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Cleantech Handbook 13 Jan 2014
Cleantech Handbook 13 Jan 2014
CLEANTECH FINLAND
Content
1 2 3 INTRODUCTION 1.1 Preface 1.2 Executive summary 1.3 Purpose of the report 1.4 Background 1.5 Emerging trends and growth drivers ILLUSTRATION OF THE ADMINISTRATIVE SET UP 2.1 Institutional set up 2.2 Cleantech Key Ministries in India 2.3 Cleantech Governmental programmes in India EMERGING CLEANTECH SECTORS AND OPPORTUNITIES FOR FINNISH COMPANIES 3.1 RENEWABLE ENERGY 3.1.1 Solar 3.1.2 Wind 3.1.3 Bioenergy 3.1.4 Waste to energy 3.1.5 Small hydro 4 5 5 5 6 6 8 9 10 12 14 15 20 23 27 30 33 36 42 48 52 56 60 61 64 69 84 85 85 85 85 86 90 91 92 94 98 100 104
4 5 6 7 8 9
3.2 ENERGY EFFICIENCY 3.3 WATER AND WASTE WATER 3.4 URBAN DESIGN AND SMART CITIES 3.5 WASTE MANAGEMENT 3.6 GREEN BUILDINGS FINANCIAL POSSIBILITIES 4.1 International funding 4.2 India 4.3 Finland MAPPING THE CHANNEL OF SETTING UP BUSINESS IN INDIA 5.1 Cultural, social and geographical trends apart from market trends 5.2 Doing business in India 5.3 Things to keep in mind 5.4 Different avenues for market entry ROLE OF COMMUNICATION FOR CLEANTECH IN INDIA TEAM FINLAND IN INDIA 7.1 Introduction 7.2 Indo-Finnish Joint Working Group on Clean Technologies and Waste Management under the Bilateral Joint Commission KEY CLEANTECH INDUSTRY CONSORTIUMS AND ORGANISATIONS OTHER CLEANTECH ORGANISATIONS IN INDIA
REFERENCES ABBREVIATIONS
All gure are in Euros (1 USD = 0.73 Euro)
Introduction
1.1 Preface
Climate change has become a formidable challenge that needs to be addressed immediately and effectively. The responsibility lies heavily on the shoulders of the governments, making every policy in this area necessary and crucial. Many governments however dither to take signicant actions due to the huge costs and complexity related to solving these issues. Finland has been a frontrunner in developing technologies within the cleantech sector for over a decade now. Finlands positive image on environmental issues and as a high-tech hotspot helps in promoting exports of environmental expertise and the growth of the sector. Finnish cleantech expertise is in high demand internationally, and Finnish companies have been quick to utilise the market potential. There has also been strong governmental support to boost cleantech growth, says Mari Pantsar-Kallio, Strategy Director for the Cleantech strategy programme at the Finnish Ministry of Employment and the Economy. In recent years, cleantech has been one of the fastest-growing business sectors in Finland with an annual growth of 15 per cent in 2012. Combined turnover for cleantech business was EUR 24.6 billion and annual growth 15 per cent, according to a survey by Cleantech Finland. Ministry of Employment and the Economy, Government of Finland has devised a strategic programme to increase turnover in the cleantech sector to EUR 50 billion and to create 50,000 new jobs by 2020. Finland is home to some of the worlds leading companies and research institutions within the area of onshore and offshore wind, green buildings, water sector, bio-energy and maritime cleantech. Finland also has strong competencies in some niche areas of the smart grid and waste management industries. Consequently, Finland has actually managed to decouple the otherwise strong linkage between growth and energy consumption. The latest targets from the Finnish Government build on the long history of green ambitions in Finland. The Government adopted the Foresight Report on Long-term Climate and Energy Policy in October 2009. Setting a target to
reduce Finlands greenhouse gas emissions by at least 80 per cent from the 1990 level by 2050 as a part of an international effort, the report marks out the road to a low-carbon Finland in 2050. For these reasons it is not very surprising that Finland has initiated the rst market analysis of the cleantech sector in emerging India. By making this report, the ambition is to help communicate concrete opportunities to companies of all sizes, which can benet their plans of expansion and further strengthen their business strategies in the Indian market. Additionally, this report shows that if Finnish organisations are to take full advantage of the potentials in the cleantech sector in India, they not only require knowledge on these opportunities but also require greater collaboration with Indian counterparts.
INTRODUCTION
Introduction
of several growth opportunities. The analysis across growth sectors, combined with macro developments, has given unique insights into how the dynamics of the markets evolve and what mechanisms and traits are necessary from a general perspective to capture the future growth.
adopting a pro-environment stance in all its development strategies. Depletion of Natural Resources: With coal reserves depleting or more available in dense forest locations where current environmental laws forbid mining, and with the depleting availability of water for mans use, there is immense pressure on natural resources as the human population and urbanisation increases. There is an urgent need to protect the available resources. Adopting Newer & Cleaner Technologies: The adoption of newer and cleaner technologies will help India in leapfrogging into the sustainable growth pathway as the Indian economy grows at an unprecedented rate. Man-Environment Conict: There is an increasing importance given to the voice of the local communities that reside on or near the natural resources. The development of industry in these regions has led to conict between the need for development to meet the power, water and other needs of a growing urban population, versus the need to protect the environmental resources that rightfully belong to these local communities. Strong Economic Growth: The Indian economy is growing strongly at 4-5 per cent plus annually and is one of the fastest growing economies in the developing world today. Global Climate Negotiations: The current global negotiations on climate change have put pressure on rapidly developing economies like India to adopt green technologies and not repeat the unsustainable mistakes of the past.
1.4 Background
India represents a key market for clean technology companies as it is investing billions in this sector. The objective of the Indian Government is to foster a second Green Revolution. The Indian environment market is estimated to be growing at 9 per cent per annum. The US and Western European countries are the leading source of imports of environmental technologies into India. Foreign Direct Investment (FDI) in environment equipment and services is allowed under the automatic route with up to 100 per cent foreign equity holding. Thus, the Indian market offers strong business prospects for foreign investors. Indias growing economy and surging demand for clean power to strengthen energy security and reduce pollution, as well as ongoing sector reforms, is making India one of the most attractive destinations in the world for environmentallyfriendly investments, as per an ADB report.
India is highly fragmented and complex. Home to many distinct cultures and 22 languages recognised by the countrys constitution, it is made up of 28 states and seven union territories marked by economic diversity. Regulatory environments and governance standards differ across states
and territories, and power is increasingly being devolved to the state level. The following section will briey introduce the administrative set up of the Indian Government and the roles of different ministries to develop the cleantech sector.
Institutional set up
About Planning, promotion, coordination and overseeing the implementation of Indias environmental and forestry policies and programmes Exploration and production of oil and natural gas, their rening, distribution and marketing, import, export, and conservation of petroleum products and Liquied Natural Gas Perspective planning, policy formulation in regards to thermal, hydro power generation, transmission and distribution
Responsibilities Implementation of policies and programmes relating to conservation of the countrys natural resources
Programmes The Sustainable Land and Ecosystem Management (SLEM) Programme; Climate Change Programme Fund
Petroleum industry
Water Resources
Water management
All matters both general and technical relating to the development and management of water resources in the country including water use efciency, com Plays a role in organising, coordinating and promoting S&T activities in the country
wrmin.nic. in/
Oil reneries, including Lube plants, exploration and exploitation of petroleum resources, including natural gas
petroleum. nic.in/
Power
Energy efciency
Climate Change Programme, Water Technology and Solar Energy Research Initiative Programme JNNURM, National Mission of Sustainable Habitat
www.dst. gov.in/
Administration of the Electricity Act, 2003, the Energy Conservation Act, 2001
1. National Mission for Enhanced Energy Efciency NMEEE 2. Energy Savings Certicate Trading 3. Carbon Finance Energy Efciency
Urban Development
Formulation and administration of the rules and regulations and laws relating to the housing and urban development
Formulating policies, supporting programmes, monitoring programmes so far as they relate to urban development concerning all the issues in the country
moud.gov. in/
Earth Sciences
Provide services in forecasting the monsoons and other climate parameters, ocean state, earthquakes, tsunamis and other phenomena related to earth systems
The main responsibility is to look after Atmospheric Sciences, Ocean Science and Technology and Seismology in an integrated manner
1. Marine Living Resource 2. Coastal Zone and Island 3. Ocean Observation and Infromation Services
dod.nic.in/
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Key Objectives Reduce environmental impact of the transportation sector Reduce oil imports and promote energy security Encourage production of Jatropha
Reduce environmental impact of the transportation sector Reduce oil imports and promote energy security Encourage indigenous energy sources
Reduce energy consumption in buildings sector Promote energy efciency in building construction and management
Ministry of Power
Direct reduction of Co2 emissions through efcient equipment Reduction in energy demand
Energy saving technologies in appliances, household electricals and other industrial machinery Energy efcient building construction Indigenous design, development and manufacture of renewable energy systems Focus on solar, wind, hydel, biomass, waste, fuel cells, hydrogen, fuel cells, geothermal and tidal
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duty concessions on soft loans for the import of material, components, and equipment used in renewable energy projects Establishment of the National Solar Mission (NSM) which aims to deploy 20 GW of solar energy by 2020 Soft loans for setting up renewable energy enterprises Tax holiday for 10 years for biomass power projects
Investments
The recent announcement of the Prime Minister of India during the Clean Energy Ministerial meeting in April 2013 in New Delhi to double the renewable energy in the next ve years would attract an investment of over 4,000 MW per annum.
Government incentives
Some of the other key incentives provided by the Government of India for the renewable energy industry are: Feed-in-tariffs for both wind and solar energy Up to 80 per cent accelerated depreciation for renewable energy investments Preferential tax rate of 15 per cent, instead of the standard 30 per cent Exemption from central sales tax and customs
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Solar PV Energy storage Improvements in module technology, including higher density and lighter weight modules
Solar Thermal Increased R&D Hybrid power systems Non-grid solar thermal applications Solar building technology applications Solar cooling and solar steam generation systems for industrial process steam applications are emerging opportunities where Finnish technologies can play an important role
Outlook
Developing renewable energy can help India increase its energy security, reduce adverse
impacts on the local environment, lower its carbon intensity, contribute to a more balanced regional development, and realise its aspirations for leadership in high-technology industries.
Wind Importing the latest technologies with higher capacities (over 1-2 MW systems) Wind machines for low wind regimes Better designed rotor blades, gear boxes, and control systems Small wind machines for decentralised power generation, wind PV hybrid systems, and wind mills for water-pumping applications are also largely untapped markets
Small Hydro Power Low head power generation systems High efciency systems Portable micro-hydro systems
Bioenergy R&D
High pressure boilers High power gas turbines Combined cycle, process systems and equipment Advanced biomass gasication and combustion technologies High pressure cogeneration systems, coring and blending technologies, and cost-effective handling Storage and drying of biomass There is a need for small biomass (1-3 MW) in rural areas and larger capacities in cogeneration in sugar mills (bagasse) and pulp and paper factories
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Waste to Energy High rate biomethanation systems Incineration and sanitary landlls Waste collection and segregation Financing build own transfer and build own operate systems
Groups and Individuals Indian Renewable Energy Development Agency (IREDA) and other nancial institutions/ partner bank International Financial Institutions
How can they block us? By not nancing the RE projects due to high cost
What would they want from us? Financial support through for instance guarantees
What do we want from them? Large scale nancing RE projects through concessional funds Supporting particularly offgrid initiatives, and rural electrication efforts by providing debt funds at low-cost
Lack of support
Misuse of assistance/subsidy
Implementing RE projects and Programmes Innovation in business model for inclusive growth
Availing nancial support from the ministry but not implementing projects Unfair practices Sub-optimal monitoring of project
State government
NGOs
Spreading awareness
Financial support
Formulating condusive regulation that will support the RE policy initiative by the ministry Promotion of renewable energy programme in complementary programmes
Working together at the time of formulation of policies and regulations Facilitating large scale off-grid applications such as SWH, solar cooking, solar lighting, solar airconditioning, kitchen waste processing, green building and campuses in their establishments
End Users
Non-cooperation towards usage of RE devices on account of: Lack of awareness High-cost Utility factor
Awareness creation Cost of such devices being made available at the same cost or lower cost than conventional system
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Parameters
Phase 2 ( 2013-17) Scaling up Scaling up various Validated application Rolling out business models 4,000-10,000 1,000 15
Phase 3 (2017-22) Rapid scaling up Reducing solar power cost to achieve grid tariff parity by 2022 20,000 2,000 20
Level
Driving down cost Promoting off-grid application Validating social and economic viability
T A R G E T
Utility, grid power, including roof top (MW) Off-grid installation (MW) Solar collections (million sq mt.)
1,100 200 7
3.1.1
Solar
Background
India is a country that has tremendous solar energy potential. The country has close to 300 sunny days per year and receives an average hourly radiation of 200 MW/sq.km. This translates to a potential of more than 100 GW of solar energy. Indias current installed capacity of 1,044 MW accounts for only 0.5 per cent of its total power generation capacity.
3,000 hours of sunshine equivalent to over 5,000 trillion kWh Power Shortage: Due to shortage of electricity, power cuts are common throughout India and this has adversely affected the countrys economic growth. Solar energy can full the energy demand with nesse
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Solar Thermal
Solar PV
India averages 300 days of sunlight per year, which translates to 100 GW of solar energy Solar PV conversion efciency currently remains at 15 per cent In the last decade, the cost of PV has decreased by a factor of 10 in relation to production of components; however, there are still cost barriers throughout the supply chain The average hourly solar radiation is about 200 MW/sq. km. Indias current solar capacity of 1,044 MW, accounts to only 0.5 per cent of its total power generation capacity By coupling countrys national policies with those at the states, Jawaharlal Nehru National Solar Mission aims to install 20 GW of solar power by 2020
Growth Forecast
For solar CSP and PV together, National Solar Mission attempts to reach an installed capacity of: By 2013: 1-2 GW By 2017: 4-10 GW By 2020: 20 GW
Large areas of the Thar Desert have been set aside for solar power projects, sufcient to generate 700 to 2100 GW Government is expected to spend Euro 13.76 billion until 2022 Cost of power generation - and trends in the same over years C urrent cost of production (after bidding) Euro 0.14/kWh. This includes O&M, amortised/depreciated capital costs, loan repayment costs, and other expenses such as insurance Costs of production expected of solar PV power plants in the near future: Policy Measures By 2012 Euro 0.14/kWh By 2015 Euro 0.11/kWh 2020 Euro 0.07/KWh 80 per cent accelerated depreciation, exemption from excise duties, low import tariffs on raw materials and components, soft loans from IREDA and other nationalised banks, capital subsidies and training programmes
Several support schemes are available in the form of generation based incentives capital subsidies, nancial support for detailed project report, subsidies for solar thermal technology adoption to increase energy efciency in buildings. Some states offer rebates on electricity rates for households with solar water heating systems
Conclusion
Solar energy possesses tremendous potential in bridging Indias energy demand-supply gap in the future. Some of the immediate actions to enable growth are efcient implementation of renewable energy certicates, usage of carbon trading as a source of revenue, development of off-grid usage in various applications such as cellular towers and encouraging localised mini grids in areas that lack connectivity today.
Financing
The three main nancing options for implementing solar PV captive power plants are debt nancing, asset nancing and corporate nancing IREDA, PFC, commercial banks and nancial institutions also offer soft loans, loans with interest rates lower than market interest rates
Euro 11.95 billion annual investment according to Indias Wind Energy Outlook 2012. According to ofcial estimates made by the Ministry of New and Renewable Energy (MNRE), Indias wind power capacity stands at 102,000 MW. Indias total installed capacity today is close to 18,000 MW which is the fth largest in the world.
Opportunities
Increased R&D Hybrid power systems Off-grid solar thermal applications Solar building technologies Solar cooling and steam generation systems for industrial processes High temperature solar thermal applications
Thin lm technologies, including process technologies, low-cost substrates, large size cell/modules Technologies to improve conversion efciency Grid-interactive technologies Improved solar PV technologies Energy storage Improved module technologies including light weight and higher density modules
3.1.2
Wind
Background
India has long started its journey to become one of the largest wind power producers in the world. India is expected to have 89 gigawatts (GW) of installed wind power capacity by 2020 and attract
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structures to encourage the growth of wind energy sector in India. 100 per cent FDI investment is allowed in the eld of renewable energy sector From April 1, 2012, the accelerated depreciation of 35 per cent in the rst year has been allowed. Here the allowed normal depreciation is 15 per cent, and additional 20 per cent deposition is allowed for projects in the power sector nder the Income Tax Act, Section 80IA, U companies are exempted of income tax for the sale of power during the rst 10 years orest lands are allotted or leased out for F developing wind power projects Discounted customs duty of only 5 per cent is given on some of the wind power machinery components ndian renewable energy development I agency is actively working towards institutionalising the nancing in this sector Heavy reduction of VAT or value-added tax is being offered by many states, i.e. From 12.5 per cent, it has been reduced to 5.5 per cent
Excise duty is exempted in the wind sector entre of Wind Energy Technology has been C established for institutionalising training, R&D, resources assessment and testing, and also for awarding certication to various wind energy products xemptions are being offered by the state E governments on duty for electricity 3 states allow privileged feed-in tariff on 1 wind energy production rovisions have been made for favourable P banking, wheeling, and for sales of wind power by the third parties PS or the Renewable Purchase Specication R have already been implemented in six states, which is in accordance to the Electricity Act of 2003 EC or the renewable energy certicate R has been set up for the purpose of interstate trading Concessional surcharges on cross subsidy are levied for the wind power sales by the third parties
Government Support and Policies: Several states such as Karnataka, Tamil Nadu and Andhra Pradesh have come up with renewable energy policies Installed Capacity: Wind Energy holds the major portion of 70 per cent among renewable and continued as the largest supplier of clean energy. Share of wind is 19GW (March 2013) of 27.5GW of Indias RE installed capacity Wind Energy as Job Generator: Wind energy utilisation creates many more jobs than centralised, non-renewable energy sources
Growth Forecast
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Wind Energy Financing Government incentives include a feed-in-tariff, exemptions from excise duties, and tax exemptions for infrastructure-related projects. Additionally, the states that have created RE portfolio standards have helped accelerate the wind sector. There is a burgeoning interest by investors like Goldman Sachs, Black Stone, IDFC in the private sector IREDA, PFC, REC commercial banks and nancial institutions also offer soft loans, loans with interest rates lower than market interest rates Opportunities Importing the latest technologies with higher capacities (over 1-2 MW systems) Wind machines for low wind regimes Better designed rotor blades, gear boxes, and control systems Small wind machines for decentralised power generation, wind PV hybrid systems, and wind mills for water-pumping applications are also largely untapped markets R&D for new research into wind energy Some Key Facts Indias wind energy potential is now considered to be at least double the original estimate of 48.5GW Wind is expected to continue to be the mainstay of renewable energy in India in the short-term Capital cost in India is the lowest in the world and India is emerging as the fastest growing supply chain hub with many industries choosing for in-house manufacture of towers, blades, generators, convertors, etc. GBI scheme has been reintroduced in the Union Budget 2013-14 With increasing participation of Independent Power Producers (IPPs), the project development model is likely to shift from turnkey to a self-developed one Delayed payment from distribution companies is impacting long-term planning and nancial closure of projects Lack of enforcement of RPOs might impact long-term growth
Conclusions
Indias present generation capacity is about 200,000 MW and wind energy could amount to 100,000 MW by 2030 if the right resources (and more importantly, energy policies) are developed. India can develop massive commercial wind farms to harness the strong onshore coastal area and offshore wind to boost the countrys supply of clean renewable energy. But, to tap this vast resource, India must develop and implement smart business models and favourable policies as quickly as possible.
3.1.3
Bioenergy
Background
Bioenergy is one of the most promising alternatives that can help meet all the above needs. It also holds a great potential to meet the rural energy needs of the country. India has formulated and implemented a number of innovative policies and programmes to promote bioenergy technologies. However, according to some preliminary studies, the success rate is marginal compared to the potential available. This limited success is a clear indicator of the need for a serious deployment of bioenergy technologies and expertise on a large scale.
to supplement conventional transport fuels (gasoline and diesel for vehicles), and proposes a target of 20 per cent of bioethanol and biodiesel blending by 2017. The government has mandated a 5 per cent ethanol blending rate for domestic oil marketing companies. National Bioenergy Mission: Initiated by the Ministry of New and Renewable Energy in association with state governments, public & private sectors and other stakeholders to promote ecologically sustainable growth while addressing Indias energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change.
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Bioenergy For development and import of high pressure boilers, high power gas turbines, combined cycle, process systems and equipment Advanced biomass gasication and combustion technologies High pressure cogeneration system Co-ring and blending technologies Cost-effective handling, storage and drying of biomass Technology for production of ethanol like azeotropic distillation technology, molecular sieve technology, membrane technology Biomass-based power can be generated on a distributed basis and short lead times can enable rapid capacity addition Growth in the sector is likely to be driven by captive biomass and CHP application Competitive use of biomass is a constraint in maintaining its assured availability with reasonable cost structure Feedstock chain management is difcult due to the unorganised nature of the market sale of surplus biomass which is otherwise wasted and direct generation of employment in the biomass logistics management system and power plant Utility Benets: The key strength of the utility in the development of rural energy access is the presence of resources (manpower and infrastructure) in the rural areas More than 70 per cent of the countrys population depends upon biomass for its energy needs
www.cibart.org/
Biodiesel Association of India The Energy and Resources Institute Indian Biogas Association
Growth Forecast
Conclusion
India has formulated and implemented a number of innovative policies and programmes to promote bioenergy technologies. Despite the operational issues involved, biomass-based plants provide higher returns compared to wind energy. This potential is also reected in many Independent Power Producers strategy
to diversify their renewable energy portfolio amongst wind and bioenergy. Going forward, it is expected that modern risk management techniques like forward contracts, better assessment of biomass resources and regulatory support of SERCs by providing competitive and stable preferential tariff will help in better harnessing the bioenergy potential of the country.
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3.1.4
Waste to energy
Background
Indias growing energy decit is making the central and state governments keen on alternative and renewable energy sources. Waste to energy is one of these, and it is garnering increasing attention from both the central and state governments. The problems caused by solid and liquid wastes can be signicantly mitigated through the adoption of environmentfriendly waste to energy technologies that will allow treatment and processing of wastes before their disposal. These measures would reduce the quantity of wastes, generate a substantial quantity of energy from them, and greatly reduce environmental pollution. Urban waste includes municipal solid waste, sewage and fecal sludge, whereas industrial waste could be classied as hazardous industrial waste and nonhazardous industrial waste.
nancial incentives and other eligibility criteria have been proposed by the MNRE to encourage the participation in waste to energy projects. They are listed herewith: Financial assistance is provided by way of interest subsidy for commercial projects Financial assistance is provided on the capital cost for demonstration projects that are innovative in terms of generation of power from municipal/industrial wastes Financial assistance is provided for power generation in STPs Financial incentives are given to municipal corporations for supplying garbage free of cost at the project site and for providing land Incentives are given to the state nodal agencies for promotion, coordination and monitoring of such projects Financial assistance is given for carrying out studies on waste to energy projects, covering full costs of such studies. Assistance is given in terms of training courses, workshops and seminars and awareness generation Waste to energy taskforce has been constituted by the Planning Commission to examine the technological aspects of Waste to Energy (WTE) projects started by civic bodies. The aim is to develop a PPP framework model for waste to energy projects
in other waste such as sewage waste, industrial waste and hazardous waste. Depending on the technology/route used for energy recovery, products such as charcoal, compost, nutrient rich digestate (a fertilizer) or bio-oil can be obtained. These co-product opportunities will enable the enterprise to expand into these related products, demand for which are increasing all the time. Emerging Opportunities: With distributed waste management and waste to energy becoming important priorities, opportunities exist for companies to provide support services such as turnkey solutions.
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Waste to Energy Financing Government support towards concessional loans from IREDA through NCEF and Grants for waste to energy projects to municipalities Financial incentives such as subsidies on interest rates and capital costs for demonstration projects 100 per cent accelerated depreciation and exemption from sales and excise taxes are offered Financial assistance to waste to energy projects are provided by MNRE, MoEF and nancial institutions like IREDA, NABARD, state nancial corporations and commercial banks International agencies supporting funding of waste to energy projects include USAID, kfW, JBIC, GEF, IFC, ADB and the US EXIM Bank Opportunities Separation of wet organic wastes Secondary collection and storage Recycling of wastes Transportation and logistics Biogas-based power generation from sludge Production of machineries and equipment for energy recovery technologies Incineration and sanitary landlls Decentralised technology installations Power generation and sale of power Some Key Facts An estimated 55 million tonnes of municipal solid waste and 4,400 million cubic metres of liquid waste are generated in urban areas of India annually with a potential of 2,600 MW of power production The moisture content of urban MSW is 47 per cent and the average caloric value is 7.3 MJ/kg (1745 kcal/kg) Indian Government has proposed incentives for waste to energy projects that would come up through public-private partnership mode with city municipalities in the 12th ve year plan
Conclusion
While the Indian Governments own gures would suggest that the cost of waste to energy is somewhat higher than other renewable sources, it should be kept in mind that waste to energy facilities serve a dual role of waste disposal and energy production. Although the cost per MW of capacity may be greater than other renewable sources, the benets of waste management, energy and metals recovery, and reduction of GHG emissions need to be considered.
of Power (MoP) and the Central Electrical Authority (CEA), while the responsibility for execution and maintenance was with the State Electricity Boards (SEB). Today MoP is involved only in hydropower projects larger than 25 MW, while the MNRE is responsible for projects with station capacities of 25 MW or less. There are several incentives offered by the government, such as: Financial assistance is provided by way of interest subsidy for commercial projects In several states, various additional supporting policies are available for private small hydro projects, including wheeling and banking, buy-back of power, and allowances for third-party sale Incentives are given to the state nodal agencies for promotion, coordination and monitoring of such projects Direct subsidies for different project costs are available Capital subsidies are available for New plants between 100 kW and 25 MW implemented by the state New plants implemented by the private sector or Non-Governmental Organisations (NGOs) Renovation and existing plants maintenance of
3.1.5
Small hydro
Background
In India, small and minimal hydro potential can provide a solution for the energy problems in remote and hilly areas where extension of grid systems is comparatively uneconomical. It is one of the least expensive and most attractive forms of renewable energy. As on today, small and mini hydro (hydroelectricity) capacity aggregation to about 340 MW is in operation. With an estimated potential of about 15,000 MW in India, the government is determined to develop this sector at a faster pace.
Watermills and micro hydro projects up to 100 kW In all cases, special category and northeastern states have a higher subsidy.
Renewable, energy security and fuel shortage GHG mitigation Peaking support (as against other RE) making it cheap in the long run Development of remote areas
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for small hydro projects, in the form of capital subsidies. Community Ownership: While small hydro projects are developed by various state agencies responsible for renewable energy, the projects are normally maintained with local community participation. Private Sector Ownership: A number of tea garden owners and other private factory owners have also set up such micro hydro projects to meet their captive requirement of power.
Conclusion
The Indian market for small hydropower offers good business opportunities to international companies. The market development has been very positive and constant, and the applicability and economic viability of small hydro technology
in India has been proven adequately. In order to develop hydropower projects, foreign companies prefer to work with an Indian partner who has a good local network in the relevant region and can take the lead on the purchase of land and the approval processes.
Growth Forecast
Financing
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Energy Efficiency
3.2
Background
The gap between supply and demand of energy is continuously increasing despite huge outlay for energy sectors since independence. Further, the burning of fossil fuel is resulting in greenhouse gases which are detrimental to the environment. The gap between supply and demand of energy can be bridged with the help of energy conservation which may be considered as a new source of energy which is environment-friendly. The energy conservation is cost-effective with a short payback period and modest investment. There is a good scope of energy conservation in various sectors, viz industry, agriculture, transport and domestic.
Mandating all large government buildings to undertake energy efciency in 2013 about 8,000 large buildings with investment potential of 1.47 billion Setting appliance standards and making them mandatory Setting up norms for large energyintensive industries like thermal power, fertilizer, cement, pulp & paper, chlor alkali, steel, textiles, railways and aluminum. An investment in new technologies of 4.4 billion is expected Massive mass media campaign to enhance awareness amongst stakeholders National Energy Conservation Awards for best performing industries in energy efciency Establishment of the (autonomous) Energy Management Centre under the Ministry of Power for implementing and monitoring energy conservation programmes and to provide policy guidance and advice on energy efciency Removal of price and output controls to promote industrial competitiveness Energy price reforms to guide energy efciency initiatives and encourage international competitiveness Formation of state energy conservation funds that enable states to encourage energy efciency in several industries Grant funds to encourage preparation of Detailed Project Reports (DPRs) for energy efciency projects Enabling trading of energy efciency certications that encourages productivity and competition among businesses
ENERGY EFFICIENCY
The government launched the National Mission on Enhanced Energy Efciency (NMEEE), with an outlay of Euro 0.03 billion in June 2010. This is one of the eight missions under the NAPCC. By 2015, the mission is expected to result in savings of nearly 23 million tonnesoil equivalent of fuel in coal, gas, and petroleum product. The following steps were taken by the Government of India in order to create the market demand for energy efciency in India: Establishment of Bureau of Energy Efciency as a statutory body under the Ministry of Power, which mandates energy efciency standards, manages, nances, and monitors energy efcient efforts throughout the economy, including the industrial sector, through energy audits Preparation of bankable projects in various sectors like government buildings, municipalities, agriculture, SMEs
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Energy Efficiency
Customised Products and Pricing: Tailor made products (such as time-of-day services) is catering to customers with varying consumption patterns. At the same time, the breadth of products offered on power exchanges is rising signicantly New Value Proposals: Retail players will strive to standout through well-crafted value propositions that attract customers. These include green power, improved quality of service, and better costs advances already made in some developed markets
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Energy Efficiency
www.unido.org
www.pcra.org www.teriin.org
Conclusion
India has limited sources of conventional energy and is highly dependent on the imports for coal and oil. A lot of the nations wealth goes into the import of coal and oil for energy. According to the reports of World Resources Institute (WRI) Indias energy demand will more than double
in 2030. The volatile situation in oil exporting area raises concerns of energy security rather than just price volatility. For a nation like India where internal resources are limited and external resources are costly and uncertain, the future lies not just on renewable energies but also on energy efciency.
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3.3
Background
India has about 3 per cent of water resources and 16 per cent of the worlds population. Water in India is a state subject, however, central government plays a pivotal role in policymaking as well as nancing development expenditure in the sector. Today, drinking water investments constitute about 3 per cent of the national budget. About 85 per cent of the urban and 75 per cent of the rural population have access to public water
supplies. But access is not equal to service and service delivery is fairly poor with most cities in India getting only for few hours in a day. The National Water Mission which is one of the eight missions under the National Action Plan on Climate Change, aims for 20 per cent conservation in water use. Although water deciency is widely prevalent, industry experts are optimistic that this shortfall can be met with a strong focus on innovation, demand side management and better policy and regulatory framework.
Reform linked investment programme across 65 cities 56 per cent of the value of approved projects in water and sewerage sector worth Euro 5.29 billion Achieving O&M cost recovery is a key objective Rajiv Gandhi National Mission (RGNDWM) Drinking Water
Decentralised management of water supply by communities leading to convenient availability of potable water at affordable costs Focus on maintenance and incentives for reforms in management
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National Action Plan on Climate Change National Water Mission Ensuring conservation of water; minimise wastage and ensure equitable distribution Promote basin level integrated water management
4. Viability Gap Funding of up to 40 per cent under the Government of Indias initiative to promote PPP in infrastructure, including water supply 5. The JNNURM has supported water supply and sewerage projects worth Euro 72 million since its inception in 2006. Phase II of the mission may be launched in 2014 with additional funding 6. A proposal to setup a National Bureau of Water Use Efciency, on similar lines of BEE to drive efciency improvements in the sector 7. Many states have mandatory requirements for harvesting rainwater in urban areas 8. Proposed revision of guidelines for development of water supply projects could spur opportunities for higher end technologies 9. Some states, especially those with large coastal regions, have prioritised desalination for meeting drinking water as well as industrial water requirements
Some of the initiatives being taken at central, state and local for promoting the water sector include: 1. Some states have formed/propose to form water regulatory authority for determining inter sector allocation and regulation of tariffs 2. Service level benchmarks proposed by MOUD are being mainstreamed 3. Increasing use of turnkey contracts (such as DBFOT, DBO), etc. by states and local government ensuring long-term involvement of private sector and larger sized contracts
Growth Forecast
Aids provided by World Bank and ADB Soft loans are provides through nationalised banks and other nancial institutions A 10-year, 100 per cent deduction of prots and gains is available for companies operating in water supply, water treatment, and sanitation projects 100 per cent FDI under automatic route 100 per cent depreciation within rst year of project installation Exemptions/reduction from excise duty, central excise sales tax, customs on import of materials, components and equipment
Technology & engineering related: Availability, assessment & extraction, treatment and purication, metering, quality monitoring, operation & maintenance bottled water, borewells and irrigation Management & monitoring: Project management, remote monitoring & leak detection Data collection & information management Developer & operator related: EPC contractor, boot operator with expertise in O&M, control and leak/defect detection technologies like SCADA solutions, ow mapping systems, revenue collection and customer service Estimating baseline data is critical Addressing measurement issues should be high on agenda Focus on costs and estimating improvement options required Appropriate risk assessment before initiating reuse of wastewater Local and municipal participation is essential for selection and promotion of new technology
Water cycle imbalances and stress Over exploitation of water resources Poor water quality necessitating use of advanced technology for treatment Political and regulatory disputes Excessive withdrawal of ground water leading to unsustainability of source
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www.teriin.org cpheeo.nic.in
www.nih.ernet.in
www.cii.in/CII_Triveni_ Water_Institute.aspx
Conclusion
Indias fragile and nite water resources are depleting while the multi-sectoral demands for water from sustained economic growth is driving the increased demand for water through coupled dynamics between increased energy
and consumption. Exponentially increasing demand for water due to population growth and agricultural use, coupled with a high degree of variability in the availability of water resources throughout the country, will drive per capita accessibility of water to under 1,000 cubic metres by 2020 if left unchecked.
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3.4
Background
Enhance public-private partnership in infrastructural development Promote planned integrated development of towns/cities Pilot scheme for funding infrastructure in satellite towns around seven megacities
Indian urban agglomeration needs an efcient infrastructure and smart city planning that will meet the demands of a growing population. India is booming and sustainable development has become increasingly more important. According to a United Nations report, Indias population currently encompasses about 1.2 billion people and is expected to grow by another 300 million within the next couple of decades. With cities generating two-thirds of the countrys economic output, an increasing number of Indians are leaving rural areas to seek employment in cities, relying on an efcient urban infrastructure.
Besides the ongoing JNNURM implementation in 65 Indian cities, Ministry of Urban Development has undertaken the agship Urban Infrastructure Development Scheme for Satellite Towns (UIDSST) around seven megacities and eight satellite Integrated Development of Small and Medium Towns scheme which aims at the development of selected regional growth centres with infrastructure and service facilities so as to enable such towns to emerge as regional centres of economic growth and employment opportunities and arrest migration from rural areas and small towns to large metropolitan cities NERUDP ADB funded North Eastern Region Urban Development Programme (NERUDP) to renew the urban infrastructure the northeastern states of India Rajiv Awas Yojana Ray for the slum dwellers and the urban poor envisages a slum free India through encouraging States/Union Territories to tackle the problem of slums in a denitive manner
Launch of JNNURM Jawaharlal Nehru National Urban Renewal Mission to improve urban infrastructure services in the identied cities to make them efcient and effective centres of growth. UIDSSMT scheme The Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), a component of the JNNURM to Improve infrastructural facilities and help create durable public assets and quality oriented services in cities and towns
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Urban Design GDP would have multiplied ve times, 590 million people will live in cities, nearly twice the population of the United States today 270 million people net increase in working age population, 70 per cent of net new employment will be generated in cities 91 million urban households will be urban middle-class, up from 22 million today 68 cities will have population of 1 million plus, up from 42 today, Europe has 35 today, Euro 0.87 trillion capital investment is necessary to meet projected demand in Indian cities 700-900 million square metres of commercial and residential space needs to be built or a new Chicago every year 2.5 billion square metres of roads will have to be paved, 20 times the capacity added in the past decade 7,400 kilometers of metros and subways will need to be constructed 20 times the capacity added in the past decade
speculation. The income status of people and their education level is constantly rising with the urbanisation that is happening in India. A lot of possibilities of growth are found in mega ofces and Special Economic Zones (SEZs); industry parks will happen with the policy framework by Government in India given emphasis to environment and green building initiatives at the same time
www.urbanindia. nic.in
Centre for Environment Planning and Technology (CEPT) The Central Public Health and Environmental Engineering Organisation (CPHEEO) Urban Mass Transit Company
www.cept.ac.in cpheeo.nic.in
www.umtc.co.in/
Conclusion
The country is set to build 500 new cities over the next 20 years to house 700 million more city
dwellers by 2050, according to a study by consulting rm Booz & Company. This will bring out ample developments in the Indian urban development. It is a high growth priority sector in India.
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Waste Management
3.5
Background
Rapid economic growth is leading to urbanisation and industrialisation generating waste which is adversely affecting the environment. Due to the liberalised policy, the pace of industrialisation has accelerated, which has resulted in increasing amounts of hazardous wastes every year. Waste management has become a matter of great concern to most city corporations, and there have been some instances of management collapse even in metropolitan cities in the year 2012. All this build-up took place within a single decade, which is why many corporations have awakened to the rude shock. There has been an unpredictable increase in both industrial and domestic wastes. The government and corporations have now taken cognizance of things that require immediate attention, and a lot of funds have been diverted to various waste management projects.
nature, it is entrusted to the Urban Local Bodies (ULBs). The management of municipal solid waste is one of the most important obligatory functions of the urban local bodies. Some government initiatives are mentioned herewith: Bio-medical Waste 1998 Notied Handling Rules,
Municipal Solid Waste Management Rules, 2000 Notied Reforms Agenda (Fiscal, Institutional, Legal) Technical Manual on Municipal Solid Waste Management Technology Advisory Group on Municipal Solid Waste Management Inter-Ministerial Task Force on Integrated Plant Nutrient Management from city compost For initiating SWM programmes governments JNNURM programme to fund cities for developing urban infrastructure and services Financial assistance at a at rate of Euro 0.2 million per MW, subject to ceiling of 20 per cent of project cost and Euro 1.2 million per project, whichever is less Tax Free Bonds by ULBs permitted by Government of India Public-Private Partnership in SWM Capacity building Urban Reforms Incentive Fund Guidelines for PSP and setting up of Regulatory Authority Introduction of Commercial Accounting System in ULBs & other Sector Reforms Model Municipal By-Laws framed/circulated for the benet of ULBs for adoption Tax Holiday: A 10 year, 100 per cent deduction of prots and gains is available for companies operating in waste projects. Tax/Duties Relief: Direct taxes: 100 per cent depreciation within rst year of project installation Exemption/reduction in excise duty Exemption from Central Sales Tax, and customs duty concessions on the import of material, components and equipment used in Renewable Energy RE projects
WASTE MANAGEMENT
Municipal solid waste management is quite a complex process, which clearly means a lot of investment has to be facilitated in infrastructure, technology and planning. It means efciently handling Institutional waste Dead animals waste at slaughter houses Demolition and construction wastes Wastes which gets accumulated on the roads Waste derived from horticultural processes Treated bio-medical waste Waste due to drains and outlets Sludge from industries Commercial waste from the market areas
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Waste Management
Waste Management Joint ventures with Indian rms to offer integrated solutions in waste treatment, including performing feasibility studies, designing, technical consulting and providing operation and online maintenance services Demand for technologies and services for effective waste collection, transportation and disposal, and its treatment and recycling Engineering and consulting services on waste collection and transportation, landll treatment, waste treatment plants, outdoor compositing, anaerobic digestion of waste and sewage sludge, biological-mechanical waste treatment and waste to energy Technologies and solutions for high polluting sectors, such as thermal power stations, chemical and pharmaceutical industries Design, manufacture and installation of various types of waste management systems Some Key Facts Government initiatives, fast industrialisation and urbanisation in the country have benetted the solid waste management market. Estimates of the municipal1 and hazardous2 waste market is above 1.5 billion and around 171 million respectively Urban local bodies and the state governments are actively working towards bringing about urban transformations Most of the reforms are aimed at infusing highest sustainability to infrastructure developments 253.59 million has been approved for 44 projects
Recycling of Waste (Plastics, Paper, Glass, Metal, etc.): Recyclable materials like paper, cardboards, plastics, polythene bags, pieces of metals and glass are recycled to recover useful resource Sanitary Landlling: Rejects from compost plants, recycling and other inorganic materials like construction debris in municipal solid waste are sent to scientically engineered landlls
National Environmental Engineering Research Institute (NEERI) Department of Science and Technology (DST) National Solid Waste Association of India (NSWAI) The Energy and Resources Institute Indian Society of Hospital Waste Management
Solid waste management including toxic and hazardous waste and also biomedical waste in India. Research on waste management Facilitate/advocate/undertake research activities on issues of hospital waste management
Growth Forecast
www.teriin.org www.medwasteind.org/
Conclusion
Waste management in India is in the development stage with both urban and industrial waste set to grow dramatically over the next few years. For most of the urban local bodies in India, solid waste is a major concern that has reached alarming
proportions, requiring management initiatives on a war footing. There is an increasing need for new technologies and waste management systems, which makes it the right time for foreign companies to invest in India. To put it simply, waste in India is a big business.
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Green Buildings
3.6
Background
There is a burgeoning need of housing in the urban areas and many cities will be developed bigger in terms of housing and commercial building needs in the next couple of decades. Since India is an energy decient country, it needs to employ energy efcient sustainable solutions. Indias building-occupied area is projected to grow from eight billion square metres (sq.m.) in 2005 to 41 billion square metres in 2030. Incorporating energy efciency measures in these new buildings will help India meet its energy needs and increase its energy security. Indias energy production must grow 6.5 per cent per year from 2012 to 2017. Buildings already account for more than 30 per cent of the countrys electricity consumption, and nearly 70 per cent of the buildings in India that will exist by 2030 are yet to be built. The market potential for green building products in India by 2015 is estimated to about Euro 72.43 billion as per IGBC (Indian Green Building Council).
green building development, and has the highest authority to make decisions on building and construction from environment perspective The other recognised institutions apart from the government are the widely accepted rating agencies. The rst and most widely used ratings system internationally is the American Leadership in Energy and Environmental Design (LEED) system. In India, the Indian Green Building Council (IGBC) has adapted LEED to create LEED India and is responsible for certifying buildings under this system At present, the IGBC offers two certications for ofce buildings. The rst, LEED for New Construction and Major Renovations is for buildings where the design and operation is fully in the scope and control of owner or developer. LEED India for Core and Shell certies buildings where the owners or developers do not control all aspects of design and construction. The Energy and Resources Institute (TERI) has developed its own ratings system, Green Rating for Integrated Habitat Assessment (GRIHA) In 2007, the Bureau of Energy Efciency (BEE) launched the voluntary Energy Conservation Building Code (ECBC) that sets minimum energy standards for new commercial buildings having a connected load of 500 KW or contract demand of 600 KVA or more
GREEN BUILDINGS
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Green Buildings
past few years have shown a rising trend in green building development. Indian commercial sectors like retail, hospitality, other commercial ofce buildings, and residential buildings offer huge possibilities of development as these sectors are looking big with government policies favouring their growth. For example, organised retail in India is currently just below 10 per cent compared to 4 per cent ve years ago. It is likely to grow to 20 per cent in this decade as per retail industry estimates. With policies favouring the retail sector, big retail giants like Walmart, Carrefour, Ikea and many others are considering to be in this market. Opportunities
Green Building India Sustainable site management and design services Water efciency: Water use reduction, water efcient landscaping, innovative waste water technology Energy & Atmosphere (EA): Energy efciency, renewable energy Materials & Resources (MR): Sustainable building materials (wood/precast), building reuse, construction waste management, materials reuse, recycled materials, rapidly renewing materials Indoor Environmental Quality (EQ): Ventilation, low-emitting materials, controllable systems: lighting thermal, air conditioning comfort, daylight & views Key Facts 362 certied green buildings, 1.45 billion sq.ft. green building footprint 2,111 registered green building projects, 1.350 detailed energy audits carried out 30 million annual recurring energy saving realised 50 detailed water audits conducted,26.93 million m3/year water savings 16 Green SMEs funded, 450 industrial units subscribe to the CII-Code 27 companies registered for GreenCo Rating, 9 GreenCo Rated companies
Green Building India Description From just one registered green building in 2003, India now has over 2,100 projects registered with a total area of 1.65 billion sq. ft. With this, India has the second largest green building footprint in the world after the US. In the last three years, 400 projects were completed and fully certied by the council. These include airports, banks, convention centres, factories, hospitals, hotels, IT parks and commercial buildings. Green building is the next big thing in India owing to the growth trend it has shown in the last decade. As also, the industry, government, investors and stakeholders have shown inclination towards adoption of green technologies and concern for environment due to which the next developments in India shall be more towards environmental friendly structures. Micronance for eco housing for home owners and service providers Financial incentives for green buildings e.g. scal incentives for manufacturers and developers Other nancial mechanisms for green buildings like equipment nance for builders, manufacturers of equipment Concessional funding and grants by Indian public sector banks to support MSME sector which are developing sustainable materials and technology for green buildings International agencies supporting funding of green building projects include USAID, kfW, JBIC, GEF, IFC, WB
Growth Forecast
www.teriin.org/index.php www.teriin.org/index.php
Financing/ Incentives
www.usgbc.org/leed
Conclusion
Green buildings offer tremendous potential for growth. There is a growing consensus between the business, consumer and government to have more green building structures owing to the awareness and the importance of the environment and
responsibility towards nature. There is a natural motivation in the long-term, as green buildings provide better return on investment and savings are notable. There is a long way to go and sooner or later most constructions will abide by the green building code due to the need of environment safety and Government policies accordingly.
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Financial Possibilities
own procurement regulations and typically the competition can be very harsh. In many cases, the international funding can be difcult to target as a rst step. However, when targeting new markets the international money ows should be seen as an opportunity to scale up the business when good and sustainable business models have been identied and tested. No matter how large the different international, governmental or other institutional projects are, the monetary ows are very limited in comparison to foreign direct investments and the private sector ows. In targeting markets such as India, the role of the private investments should be kept high on agenda.
FINANCIAL POSSIBILITIES
One of the most visible funding ows has been the traditional development aid which used to be relatively clear being either direct (bilateral aid) or indirect via multilateral organisations such as
development banks. However, today the structure of capital ows has changed and it has become more complex.
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Financial Possibilities
rural services and infrastructure, water resource management, rural development, environmental policies and institutions, infrastructure services for private sector development, pollution management and environmental health as well as land administration and management. The activities are roughly divided in grants, loans and advisory services. Finnish companies can try and benet from all of these, but the typical route is to participate in international competitive bidding. Within the advisory services, development banks may fund testing and piloting new solutions or technologies, but even here the normal route is to have competing tenders before selecting private sector companies.
and telecom; heavy industry and mechanical engineering; consumer goods and services; nancial institutions and SMEs.
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NDF provides grant nancing for climate change investments in low-income countries
www.ndf./ NDF provides grants by co-nancing. Projects are normally identied by governments in partner countries according to national priorities. NDF also has a strong working relationship with the World Bank, Asian Development Bank, Inter-American Development Bank, African Development Bank and Nordic bilateral development organisations, and projects are often identied through these partnerships. In addition, NDF aims at obtaining project information and ideas through Nordic rms, organisations and networks. Grant amounts vary from EUR 500,000 to EUR 5 million.
Bank or Asian Development Bank or via funding of IFC. Global Environment Facility (GEF) unites 183 countries in partnership with international institutions, Civil Society Organisations (CSOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives. An independently operating nancial organisation, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. Since 1991, GEF has achieved a strong track record with developing countries and countries with economies in transition, providing Euro 8.33 billion in grants and leveraging Euro 41.28 billion in co-nancing for over 3,215 projects in over 165 countries. Through its Small Grants Programme (SGP), the GEF has also made more than 16,030 small grants directly to civil society and community based organisations, totalling Euro 473.10 million. GEFs projects are managed by separate organisations typically multilateral development banks.
McKinsey which talks of an order of magnitude of Euro 0.72 trillion in incremental capital required by 2030. Just for renewable/clean energy, investment requirement will be Euro 14.49 billion in the next ve years (2012-17). No matter how large the different projects are Indian public monetary contributions are generally limited in comparison to the need of foreign direct investments and the private sector capitalisation input. As mentioned in the International Financing section for targeting markets such as India the role of the private investments should be kept high on agenda. India is fast emerging as a preferred destination for clean energy/low-carbon investments in terms of industry-attractiveness which is driven by favourable natural endowments for solar, wind, biomass and small hydro projects and there is huge potential for energy efciency. Sectors such as urban transport, water, wastewater and solid waste management are also gradually witnessing growth on the back of policy initiatives such as implementation of the urban renewal mission (JNNURM), national water policy and revision of guidelines for water treatment.
energy efciency, etc. Each of the sectors are under the overall administrative jurisdiction of separate ministries at the central government level and their corresponding departments at the state government level. As a result there is no single unied nancing mechanism for cleantech. The nancing available under such schemes and programmes varies from support for technology development to capital subsidy for commercialising and roll-out of projects. The funding options available in each sector have been addressing the respective sections. This section will present a broad overview of the range of institutions involved across various stages of the value chain. Developing and commercialising clean technologies in India can be divided into two phases for the purposes of discussing the nancing options. The rst phase covers technology innovation, R&D, concept demonstration, pre-commercialisation and commercialisation. For this rst phase, grants and subsidies can be applied for from various sources (as listed later in this chapter). As the company approaches actual commercialisation, loans are usually required. In the second phase, the roll-out or the post commercialisation stage when goods or services are produced, equity investments, loans and insurances are often required. This type of nancing is usually provided by commercial and international nancial institutions. Other potential funding sources for this stage include venture capital and private equity.
NEFCO
www.nefco.org NEFCO is an international nancial institution established by the ve Nordic countries. NEFCO nances climate projects across the world. NEFCOs main focus is to generate positive environmental effects of interest to the Nordic region
4.2
India
Introduction
India has embarked on a low carbon inclusive growth trajectory through a slew of policy, institutional, market development measures. These include the National Action Plan on Climate Change, solar missions national and states, energy efciency mission, green SEZs, green transportation and renewable energy certicates. It has also set up expert groups on low-carbon inclusive growth strategies. All these initiatives would require a humongous amount of nancing and a number of estimates have been made for that, such as the one by
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Purpose To develop analytical, environmental monitoring, geo-scientic, agri electronic instruments and sensors, to develop low-cost domestic purication technologies, options for disposal of scientic waste, initiating application of nano-technology Funds for scientic projects where markets and technology risks are high Grants, early stage funding, loans for high risk, innovative ideas/ products for commercialisation in elds such as bioengineering, environment, etc. Grants for generating power through two-stage process, rst producing RDF and then combustion; setting up power plants based on high rate biomethanation tech; setting up demonstration projects based on gasication/pyrolysis and plasma arc technologies; generation of power from biogas being produced at sewage treatment plants; generation of power in elds of small wind energy, small hydro, biomass power, biomass pacier and biogas power; and carrying out R&D projects in eld of renewable energy
Small, medium and large companies involved in R&D and public institutions Biotech companies/ Entrepreneurs/Small, Medium and large companies involved in R&D Entrepreneurs, project developers, NGOs, government agencies industry-institute collaboration, etc.
A, B, C, D
A, B, D, E
A, B, D, E, F
C: Technology in-licensing D: Technology scale-up/validation/de-risking E: Market entry F: Expansion Govenment supported institutions National Research Development Corporation (NRDC) Department of Information Technology (DIT) IREDA Entrepreneurs/ Incubatees at Business Incubators/Inventors Industry-R&D institution partnership All enterprises
Target
Purpose
Angel funds (Department of Science and Technology), nancial and technical support for patenting of inventions Grant to create indigenous products/ packages, to encourage R&D projects in elds of ICT Operates as a revolving fund for development and deployment of new and renewable sources of energy and gives nancial support to specic projects and schemes for generating electricity and/or energy through new and renewable sources and conserving energy through energy efciency
A, B, D
A, D, E
Grants for creating lab model, prototypes, product features, patent protection, design, international technology transfer promotion, etc. Funds for accelerated product development in 9-12 months for faster market entry Provides grants to technology startups for prototyping and getting mentoring, etc. to build their companies, for marketing in exhibitions, patents, provides loans for post-commercialisation stage
A, B, C, D, E, F
D, E, F
SMEs/Entrepreneurs
B, C, D, E, F
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Organisation Bureau of Energy Efciency Power Finance Corporation National Innovation Foundation (NIF) Financial institutions Infrastructure Development Finance Company (IDFC) Karnataka Information Technology Venture Capital Fund (KITVEN) Small Industries Development Bank of India (SIDBI) Other nationalised banks (State Bank of India, Bank of Baroda, Indian Overseas Bank, etc.) and private banks (ICICI, HDFC, etc.) World Bank & ICICI Bank collaboration
Purpose Funds DPR (detailed project report) for energy efciency in SMEs Debt, private equity, investment in project assets Soft loans for unaided, green, grassroots technological innovation.
Purpose Different VCs in India who make equity investments in companies that have reached expansion phase To facilitate entrepreneurs with ideas and assist in early stages of venture development; to work with them to develop/provide new ideas and turn those into new ventures
A, C, D B, D, E
Accelerators
Entrepreneurs
A, B, C, D, E
All enterprises
Debt, private equity, investment in project assets VC fund providing equity capital for investment in IT, Nano-Tech and other knowledge based industries Term loans; growth and equity capital (exceptional cases) Debt investment in wide range of growth sectors
C, D, F
4.3
A, B
Finland
All enterprises
Introduction
The signicance of India as a target market for the internationalisation of Finlands trade and industry has grown. Ofcial cooperation agreements between Finland and India are the key in terms of cooperation in various elds. Cleantech has been recognised as one of the focus areas of collaboration between Finland and India. In addition to research, technology and innovation, the following key cleantech sectors have been identied as the cutting edges in this context. Energy industry, and renewable energy in particular Energy efciency Environmental learning business, education and
taking capacity in the various stages of company growth. Hence, this section examines some of the critical Finnish public nanciers/institutions having the potential to promote Indo-Finnish cleantech funding and businesses collaboration. Nonetheless, its vital to bear in mind, public funding in Finland is currently not in particular directed towards cleantech companies or projects. Properly speaking, as such the term cleantech is very much sector cross cutting and can be considered as any other technology, consequently credit decisions are taking place according to traditional institutional (in some instances cautious) policy guidelines. Furthermore, theres growing generalised conception that SMEs, unlike big enterprises, are lacking the resources to grow and to invest in ones own for the reference instrumentor capacity. Piloting becomes burdensome with scarce private nancial resources, hence investments do not rise for international markets. Nonetheless, it can be concluded that the Finnish public sector nanciers form a group of a comprehensive societal collaborators, regardless of whether funding policies have a developmental dimension or not.
Entrepreneurs, SMEs
D, E, F
All enterprises
D, E, F
Private companies conducting research in partnership with public R&D institutes Entrepreneurs/ Startups/Companies
Provide loans to promote technology development by private sector in partnership with technology institutions like CSIR labs, IITs, etc. To facilitate development and commercialisation of innovative technology projects pertaining to new product/process/applications
A, B, C, D
Technology Information, Forecasting and Assessment Council (TIFAC)-Small Industries Development Bank of India (SIDBI) Small and Medium Enterprise Stock Exchanges
C, D, E, F
SMEs with track record of three years of operations and two years of positive net worth or distributable prots
Private investors Public-private venture funds (Infuse Ventures, Magnetar Venture, Indian Angles Network, Ncubate, etc.) Incubator Related Seed Funds Startups/ Entrepreneurs To fund entrepreneurs/startups in the area of sustainable energy A, B, C, D, E, F
Entrepreneurs
B, C, D
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matchmaking services to enhance long-term partnerships between Finland and developing countries, normally between companies.
Services cover organisations throughout the lifespan of their business projects, irrespective of their operating sector, planning or improving business activities.
Examples of projects supported in India are production of windmills, lifters and precast concrete, production and sale of low-tension products and mobile application services. Note: Finnpartnerships operations are limited to the developing countries. India is currently in the upper middle income developing country category listed by OECDs Development Assistance Committee (DAC). Business partnership support: Max 200,000/company, de minimis aid Max 400,000/company, non-de minimis aid if not affecting competition inside EEA
Importing to a developing country (project with commercial market potential and developmental impacts which boosts developing country import to Finland and possibly to other countries) Other long-term business partnership in a developing country designed to sustain business activities related to, for example, long-term subcontracting or maintenance, franchising or licensing agreements
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30/50/70 per cent of approved expenses depending on the size of the applicant and development level of the target country
Finnpartnership is funded by the Ministry for Foreign Affairs of Finland and governed by Finnfund
Finnfund
Finnfund is a Finnish development nance company that provides long-term investment loans and risk capital for commercially protable
private projects in challenging markets where commercial nancing is hard to obtain. In recent years, a proportion of the nance has been for projects in India, China and Russia.
Finnfund is promoting investments to renewable energy, cleantech and energy efciency sectors. It is typically focusing on projects involving advanced but commercially proven technology, innovations supporting new ways of employing technology that contributes to economic and social development in target countries. Financing on market terms for establishments or expansion projects in different sectors, from SMEs to large companies, with a minority stake range of 1-10 million. Finnfund has a dedicated team with sector-specic knowledge on renewable energy, environment and forestry. The team: Follows the development in these sectors and maintains relationships with project
developers abroad and technology providers and other relevant parties in Finland Has a wide network of nancier partners, e.g. other development nance institutions Can help ll the holes in nancing packages, e.g. by catalysing private funds for the projects it nances Provides the customers of Finnish equipment suppliers in developing countries with other instruments than traditionally used in customer nance, and in wider range of countries Participating in the equipment or service supply backed by Finnfund can provide an easier entry to developing markets, such as India, for a technology provider
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Table 1: Investments in India on December 31, 2012, Operations and the Finnish Company
India Ashley Alteams India Pvt. Ltd. Bharti Airtel Ltd. Incap Contract Manufacturing Services Pvt. Ltd. Ojala (India) Engineering Pvt. Ltd. Polygenta Technologies Ltd. SREI Infrastructure Finance Ltd. Stera Engineering (India) Pvt. Ltd. VME Precast Pvt. Ltd. West Coast Paper Mills Ltd. Aluminium Components Telecommunications Contract Manufacturer of Electromechanices Metal Products Polyester Manufacturing Leasing Contract Manufacturer of Electromechanices Concrete Elements Paper Mill Ojala-Yhtyma Oy Stera Techonology Oy Valkeaskosken Betoni Oy Metso Paper Oy Alteams Group Nokia Siemens Networks Oy Incap Oyj
Finnvera Plc
Finnvera Plc is a specialised nancing company owned by the State of Finland and it has the ofcial Export Credit Agency (ECA) status in Finland. Finnvera provides Finnish SMEs with loans, guarantees and venture capital investments. Finnvera also offers export credit guarantees and
nancing for export credits. Payment terms for export credits supported by Finnvera may vary from cash payment to over ten years in larger buyer credits. Total exposure of export credit guarantees was EUR 10.7 billion as at June 2013. Asia accounts for 11 per cent or EUR 1.2 billion of total exposure with India being the most important country with over EUR 700 million exposure (Figure 12)
As of end 2012, 50 per cent of the Finnish partners were companies with turnover of 50 million or less out of the total of 36 companies Note: Finnfund is owned by the State of Finland 91.5 per cent, Finnvera 8.4 per cent and Confederation of Finnish Industries EK 0.1 per cent Finances projects only countries and Russia in developing
Financing is not tied to Finnish exports but the project should involve a Finnish interest Capital can only be injected into the Indian company (or other such acceptable legal entity) covering nancial instruments such as equity investments (max 30 per cent), investment loans (~1/3 of total), mezzanine nancing (convertible bonds, preferred shares, unsecured subordinated loans) and combinations of these
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When a Finnish cleantech company is starting to explore export business opportunities to India, its useful to know that: (i) According to Finnvera, Indias country risk category is currently (September 2013) set as 3 on a scale from 0 to 7 (7 being the weakest category). Indias economic situation has, however, weakened during 2013 and the classication should be veried from Finnvera website (www.nnvera.) (ii) The risks related to the operating environment of companies in India could be signicant because of problems in trading across borders, legal environment, authorities, enforcing contracts, etc. (iii) A careful analysis of payment terms offered to the Indian client is warranted
Payment terms
Finnish exports to India are generally commenced with advance payments
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Financial Possibilities
In the last ve years Tekes has funded yearly 13-23 projects that have India-related activities including some cleantech projects. Half of them are company R&D projects and half university research projects. Funding for those projects have been around 4-7 million per year. Tekes provides funding for the development of innovations that aim at creating growth and new business. In 2012, 62 per cent of Tekes funding was related to enterprise projects of which nearly 70 per cent was allocated to development projects of small and medium-sized enterprises.
The Groove Growth from Renewables programme enhances the business capabilities of Finnish small and medium-sized enterprises working with renewable energy by improving their international competitiveness and developing networks with the nancier network. The programme offers assistance in enhancing business skills and networking, with a strong emphasis on international networks. Companies operating in Finland can apply for funding at any time. Research organisations may apply funding on specic application periods.
Tekes nancial contribution is determined based on the novelty of the project, market distance and the size of the company. Grants will typically be awarded to research and development projects that generate know-how that can be utilised in the long-term. The project as such does not produce a directly marketable product. Instead, product development will be done on later phases utilising the results of the research project.
Acceptable costs include items such as Salaries relating to project The related indirect personnel costs and overheads, travel costs, materials and supplies costs and under certain conditions, machinery and equipment costs as well as services purchased from external suppliers Costs relating to the planning of production, marketing, internationalisation or internal training can be accepted as a part of the project
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Financial Possibilities
Costs relating to preparation for market entry and verication of the functionality of development work may constitute only a part of the costs of a project funded by Tekes
The loan is intended especially for projects that produce a marketable product or service or create a new business concept.
technology, while creating new growth companies, jobs and well-being Contributes to the innovation system services by providing venture capital and private equity nancing to companies. Financing through exits and governmental equity injections have secured the continuous and growing investment activity Attracts foreign capital into Finland by investing in international venture capital and private equity funds and by coinvesting in Finnish companies together with international investors. Finnish Industry Investment is a local partner for international investors in Finland In recent years, average yearly investment volumes have hit EUR 100 million, divided equally between fund investments and direct investments. Current investments and commitments totalling EUR 700 million have been placed in around 80 investment funds and 80 growth companies
Prospects
FIIs goal is to channel venture capital into growth companies over economic cycles. The Finnish government decided to strengthen growth company nancing and capitalise it by 2013. Special focus areas for FIIs investments will be high value-added growth companies, the mining cluster, the bio-economy and cleantech sectors, and the marine industrys cluster companies.
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Financial Possibilities
This expertise, with emphasis on the preinvestment phase gives Nopef a unique competence to support small and mediumsized companies, in close cooperation with Nordic and national nancial institutions and trade organisations. Nopef is one of the four Nordic nancial institutions located in Helsinki. The other three are the Nordic Investment Bank (NIB), the Nordic Development Fund (NDF) and the Nordic Environment Finance Corporation (NEFCO).
Sitra
The Finnish Innovation Fund is operating directly under the Finnish Parliament, thus decisionmaking processes are tied to parliamentary systems.
Promote health and well-being Solve social problems in society Improve material and energy efciency Speed up the smart use of natural resources Promote an ecological way of life
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5.1 Cultural, social and geographical trends apart from market trends
India is a huge country which is like a continent in itself with the territory of India divided into 28 states. Each state has its own set of laws and regulations called as the state governed laws. However, each state is abided by common central government laws. It is important to see the attractiveness of different states when considering India market as per the business potential, business environment, available infrastructure, human resource availability, taxation, etc. The country is diverse and different as you go from one state to another in terms of socio economic culture and demographics. The country has a vast young age population of more than 50 per cent below the age of 25 years and the average age by 2020 will be 29 years, while the population is about 240 times that of Finland.
its a price competitive market but promises huge volume growth for feasible business due to its high consumer base.
5.3
It is important to keep things in mind while choosing a specic location by a company for its business. Most importantly, the demographics, right infrastructure, tax rules of the state, vicinity to suppliers, human resource availability, special economic zone, price parity, exit options in case of dissolution. The above stated inuences the decision to choose a specic location in comparison to others.
5.2
India as a destination to do business has attracted many countries around the world and today it is one of the leading emerging economies. Almost all the sectors in India have grown by and large in the last couple of decades after the liberalisation of the economy in the early nineties. Business in India has advantages of long-term and sustainable business possibilities owing to its large domestic consumption and international business growth in the past. Some of the companies have predetermined way of entry to this market owing to their long business relations with India. However, a very clear entry mode should be chosen by the companies from the options available when planning to associate their business with India. It is important to note that
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Introduction
Like any sector, the biggest challenge facing cleantech companies at the moment is the dynamism of evolving economies. It can be extremely difcult for early-stage companies to access the nancing they need to get their technologies off-the-ground and the general atmosphere that is increasingly risk-averse. That said, this backdrop offers a real opportunity for cleantech growth because the technologies that will ultimately be successful are those that work more cheaply, more efciently, or more intelligently. In a time of austerity, these are the real drivers of cleantech adoption in India and the companies that can get this message right are those that will succeed, regardless of the economic climate.
business plan or sales strategy and should be a priority from day one. You could have a magic box that could save the world but if no one knows that it exists or what it does, and no one understands why wed want it, it wont make any difference at all. Indian companies irrespective of size are extremely particular about branding for a competitive edge and more so to communicate on behalf of the sector. Given this trend, communication should be considered by Finnish companies as an integral part while developing an entry strategy or while doing business in India.
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focus to a narrow range of media because the more widely the message is spread the better. Of course certain stories will complement certain publications, but its important to make the story as interesting as possible to as many publications as possible. Its too easy (and too lazy) to just get stories about a lighting client into the lighting press. They should be talked about in the business press, the green media and the mainstream media.
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7.1
Introduction
Team Finland network was set up to support Finlands external economic relations and promote the country brand, internationalisation of Finnish companies as well as foreign investment directed at Finland. The network brings together actors both from Finland and abroad. At the heart of the Team Finland network are the Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Ministry of Education and Culture of Finland. Team Finland encourages numerous players promoting Finland and Finnish business into progressively better cooperation. Around the world there are over 70 local teams which handle Team Finland activities abroad, one of which is in India. Each local team gathers together the Finnish authorities, publicly funded organisations, and other central players representing Finland in the particular region. The signicance of India as a target market for the internationalisation of Finlands trade and industry has grown. Team Finland in India has ofciated several activities to strengthen collaboration between Indian and the Finnish players. Cleantech has been recognised as one of the focus areas of collaboration between Finland and India.
in Finland and India with the objective to enhance positive development effects in India innfund, a Finnish development nance F company providing long-term investment loans and risk capital for private projects in India Finnvera promotes Finnish enterprises activities targeted at India, by granting export guarantees and loans and guarantees for internationalisation Tekes the Finnish Funding Agency for Technology and Innovation represents Finnish innovation actors in India Finnish Industry Investment Ltd, being a part of the Finnish national innovation system seeks to stimulate Finnish industry, promote the development and deployment of new technology Finpro, an MEE Group agency, and its trade centres assist Finnish trade and industry actors in forging contacts and networks in India. It also implements industry-specic projects in the Indian market
In addition, Sitra, the Finnish Innovation Fund promotes and stimulates new business models that aim for sustainable well-being Nopef which has a focus on globalisation is nanced by the Nordic Council of Ministers. The funds are used to strengthen the international competitiveness of small and medium-sized enterprises by providing loans on favourable terms for co-nancing feasibility studies, aiming at contributing to the internationalisation of companies
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cooperation and the Joint Commission between Finland and India are coordinated by the Ministry for Foreign Affairs. Under the agreement, a cleantech working group will commence its operations in autumn 2013. With the help of the working group, Finland aims to increase concrete cooperation between companies in the cleantech sector and the Indian authorities and funding organisations, utilising the working group for communications and networking between the countries. Within the working group, the MEE engages in close cooperation with Team Finland network. The MEE strives, with public services and subsidies, to encourage primarily Small and Medium-sized Enterprises (SMEs) operating on the home market to internationalise their business, as well as to accelerate the internationalisation process of enterprises that have already started exporting. Furthermore, the MEE is focusing a higher number of innovation policy and export and internationalisation promotion measures on India too. Enterprises can apply to the Centres for Economic Development, Transport and the Environment (ELY Centres) for aid for their internationalisation projects.
Forests on the Indian side. The JWG shall report on its work to the Indo-Finnish Joint Commission coordinated by the Ministry for Foreign Affairs of Finland and the Ministry of Commerce and Industry of India. The JWG shall consist of representatives of the Coordinating Authorities and representatives of other ministries, governmental, industrial and nancial organisations, as well as enterprises from both sides, as deemed relevant respectively by both sides. The JWG shall meet once a year or when considered appropriate by the sides either in Finland or in India. The date and place of the meetings shall be mutually agreed upon by the coordinating authorities. Both sides may propose issues to the agenda of the JWG. After each meeting of the JWG, minutes of the meeting/a protocol will be prepared by the host of the meeting and agreed upon by the coordinating authorities. A mutually decided action plan and progress report will be prepared periodically. Between the ofcial JWG meetings different networking events, workshops, seminars and exchange visits can be organised under the JWG umbrella. The working language of the JWG shall be English. Both sides shall bear their respective costs arising from functioning of the JWG.
Facilitating access to cleaner technologies by small and medium enterprises Other elds as mutually agreed upon by the coordinating authorities
3. Creating favourable conditions and suggesting mechanisms for collaboration 4. Supporting investments and R&D cooperation in indentied cooperation elds 5. Scanning on joint funding of mutually agreed projects and activities under the JWG umbrella 6. Networking of professionals, organisations and enterprises by organising workshops, seminars and exchange visits
7.2 Indo-Finnish Joint Working Group on Clean Technologies and Waste Management is under the Bilateral Joint Commission
The Indo-Finnish Joint Working Group on Clean Technology and Waste Management has been established under the Indo-Finnish Joint Commission. The Joint Working Group (JWG) will implement the Agreement on Economic Cooperation between the Government of the Republic of Finland and the Government of the Republic of India. The coordinating authorities of the JWG are the Ministry of Employment and Economy on the Finnish side and the Ministry of Environment and
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Field The United Nations' global development network helps India achieve the global Millennium Development Goals (MDGs) and the national objectives Programmes for clean technologies and renewable energy, mitigating global climate change and access to energy and water The specialised agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalisation and environmental sustainability Energy, climate change and adaptation Helps developing countries adapt to climate change, embark on low-carbon growth and tackle deforestation Expertise for sustainable development, economic development, food security, health and basic education; and environmental protection, resource conservation and climate change mitigation Protection of Indias ecological security. Minimising wasteful consumption and promotion of sustainable and wise use of natural resources by all sectors of society The intergovernmental panel on climate change A corporate sustainability and clean and green technologies investment advisory rm in Asia Pacic
USAID
transition.usaid.gov/in/
UNIDO
www.unido.org/ofce/ india.html
NORAD ICF
GIZ
WWF
www.wwndia.org
www.ipcc.ch/ sustainasia.com/en/index.php
Bilateral Organisations DFID India Sharing skills and expertise in priority areas such a growth, health, food security and climate change The Swiss Agency for Development and Cooperation's emphasis is on innovation, dialogue, capacity building and cooperation in climate change and energy themes To build transformative solutions that protect the earth and improve peoples lives in India www.gov.uk/government/ world/organisations/ dd-india www.swiss-cooperation. admin.ch/india/
SDC
WRI India
wri-india.org/about/
Research Organisations CSE The Centre for Science and Environment (CSE) is a public interest research and advocacy organisation based in New Delhi www.cseindia.org
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TERI
The Energy and Resources Institute focusing its research activities in the elds of energy, environment and sustainable development
www.teriin.org/index.php
ASSOCHAM
Institiutions& Universities EDF The Economic Development Forum is a Non-Prot Membership organization. The Economic Development Forum provides a platform for companies and individuals to explore sustainable development Group of autonomous public engineering and management institutes of India www.edf.org/climate/indianding-paths-sustainablegrowth FISME www.iitd.ac.in
One of the apex trade associations of India. The organisation represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives. The goal of this organisation is to promote both domestic and international trade, and reduce trade barriers while fostering conducive environment for the growth of trade and industry of India The progressive face of Indian MSMEs and is regarded as such by the Government of India. It is a member of the National MSME Board formed under the MSME Act 2006. FISME is consulted by SME policy making set-up of the country and also works in close coordination with the Ministry of Micro, Small and Medium Enterprises as well as major multilateral and bilateral bodies in India
ww`cham.org/
www.sme.org.in
Development Alternatives (DA) has acted as a research and action organisation, designing and delivering eco-solutions for the poor and the marginalised Solar Energy Society of India the Indian Section of the International Solar Energy Society (ISES) Promotion and development of wind power in India Integrated Sustainable Energy and Ecological Development Association. Concentrating promotion of renewable energy, ecological and natural resources development programmes with special focus on the implementation of biogas development in rural areas of the country, since 1980 Collaborative non-prot initiative of the users, developers and researchers of clean technologies, dedicated entirely to the use of eco-efcient techniques and practices for environmental impact mitigation of industrial, developmental and human activities CII is a non-government, not-for-prot, industryled and industry-managed organisation, playing a proactive role in India's development process and working to create and sustain an environment conducive to the development of India, partnering industry, government, and civil society, through advisory and consultative processes A non-government, not-for-prot organisation, an association of business organisations in India. Involved in sector-specic business policy consensus building, and business promotion and networking
www.devalt.org/about_ us.aspx
www.cleantechfoundation. org/
CII
www.cii.in/
FICCI
www.cci.com/
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Programmes Decentralised energy solutions for villages Energy, sustainable development and industrial development, renewable energy supply for rural areas, commercialisation of solar energy in urban and industrial areas (ComSolar) (BMU) Indo-German Energy Forum International Climate Initiative Green Energy Corridors Project Indo-German Energy Programme Integration of Renewable Energies into the Indian Electricity System
Promoting renewable energy Technology Vision 2020 UK India Business Leaders Climate Group South Asia Water Initiative Renewable energy, especially solar Advances the water and renewable energy sectors by supporting academia and research, encouraging implementation in the local market, and by helping Israeli companies succeed in the international arena Solutions for water treatment and wastewater management Facilitates exports of Swedish cleantech and support the development of Swedish companies and promote research and innovation in this eld. Operated and developed by the Swedish Agency for Economic and Regional Growth Tillvxtverket Cooperation and MoU concerning energy efciency with CII, Indo-Swedish Innovation Platform Helping member companies start and nish projects in India; networking platform for all cleantech sectors Facilitates and delivers Australian clean technology investments on behalf of both investors and project proponents
www.cleantechscandinavia.com/
www.cleantech.com
www.auscleantech.com.au/
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References
REFERENCES
envfor.nic.in/about-ministry/about-ministry www.indiaenvironmentportal.org.in/organisation/ministry-petroleum-and-natural-gas powermin.nic.in/JSP_SERVLETS/internal.jsp www.mnre.gov.in/mission-and-vision-2/mission-and-vision/ www.c2es.org/international/key-country-policies/india/climate-plan-summary www.pib.nic.in/newsite/erelease.aspx?relid=46172 www.cwet.tn.nic.in/html/aboutus.html jnnurm.nic.in/ wrmin.nic.in/index1.asp?linkid=201&langid=1 wrmin.nic.in/writereaddata/linkimages/NWP2012Eng6495132651.pdf www.teriin.org/index.php?option=com_content&task=view&id=17 mnre.gov.in/le-manager/UserFiles/biofuel_policy.pdf www.simplydecoded.com/2013/02/24/a-ninth-mission-national-bio-energy-mission/ unfccc.int/cooperation_and_support/nancial_mechanism/bilateral_and_multilateral_funding/items/2822.php www.earthdirectory.net/India.htm www.dst.gov.in/ moud.gov.in/sites/upload_les/moud/les/Mandate_0_0.pdf www.indianetzone.com/51/ministry_urban_development.htm www.nland.org.in/public/default.aspx?contentid=266232&nodeid=46694&contentlan=2&culture=en-US team.nland./public/default.aspx?nodeid=46788&contentlan=2&culture=en-US www.google.co.in/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&ved=0CEMQFjAB&url=http%3A%2 F%2Fwww.researchgate.net%2Fpublication%2F200122206_Wind_energy_in_India_Status_and_future_prospects%2Ff ile%2F204c11a7dfe7d34eca11dc7907fdaeee.pdf&ei=Nj_vUeOHGIir4ATN5IDoBA&usg=AFQjCNEPM2qAffppOqELM6Kk WmkJo_6Wvw&sig2=MDnPWNCQ918GxFdL1TvTxA&bvm=bv.49641647,d.bGE www.eai.in/ref/ae/sol/cs/spi/solar_pv_in_india_industry_status_and_trends.html www.mnre.gov.in/centers/sss-nire/(Insitute for Bioenergy under MNRE) www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/taxes-incentives-renewable-energy-2012. pdf (lobal Investment in RE) www.eai.in/ref/ae/win/business_opportunities.html (Wind energy Business opportuntities) cleanenergyministerial.org/Portals/2/pdfs/CEM4_roundtables_report_web.pdf (Clean Energy Ministerial Meet report ****) www.mnre.gov.in/le-manager/UserFiles/mission_document_JNNSM.pdf (Solar Mission docu-ment MNRE) www.eai.in/ref/ae/sol/sol.html (Unique Proposition why solar) www.mapsondia.com/maps/nonconventional/solarpower.htm# (Solar project maps) www.ebtc.eu/pdf/110926_REP_EBTC_Greentech_Energy.pdf (List of organisations in Solar, Wind, Bioenergy etc mnre.gov.in/le-manager/UserFiles/strategic_plan_mnre_2011_17.pdf www.ey.com/Publication/vwLUAssets/Renewable_energy_country_attractiveness_indices_February_2013/$FILE/ Renewable_energy_country_attractiveness_indices.pdf siteresources.worldbank.org/EXTENERGY2/Resources/Unleashing_potential_of_renewables_in_India.pdf gyananalytics.com/The%20Potential%20of%20Renewable%20Energy%20in%20India%20-%202012.pdf www.eai.in/ref/ae/win/win.html#sthash.qY0uBng5.dpuf eqmaglive.com/EQ-ARTICLE-668-Acceleration-Of-Renewable-Energy-With-Emphasis-On-Wind-Energy-Through-ProActive-National-Policies-In-India.html Source: Report of The Working Group on Power for Twelfth Plan 2012-17, Government of India, Ministry of Power www.cityoondon.gov.uk/business/support-promotion-and-advice/promoting-the-city-internationally/india/Documents/ BC_PR_CityofLondon1.pdf www.eco-ventures.in/pdfs/indian_solar_market_potential_anita.pdf tejas.iimb.ac.in/articles/75.php www.triplepundit.com/2013/07/renovate-india-renewable-energy-sources/ (Very good article about RE++++) www.salvuscapital.com/iiwes.pdf (Very good wind energy report) LArge solar power plans in India by MNRE (500MW) articles.economictimes.indiatimes.com/2013-06-14/news/39976619_1_solar-power-welspun-energy-mw www.emergent-ventures.com/docs/energetica-india.pdf www.gwec.net/wp-content/uploads/2012/11/India-Wind-Energy-Outlook-2012.pdf mnre.gov.in/file-manager/UserFiles/presentation-01082012/Presentation%20on%20Policy%20Issues%20and%20 12th%20Plan%20Proposals%20by%20JS,%20MNRE.pdf www.academicresearchjournals.com/serialjournalmanager/pdf/1364630101.pdf
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References
techcurry.co/indias-wind-power-potential-stands-at-massive-2000-gw-lawrence-berkeley/ nexusnovus.com/wind-energy-opportunities-india www.emergent-ventures.com/docs/energetica-india.pdf www.ebtc.eu/pdf/111031_SNA_Snapshot_Biofuels-and-Bio-energy-in-India.pdf www.simplydecoded.com/2013/02/24/a-ninth-mission-national-bio-energy-mission/ Bioenergy mission under NAPCC as Ninth misssion www.bioenergyindia.org/Capabilities.aspx... Bioebergy council of India www.bioenergyconsult.com/tag/biomass-potential-in-india/ www.rcuk.ac.uk/documents/india/BioenergyprogrammeIndia-DBTDrRenuSwarup.pdf Good report on Bioenergy..highlighting barriers www.tech-action.org/Perspectives/BioenergyIndia.pdf www.tech-action.org/Perspectives/BioenergyIndia.pdf UNEP report on Bioenergy www.unep.org/bioenergy/Portals/48107/doc/issues/issuespaper/Issue%20Paper%207%20-%20REDD%20and%20 Bioenergy.pdf Very veryimprotant report on Bioenergy mission www.eai.in/club/users/Shweta/blogs/7498 www.inspirenetwork.org/pdf/issue_7_(mar11).pdf www.slideshare.net/iaeme/future-potential-of-small-hydro-power-project-in-india www.renewableenergyworld.com/rea/news/article/2013/07/nancing-indias-small-hydro-capacity www.thelearningpoint.net/home/infographic-insights---visualizing-data-and-statistics-related-to-india/infographics--visualizing-small-hydro-power-potential-in-india-non-conventional-energy-resources cleantechnica.com/2013/03/01/indias-budget-includes-145-million-incentive-for-wind-energy-low-cost-funding-forrenewable-energy-projects/#7AbL8J0gwKbb5d6Q.99 www.greenfeathers.in/greendirectory/clean-and-green-category.php?page=2&category=66&name=RE-SmallHydro www.slideshare.net/IPPAI/issues-in-hydro-power-development www.nrel.gov/docs/fy11osti/48948.pdf www.eai.in/ref/ae/wte/wte.html#sthash.oLAvZVID.dpuf (Background) www.eai.in/ref/ae/wte/pol/policies.html#sthash.4WKP3ywI.dpuf (government policy) www.seas.columbia.edu/earth/wtert/sofos/Natl_%20Master_%20Plan_of_India.pdf (good presenation) wtert.in/25-08-2012-Day2/Regina_Dube.pdf www.seas.columbia.edu/earth/wtert/sofos/Sustainable%20Solid%20Waste%20Management%20in%20India_Final.pdf Sedish waste to energy www.swedenabroad.com/SelectImageX/165865/WtEreportSidanal.doc wtert.in/24-08-2012-Day1/Vikram_Reddy.pdf envfor.nic.in/divisions/ic/wssd/doc2/ch4_anx.pdf panchabuta.com/2012/11/29/indian-govt-earmarks-rs-5-4-billion-subsidy-for-rural-electrication/ www.tem./en/enterprises/internationalisation/aid_to_individual_enterprises www.tem./en/enterprises/internationalisation/joint_export_promotion_projects_of_enterprises_and_project_aid www.slideshare.net/iaeme/future-potential-of-small-hydro-power-project-in-india www.renewableenergyworld.com/rea/news/article/2013/07/nancing-indias-small-hydro-capacity www.thelearningpoint.net/home/infographic-insights---visualizing-data-and-statistics-related-to-india/infographics--visualizing-small-hydro-power-potential-in-india-non-conventional-energy-resources cleantechnica.com/2013/03/01/indias-budget-includes-145-million-incentive-for-wind-energy-low-cost-funding-forrenewable-energy-projects/#7AbL8J0gwKbb5d6Q.99 www.asiapacicpartnership.org/pdf/Projects/Cross-Cutting-Other/PSU/CCO-07-03_Financing_Energy_Efciency_in_ India_Nov_2008.pdf www05.abb.com/global/scot/scot316.nsf/veritydisplay/bcb30e13c8cbe734c125786400512e26/$le/india.pdf www.ipeec.org/docs/countryreports/India-Country-report.pdf www.google.co.in/url?sa=t&rct=j&q=energy%20efciency%20opportunities%20report%20india&source=web&cd=4& cad=rja&ved=0CDgQFjAD&url=https%3A%2F%2Fwww.econ.umd.edu%2Fresearch%2Fpapers%2F592%2Fdownload %2F346&ei=mvAWUr27I6v24QS1voGYAQ&usg=AFQjCNHOZp8zehWlMLg3OrWCwR0OXrhm6g&bvm=bv.51156542,d. bGE www.ebtc.eu/pdf/111031_SNA_Snapshot_Energy-Efciency-in-India.pdf www.idfc.com/pdf/report/Chapter-4.pdf conference.aimt.edu.in/mba/mba%20paper/CONCEPT%20OF%20GREEN%20FINANCE%20AND%20ITS%20 VIABILITY%20IN%20INDIA.pdf
www.irjcjournals.org/ijmssr/Feb2013/9.pdf indianresearchjournals.com/pdf/IJMFSMR/2012/July/3.pdf www.venturecenter.co.in/funding/ www.greenfeathers.in/greendirectory/clean-and-green-category.php?page=2&category=66&name=RE-Small www.slideshare.net/IPPAI/issues-in-hydro-power-development www.nrel.gov/docs/fy11osti/48948.pdf www.climateinvestmentfunds.org/cifnet/country/india www.cleantechcluster./en/services/international/?id=158 www.ifc.org/wps/wcm/connect/4252af804a95fe15b284f29e0dc67fc6/IFC+Activities+in+Cleantech.pdf?MOD=AJPERES www.2point6billion.com/news/2011/05/30/asian-development-bank%E2%80%99s-clean-tech-vc-funds-target-chinaand-india-9377.html www.thehindubusinessline.com/economy/usaid-commits-100-m-to-india-cleantech-fund/article4843648.ece List of investment funds India bridgecleantech.in/index.php/funds/list-of-investment-funds (BridgeCleantech) Infuse Mangnetar Venture Pvt limited...USD 100 m IDFC IFC www.idfc.com/alternatives/pdf/private-equity-nancing-for-cleantech-infrastructure.pdf (very good report on CT funding) www.unep.org/pdf/UNEP_Investing.pdf www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/les/CTF%20CRP%205%20%20India%20ppt. pdf www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/les/CTF_India_investment_plan_101411.pdf entrepreneurindia.in/people/coverstory/the-real-green-shoots/19980/ www.hindustantimes.com/business-news/WorldEconomy/IFC-bets-big-on-India-s-green-biz/Article1-1081152.aspx www.irjcjournals.org/ijmssr/Feb2013/9.pdf indiabudget.nic.in/ub2013-14/bh/bh1.pdf www.sustainabledevelopment.in/pdf/events/day2/Pankaj_Sindwani.pdf trade.gov/publications/pdfs/india-clean-energy2008.pdf www.siemens.co.in/sustainable-development-in-india/?stc=inccc020017 mospi.nic.in/mospi_new/upload/sel_socio_eco_stats_ind_2001_28oct11.pdf pg 38 www.tcpomud.gov.in/Divisions/MUTP/Provisional_Census_Report_2011.pdf mospi.nic.in/Mospi_New/upload/cocsso_data/agenda-IV_20th_cocsso.pdf jnnurm.nic.in/wp-content/uploads/2013/07/sectorwise-details.pdf tcpomud.gov.in/Schemes/index.html nerudp.nic.in/ www.pwc.com/gx/en/capital-projects-infrastructure/assets/gridlines-india-article-2013.pdf www.business-standard.com/article/economy-policy/land-talks-on-for-smart-cities-project-112080502012_1.html www.mckinsey.com/insights/urbanization/urban_awakening_in_india www.moef.nic.in www.wmrindia.com www.ebtc.eu/pdf/111031_SNA_Snapshot_Waste-management-in-India.pdf urbanindia.nic.in/programme/lsg/twelfth_5y_plan.pdf http://www.nbmcw.com/articles/green-construction/25586-green-building-going-green-concept-on-rise-in-india.html http://www.wienerberger.in/events/previous-events/the-green-building-congress-2012.html?lpi=1208673813172 http://www.nrdc.org/international/india-constructingchange.asp http://www.noppen.com.cn/upcoming/B1212/index.asp http://greencleanguide.com/2012/08/22/three-primary-ratingsystems-for-green-buildings-in-india/ http://www.ijetae.com/les/Conference%20ICERTSD-2013/IJETAE_ICERTSD_0213_51.pdf http://www.nswaienvis.nic.in/ http://wiego.org/wiego/sewa-bharats-inclusive-solid-waste-management-tool http://www.environment.tn.nic.in/SoE/images/WasteManagement.pdf http://www.moef.nic.in/downloads/public-information/Roadmap-Mgmt-Waste.pdf
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Abbreviations
ABBREVIATIONS
ADB: AIT: Asian Development Bank Austrian Institute of Technology and Assessment Council EK: Confederation of Finnish Industries ELY Centres: Centres for Economic Development, Transport and the Environment EPC: Engineering, Procurement and Construction ASSOCHAM: The Associated Chambers of Commerce and Industry of India BEE: Bureau of Energy Efciency EPCM: Engineering, Procurement and Construction Management EU: FDI: European Union Foreign Direct Investment
JnNURM: Jawaharlal Nehru National Urban Renewal Mission JV: JWG: KFW: Joint Venture Joint Working Group Kreditanstalt Fr Wiederaufbau (Reconstructioncredit Institute)
Public Private Partnerships Photo Voltaic Reserve Bank of India Research and Development Renewable Energy Certicates
KITVEN: Karnataka Information Technology LEED: Leadership in Energy and Environmental Design
REDD: Reducing Emissions From Deforestation and Forest Degradation REEEP: Renewable Energy and Energy Efciency Partnership RPOS: Renewable Purchase Obligation RRECL: Rajasthan Renewable Energy Corporation Ltd. SCADA: Supervisory Control and Data Acquisition SCF: SDC: SEC: SECI: Strategic Climate Fund Swiss International Cooperation Solar Energy Centre Solar Energy Corporation of India
LO or BO: Liaison Ofce or Branch Ofce MNRE: Ministry of New and Renewable Energy MOEF: Ministry of Environment and Forest MOMSME: Ministry of Micro, Small and Medium Enterprises MOP: Ministry of Power
CAGR: Compound Annual Growth Rate CAPEX: Capital Expenditure CEA: CEPT: Central Electricity Authorithy Centre for Environmental Planning and Technology University
FICCI: Federation of Indian Chambers of Commerce and Industry FISME: Federation of Indian Micro, Small and Medium Enterprises GBI: Generation Based Incentive
GEDA: Gujarat Energy Development Agency GEF: GHG: GIZ: Global Environemnt Facility Green House Gases Deutsche Gesellschaft Fr Internationale Zusammenarbeit
CERC: Central Electricity Regulatory Commission CES: CFL: CII: Centre for Ecological Sciences Compact Fluorescent Lamp Confederation of Indian Industry
MSME: Micro, Small and Medium Enterprises MSW: Municipal Solid Waste
SERC: State Electricity Regulatory Commission SESI: Solar Energy Society of India SEZs: SGP: SIDBI: SLEM: Special Economic Zones Small Grants Programme Small Industries Development Bank of India and Other Nationalised Banks The Sustainable Land and Ecosystem Management
CPCW: Central Pollution Control Board CPHEEO: The Central Public Health and Environment Engineering Organisation CSE: CSIR: CSOs: CSP: CTF: DA: DAC: Centre for Science and Environement Council of Scientic and Industrial Research Civil Society Organisations Concentrated Solar Power Clean Technology Fund Development Alternatives Development Assistance Committee
GRIHA: Green Rating for Integrated Habitat Assessment HVAC: Heating, Ventilation and Air Conditioning IASH: ICT: IDFC: IFC: IGBC: IIT: ILC: IMF: International Association from Small Hydro Information Communication Technology Infrastructure Development Finance Company International Finance Corporation Indian Green Building Council of NRDCs (Natural Resource Defence Council of India) Indian Institute of Technology International Law Commission Indian Monitory Fund
NABARD: National Bank for Agriculture and Rural Development NAPCC: National Action Plan on Climate Change NDF: NEERI: Nordic Development Fund National Environmental Engineering Research Institute
NEFCO: The Nordic Environment Finance Corporation NERUDP: North Eastern Region Urban Development Programme NGO: Non-Governmental Organisation
TCPO: Town and Country Planning Organisation TEKES, THE FINNISH FUNDING AGENCY FOR TECHNOLOGY AND INNOVATION TEM: TERI: TIFAC: Ministry of Employment and The Economy The Energy and Resources Institute Technology Information Forecasting
NHPC: National Hydroelectric Power Corporation NIB: NIF: The Nordic Investment Bank National Innovation Foundation
DBFOT: Design-Build-Finance-Operate-Transfer DBO: DBT: DCTI: DFID: DIT: DMIC: Design-Build-Operate Department of Bio-Technology Deutsches Clean Tech Institute Department for International Development Department of Information Technology Delhi-Mumbai Industrial Corridor
INSEDA: The Integrated Sustainable Energy and Ecological Development Association INTPOW: Norwegian Renewable Energy Partners INWEA: Indian Wind Energy Association IPCC: IPP: Intergovernmental Panel on Climate Change Independent Power Producer Centre for Wind Energy Technology (C-Wet)
NMEEE: National Mission on Enhanced Energy Efciency NOPEF: The Nordic Project Fund NPV: Net Presente Value
UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns ULB: UN: Urban Local Bodies United Nations
NRDC: National Research Development Corporation NRDMS: Natural Resources Data Management System O&M: Operations and Maintenance
UNDP: United Nations Development Porgramme UNEP: United National Environment Programme UNIDO: United Nations Industrial Development Organisation USAID: United States Agency for International Development VCF WB: WRI: Venture Capital Fund The World Bank World Resources Institute
DMICDC: The Delhi-Mumbai Industrial Corridor Development Corporation Ltd. DPRs: DSIR: DST : ECA: Detailed Project Reports Department of Scientic and Industrial Research Department of Science and Technology Export Credit Agency
IREDA: Indian Renewable Energy Development Agency IRR: IWMI: JBIC: JICA : Internal Rate of Return International Water Management Institute Japan Bank Internation Corporation Japan International Corporation Agency
OECD: Organisation for Economic Cooperation and Development OPEX: Operational Expenditure PAT: Perform Achieve and Trade
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Editors
Shriya Ramachandran Ulf sterberg Ashish Koltewar