton yarn, electronics, plastics, carpets and pharmaceuticals.

The sectors, which saw the maximum imports, were petroleum & oil lubricants, gems and silver, vegetable oil, machinery and chemicals.

GLOBAL POWER DEALS GATHERING

STEAMThe global power deal market is witnessing an upward trend after the lows reached in 2009, according to PricewaterhouseCoopers (PwC). The total deal value in the power and gas utilities sectors (excluding renewables) is up 19 per cent year-on-year from $98 billion to $116 billion in 2010. Compared to the power deals transacted between 2005 and 2008, deal values remain low, but conditions are in place for a return at least to the foothills of these peaks, PwCs annual power deals review said.

The globalisation of the power sector is moving forward on a number of fronts with companies looking at gaining a larger presence in growth markets, strong international interest in infrastructure assets and signs of greater Chinese involvement. Expansion remains high on the agenda for a number of European companies as they weigh moves to step up their international presence. For example, International Power and GDF Suez have signalled that their merger will result in an initial period of rationalisation across their combined portfolio followed by expansion in key growth markets.

POWER MINISTRY REJECTS

CONDITIONAL NOD FOR ORISSA UMPP

COAL FIELDSThe Power Ministry has rejected the Environment Ministrys precondition of shelving two coal mining projects as a tradeoff for granting clearance to a third coal block of the 17,000-crore ultra mega power project at Bedabahal in Orissa.

This development would make another deferment of bidding for the 4,000-mw project inevitable. Environment Minister Jairam Ramesh has granted mining approval to the coal block on the condition that NTPC and Orissa Power Generation Corporation give up their respective coal blocks, Dulanga and Manoharpur, in the vicinity.

While NTPC will mine the Dulanga block for its various power projects, Orissa Power Generation Corporation will use coal from the Manoharpur blocks to fire its 1,320-mw project at Jharsuguda.

INDIA TO FORMULATE POLICY TO TAP SHALE GAS

India will identify areas that have the potential for shale gas or hydrocrbons trapped in sedimentary rocks and also soon formulate a policy to tap, what experts say, will become a rich global source for fuels in the years to come. Based on the geo-scientific data gathered so far during the exploration of conventional oil & gas, few on land sedimentary basins and areas in India appear to be prospective in terms of shale gas deposits, said RPN Singh Minister of State for Petroleum.

Based on the identification of prospective areas and assessment, and after formulating an appropriate policy, steps would be taken for the exploration and exploitation of shale gas resources in the country, Singh told the Lok Sabha.

He said in a written reply that a pact had been signed last November with the US, a global leader on shale gas, for joint technical studies in India, as also to share technologies and ideas on formulating a regulatory framework with safeguards.

Earlier this year, the state-run Oil and Natural Gas Corporation had made the biggest shale gas discovery in the country yet at Durgapur in West Bengal, spread over 12,000 sq km. This was the first such discovery in Asia, the company said. Among other Indian companies, Reliance Industries had acquired a 40 per cent stake for around $1.7 billion in the US-based Atlas Energys share gas assets in the eastern parts of the North American nation. It is also interested in prospecting in India. Meanwhile, some analysts expect that shale gas will greatly expand Indias energy supply.

NO PROPOSAL TO BAN CHINESE

EQUIPMENT IN POWER PROJECTS

The government recently said that at present there is no proposal to ban the use of Chinese equipment in power projects. The Central Electricity Authority informed that no specific issues related to the quality of turbine generators from foreign manufacturers have been brought out by the utilities, KC Venugopal, Minister of State for Power, told the Lok Sabha.

There were some failures with the boiler and turbine generators supplied by Chinese manufacturers to power plants in West Bengal. At the Durgapur projects, a 300-MW unit was installed by Chinas Dongfang Electric Corp and was under commercial operation since April 2008. He said that due to some accidental failure in the control system, there was starvation in turbine bearing lubricating oil system, which damaged the turbo-generator rotors. The damaged rotors have been repaired.


Factory Fundas

Mamata Banerjee,Union Minister of Railways

Rail transportation is vitally interlinked with the economic development of the country. With the economy slated to grow at a rate of 8-9 per cent, it is imperative that the Railways grow at an even faster pace. I see the Railways as an artery of this pulsating nation.

Dr D Subbarao,Governor, Reserve Bank of India

Most of the Indian banks have enough buffer capital to meet the stringent Basle-III norms when it is implemented, but they have to raise more capital in coming years.

UOTES OF THE MONTH

Robert Dudley,Chief Executive, BP Group

India is one of the fastest growing economies in the world. By allying ourselves with Reliance, we will access the most prolific gas basin in India and secure a place in the fast growing Indian gas markets, creating a genuinely distinctive BP position.

I see Union Budget 2011-12 as a transition towards a more transparent and result-oriented economic management system in India. We are taking major steps in simplifying and placing administrative procedures concerning taxation, trade & tariffs and social transfers on electronic interface, free of discretion and bureaucratic delays. This will set the tone for a newer, vibrant and efficient economy.

Pranab Mukherjee,Union Minister of Finance

Note:(i) *Includes inflows under NRI Schemes of RBI, stock swapped and

advances pending for issue of shares.(ii) Cumulative country-wise FDI equity inflows

(from April 2000 to December 2010) Annex-A.(iii) % age worked out in US$ terms & FDI inflows received through FIPB/

SIA+ RBIs Automatic Route+ acquisition of existing shares only.

Share Of Top Investing Countries FDI Equity Inflows: (Financial Year-wise):

Amount Rupees in crores (US$ in million)

Source: Department of Industrial Policy & Promotion,Ministry of Commerce and Industry, Govt. of India

Note: Cumulative Sector- wise FDI equity inflows (from April 2000 to December 2010) - Annex-B. * Earlier data has been revised, due to some figures interchange with the respective sectors.

Sectors Attracting Highest FDI Equity Inflows: (Financial Year-wise):

Amount Rupees in crores (US$ in million)

Financial Year 2010-11 (April-March )

Amount of FDI inflows*(In ` Cr) (In US$ mn)

April 2010 9,697 2,179May 2010 10,135 2,213June 2010 6,429 1,380July 2010 8,359 1,785August 2010 6,196 1,330September 2010 9,754 2,118October 2010 6,185 1,392November 2010 7,328 1,628December 2010 9,094 2,0142010-11 (up to Dec 10)# 73,177 16,0392009-10 (up to Dec 09) 100,281 20,867%age growth over last year (-) 27 % (-) 23 %

FDI Equity Inflows (Month-wise) During The Financial Year 2010-11:

# Figures are provisional, subject to reconciliation with RBI, Mumbai.

Cleaning is Inspecting Cleaning and inspection gives the crucial start to automation maintenance activities.

Source: Shop oor Series

Sector 2010-11(April-Dec)

% age to total Inflows (In

terms of US$)Services Sector 13,044 21 %Computer Software & Hardware 3,054 8 %

Telecommunications 6,021 8 %Housing & Real Estate 4,680 7 %Construction Activities 4,109 7 %Automobile Industry 4,805 4 %Power 4,691 4 %Metallurgical Industries 4,470 3 %Petroleum & Natural Gas 2,475 3 %Chemicals 1,606 2 %

Country 2010-11(April-Dec.)

% age To Total Inflows (In Terms

Of US$)Mauritius 26,230 42 %Singapore 6,569 9 %USA 4,829 7 %UK 2,171 5 %Netherlands 4,610 4 %Japan 5,384 4 %Cyprus 2,901 4 %Germany 504 2 %France 3,127 2 %UAE 1,480 1 %Total FDI Inflows * 73,177 -

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POWER GENERATION


POWER GENERATION: Real Challenges Hindering Lofty Dreams ...............................................50

TRANSMISSION AND DISTRIBUTION: Tackling The Power Crisis ..............................................54

GREEN POWER: Clean Coal Technology For Green Power ...........................................................60

INVESTMENTS AHOY!: The Power Boosters ...............................................................................68

ANWESH KOLEY

REAL CHALLENGES HINDERING REAL CHALLENGES HINDERING LOFTY DREAMSLOFTY DREAMS

The ambitious capacity targets, enthusiasm among private and public players and a vast resource of abundant natural forms of energy The ambitious capacity targets, enthusiasm among private and public players and a vast resource of abundant natural forms of energy generation present an avenue for enormous power potential in the country. However, bottlenecks, including the power generated not generation present an avenue for enormous power potential in the country. However, bottlenecks, including the power generated not reaching the final customer and government hindrances, are the major reasons why the country falls short of its envisaged installed reaching the final customer and government hindrances, are the major reasons why the country falls short of its envisaged installed capacity goals.capacity goals.

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SEARCH - THE INDUSTRIAL SOURCEBOOK SEARCH - THE INDUSTRIAL SOURCEBOOK || A P R I LA P R I L 2 0 1 1 2 0 1 15050

POWER GENERATION

POWER GENERATION


nfrastructure forms the backbone of any industry. While connectivity through roads and transport is essential, the primary requirement without which

no activity can commence is power. The Indian power sector has strived, through the years, to meet the rising demand for power through increase in generation capacity and simplified regulatory norms. In order to create an economy with sustained development & inclusive growth, power generation in a country should complement the requirement for power at all levels.

POWER GENERATIONPower generation in India is not an isolated aspect in the national power scenario. It faces challenges not only due to factors within the generating fraternity, but also due to the two other components transmission and distribution. At the beginning of 2011, the total installed capacity in the country was 1,67,077.36 MW and the ambitious target of 2,00,000 MW by 2012 seems to be quite a steep task. But the generation capacity over the years does show positive results.

Power generation increased by 6.6 per cent in 2009-10, as compared to a mere 2.7 per cent in 2008-09. This shows the eagerness of power producers to start operations immediately after the economic downturn in 2009. The biggest challenge facing the power sector in India is the mismatch between generation and transmission. It is not that we are not producing enough; but the success lies in the final consumer getting all this generated power, which unfortunately, is not happening, says Tarun Kapoor, MD, Himachal Pradesh Power Corporation.

THERMAL RESOURCESIndia is still primarily dependent on thermal power for power generation, which forms 65 per cent of the total capacity. Thermal power generation requires the use of non-renewable fossil fuels such as coal, gas turbine and diesel. Of the total installed capacity, coal accounts for 89,778.38 MW, which is around 52 per cent of the total capacity. While it is true that Coal India is the largest producer of coal in the world, producing around 431 million tonne of coal in 2010, the quality of coal available in the country is of inferior quality. This warrants the need for private and public companies to import coal from countries like Australia

and Indonesia, thus increasing the cost of generation. The power sector consumes a massive 71 per cent of the total coal produced in the country. From April to December 2010, adequate monsoon, coupled with improved water supply had reduced the peak demand for power. However, shortages in the international coal markets adversely impacted the supply of coal, thereby causing many power plants to face serious operational bottlenecks. There is immense potential in India to generate more power, but the government should initiate a single-window system in order to award clearances for faster power generating companies. Various states in the country are willing to start production, but the government machinery makes the process cumbersome, says LP Sinha, MD, Bihar Hydroelectric Power Corporation.

WORRIES FROM OTHER QUARTERSWhile it is true that the generation capacity needs to improve, it is even more important to reduce power loss. Transmission and distribution loses are huge in India. We are generating a lot of power from various sources, but losses in the system ensure that there is a constant gap between the power generated and the actual amount of power needed. We must ensure the generation of active power and thus reduce the losses at all the stages. Each unit saved is equal to two units of power generated, says Shwetank Jain, Director, P2 Power Solutions. Another major challenge faced by the power sector is the issue of tariffs. This years economic survey indicated that India currently has one of the lowest and most uneconomical average electricity tariffs in the world. It is eight cents per unit at the retail level, as compared to about 12-15 cents in countries comprising more coal or gas and 9-10 cents per unit elsewhere. This acts as a disincentive for many new players willing to enter the power production industry, as the returns generated do not warrant it as a viable business proposition.

Apart from factors such as losses in the system and demand-supply mismatch, there is a definite requirement for increase in the power generation capacity. This requires the availability of land and infrastructure. Land acquisition is a major problem for setting up power plants, which require large areas of land to be set up. The process of getting clearances is cumbersome. Clearance is required only from the Ministry

of Environment and Forests. But this is not easy. Granting clearances should be centralised in order make our work easier and also to enable the government to keep a central record of all proposals accepted, says MV Suresh, Divisional Engineer Planning, Andhra Pradesh Power Generation Corporation.

LACKING INFRASTRUCTUREAnother reason why major power projects have remained concentrated in certain areas across the country is the lack of key infrastructure in various states such as Bihar and Jharkhand. We, on our part, have ensured that projects do not get delayed due to the non-availability of infrastructure, but we cannot ignore the fact that most of rural India still lacks any incentive for power producers, says Sinha. Adding to this, Suresh opines, While states like Andhra Pradesh might be able to meet its power targets, it is doubtful whether states in the north-east and east can do so. This pushes the chances of the power ministry to achieve the Power for All target even further.

ROAD BEYOND THE CONVENTIONALWith all the problems and hurdles in the way of thermal power generation, the industry had to look for alternative sources of power generation. With the abundance of sunlight that India receives, it was but natural for power companies and the government to move towards this form of energy by harnessing the immense potential seen worldwide through solar power generation. With about 3,000 hours of sunshine every year, most parts of the country receive around 4 to 7 kWh of solar radiation per square metre per day with 250-300 sunny days in a year. This presents enormous potential to develop solar power as over 5,000 trillion kWh of energy can be harnessed every year. Solar power generation can change the whole power scenario in India if the government takes concrete measures to step up solar power generation, opines Jain.

Realising the growing potential of solar power generation, several large players have entered into this business. Tata BP Solar, Tata Power and Reliance Industries are some of the big players that have major plans for this industry. This has given a big boost to this field as these companies are investing a lot of money in research to make the technology cheaper. This, in turn, will make solar energy

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POWER GENERATION


accessible to the common man. As more and more people take to solar power, the costs are expected to reduce. The government is considering a ban on the import of equipment for projects under the National Solar Mission. Industry players believe that while this will benefit the domestic solar equipment manufacturers, the move might prevent the government from achieving its ambitious target of generating 20,000 MW of solar power generation capacity by 2022. Domestic solar equipment manufacturers have only been able to garner 30 per cent of total projects, while the rest have gone to global players.

WIND POWER Another potential source of power generation present in abundance is wind power. The Indian wind energy sector has an installed capacity of 11,807.00 MW. In terms of wind power installed capacity, India is ranked fifth in the world. Today, it is a major player in the global wind energy market. Many states in India have vast potential for wind energy development. It is heartening to see private and public companies showing interest in wind, says Suresh. Jain points out, Current equipment used in the power generation industry are highly sophisticated and generate a lot of harmonics (high frequency currents). However, the transmitters and distribution machinery often cannot handle such high current, thus causing damage to the equipment and the power supply set up. Nonetheless, the potential for wind power generation is far from exhausted. The Indian Wind Energy Association has estimated that given the current level of technology, the on-shore potential for the utilisation of wind energy for electricity generation is to the tune of 65,000 MW. The unexploited resource availability has the potential to sustain the growth of the wind energy sector in India in the years to come. The total installed wind capacity is expected to grow at 14 per cent by 2014. However, this sector faces certain hurdles. Andhra Pradesh and Tamil Nadu do not have proper transmission lines or substations in place to distribute wind-generated power. Tamil Nadu is the largest producer of wind energy in India with a 42 per cent share.

HIDDEN POTENTIAL SOURCERenewable energy often draws attention only towards solar and wind power generation. However, there is another form of renewable, which has not seen much development geothermal energy. It is the heat generated from within the earths surface. Being a clean, abundant and natural source of energy, it can be tapped by installing thermal heat pumps into the earths surface and used accordingly. Avinash Brahmbhatt, Chairman and MD, Avin Energy Systems, claims, We have tremendous potential in terms of geothermal energy, as India boasts of regions where a lot of stored heat energy can be harnessed with comparatively lower investment. Gujarat has taken progressive steps towards the development of geothermal energy. Indigenous energy sources are urgently needed in developing countries and geothermal energy has the potential to provide thousands of megawatts of power with the least environmental impact, adds Brahmbhatt.

NEWER OPPORTUNITIES The national scene for the power sector has a few key pointers. While conventional sources of power generation are the most adopted ones, the availability of renewable sources presents an opportunity to be harnessed. If factors such as high exposure to sunlight, vast regions witnessing high wind frequency and a hot earth bed full of energy, can be timely attended to, a lot of load can be taken away from the depleting fossil fuel reserves that are a cause of global environmental & economic concern.

TRANSMISSION AND DISTRIBUTION


TACKLING THE POWER CRISISWhile capacity addition and availability of fuel are some of the constraints that the country is facing today, transmission & distribution losses are also substantially higher than the global benchmarks. In lieu of this, the Central Government has opened up the market for private players, who will bring in efficient systems, technology and strategy. However, not much progress has been made so far and the government needs to be more proactive in involving them sooner than later.

SANDEEP PAI

he power sector is like a coin having sides of equal significance. If power generation is the beginning, transmission and distribution (T&D) plays a

pivotal role in ensuring availability to end users. In short, it completes the power cycle

and is indispensible to bridge the demand-supply gap. It is a known fact that as far as power generation is concerned, India is surging ahead. However, not everything has been going right, when it comes to T&D of power. In T&D, the biggest culprit is the losses, which can be categorised as T&D losses and aggregate technical & commercial

(AT&C) losses. Losses that have been incurred during the transmission and distribution of electricity to the consumer are called T&D losses, whereas AT&C estimates commercial losses (covering theft & deficiencies in billing & collection) besides T&D losses. AT&C is the true indicator of total losses in the system.

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The T&D losses, which were supposed to be reduced from 35 per cent in 2004-05 to 15 per cent in 2012, currently stand at the 28.44-per cent mark, while AT&C losses are reported to be over 30 per cent. PN Chowdhary, General Secretary, Electricity Workers Federation of India, says, Most state electricity boards (SEBs), involved in transmission and distribution are using very old equipment conductors and transformers. Even in some cases, if the transformers are of prescribed standards, they are not properly balanced. Moreover, I have personally experienced that repairing is done by non-certified vendors having unskilled people working for them. This results in severe losses.

Like Chowdhary, other experts also believe that rules should be made more stringent, equipment should be upgraded and efficiency should be enormously enhanced.

T&D AND AT&C LOSSESThe government had recognised these concerns a long time back and had even endorsed private investments. In this regard, it replaced the Electricity (Supply) Act, 1948 (which had earlier effectively nationalised the sector) by the overarching Electricity Act, 2003. The replaced 2003 Act introduced a host of reforms such as unbundling of SEBs open access, competition, development of market mechanisms and independent tariff setting and regulation. Although the government had taken initiative and changed the Act, they failed to capitalise completely on it.

Chaitanya Raut, Manager Research, Credit Analysis & Research, explains, The investment in the T&D sector had been lagging as compared to that in power generation. To address the problem of acute power shortage in the country, the government has focussed on investments into power generation. In the process, the T&D segment has remained neglected and witnessed significantly less investments in comparison to power generation. As a result, the investment ratio between power generation and T&D in the country has been 1:0.5 as against the ideal investment ratio of 1:1 in global arena. Confirming this, the Planning Commissions official assessment in 2010 states, Although the power transmission segment has been opened to private investment in 1998, there has been only limited success in attracting private investment.

Due to the lack of core investments, the current transmission network in the country has been formed by expanding & interconnecting relatively smaller and not-so-efficient networks across different states. As a result, the current T&D system is burdened to about 90 per cent of its capacity, which is much higher than the global standards of 55-65 per cent. Along with technical losses, commercial and theft losses are also on the higher side in the country due to the relatively low voltage power transmission in some regions. Thus, there is a need to attract more investments in this segment.

THE POSITIVES Despite the problems and lacuna over losses, the governments initiatives have not gone completely into vain. Raut says, Indias power transmission lines have grown from 3,708 circuit kilometre (ckm) in 1950 to about 2,27,885 ckm till March 2010. During FY11 (till December), the country has added about 10,056 ckm of transmission lines. Power Grid Corporation (PGC) is the government agency responsible for planning and developing inter-regional power transmission network across the country.

However, he adds, Even though the trend of T&D losses shows a decline, these losses are at substantially higher levels due to deficiencies in the T&D system.

Moreover, according to the Power Ministry, The development of a national grid facilitates optimal utilisation of resources by bulk transfer of power from surplus regions to deficit regions in the country as well as to facilitate scheduled/unscheduled exchange of power between regions and

has been an objective from 1997. It should also be noted that India has the largest capacity in high voltage DC lines in the world. Today, the inter-regional transfer capacity available is 20,800 MW and will go up to 32,650 MW by 2012.

During the last two years the Power Grid Corporation of India (PGCIL) has added 5,900 MW of transmission capacity. Yogender Alagh, Chairman, IRMA and former Minister of Power and Science Technology of India in his article had mentioned that this capacity is becoming critical as open access becomes operational. Indias North-eastern (NE) region is a hub of hydel generation. A major part of this power is exported to the power deficit Northern and Western region. Considering the contingency and reliability needs and total power evacuation from the NE region through what is called the chicken neck area, five to six HVDC lines (800 kV) and three to four extra high-voltage alternating current (EHVAC) lines (400 kV) would have to be established to eventually evacuate about 50,000 MW in NE region and 15,000 MW from the Sikkim/Bhutan area.

BEST POWER PRACTICES While the government is on a right track as far as the strategy is concerned, it lacks systematic implementation of its plans. Several best practices confirm that the governments strategy of attracting private participation, better use of technology and equipment by these companies can substantially reduce losses and help India achieve its power demand.

Some of the best practices adopted by various utilities in the distribution sector include: Northern Delhi Power (NDPL) in Delhi

has undertaken various IT related initiatives like SAMBANDH (an integrated CRM tool), geographical information system, SAP, ISU & automatic metre reading, which form the backbone of commercial and technological interventions and plays a key role in bringing AT&C losses down.

Southern Power Distribution Company of Andhra Pradesh (SPDCL) in Andhra Pradesh developed a customer information management and analysis consumer analysis tool (CAT), which has also helped reduce massive losses.

In Bhiwandi, for monitoring, metering, billing and collection, Maharashtra

Most state electricity boards (SEBs), involved in transmission and distribution are using very old equipment conductors and transformers. Even in some cases, if the transformers are of prescribed standards, they are not properly balanced.

This results in severe losses.

PN CHOWDHARY,General Secretary,

Electricity Workers Federation of India



Torrent Power AEC Limited Distribution, Management (Franchisee) had introduced several technologies, which had done wonders for reducing losses. With a total consumer base of 1,40,000 consumers and a geographical area of 721 sq km largely comprising power looms. The area was known for high distribution, losses, poor collections and poor state of infrastructure.

Assams three distribution companies, Distribution Management (Franchisee), Single Point Power Supply (SPPS) Scheme provides rural consumers with quality supply & services through rural distribution franchisees operating on behalf of the three distribution companies.

Rural Load Management (RLM): Irrigation pumping loads controlled using programmable logic controllers (PLC) was introduced by Bangalore Electricity Supply Company (BESCOM). PLC is used for alternate switching in or out IP loads as per demand schedule to facilitate

continuous three-phase power supply to non-IP loads.

Noida Power Company in Uttar Pradesh is providing end-to-end GIS solution for analysing and optimising power distribution network. GIS developed and deployed to detect network as well as commercial losses: Computerised spot billing is now common, as also conventional applications like inventory management, etc. Apart from the strategy of attracting

private investments and the use of better technology, Chowdhary believes that the government should make proper plan and encourage power plants very close to the consumption points whenever possible. If the power plants are close to load centre, then the losses decrease massively, he says.

WHAT NEEDS TO BE DONE? It is obvious that in the recent years some advancement has been made in unbundling the system and involving private players and

economic incentives and disincentives in the electricity market. But its weaknesses in terms of performance should be noted, the best practice cases should be replicated. The momentum needs acceleration. While the government is on track when it comes to making policies, what it lacks is a focus on implementation. The government needs to gear up private investments for bringing in more efficiency. If that happens in future, then Indias power sector will truly light up lives.

The investment in the T&D sector had been lagging as compared to that in power generation. To address the problem of acute power shortage in the country, the government has focussed on investments into power generation. In the process, the T&D segment has remained neglected and witnessed significantly less

investments in comparison to power generation.

CHAITANYA RAUT,GManager Research, Credit Analysis & Research

GREEN POWER


oal is primarily used as a solid fuel to produce electricity and heat through combustion. The world coal consumption is more than 7 billion short tonne

and this figure is expected to increase to more than 10 billion short tonne by 2030. China is producing over 3 billion tonne, whereas in India, the present annual coal production is about 560 million tonne. While about 70 per cent of Chinas

electricity comes from coal, its share in India is about 67 per cent. At least 47 per cent of the worlds electricity comes from coal.

When coal is used for electricity generation, it is usually pulverised and then combusted (burned) in a furnace with a boiler. The furnace heat converts boiler water into steam, which is then used to rotate turbines, which turns generators for generating electricity. Over a period of time, the thermodynamic efficiency of this process

has been improved. In the process of concerted effort to improve thermodynamic efficiency to a level of 35 per cent, simple cycle steam turbines have been replaced with some of the most advanced ones. Increasing the combustion temperature can boost this efficiency even further. Old coal-based power plants are significantly less efficient and produce higher levels of waste heat. The emergence of the supercritical turbine concept envisions running a boiler at very high temperatures and pressures with projected efficiencies of 46 per cent. Further increase in temperature and pressure to extreme levels can, perhaps, result in even higher efficiencies. Improved thermal efficiency is achieved when the temperature and pressure of the steam is increased. By raising the temperature from 580C to 760C and the pressure out of the high-pressure feed-water pump from 33 MPa to 42 MPa, the thermal efficiency improves by about four per cent (ultra-supercritical steam condition). Another efficient and clean way of coal combustion in the form of coal-water slurry (CWS) fuel was well-developed in Russia. CWS fuel significantly reduces emissions thus, saving the heating value of coal. It is these aspects of using coal at higher thermodynamic efficiency, covering pre-

combustion, combustion and post-combustion areas of its use that clean coal technology is all about.

COAL AND ITS ENVIRONMENTAL IMPACTCoal, a fossil fuel, is the largest source of energy for the generation of electricity worldwide. However, it is also the largest anthropogenic source of carbon dioxide (CO2) releases. Gross CO2 emissions from coal usage are slightly more than those from

Coal is a fossil fuel that is used in most parts of the world to generate energy. However, burning coal adds to the global carbon dioxide levels. Therefore, the major technological challenge that the world now faces is to meet their energy needs and at the same time reduce their carbon footprint. Here is where the use of clean coal technology gains prominence. Technological innovations introduced through

the clean coal technology programme provide consumers cost-effective, clean and coal-based energy.

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CLEAN COAL TECHNOLOGY FOR GREEN POWER

GREEN POWER


petroleum and about double the amount from natural gas. Coal is extracted from the ground by mining, either through underground methods by shaft mining or through open pit methods.

In developed countries, more than 90 per cent of greenhouse gas emissions come from the combustion of fossil fuels, mostly from coal. The combustion of coal also produces other air pollutants, such as nitrogen oxide, sulphur dioxide (SO2), volatile organic compounds and heavy metals. Among industrial sectors, the electricity sector is unique in its very large contribution to emissions, associated with nearly all air issues. Electricity generation produces a large share of nitrogen oxides and SO2 emissions, which contribute to smog and acid rain and the formation of fine particulate matter. It is the largest uncontrolled industrial source of mercury emissions in many countries. Fossil fuels also contain radioactive materials, mainly uranium and thorium, which are released into the atmosphere. In 2000, about 12,000 metric tonne of thorium and about 5,000 metric tonne of uranium were released worldwide by burning coal. However, this radioactivity from coal burning is minuscule at each source and has not shown to have any adverse effect on human physiology. Burning coal also generates large amounts of bottom ash and fly ash. These materials are used in a wide variety of industrial and other applications.

CLEAN COAL TECHNOLOGYClean coal technology is a term used to describe technologies being developed that aim to reduce the said environmental impact of power generation through coal. Both the governments and industries continue to use the term clean coal to describe technologies designed to enhance, the efficiency and the environmental acceptability of coal extraction, preparation and use. However today, the term clean coal technology is usually used in reference to carbon capture and storage (CCS), an advanced process that eliminates CO2 emissions from coal-based plants and permanently sequesters them.

While the term clean coal is today commonly used to describe carbon capture technologies, it is the technology deployed at a new or existing facility, which will achieve significant reductions in air emissions

of SO2 or oxides of nitrogen, associated with the utilisation of coal with more of thermal efficiency in the generation of electricity. It implies that it is possible to make coal a source fuel that is free of (or very low in) CO2 emissions and other pollutant emissions. Some of the techniques

that would be used to accomplish this include: Coal washing or coal beneficiation to

remove the unwanted ash/impurities from the raw coal Treating coal with chemicals to remove

unwanted present minerals, if any Gasification by means of IGCC

technology Treating flue gases with steam to remove

SO2 CCS technologies to capture the CO2

from the flue gas Dewatering/drying lower rank coals

(lignite) to improve the calorific value, and thus the efficiency of the conversion into electricity.Clean coal technology usually addresses

atmospheric problems resulting from burning coal. Historically, the primary focus was on SO2 and particulates, since it is the most important gas in the causation of acid rain. Of late, the focus has been on CO2 (due to its impact on global warming) as well as other pollutants. Concerns exist regarding the economic viability of these technologies and the timeframe of delivery, potentially high hidden economic costs in terms of social and environmental damage and the costs and viability of disposing off removed carbon and other toxic matter.

Coal, which is primarily used for the generation of electricity, is the second-largest domestic contributor to CO2 emissions. Today people have become more concerned about global warming, which has led to the formation of new legislations in many countries. It was in Germany that the worlds first state-owned clean coal power plant was commissioned in 2008. Since private investors are only willing to invest in other sources such as nuclear, solar and wind, this plant is owned

by the state because of the high costs of this technology. The facility captures CO2 and acid rain-producing sulphides, separates them and compresses the CO2 into a liquid. There are plans to inject the CO2 into depleted natural gas fields with a view to enhance gas production or just for storing in

other geological formations. This technology is not considered to be a final solution for CO2 reduction in the atmosphere, but it provides an achievable solution in the near term. However, more desirable alternative solutions to power generation can be made

economically practical. SO2 and nitrogen dioxide (NO2) control

technologies, emerging from clean coal technology, have moved into the utility & industrial marketplace and now, provide cost-effective regulatory compliance. A new generation of advanced coal-based power systems has been placed in commercial service that represents a quantum leap forward in terms of efficiency and environmental performance. These advanced power systems projects will provide a springboard for widespread and global deployment. This, in turn, will contribute greatly to reductions in greenhouse gas emissions. Clean coal technology has paid measurable dividends. Technological innovations introduced through the clean coal technology programme provide consumers cost-effective, clean and coal-based energy.

WHY CLEAN COAL TECHNOLOGY?Rightly or wrongly, the world still depends on fossil fuels for fulfilling its needs for energy and power generation. Fossil fuels are those fuels formed from natural resources such as anaerobic decomposition of buried dead organisms and plant matter, either of land or marine origin, under intense pressure and heat. The age of the organisms and their resulting fossil fuels is typically tens of millions of years, and sometimes, may exceed to 600 million years. The fossil fuels, which contain high percentages of carbon, include coal, petroleum and natural gas. Fossil fuels range from volatile materials with low carbon:hydrogen ratios like methane, to liquid petroleum to nonvolatile materials composed of almost pure carbon, like anthracite coal. Methane can be found in hydrocarbon fields, alone, associated

In developed countries, more than 90 per cent of greenhouse gas emissions come from the combustion of fossil fuels, mostly from coal. The combustion of coal also produces other air pollutants, such as nitrogen oxide, sulphur dioxide,

volatile organic compounds and heavy metals.

GREEN POWER


with oil or in the form of methane clathrates.

The share of fossil fuels in the primary energy consumption in the world is about 87 per cent of which oil/gas is 59 per cent and coal is 28 per cent. Non-fossil sources include: hydroelectric 6.3 per cent, nuclear 8.5 per cent, and others (geothermal, solar, tide, wind, wood and waste) amounting to 0.9 per cent. Fossil fuels are of great importance because they can be burned to

produce significant amounts of energy per unit weight. The use of coal as a fuel predates recorded history. Coal was used to run furnaces for the melting of metal ore. The wide-scale use of fossil fuels, coal first and petroleum later, to fire steam engines enabled the Industrial Revolution. The world energy consumption is growing at a rate of about 2.3 per cent per year. As this will continue for some more decades, we have to depend on coal for fulfilling the energy security of many nations.

Moreover, the burning of fossil fuels produces around 22 billion metric tonne of CO2 per year. But it is estimated that natural processes can only absorb about half of that amount. So, there is a net increase of about 11 billion tonne of atmospheric CO2 per year that causes the greenhouse effect. CO2 is one of the greenhouse gases that enhances radiative forcing (radiating down on the planet rather than radiating back out to space) and contributes to global warming. Most climate scientists agree that the average surface temperature of the Earth rises, which, as a result; will cause major adverse effects. This is the main reason that has forced nations to go in search of clean

coal technology. However, as fossil fuels are

non-renewable resources (because they take millions of years to form) and reserves are being depleted much faster than new ones are being formed, in addition to raising environmental concerns during the production and use of fossil fuels, a global movement towards the generation of renewable energy is also underway to help meet increased energy needs.

ASPECTS COVERING CLEAN COAL TECHNOLOGYThe pre-combustion aspects that are required to be covered to address the issue of clean coal technology are: Ways and means to have clean coal Clean coal mining Clean coal by washing

On the other hand, the combustion & the post-combustion aspects that are required to be covered to address the issue of green power are: Importance of efficiency improvement CO2 capture & storage (sequestrations)

methods VCBM/CMM/AMM/VAM and UCG

routes for power generation CTL as a clean route to provide energy Energy farming for bio-fuels.

An effort is made here to cover and discuss the main aspects of clean coal technology for green power.

IMPROVING EFFICIENCIES FOR USING COALA range of advanced coal combustion technologies have been developed to improve the efficiency of coal-fired power

generation. New, more efficient coal-fired combustion technologies reduce emissions of CO2, as well as pollutants such as Nitrogen Oxide (NOx), Sulphur Oxide (SOx) and particulates. Improving the efficiency levels increases the amount of energy that can be extracted from a single unit of coal. Increase in the efficiency of electricity generation is essential for tackling climate change. Improvement to an extent of one percentage point in the efficiency of a conventional pulverised coal combustion plant results in a 2-3 per cent reduction in CO2 emissions. Highly efficient modern coal plants emit almost 40 per cent less CO2 than the average coal plant currently installed.

Efficiency improvements include the most cost-effective and shortest lead time actions for reducing emissions from coal-fired electricity. This is particularly the case in developing and transition countries, where existing plant efficiencies are generally lower and coal use in electricity generation is increasing.

The average global efficiency of coal-fired plants is currently 28 per cent as compared to 45 per cent for the most efficient plants. A programme of re-powering existing coal-fired plants to improve their efficiency, coupled with newer and more efficient plants being built, will generate significant CO2 reductions. Although the deployment of new, highly efficient plants is subject to local constraints, such as ambient environmental conditions and coal quality, deploying the most efficient plant possible, is critical to enable these plants to be retrofitted with CCS in the future. Efficient plants are a prerequisite for retrofitting with CCS as capturing, transporting and storing the plants CO2 consumes significant quantities of energy. Highly inefficient plants will undermine the capacity to deploy CCS technologies.

Improving the efficiency of the oldest and most inefficient coal-fired plants would reduce CO2 emissions from coal use by almost 25 per cent representing a six per cent reduction in global CO2 emissions.

These significant reductions in emissions can be achieved by replacing plants that are less than 300 MW capacity and more than 25 years old. Larger plants, with more than 40 per cent efficiency, are to be built by replacement. The moment the efficiency is improved to 40 per cent in the supercritical power plants, the emissions decrease to about 800g CO2 per kWh. In the case of

Germany, the first to adopt clean coal technology The worlds first state-owned clean coal power plant was

commissioned in Germany in 2008. Since private investors are only willing to invest in other sources such as nuclear, solar and wind, this plant is owned by the state because of the high costs of this technology.

The facility captures CO2 and acid rain-producing sulphides, separates them and compresses the CO2 into a liquid.

There are plans to inject the CO2 into depleted natural gas fields with a view to enhance gas production or just for storing in other geological formations.

This technology is not considered to be a final solution for CO2 reduction in the atmosphere, but it provides an achievable solution in the near term.

Coal is still a source of power in Germany, but it is gradually being replaced with renewable energy.

GREEN POWER


ultra-supercritical/IGCC plants, whose efficiency goes up to 55 per cent, the emissions decrease further to a level of 700g CO2 per kWh. As lower heating value (LHV) is improved (from 40 per cent to more than 45 per cent); every one per cent increase in efficiency reduces the specific emissions such as CO2, NOx, SOx and particulate matters by two per cent.

Improvements in the efficiency of coal-fired power plants to reduces CO2 emissions can be achieved with the following technologies:Fluidised Bed CombustionFluidised Bed Combustion (FBC) is a very flexible method of electricity production wherein most combustible material including coal, biomass and general waste can be burnt. FBC systems improve the environmental impact of coal-based electricity, reducing SOx and NOx emissions by 90 per cent. In FBC, coal is burned in a reactor comprising of a bed through which gas is fed to keep the fuel in a fluidised/turbulent state. This improves combustion, heat transfer and recovery of waste products. The higher heat exchanger efficiencies and better mixing of FBC systems allows them to operate at lower temperatures than conventional pulverised coal combustion (PCC) systems. By elevating pressures within a bed, a high-pressure gas stream can be used to drive a gas turbine, generating electricity.

FBC systems fit into two groups, namely, the non-pressurised systems (FBC) and pressurised systems (PFBC). They are further sub-divided to two subgroups as bubbling or circulating fluidised bed. Non-pressurised FBC systems operate

at atmospheric pressure and are the most widely applied type of FBC. They have efficiencies similar to PCC 30-40 per cent

PFBC systems operate at elevated pressures and produce a high-pressure gas stream that can drive a gas turbine, creating a more efficient combined cycle system over 40 per cent

Bubbling uses a low fluidising velocity so that the particles are held mainly in a bed and is generally used with small plants offering a non-pressurised efficiency of around 30 per cent

Circulating uses a higher fluidising velocity so the particles are constantly held in the flue gases and are used for

much larger plant offering efficiency of over 40 per centThe flexibility of FBC systems allows

them to utilise abandoned coal waste that previously would not be used due to its poor quality.Supercritical & ultra-supercritical technologyThe new pulverised coal combustion systems utilising supercritical and ultra-supercritical technology operate at increasingly higher temperatures and pressures and therefore, achieve higher efficiencies than conventional PCC units and significant CO2 reductions.

Supercritical steam cycle technology has

been used for decades and is becoming the system of choice for new commercial coal-fired plants in many countries.

Research & development is underway for ultra-supercritical units operating at even higher efficiencies, potentially up to around 50 per cent. The introduction of ultra-supercritical technology has been driven over the recent years in developed countries such as Denmark, Germany and Japan, in order to achieve improved plant efficiencies and reduce fuel costs. Research focussing on the development of new steels for boiler tubes and on high alloy steels that minimise corrosion is also being conducted. These developments are expected to result in a dramatic increase in the number of super critical (SC) plants and ultra super critical (USC) units installed over coming years.

INTEGRATED GASIFICATION COMBINED CYCLE An alternative to achieving efficiency improvements in conventional pulverised coal-fired power stations is through the use of gasification technology. Integrated gasification combined cycle (IGCC) plants use a gasifier to convert coal (or other carbon-based materials) to syngas, which drives a combined cycle turbine. Coal is combined with oxygen and steam in the gasifier to produce syngas, which is mainly H2 and carbon monoxide (CO). The gas is then cleaned to remove impurities, such as sulphur and syngas, and is used in a gas turbine to produce electricity. Waste heat

from the gas turbine is recovered to create steam, which drives a steam turbine, producing more electricity and hence, a combined cycle system.

By adding a shift reaction, additional hydrogen can be produced and the CO can be converted into CO2, which can then be captured and stored. IGCC efficiencies typically reach the mid-40 per cent, although plant designs offering around 50 per cent efficiencies are achievable. Reliability and availability have been challenges facing IGCC development and commercialisation. Cost has also been an issue for the wider uptake of IGCC as they have been significantly more expensive than

conventional coal-fired plant. Gasification may also be one of the best ways to produce clean-burning hydrogen for tomorrows cars and power-generating fuel cells. Hydrogen

and other coal gases such as CBM/CMM, VAM, etc. can be used to fuel power-generating turbines, or as the chemical building blocks for a wide range of commercial products, including diesel and other transport fuels.

SUPERCRITICAL TECHNOLOGY & ITS ADVANTAGESSupercritical power plants are highly efficient plants with the best available pollution control technology. These plants reduce the existing pollution levels by burning less coal per megawatt-hour produced, thus capturing the vast majority of pollutants. This increases the kWh produced per kg of coal burned, with fewer emissions, thereby, reducing the specific consumption of coal (coal consumed in kg per mega watt of power generated).

Because of the above mentioned techno-economic benefits, along with its environment-friendly cleaner technology, more and new power plants adopting this state-of-the-art technology are coming up in India. As environment legislations are becoming more stringent, adopting this cleaner technology has proved to be immensely beneficial in all respects.

Moreover, there are various operational advantages in the case of supercritical power plants. There are several turbine designs available for use in supercritical power plants. These designs need not fundamentally differ from designs used in sub-critical power plants. However, due to the fact that the steam pressure and temperature are

The burning of fossil fuels produces around 22 billion metric tonne of CO2 per year. But it is estimated that natural

processes can only absorb about half of that amount.

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more elevated in supercritical plants, the wall-thickness and the materials selected for the high-pressure turbine section need reconsideration. A supercritical plant needs a once-through boiler, whereas a drum-type boiler is required by sub-critical power plants. In fact, once-through boilers are better suited to frequent load variations than drum-type boilers, since the drum is a component with a high-wall thickness, requiring controlled heating.

CAN WE PHASE OUT THE USE OF COAL?A significant portion of the total global carbon emissions are from electricity generation. Coal, specifically, accounts for up to 1/3rd of global carbon emissions. So, to decrease the carbon emissions and possibly stop extreme climate change from occurring, coal may have to be phased out.

This course of action is being undertaken by several governments. Germany is an example of a country that is phasing out coal. Solar & wind are major sources of energy, and renewable energy generation, currently accounting for around 15 per cent, is growing. Coal is still a source of power in Germany, but it is gradually being replaced with renewable energy. Globally, coal is one of the largest sources of energy. As a way to phase out coal, a few countries, in which coal is a primary source of energy, have enacted legislations to prevent the construction of any new coal facilities and to close operating coal-fired facilities.

Also, in several such countries, initiatives have been started to support the viability of the renewable energy industry to replace decommissioned coal facilities. However, many other countries, such as the US, Great Britain, China and India, are planning increased coal production to aid their economic advance. Both China and India have large reserves of coal, but relatively little oil, natural gas, hydro, solar or wind capacity, and are heavily dependent on coal for electricity generation. According to Scientific American, the average coal plant emits more than 100 times as much radiation per year than a comparatively-sized nuclear power plant does, in the form of toxic, radioactive fly ash.

Some believe that coal should not be phased out and that Clean Coal Technology is th

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