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

Monday 3 August 2015

A WELCOME PROBLEM ?


A   WELCOME   PROBLEM  ?


India's trade imbalance with China is approx $ 36 billion


With slowing down of Chinese economy and speeding up of Indian economy , it is quite possible that this may get worse 


How ?


>  To grow at a faster rate , India will need to import more raw materials and components from wherever these can be got cheaper

    

>  To counter its own slow down , Chinese companies will compete
     fiercely ( with the rest of the World ) to export its products to
     India




This is evident in supply of PV Solar Panels from China, where Chinese companies have dropped their prices drastically

This price drop has enabled Chinese companies to export to India, PV Systems worth  :

>  Rs 352 Crores  in 2010-11

>  Rs 3,745 Crores in 2014-15


Result :

>  India's domestic power output , using PV Systems , went up from 1,000 MW in 2010-11 to 4,000 MW in 2014-15  !

>  Average solar power tariff went down from Rs 17 per unit to Rs 5 per unit !


Now , Indian PV System Manufacturers are very unhappy with this Chinese " dumping " , for two reasons :


>  Their annual production capacity is only 1300 MW of PV Systems

>  They cannot match the Chinese prices



But the Power Minister seems to be saying :



"  My target for Solar energy generation is 1,00,000 MW by 2022 .

   Of this, Indian Manufacturers can deliver, no more than 10,000

   And I want to bring down Solar Power tariff below the current
   average  

   This is possible only when " Rs / MW of installed capacity "
   becomes less than that for coal-based power plants 

    

   So , I must buy Solar Plants at less than Rs 5 crores / MW of 
   installed capacity

   Only Chinese companies can supply me at Rs 3 Crores / MW

   For 1 lakh MW ( 100 GW ) target , I need Rs 3 lakh*crores funds

   And the Chinese companies will also get me " Suppliers Credit " @
   2% interest

   Last week , 649 companies from all over the World , bid for 20.6
   GW of Solar Power auction in Brazil
  
   Brazil expects to place orders by Nov 2015

  I must place my orders on Chinese Companies before Brazil ties up
  their production capacities ! 
   
  Remember , 100 GW of Solar Power will help us,

   >   Light up 5 Crore homes ( @ 50,000 homes  / 100 MW )

   >   Generate 15 lakh " green jobs "

   >   Raise our GDP by 0.5 % 


Must act fast  ! !

 


Only thing Power Minister would not say publicly is :


"  If importing Solar PV Systems from China worth Rs 3 lakh*crores is going to worsen our trade balance , please treat it as a welcome problem ! "


 


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hemen  parekh

03  Aug  2015





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