Tilting at windmills

The total windmill capacity in India is now 9,000MW (3,594 MW in 2005) and around Rs30,000 crore has been invested in various windmill projects across the country.

Every reputed industrial group—even those who have nothing to do with the power sector— wants a piece of the windmill pie. According to the Centre for Wind Energy Technology (C-WET), India has a wind farm potential of 48,000 MW. This will require an investment of Rs3,00,000 crore.

 But here’s the catch. The investment is nothing other than a depreciation machine with hardly any productivity. If the total potential of 48,000MW is realised, this will generate 48-75 billion KWh of electricity whereas if this amount is spent on thermal plants worth 75,000 MW, they will generate 525 billion KWh of electricity.
 
For instance, Tata Power put up its 80 MW wind power project in a windy area in 2008-09; it produced 1.6 million KWh for each MW of the windmill project. At its Trombay power house—where Tata Power has its 1,580MW thermal power project—it produced 9,845 million units accounting for 6.2 million KWh per MW. However, Tata’s windmill project was set up in a windy area. The situation is worse in other places where wind blades hardly move and generate negligible power.
 
A comparison of thermal power plants and windmill projects throws up some surprising figures. Thermal plants generate around 6-7 million KWh per MW of capacity despite their low efficiency of 36% as power is generated from coal to steam to turbine generator. Against this, windmills have no loss of efficiency in the process of converting wind to electricity as wind blades are directly attached with the rotor and generator. Despite this they get only one million KWh of electricity per MW.
 
Only plus point with windmills is that they have no raw material cost. But looking at the huge cost which is 1.5 times higher than thermal plant, why is the government promoting wind mills?
 
One answer may be thanks to depreciation benefits. The entire cost of a windmill plant can be depreciated in the first year of operation if it is used for more than 180 days other wise 80% cost can be depreciated even if it is used for one day under section 32 of the Income-Tax Act.  
 - Dhruv Rathi [email protected]

User

Premier to re-enter passenger vehicle segment with a compact SUV
Automaker Premier Ltd, formerly known as Premier Automobiles Ltd, has said that it plans to re-enter the passenger vehicle segment and will launch a compact sports utility vehicle (SUV) 'Rio' next week.
 
In a release to the Bombay Stock Exchange, Premier said deliveries of the vehicle are expected to start by December.
 
Premier Padmini, a reincarnation of the Fiat 1100, was one the most famous models of Premier Automobiles in India during the 1990s.
 
Mumbai-based Premier has been absent from the passenger car segment after Fiat Uno and the failed collaboration with Peugeot in 2001. The company also tried to make a comeback in 2004 with a new diesel van called Sigma, loosely based on Mitsubishi Varica from the 1980s.
 
At present, Premier manufactures CNC machine tools for both batch and mass production besides offering machine components to other automobile companies in India. The company also has a light commercial vehicles division which makes ‘Roadster’ mini trucks based on a compact Mitsubishi design.
–Aditya Kshirsagar [email protected]
 
 
 

User

Bollywood celebrates Diwali with blockbusters

This Diwali proved to be a blockbuster for the Hindi film industry (Bollywood) which was reeling under the recession. Over this long weekend—four days to be precise—out of the three movies released, two movies starring Sanjay Dutt were able to report very good collections; however the third film starring Salman Khan and Kareena Kapoor just managed to survive. 

Blue, the underwater action movie starring Sanjay Dutt and Akshay Kumar collected over Rs19 crore across India during the weekend. The movie produced by Shree Ashtavinayak Cine Vision (SACV) and directed by Anthony D’Souza had a budget of almost Rs80 crore, excluding promotion cost.

All The Best, the Sanjay Dutt and Ajay Devgn starrer has also garnered Rs15 crore during the weekend while Salman and Kareena starrer Main Aur Mrs Khanna was able to collect just Rs4.2 crore. The production cost for All The Best and Main Aur Mrs Khanna was Rs40 crore, each.
 
"It is one of the best weekends of the year. On Sunday, we had 80%-85% occupancy for Blue and All The Best while the same for Main Aur Mrs Khanna was about 50%. In multiplexes where we have five to six screens, we are screening 10 to 12 shows for all the three movies and in other places we have been screening around eight shows," said Prakhar Joshi, head programming, PVR cinemas.
 
PVR which holds the distribution rights of Blue in the North and Uttar Pradesh territories, did a gross business of about Rs2.2 crore across the country. The box office collections of PVR for All The Best and Main Aur Mrs Khanna were Rs1 crore and Rs45 lakh, respectively.
 
"All the three films cater to different audiences and have got a mixed response. Blue has opened very well with more than 80% occupancy level across India and it should keep up till Monday night. All The Best has also reported almost 65% occupancy level and Main Aur Mrs Khanna has reported below average opening," said Shunali Shroff, head, corporate communications, Fame Multiplexes.
 
While Blue and All The Best are likely to continue to attract viewers, Main Aur Mrs Khanna has chosen another route. Reliance BIG TV has bought the DTH rights of Main Aur Mrs Khanna from UTV Motion Pictures and said the film will be available for viewing to its subscribers just after four days of its release, from 20th October onwards for a month on its pay-per-view channels. Subscribers of Reliance BIG TV will have to pay Rs150 between 20th to 26 October and Rs100 from 27th October onwards to view the movie.
 
There is an interesting tailpiece. PVR has bought the distribution rights of Blue, in an advance payment deal under which, the producers, SACV, will bear the losses in case the film fails to garner sufficient money. The exact figures of the deal are not available, but after the initial euphoria, viewers are reportedly avoiding Blue because of a weak storyline and just 20 minutes of the much publicised underwater scenes.
 
Earlier releases during Diwali have also proven to be box office hits. Two years ago, it was clash of two personalities, Farah Khan and Sanjay Leela Bhansali with their offerings Om Shanti Om and Saawariya, respectively. While Om Shanti Om won at the box office, Saawariya stars Ranbir Kapoor and Sonam Kapoor went on to grab other interesting films.
 
The story in 2008 was, however was slightly different. Rohit Shetty directed Golmal Returns become a super hit overnight while Madhur Bhandarkar’s Fashion had to wait for some more time to set the cash registers ringing.
This Diwali, while Main Aur Mrs Khanna has taken the television route, it will be really interesting to watch the race between Blue and All The Best to see which flick emerges the real winner over the long-term.
-Yogesh Sapkale with Pallabika Ganguly [email protected]
 

 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)