India

Guest Article: The Market Scope of Renewable Energy Business in India

India is country that is most recognized for its deep cultural roots, and its significant contributions to the history of the world. In terms of modernity, India is not necessarily the first country that comes to mind. This way of viewing India is changing however; with India making great strides and going through one of the most significant economic boom periods in modern history. One surprising area where India is actually a leader among nations, is that of India’s commitment to renewable energy.

Conventional wisdom says that emerging nations can’t afford to focus on renewable energy initiatives. The old model says that countries that want to succeed must grow their economies by any means necessary, and worry about the environmental impacts later. India has turned this notion on its ear; using the renewable energy business as a method of boosting its economy significantly. This home-grown Indian ingenuity has shocked the world; with so-called “modern” nations now looking to the Indian model for inspiration in solving their own environmental (and economic) concerns.

One of the most remarkable things about the Indian renewable energy market is that the country of India is as much a producer of renewable energy products as it is a consumer. The net effect of this unique situation is that both the production and consumption of renewable provide benefit to the Indian economy. This enviable situation is one that other nations would love to match.

India entered the renewable sector early. At a time when renewable energy was largely an untested niche-sector, with more emotional attraction than economic promise; India gambled that this sector was one worth making a substantial commitment to. In the early 1980’s, India established a government ministry for the purpose of developing non-conventional energy resources, including renewable. Currently, renewable energy concerns fall under the purview of India’s Ministry of New and Renewable Energy.

Among the earliest renewable energy sources that India committed its resources to developing was that of solar energy. Working with the United Nations, India established a loan program enabling home owners to purchase solar power generators and related materials. The program served to bring viable energy options to far-flung corners of the nation, with tens of thousands people signing up. Of course, the program spurred a solar power, and solar power support services, industry that is still thriving in India today.

In the 90’s, India began to seriously develop its wind power capabilities. This sector of the Indian renewable energy market has experienced a ramp-up effort in recent years. Today, India has the fifth largest wind power generation capacity of any nation on earth. With plenty of land that is ideal for the generation of wind power, it is reasonable to expect wind energy development to expand there.

Another sector that India is making great inroads into is that of waste-to-energy. By converting sewage and industrial waste into fuel products, India reduces its consumption of fossil fuels. This lowers the amount of environmental damage caused by the use of conventional fuel usage in the country. As the Indian population continues to expand, waste-to-energy will become an increasingly more important part of India’s overall energy and environmental portfolios.

Renewable energy sector output growth in India fuels the need for greater expansion of the sector. An Indian worker who receives a high paying job in the sector suddenly has access to financial products such as a home mortgage, or an auto loan. Taking out that auto loan and purchasing a car, means more greenhouse emissions, and the possibility of greater pollution. This in turn motivates the Indian government to pursue more effective methods of reducing environmental pollution nationwide, for the good of the entire country.

Electric bikes to get cheaper upto Rs 3500

Gujarat government’s decision to reduce value added tax (VAT) on battery-operated two-wheeler seems to have started yielding results. Some of the leading players see prices of electric two wheelers in Gujarat coming down in the range of Rs 2,500 to Rs 3,500 as the electric bike makers in the state plan to pass on the benefit of reduced VAT to end users. Some of the leading electric two wheeler manufacturers such as Hero Electric, Electortherm and Ajanta are likely to cut the prices of their products.

India’s leading electric two-wheeler producer Hero Electric is planning to pass the benefit to the customers.

“Liker other players, we will also pass on this 10 per cent reduction to the customers,” said Sohinder Gill, CEO, Hero Electric. Gill is also director, corporate affairs, at Society of Manufacturers of Electric Vehicles (SMEV).

The demand for reduction in VAT levied on battery-operated two-wheeler in Gujarat was long pending.

“Finally, the Gujarat government reduced the VAT on e-bikes following which the cost of the product will come down by Rs 2500-3000 per unit in the state,” said Jaysukh Patel, managing director of Morbi-based Ajanta Group, which produces electric two wheeler under the brand name ‘Oreva’.

It may be mentioned here that Gujarat finance minister Vajubhai Vala slashed the rate of tax on battery-operated two-wheelers from 15 per cent to 5 per cent including additional tax in the annual state budget presented in the Gujarat assembly on February 24, 2012.

Ahmedabad-based Electrotherm India Ltd, another leading player in the electric two wheeler market, also feels the state government move would help ease prices of electric bikes in Gujarat. “Post reduction in VAT, price of such two wheelers will decline in the state,” said Avinash Bhandari, director, Electrotherm India Ltd. According to him the prices are likely to decrease by Rs 2500 to Rs 3500 per unit.

Read more @ Business Standard 

EV India News : Hero Eco acquires UK-based Ultra Motors

NEW DELHI, DEC 28:

Vijay Munjal-led Hero Eco on Wednesday said it has acquired UK-based Ultra Motors for an undisclosed amount, aiming to strengthen its presence globally in the electric vehicle segment.

Hero Eco, the newly formed umbrella entity by Vijay Munjal-led companies that include Hero Electric, Hero Exports, Hero Cycles, Mediva, Winn and Hero Ecotech, plans to invest Rs 450 crore in the next five years across businesses.

The company is also planning to set up an electric vehicle facility in North America within the next 18 months.

“Hero Eco has acquired Ultra Motors in UK. This will give us an exposure to all the markets where Ultra Motors were present and will strengthen Hero’s brand globally,” Hero Eco Managing Director Mr Naveen Munjal told reporters here.

He, however, declined to share the value of this acquisition, citing confidentiality of agreement.

“Ultra Motors has 3 plants and is present in 6 countries with sales networks in 22 nations across the globe. This all will come under Hero Eco now,” Mr Munjal said.

Earlier, Hero Electric had a tie-up with Ultra Motors for Indian operations, but it fell apart later. The foreign firm had closed shop here about two years ago.

Ultra Motors currently has its main manufacturing plant in Taiwan and has two contract assembly plants in China.

“Eventually, the contract manufacturing activities of the two Chinese plants will shift to India. However, it will take at least 6-8 months to proceed in that direction,” Hero Eco Chief Executive Officer Mr Sohinder Gill said.

On the new group entity, Hero Eco Chairman Mr Vijay Munjal said the new brand identity will integrate all its different verticals.

“With the new identity, we will be foraying into high-end bicycles in India under a new brand Winn. We will also expand our medical equipment business under Mediva brand in a big way,” he added.

The Rs 450 crore Hero Eco is aiming for a group turnover of Rs 1,500 crore in the next five years, Mr Naveen Munjal said.

“To expand our all businesses, we will be investing Rs 450 crore in the next five years. We will be setting up a new electric vehicle plant in North America in the next 18 months,” he added.

Full article @ http://www.thehindubusinessline.com/companies/article2754630.ece

KSIDC, Parallel Group to set up e-scooter plant in Kerala

Kochi, Nov 15 (PTI) Kerala State Industrial Development Corporation (KSIDC) today inked an MoU with the US-based Parallel Group to set up a joint venture to assemble and manufacture electric scooters in Kerala.

The MoU to assemble and manufacture electric mobility vehicles was signed in the presence of Minister for Industries and IT Government of Kerala P K Kunhalikutty, a KSIDC release here said.

After completing the Feasibility Report a production centre will be established in the state.
In the first phase, completely knocked down (CKD) parts will be imported and the vehicles will be assembled and distributed in the country. In the next phase, the components and parts will be manufactured and in the final stage the complete production line will be established.

Read more at  MSN News

Complaint against Hero Electric Dealer Sparsh Motors Rohini

This article is published as a response to the mail received from Mr. Saurabh Bansal who was frustrated by the poor servicing of Sparsh Motors.