CLIENTS PERSPECTIVE FOCUS: INDIA

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CLIENTS PERSPECTIVEFOCUS INDIA

• TUESDAY, SEPTEMBER 15TH 2009
• PLENARY II CLIENTS PERSPECTIVE
• SPEAKER A. P. MULL - TATA

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OVERVIEW

• DEVELOPMENT - PACE
• KEY SECTORS OPEN TO SUSTAINABLE ENGINEERING
• POTENTIAL - OPPORTUNITIES
• POLICY BARRIERS
• SUSTAINABLE DIRECTIONS
• REFERENCES

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DEVELOPMENT - PACE
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DEVELOPMENT - PACE

• EMERGING FROM THE ECONOMIC SLOWDOWN
• Fall in GDP growth rate from 9 to below 7
• 11TH Five Year Plan, 2007-2012 Total investment
  required for infrastructure of the order of USD
  492 billion
• Reserve Bank of India RBI
• Enhanced spending, increased liquidity,
  relaxed ECB limits
• Indian Infrastructure Finance Company Limited
  (IIFCL)
• - Special Purpose Vehicle SPV for
  providing longterm financial assistance to
  Infrastructure projects
• - Fully owned by GoI (setup on Jan 5, 2006)
• - Authorized capital USD 0.4 billion,
  Paid-up capital USD 0.2 billion
• - Tax-free bonds (USD 8.3 billion) to
  domestic and foreign investors

Indian Infrastructure (Dec 2008), IIFCL
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KEY SECTORS OPEN TO SUSTAINABLE ENGINEERING
Design for the environment Use natural lighting,
ventilation, cooling and acoustics
Sun-shades, EW orientation Natural cooling of
building
Recycle of sewage Landscaping
Rainwater Harvesting Groundwater recharge
Nuclear Science Centre, New Delhi
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KEY SECTORS OPEN TO SUSTAINABLE ENGINEERING

• Renewable energy
• Low-impact hydro-power, solar, wind, tidal
• Nuclear energy
• Reprocessing of spent fuel
• Water wastewater
• Wastewater recycle, Artificial groundwater
  recharge
• Solid waste management
• Waste recycle, Waste to energy
• Sustainable Townships SEZs Green engineering

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POTENTIAL - OPPORTUNITIES
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POTENTIAL - OPPORTUNITIES

• RENEWABLE ENERGY RESOURCES
• Hydro-power (25 of total installed capacity)
• Indias Potential _at_ 60 load factor 84044 MW
  (2027)
• Estimated investment USD 104 billion
• Five Year Plan Target 16553 MW (2012) 30000 MW
  (2017)
• PPP (since 1991) less than 3 of installed
  hydro-power
• Current private developers Malana Power Company
  Ltd.,
• Jaypee Group (BOO basis) , S. Kumar Group

• (2007, Avinash Raul)

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POTENTIAL - OPPORTUNITIES

• RENEWABLE ENERGY RESOURCES
• Solar (0.5 of total installed capacity)
• Installed capacity 1748 MW , Grid-interactive
  2.12 MW
• More than 700000 PV systems, 55000 street
  lighting systems
• Manufacturers Tata-BP Solar, Moser-Baer, Solar
  Semiconductor Pvt., Green
  Brilliance Pvt. Ltd., ICOMM Tele Ltd.
• Conversion of diesel powered pumps Potential 4
  million (Current gt 7000 systems)
• National Solar Mission
• USD 19 billion investment for 20 GW (2020)
• 12.5 of total current installed capacity

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GULF OF KAMBHAT, GUJARAT. TIDAL POWER 5880 MW
DAM 64 km LONG 35 km WIDE RESERVOIR 16791 M
cum FRESH WATER TIMELINE 2011 2020 USD
11.5 BILLION
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POTENTIAL - OPPORTUNITIES

• RENEWABLE ENERGY RESOURCES
• Wind (6 of total installed capacity)
• Installed capacity 9587.14 MW
• Five Year Plan Target 10500 MW (2007-2012)
• Suzlon Over 52 of market share
• Wind resource assessment programme
• - 800 stations in 24 states, 193 wind
  monitoring stations
• Potential of 13 states 45000 MW
• Tidal waves
• Tidal potential 8000-9000 MW
• Indias first project Durgaduani creek
  Sunderban (USD 10.4 million)
• 7000 MW(Gulf of Cambay), 1200 MW(Gulf of
  Kutch), 100 MW(Sunderban)

• (GEDA)

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POTENTIAL - OPPORTUNITIES

• NUCLEAR ENERGY
• Indian Nuclear Programme Strategic Plans
• Domestic programme PHWR, FBR to continue. PHWRs
  in inland sites, AHWR
• PHWR with imported fuel
• PWR/BWR technologies to be imported- Plants in
  coastal sites
• Installed capacity - 4,120 MWe
• Under Installation - 3,160 MWe
• Under Engineering -1,400 MWe

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POTENTIAL - OPPORTUNITIES

• WATER WASTEWATER
• Wastewater Recycle
• 80 of 33 billion litres/ day wastewater
  untreated
• Five year plan Target 100 coverage by
  2012
• Market potential for wastewater treatment
  USD 1.7 billion
• Potential in agriculture
• Irrigation area 141 million hectares (ha)
• Rainfed 86 million hectares
• Potential 55 million hectares by
  wastewater
• Current 73000 ha (cereals, horticulture,
  fodder crop, landscaping)
• Artificial Groundwater recharge
• Potential 36.4 cu km
• Investment required USD 5.8 billion

• (2008, Mekala G.D., Davidson D. etc.), (2008,
  EPW), (Feb 2008, Indian Infrastructure)

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POTENTIAL - OPPORTUNITIES

• Solid-waste Management
• 43 Million Tons waste generated per year 75
  coverage targeted by 2012
• Waste generated in 423 Class-I cities works out
  to 72.5 of the total waste generated each day
  and this needs to be tackled on priority.
• Resource allocation 60-70 spent on street
  sweeping of waste collection, 20-30 on
  transportation and less than 5 on final disposal
  of waste
• Waste generated per capita is estimated to
  increase at rate of 1-1.33 annually

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POTENTIAL - OPPORTUNITIES

• Currently available SWM Technologies
• VermiComposting
• Biogas
• Conversion of Solid Wastes to Protein
• Alcohol Fermentation
• Pyrolysis
• Refuse Derived Fuel
• Hydropulping
• Slurry Crab Process
• Recovery of useful products
• Move beyond these
• enhance use of Regenerateable and Recyclable
  materials

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GREEN BUILDING
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POTENTIAL - OPPORTUNITIES

• Green Engineering for Sustainable Townships
  SEZs
• India ranks 2nd in green building footprint
  (CII-Godrej Green Business Centre)
• More than 265 million square feet of green
  building footprint
• 39 certified buildings
• 397 buildings registered under LEED India
  (under construction)
• IGBC forecast
• 1 billion sq ft of green building to be
  registered for certification (2012)
• 1,000 green buildings to be registered (2010)
• Green Construction Industry
• Estimated overall investment USD 1000 million
  annually
• Estimated potential worth of market USD 4,000
  million (2010)
• Green Building Developers
• TATA, Wipro, ITC, NTPC, Godrej, Mahindra, Asian
  paints, Raheja, Akruti, Kalpataru, Mahindra
  Lifespaces, TSI, etc.

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POLICY BARRIERS

• RENEWABLE ENERGY RESOURCES
• Ministry of New Renewable Energy setup since
  1989, DNES 1982
• Pro- Hydro-power policy
• higher budgetary allocation, investment
  approval of new projects,
• identification of new projects
• promotion of state-sector projects (lagging
  under inter-state dispute),
• improvement of tariff dispensation
• simplification of clearance procedures

• (2007, Avinash Raul)

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POLICY BARRIERS

• RENEWABLE ENERGY RESOURCES
• Constraints Temples of modern India or Weapons
  of Mass destruction?
• Submergence of upstream villages,
  Devastation of downstream livelihoods
• Degradation of river and floodplain
  ecosystem
• IPCC 2006 Large reservoirs source of
  greenhouse gas emissions
• History of under-performance
• Long gestation period between planning and
  implementation, high costs

• (2007, Avinash Raul)

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POLICY BARRIERS

• (July 2009, Reuters)

• RENEWABLE ENERGY RESOURCES
• GoI solar policy
• - Subsidy, soft loans, concessional duty on
  raw materials
• - Excise duty exemption on devices/ systems
  used for solar power
• - Indian Renewable Energy Development Agency
  (IREDA) funds leasing companies of
  purchase of PV systems
• - Integrated Energy Policy 10 million sqm
  solar collector area (500 MW)
• State of WB Solar power mandatory in all
  new buildings
• Constraints
• Production cost Rs. 15-30/ unit compared to
  Rs. 2 to 6/unit (conventional)
• Land availability 1 sq km for 20-60 MW
  utility plant
• Slow growth due to high cost

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POLICY BARRIERS

• (July 2009, Reuters)

• RENEWABLE ENERGY RESOURCES
• GoI Wind Power Policy Issue
• - Policy incentives geared towards
  installation, not operation
• - Production only 1.6 vs Installed capacity
  of 6
• Limited technological know-how (wave, ocean,
  geothermal energy)

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POLICY BARRIERS

• (July 2009, Reuters)

• NUCLEAR ENERGY
• Policy Action Plans
• Increase capabilities of Indian manufacturers to
  participate for equipment supply
• Involvement of Indian engineering consulting
  organisations
• Amendment of Atomic Energy Act to enable private
  participation
• Indian organisations tie up with technology
  suppliers (GE, Westinghouse, AREVA, et al) for
  implementation of nuclear reactors in identified
  sites

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POLICY BARRIERS

• WATER WASTEWATER
• Policy
• Limited water allocation to all new constructions
  select cities
• Restricted groundwater extraction in areas
  identified as dark (critical ) zones
• Industries Zero discharge norms for select
  industries only
• Domestic New zero discharge norms (SEZs,
  Special townships, malls, airports, etc.)
• Mandatory rainwater harvesting norms in select
  cities
• Socio-economic barriers
• Illegal groundwater extraction rampant
  (drought-prone areas)
• Common use of untreated wastewater for
  agriculture, etc.
• Low acceptability of tertiary treated wastewater
  for drinking

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POLICY BARRIERS

• Solid-waste Management Policy
• MoEF notified Municipal SW management handling
  rules 2000
• Every Municipal Authority is responsible for
  implementation of any infrastructure development
  for collection, segregation, transportation
  disposal of MSW were to set up waste processing
  disposal facilities by 31st Dec. 2003.
• A manual prepared for safe disposal of the
  wastes Not Mandatory
• Solid-waste Management Policy
• Financial constraints of Urban Local Bodies for
  providing initial capital investment
• High Operation Maintenance cost Low revenue
  generation
• Appropriate choice of technologies

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POLICY BARRIERS

• IGBC (Indian counterpart of USGBC)
• Promoting LEED India - certified green
  construction
• Direction for policy change
• Central State Governments incentives for green
  engineering (reduction in property tax, lower
  water/ electricity tariffs etc.)
• e.g. State Government of Kerala Subsidies to
  Industrial Units that comply with IGBC Green
  Factories Rating
• Urban Local Bodies (ULBs) Mandatory norms
  prescribing minimum green parameters for
  different types of construction, buildings,
  townships, SEZs
• Insurance companies Reduce premium on green
  engineered buildings (less risk prone)

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POLICY BARRIERS

• Construction Industry in India
• Average growth rate 9.5 vs Global average
  rate 5
• Western Concepts Applicability to India
• e.g. Excessive use of high performance glazing
  widely adopted for commercial buildings
  Energy inefficient and inappropriate in Indian
  climate
• Nascent stage of green technologies -
• e.g. Energy-efficient products , materials
  (unavailable in India) acquired at exorbitant
  prices from other countries defeating the
  purpose of green engineering
• Social perception green engineering is
  expensive Life cycle cost approach is
  required. Initial costs still dominate business
  decisions.

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SUSTAINABLE DIRECTIONS

• RENEWABLE ENERGY RESOURCES
• Viable Hydro-power
• Adherence to National Policy for
  Rehabilitation Resettlement 2007
• Implementation of social and environmental
  impact mitigation plans
• Small and mini-hydel power projects SHP for
  remote hilly areas
• No. of identified sites 4233
• Potential (aggregate capacity) 10071 MW of
  25 MW each

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SUSTAINABLE DIRECTIONS

• RENEWABLE ENERGY RESOURCES
• Solar
• Rural electrification More than 10000
  villages which cannot be connected to the
  conventional grid
• Agricultural Irrigation pumps, Solar
  harvest driers
• AC Cooling energy
• Wind
• 6000 MW (additional) for commercial use by
  2012
• Emphasis on implementation and operation
• Nuclear
• Reprocessing of spent fuel

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SUSTAINABLE DIRECTIONS

• Water Wastewater
• Membrane technologies, Micro/ Nano filtration,
  ion-exchange, DM, ozone, UV, etc.
• Groundwater remediation - future for recharge
• Future of Solidwaste Management Waste to Energy
• Possible reduction in quantity of waste 60 to
  over 90
• Possible saving in land area (landfill) upto 80
  
• Reduction in transportation costs and fuels
• Net reduction in environmental pollution

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SUSTAINABLE DIRECTIONS

• Green Engineering
• Traditional wisdom rich heritage of
  sustainable building methods and materials should
  be suitably adapted to current needs (e.g.
  Cooling supplemented through wind towers, shading
  devices, landscaping)
• Adaptation to local needs and resources should
  cater to the local way of life
• (e.g open windows tropical windows open
  space for community celebration)
• Brownfield development, Re-use of existing
  buildings/ sites

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