Shri Piyush Goyal visits UK to Strengthen India-UK Collaboration on Power and Renewable Energy

      Shri Piyush Goyal visits UK to Strengthen India-UK Collaboration on Power and Renewable Energy

Shri Piyush Goyal, Union Minister of State (IC) for Power, Coal, New & Renewable Energy visited the UK on 19-20 April, 2016 to strengthen India-UK collaboration on power and renewable energy, building up on the agreements made during visit of Prime Minister Shri Narendra Modi to the UK in November 2015.

The Minister was accompanied by an official delegation which included Secretary, Ministry of New and Renewable Energy, Joint Secretary, Ministry of New and Renewable Energy, Director (Technical), IREDA and nine member business delegation.

On the first day of the visit, the Minister met officials from Natgrid and UK Power Network who briefed the Minister about their functions and capabilities and on how they can contribute on enhancing grid stability in India. The Minister explained about his plans and vision to increase the power generation in India and renewable energy scale up plan has been drawn up to 2022.

Shri Piyush Goyal also met Lord Bourne, UK Minister for Energy and Climate Change and discussed about enhancing future cooperation between India and UK in the energy sector. The Minister also met Lord Jim O’Neill, Commerce Secretary to the Treasury and Mr. Nick Hurd, Minister, Department of International Development and discussed about enhancing bilateral relationship particularly in the power sector. He emphasised the need for the developed world to show its commitment towards climate change by putting money in climate finance. He mentioned that India needs low cost long term finance for its ambitious renewable energy scale up plans and finance hubs like London could take a front seat in mobilising it.

Shri Goyal also emphasised on the historical, cultural and financial ties between India and the UK and hoped to work on it expeditiously to strengthen and deepen the bilateral engagement.

The Minister met the media during the visit and briefed about steps the Indian Government is undertaking to improve energy access, rapid scale up of renewable energy, enhancing grid reliability, integration of renewables in the grid and the massive opportunity presented by the untapped demand in the Indian market.


Public Sector Energy Blue Chips Companies Likely to Launch Masala Bonds to Tap the UK Investor Community
As India gears up to meet its ambitious renewable energy targets of 175 GW of installed capacity by 2022, the country is exploring international mechanisms of funding and is evaluating new and innovative tools to finance the renewables sector.

As a step in this direction, Indian public sector giants are likely to examine rupee denominated debt instruments like Masala Bonds to create and develop a new market and identify benchmark prices for these new instruments. The issuances which would be offered by blue chip government companies are expected to help evolve new vistas of funding for the renewable energy space.

“Companies including NTPC, Neyveli Lignite Corporation, Power Finance Corporation, Power Trading Corporation and Rural Electrification Corporation are likely to launch these Masala Bonds totalling $1 billion in the next three or four months in the UK to gauge the investor appetite. The tenor of these bonds is likely to be limited to a band of five to seven years and these are going to be in smaller denominations ranging from $150-250 million. These will be subject to decisions made by the Boards of the PSU energy companies.

In addition, Energy Efficiency Services Limited could explore issuance of Green Masala Bond subject to credit rating. ,” said Shri Piyush Goyal, Union Minister of State (IC) for Power, Coal and New and Renewable Energy, Government of India. He was speaking at a Round table, “Financing Renewables and Energy Efficiency” organized by the City of London in London today.

In 2015, IFC issued the first Masala bond listed on the London Stock Exchange. The bonds worth over Rs 1000 crore were issued in a range of tenors, including a ten-year, 10 billion rupee-denominated bond to raise funds for infrastructure projects. Masala bonds are primarily rupee denominated bonds issued to overseas buyers
Talking about the changing landscape the Minister said that several measures are being taken to address the risks in the system one among them the distribution reform UDAY. This is expected to hard stop future losses for distribution companies and is targeted to get these companies back on track. While some of these companies are likely to be revived sooner the entire distribution segment should be on track by 2019. Shri Goyal also announced that IREDA is coordinating a billion dollar equity fund perhaps the largest in the renewable space. This will be professionally managed by an independent international fund management company. Indian public sector companies gave already committed $ 315 million.


 “Affordability, Access & Inclusiveness Driving India’s Energy Policies”: Shri Piyush Goyal

The growth story in India has just begun with the country set to become the largest energy market representing the aspirations of a billion plus people in the coming years. This is even more significant in view of the global scenario when most developed economies are witnessing a declining trend in their energy demand. "India, which is projected to see its demand quadrupling in the coming years will also lead the way in scaling up energy efficiency in line with its commitments towards combating the challenges of climate change," said Shri Piyush Goyal, Union Minister of State (IC) for Power, Coal and New and Renewable Energy. He was speaking at the session, “Investors Roundtable on Renewable Energy” which was organised by the Confederation of Indian Industry in London on Tuesday.

Shri Goyal further elaborated on how India was developing its energy policies that was driven by affordability, access and inclusiveness. "The idea is to make power available to all at affordable prices. Our policies have to make a difference to the last man at the bottom of the pyramid and change his life for the better," he said while elaborating on how cost will play a big role in the Indian market. Citing examples of how solar tariffs have dipped through competitive transparent systems he emphasized that scale will have a large role to play in bringing down costs.

Calling on investors in UK, Shri Goyal said that India and UK are natural partners and a deeper engagement can lead to a win win for both nations and economies. While India will gain from new technologies, UK can make the same technologies more accessible by manufacturing in India, capitalizing on Indian skills and the scale to bring down costs.

India has set a renewable energy target of 175 GW of renewable energy by 2022 that comprises 100 GW of solar and 60 GW of wind capacity. In a bid to bring the global community together on a larger platform of cooperation, Prime Minister Shri Narendra Modi launched the International Solar Alliance in November last on the sidelines of COP 21 at Paris. The ISA will try and bring the advantages of progress and technological advances to the larger community. Shri Goyal said, "We believe that we have to play our role in helping countries that have been left behind in the development journey and this can be done if the global community comes together." Sometimes such decisions come at a cost but such costs have to be paid for a better and sustainable future, he further added. He was referring to how India has chosen to embrace renewable energy despite having little to do with the large greenhouse emissions that pose challenges today.

Elaborating on how India is leading from the front on issues relating to climate change, the Minister said that India is among the few nations that has imposed a carbon tax even as measures are being taken to scale up energy efficiency and de carbonize the transport industry. "With India selling 770 million LED bulbs everyday India will soon become the LED capital of the world. Prices of LED bulbs have come down to 55 pence from over £3.5 two years ago," said Shri Goyal even as he detailed plans of how electric vehicles were being promoted as an alternative to ones being run on petroleum fuels. For a country like India, replacing petroleum fuel is even more important as this would reduce import dependence and ensure energy security.

Speaking about his earlier engagements during the day, Shri Goyal said that he had invited his British counterpart for a ministerial level engagement to Delhi in June. During the course of the day, he had met with senior government functionaries including including Lord Bourne, Parliamentary Under Secretary of State for Energy and Climate Change, Lord Jim O’Neill, Commercial Secretary to the Treasury and Nick Hurd, Parliamentary Under-Secretary of State for International Development.
CII led a strong 12 member industry delegation accompanying the Minister and members included Mr Rahul Munjal, Managing Director, Hero Future Energies; Mr Ratul Puri, Chairman and Managing Director, Hindustan Power projects Pvt Ltd; Mr Deepak Amitabh Chairman and Managing Director, Power Trading Corporation of India Ltd and Mr Ravi Kailas, Chairman, Mytrah Energy. 

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