Economy
Share of renewable energy poses problem for conventional power: Moody's
Chennai : The rising share of renewable energy in India's power generation mix over the next five-seven years will pose a challenge to conventional power generators, said global credit rating agency Moody's Investors Service on Monday.
 
"This situation will be exacerbated by the fact that Moody's expects India to register a power surplus over that period, thereby pressuring the utilisation rates of thermal generators," a Moody's statement said.
 
According to Moody's implementation of aggressive renewable energy capacities will be challenging, given counterparty risk issues and the need for stable policy initiatives to support long term investments.
 
Moody's said the renewable energy capacity is expected to grow to 175GW by 2022 compared to the current 37GW.
 
"The most pronounced impact of a rising share of renewables in India's energy mix will be on unregulated power companies," said Abhishek Tyagi, Moody's vice president and senior analyst.
 
"These companies are directly exposed to the market impact of environmental regulations - such as the clean energy tax - and do not receive the benefit of cost recovery from rate payers," he added.
 
According to Tyagi, the credit implications for individual Indian power generators will depend on their current and future generation mix, and how they adapt to the evolving policy environment.
 
Regulated utilities NTPC Ltd and Tata Power, whose power output is dominated by conventional sources, benefit from contracted and availability based revenues. But their business risk will increase over the long term, Moody's said.
 
"Domestic banks will continue to provide significant funding for renewable energy projects, but greater funding diversity is needed," said Terry Fanous, Moody's managing director for Project and Infrastructure Finance ratings in Asia Pacific.
 
Attracting institutional debt will benefit from ongoing efforts by the government, supported by multilateral development banks (MDBs) as providers of credit enhancement and as facilitators.
 
"MDBs have already been involved in supporting renewable energy projects in India, but the scale of India's growth plan for the renewable energy industry will necessitate greater participation by MDBs to crowd in institutional capital," Fanous added.
 
Citing the poor financial condition of power distribution companies in India, Tyagi said it heightens counterpart risk for renewable projects.
 
As for the transmission sector, companies in the industry will be affected by the need for network upgrades to manage the connectivity and intermittence of renewable energy.
 
Moody's points out that around 35 percent of the new generation capacity (7.1GW) added during the first 11 months of FY2016 (fiscal year ending March 31, 2016) was from renewable energy.
 
This scenario is a marked shift from previous compositions of new generation capacity, which were heavily dominated by coal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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New technique for quick blood test results could help emergency patients
New Delhi : In a boon for trauma and emergency transplant patients, a new revolutionary technique promises to give results of complex blood tests in just 10 minutes - helping save precious lives, and also unwanted blood transfusion.
 
The technique, developed by a German research firm, is currently being used in several European and Asian nations, including in neighbouring Sri Lanka.
 
The technique, called Rotational Thromboelastometry (ROTEM), would save a liver transplant patient in India from having to undergo unwanted blood transfusion, with just two-three units making do instead of the usual 10-15 units of blood. This would also benefit the patients economically, while hospitals could save up the blood for other needy patients.
 
The portable machine, developed by German firm Tem International, can be taken to where the patient is. A small sample of blood is enough for around 10-12 tests, including blood cultures, with results delivered in 10 minutes, which would take 40-50 minutes in medical laboratories.
 
"The ROTEM diagnostic technique helps in giving results of all the tests within 10 minutes. Bleeding and blood transfusion have been shown to be independent risk factors for increased morbidity and mortality. Introduction of ROTEM will be an important initiative for blood management in India," Klaus Goerlinger, senior consultant for Anaesthesiology, Intensive Care and Emergency Medicine at the Germany-based University Duisburg-Essen, told IANS here.
 
Mahila Singhe, a 40-year-old- Sri Lankan who was operated upon in a Colombo hospital following a severe accident, was able to make do with just two units of blood - thanks to the ROTEM technique.
 
Doctors attending on him took his fluid samples and within 10 minutes found out what type of blood products were needed to save him.
 
In the normal course, the profusely bleeding Singhe would have required at least 10 units of blood, in addition to the risk from delay in blood tests done in medical labs, which could have also put his life in danger.
 
India needs 12 million units of blood annually but collects only nine million - a 25 per cent deficit. In summer, the shortfall often hits 50 per cent due to rising demand from malaria and dengue patients.
 
The shortage has led to a spurt in professional donors cashing in on the needs of desperate patients, and a flourishing black market.
 
Goerlinger, who is director of sales and marketing of Switzerland-based Tem International, said: "ROTEM plays an integral role in blood conservation strategies by significantly reducing usage of blood products and components. This technology will allow rapid and reliable treatment decision to be made during emergencies and is a solution for detecting, managing and monitoring haemostasis during cardiac surgery, liver transplant, trauma patients and obstetrics."
 
Poonam Malhotra Kaapoor, assistant professor of Cardiac-Anaesthesia at All India Institute of Medical Sciences (AIIMS), told IANS: "Blood unit shortage is a colossal problem as many people are still scared to give blood. This technique will save a lot of money and blood of public hospitals."
 
Kaapoor said ROTEM will also help in reducing the costs incurred by patients in purchasing blood units.
 
The pricing of the device has yet been fixed for India.
 
In order to make ROTEM technology available in India, Tem International has collaborated with Vijyoti, one of India's leading corporate social enterprises.
 
Vijay Pandey, managing director of Vijyoti, told IANS: "Patient Blood Management demands a change in the mindset towards bleeding management. The technology helps minimize risks of mortality, morbidity, hospital-acquired infection - sepsis - arising from blood transfusion. It also leads to reduction in costs to patient, hospitals, and other stakeholders like medical insurance companies and blood banks."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Difficult to keep to GST rate if luxury items excluded: Jaitley
New Delhi : In a reference to opposition to levying excise duty on jewellery, Finance Minister Arun Jaitley on Monday said exempting "luxury items" from indirect tax will not help keeping the proposed GST rate in the 17-18 percent range.
 
"If luxury items are kept out, then it will be very difficult to keep the GST (Goods and Services Tax) rate between 17 percent and 18 percent," Jaitley said here, inaugurating the annual session of the Confederation of Indian Industry (CII).
 
Jewellers are continuing their protest strike against the one percent excise duty on non-silver jewellery introduced by the finance minister in the union budget for the current financial year.
 
Jaitley has earlier said an 18 percent cap on the GST rate as suggested by the Congress party would result in a flawed system as it could lower duties on a host of "sin" products and luxury items that should attract higher taxes.
 
Declaring that Indian industry has been fighting a "major battle for its credibility," Jaitley referred to state-run banks' non performing assets (NPAs), or bad loans, without naming defaulter businessman Vijay Mallya in this regard.
 
"Industry is fighting a major battle for its credibility and some recent events have added to that, especially on the issue of banks' large NPAs," he said.
 
"The essence of industry has to be transparency and credibility... The approach of industry leaders has to be positive and credible," he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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