Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Friday, 24 May 2019

40 GW : 70 GW : 300 GW : 800 GW


40 GW  :  70  GW  :  300 GW  :  800  GW






Highlights :


#     The government is considering a plan to establish battery making capacity of 40
       gigawatts (GW) 


#   Even for just FAME II EV targets, we will require 70 GW batteries in the next 3 years


#   With plans to add 175 GW of renewable energy generation capacity by 2022 and ensure
     that 30 % of India’s vehicles are electrically powered by 2030, the demand for battery
     storage is pegged at 300 GW


#   There will be 4 plants ( in 4 selected states ) of 10 GW capacity each ( totaling 40 GW )


#   Each 10 GW plant is expected to cost $ 10 Billion ( total of $ 40 Billion for 4 plants )


#   The Centre is exploring the opportunities on how to make battery manufacturing at
     giga-scale happen quickly and in the shortest possible time because that is the crux of
     the entire growth , be it Electric Vehicles or new and renewable energy sources



=====================================================


This is a very welcome initiative on the part of NITI Aayog



But I have following questions / concerns / reservations :



#   4 States are to be selected on the basis of the “ incentives “ that they will offer for
     setting up this project in their territory. 


If left “ open-ended “, this could well result into
     a quagmire of “ permutations / combinations “ , demanding comparison of Apples with
    Oranges

There will be un-ending disputes re “ arbitrary and non-transparent “ selection
    process and references to Rafale deal ! 


These disputes will take months to resolve !



    It will be better if NITI Aayog prescribes a set of incentives with “ Minimum Cut off Limit “
    for each incentive , below which a State’s offer will be rejected


    Chosen states should be expected to enter into an MOU , under which they undertake to
    complete each activity ( Hand-over of land / Connecting the Power – Water  Supply /
    Issue of Construction Permissions / Exemption from labour laws / Exemption from
    Environment Pollution Act etc ) by specific dates
 
   

#   Private companies ( whether Domestic or Foreign ) bidding for the projects, must submit
     a PERT chart for the implementation of the project, and clearly list the “ Assumptions “
     that they have made in the preparation of the PERT chart


No bid should be considered
     without this



#  Bidding parties MUST clearly spell out in their bids , how much of the required FUNDS
    they will raise from each SOURCE


    This is a very crucial factor while selecting a party , considering that Banks / Financial
    Institutions / Equity Market , are all extremely reluctant to finance any Lithium-ion
    Battery Project since Battery selling prices are continuously falling by as much as 19 %
    per year !



   {  Projections :  2017 > $ 240/Kwh  //  2025  >  $ 109 / Kwh  //  2030  > $ 73 / Kwh  }



    This puts tremendous pressure on the revenue / profit stream !



#  If, neither the Private Sector has the money ( Rs 80,000 Cr per year , for 10 years in row
    ! ), nor is NDA 2.0, likely to find Foreign Investors to pump in such huge amounts by way
    of FDI  , then what is the solution ?




    As far as I can see, the only way to raise such huge amounts of LOW RISK ( - and LOW
   RETURN ) funds in a QUICK WAY, is concept of :




    Government to launch “ Battery Infra SPV “


·         Under Indonesia type “ Black Money Amnesty Scheme “ enable stashed away Black Money to come out in the official banking channel ( through deposits made in “ INFRA ACCOUNTS “ – like Jan Dhan Accounts ) . Remember , Indonesia managed to raise $ 342 Billions !



           Read :




·         Such converted ( Black to White ) monies can only be invested in “ Battery Infra SPV “



Hoping for any other way to raise such HUGE amounts of “ Risk Free “  and  “  Interest Free “ funds , in such a short time , would only amount to  WISHFUL  THINKING  !



I hope someone has the courage to tell the public this terrible TRUTH !


It is time to forget all that senile talk of an AMNESTY SCHEME rewarding the dishonest tax-evaders and punishing the honest / middle class tax payers !



It is time to tell the people : If we want to eliminate air pollution and save 600,000 premature deaths per year , thenMeans are unimportant ;  Ends are  !

          

Releted Reading :

Mobility on the Move – Finally  ……………………….[ 09  March  2019 ]

India : Energy Storage Mission ……………………….[  04  Dec  2017  ]








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