PM promises states more funds, greater utilisation powers

PM offered to transfer some of the 66 centrally 

sponsored schemes, for whichRs 3,38,562 crore 

was provided in 2014-15, to states

Exhorting Chief Ministers to bury differences to help India achieve high growth and create jobs, Prime Minister Narendra Modi today promised more funds to states with greater powers on their utilisattion, even as he asked them to address issues delaying projects.

Keen to revive investment cycle, Modi at the first Governing Council meeting of the newly-constituted NITI Aayog asked Chief Ministers to personally monitor factors impacting project execution and suggested that an officer be identified in each state to monitor and resolve pending issues.

He offered to transfer some of the 66 centrally sponsored schemes, for which Rs 3,38,562 crore was provided in 2014-15, to states. A sub-group of Chief Ministers would be set up under NITI Aayog to look into rationalisation of these 66 schemes and recommend which ones "to continue, which to transfer to states, and which to cut down".

"We will move away from 'one size fits all' schemes and forge a better match between the schemes and the needs of states," Modi said.

Modi also announced setting up of two more such sub-groups -- one for skill development and creation of jobs within states and the other to create an institutional framework to make 'Swachh Bharat (Clean India)' a continuous initiative.

Identifying poverty elimination as the biggest challenge, he said the new body, which replaced the long-standing socialist era plan body Planning Commission, will forge a model of "co-operative and competitive federalism".

"Forgetting all our differences, let us focus on the cycle of investment, growth, job creation and prosperity," he said at the meeting attended by Chief Ministers and representatives of 31 states and Union Territories, addressing them as 'Team India'

Noting that India cannot advance without all its states advancing in tandem, the Prime Minister said the idea was to bring up all states together in the spirit of 'Sabka Saath, Sabka Vikas'.

Later briefing reporters, Finance Minister Arun Jaitley said that Modi told CMs that "the priorities are growth, investment, jobs, poverty alleviation, decentralisation, efficiency and no delay in execution of projects".

The Prime Minister, Jaitley said, also highlighted that the economic activity really is to take place in states and therefore states have an important role to play.

West Bengal Chief Minister Mamata Banerjee skipped the meet, but Bihar Chief Minister Jitan Manjhi, who is facing a political turmoil back home, was present. States like Tamil Nadu and Uttar Pradesh demanded more funds for states, while Kerala sought greater flexibility in central allocations.

Source:BS

Inox Wind bags 166-mw contract from Green Infra

nox Wind has received a 166 mw contract 

from Green Infra to set up projects in 

Gujarat, Madhya Pradesh and Rajasthan 

NEW DELHI: Inox Wind has received a 166 mw contract from Green Infra, a company promoted by IDFC PE Fund, to set up projects in Gujarat, Madhya Pradesh and Rajasthan in the sector where the government has restored tax benefits to promote clean energy. 

Inox Wind, part of the $2 billion (about Rs 12,400 crore) Inox group that has interests in multixplexes, cryogenic technology refrigerants and industrial gases, is a subsidiary of Gujarat Fluorochemicals. 

Under the contract, the company will develop and construct the projects on a turnkey basis, supply 83 units of 2 mw wind turbine generators and undertake long-term operations and maintenance, said Devansh Jain, director, Inox Wind. The projects are likely to be commissioned in phases by December. 

While Jain did not divulge the total value of the order, according to market experts an investment of about Rs 6 crore is required per megawatt of wind power. The government's thrust on renewable sector has boosted investor sentiment and attracted several companies to wind and solar power generation. Companies like Suzlon are counting on revival of the sector while the Adani group recently announced a $4 billion investment in the renewable energy sector along with US firm SunEdison, a leading p .. 

player in photovoltaic equipment. 

According to ratings agency ICRA, capacity addition in wind energy is likely to increase 10% to 2,200-2,300 mw during the current financial year. 

Inox Wind also plans to expand operations and is in the process of setting up an integrated wind turbine manufacturing facility in Madhya Pradesh at an investment of about Rs 250 crore, director of Inox Wind added. 

The company will manufacture 800 mw of nacelles and hubs, 800 mw of blades and 600 mw of towers at the new facility which is likely to be commissioned in phases over the next year. Earlier, it was awarded two wind-farm project contracts of 54 mw and 118 mw in Gujarat and Rajasthan by Tata Power Renewable Energy, a wholly-owned subsidiary of Tata Power. 

Industry executives told ET that Inox Wind is likely to come up with an initial public offer (IPO) in March-April. The company plans to raise up to Rs 700 crore as primary component and an offer for sale of up to two crore shares held by Gujarat FluorochemicalsBSE -0.57 % is on the cards, said an executive, who did not wish to be identified. 

The total issue size will be decided after the valuation, the executive said, adding that the company is in the process of holding road shows for the IPO in Hong Kong, Dubai and London. 

Source:ET

BHEL commissions 270 MW thermal unit in Maharashtra

NEW DELHI: State-run BHELBSE -2.54 % today said it has commissioned a 270-MW unit of a coal-based thermal power plant in Maharashtra. 

The third unit was commissioned at Rattan India Power Limited's (formerly Indiabulls PowerBSE -3.45 %) upcoming thermal power project located at Amravati in Maharashtra, BHEL said in a statement. 

This is the third 270 MW unit commissioned by BHEL in Phase-1 of the project. The project is being executed in two phases, each of 1,350 MW, the statement said. 

Shares of the company were trading at Rs 281.40, down 1.30 per cent on the BSE.

Source:ET

Investor commitments received for 1.3 lakh MW renewable energy: Piyush Goyal

It can be noted that every megawatt of new capacity

 in solar energy requires investment of up to Rs 8 cr, 

while the same for wind energy is Rs 4.5-6.85 cr. 

MUMBAI: Even before the first-ever meet for attracting investment in renewable energy sector starts, the country has received commitments to create 1.30 lakh MW generation capacity, Power Minister Piyush Goyal said today. 

"We have received commitment for investments for nearly 1.3 lakh MW of renewable energy from both the domestic and international players," Goyal today said, speaking here on sidelines of an event organised by VASVIK. 

The government, which is targeting an investment of USD 100 billion in clean energy over four years, will be holding `Renewable Energy Global Investors Meet and Expo' (RE-INVEST) from February 15 to 17. 

The Minister did not give details of the investment proposals. 

It can be noted that every megawatt of new capacity in solar energy requires investment of up to Rs 8 crore, while the same for wind energy is Rs 4.5-6.85 crore. 

The meet, organised by Ministry of New and Renewable Energy (MNRE), is aimed at showcasing the government's commitment to the development and scaling up of renewable energy to meet the national energy requirement in a socially, economically and ecologically and ecologically sustainable manner, he said. 

Goyal added that the government is working closely with domestic and international partners to achieve its target of 1 lakh MW of solar capacity and 40,000 MW of wind power in the next five years. 

Source:ET