Energetica India Magazine January-February 2021

BUDGET Dinesh Patidar Chairman & Managing Director, Shakti Pumps India Ltd Kush S CEO, Essar Power create jobs and further push infrastructure development. We see a major opportunity for power sector players here as the need for reliable electricity will be necessitated for uninterrupted operations. Besides, the proposal to monetize transmission assets will expedite infrastructure creation and even channel in more funds for further investment. This may also open operation & maintenance in these assets to private players. Additionally, we see the INR 2,500 cr funding to promote renewables and the push for a Hydrogen Energy Mission from green power sources as good news in the longer run for the power sector. Additionally, competition in power distribution can help ensure performance-based assistance totaling INR 3 lac crore for DIS - COMs doesn’t become a redux of Uday 2.0. The industry will parallelly need to adapt to the higher duties on solar cells while also balancing the continued GST slabs. Focus on building freight corridors, a record outlay for future-ready railway system and electrifying 46,000 RKM by this year are much appreciated and are positive announcements for us. They will create the need for modern and reliable power infrastructure. Yet the timeline for 100% electrification by December 2023 may prove challenging unless government and industry work in close collaboration. Besides, attention on urban transportation through metro rail and city bus services can become steps towards our clean energy transition goals, if there is greater emphasis on mass electric transportation. There was no mention of National Electric Mobility Mission plan 2020, and extension of capital subsidies under FAME. We were also hoping to see the inclusion of e-mobility infra - structure and other ancillary power supply chain in the PLI scheme to give the desired push to Self-Reliance. ” Anish De, Partner and National Head, Energy and Natural Resources, KPMG in India “Hon’ble FM announced introduction of framework for promoting competition in power Distribution - As the Discoms operate as regional monopolies in their respective area of supply, this framework will bring in private players and improve operational efficiencies, which will benefit consumers, by providing them choice for supplier se- lection. This proposal has been in works for 6 years, when the Electricity Amendment Bill 2014 was tabled. The recent Electricity Amendment Bill 2020 excluded this provi - sion, and therefore it’s a welcome step. To improve the sustainability of financial - ly ailing Discoms, FM has announced a budget of Rs 3.05 lakh crore for revamped Discom performance improvement scheme - This will be linked to financial improve - ments and will include expenditure on infrastructure, including prepaid smart me- tering, feeder segregation, upgradation of systems etc. Last such scheme (UDAY) was launched in 2015. Revamped scheme will be helpful in financing continued reforms focused on Discom sustainability and will benefit consumers and industry alike. Apart from this FM also announced moneti - sation of PGCIL’s transmission assets worth Rs 7,000 crore through InvIT sponsored by PGCIL - It will be an important and first of the kind step in power sector which will help monetize operational assets and channelise freed up capital into greenfield power sector projects.” Sumit Joshi, President, ELCOMA and Vice Chairman and Managing Director, Signify Innovations India Ltd “The Union budget this year is dedicated to resetting and rebuilding a sustainable economy with an emphasis on promoting local manufacturing. The increased focus on infrastructure and renewable energy, especially solar energy is a welcome move for our sector. However, the government’s decision to increase the tariff on inputs and parts used for manufacturing of LED lighting products will result in a price increase for lo- cally manufactured lighting products in the short term, as currently almost all electronic components are imported from abroad due to lack of a local component ecosystem in India. This move might support the indus- try in the long term, once the component manufacturing ecosystem in India becomes more established. Even as prices of locally manufactured goods will go up, the tariffs on finished good has remained unchanged. As ELCOMA, we will go back to the gov - ernment to address this urgently by corre- spondingly increasing the tariff on finished goods as well for this category, in order to support local manufacturers in the true spirit of India becoming Aatmanirbhar Bharat.” - Manu Tayal 29 energetica INDIA- Jan-Feb_2021