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The Rationale Behind Ride-Sharing: A Smart Way Out Of Urban Travel Woes

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Snapshot
  • Can cab pooling services with their easy one-touch smartphone access change the way we travel in urban India?Besides giving a thought to the environment and fuel consumption, it definitely appears to be more convenient than looking for keys, finding directions and a parking space for the personal car.

Cities have always attracted people from its surrounding rural areas with a promise of better social, economic and cultural life. Indian cities are not an exception. Between 2001 and 2011 censuses, India’s urbanisation rose from 27.8 per cent to 31.1 per cent and is expected to increase to 60 per cent in the next 30 years, according to NITI Aayog’s former vice chairman Arvind Panagariya. Such a rapid urban expansion has naturally created an increasingly mounting need for basic services such as housing and transport.

In the case of transport, there is currently a huge gap between demand and supply of infrastructure facilities. While road network has grown only at a snail’s pace, the motor vehicle population in India has increased 100 times from 1951 to 2004. During the same period, the road network has expanded only by eight times. According to the data released by the Ministry of Road Transport and Highways, the compound annual growth rate (CAGR) of the total registered motor vehicles in India during the period 2001 to 2011 was 9.9 per cent vis-a-vis the CAGR of 3.4 per cent in total road length. Such an inadequacy of road network combined with poor quality public transport has given rise to a series of problems such as congestion and longer travel time. The average speed of a car in urban India is only 22 kilometres (km) per hour, thanks to road congestion and quality.

A rapid rise in the number of private cars especially in cities has added to the problem by increasing pollution levels and fuel consumption. A lack of adequate transportation in Indian cities not only poses a major challenge to realising the growth potential of the economy but also has adverse impact on the health and well-being of the people. While sprucing up road infrastructure and public transportation definitely have some of the answers to the problem, information technology and high smartphone penetration in India have opened up new possibilities for transport planning in large cities. Cab sharing is one such avenue based on the concept of collaborative consumption. Collaborative consumption is based on an economic model in which people swap, barter, trade, rent or share resources with each other, and can cover a number of areas such as space sharing or in this case, ride sharing.

In an interview to Business World in 2017, Amit Jain, country head of Uber India said: “It is important for the citizens to understand the rationale behind ride-sharing. The issue of traffic congestion and pollution is real – it’s a waste of resources, drain on productivity and making our cities environmentally unliveable. Over half of the world’s 20 most-polluted cities are in India. We have added more than double the number of cars in the last 16 years than we did in the first five decades since Independence.”

Even though the ownership of cars, especially in urban areas, have been constantly rising and reflects the improved financial status of India’s urban population, privately-owned cars remain an under-utilised resource. According to the Ministry of Road Transport and Highways, the average occupancy of a car is just about 28 per cent. This means while a car can carry four people, it only carries 1.15 persons. Globally too private cars are not utilised for over 90 per cent of the time.

Thus, cab sharing can potentially kill two (or multiple) birds with the same arrow by reducing congestion, improving environment as well as increasing the utility of the vehicle as resource. A number of independent studies reveal the benefits of car-pooling. Research by the University of California, Berkeley reveals that each shared car helps in removing nine to 13 vehicles from the road. The International Transport Forum conducted a modelling study for Lisbon and found that when cars on the road were converted to shared assets, congestion reduced by 37 per cent and parking spaces freed up by 90 per cent.

The model for allowing private cars to operate for a cab aggregator for some hours already exists in some countries like Australia and Singapore, but is still not functional in India due to regulatory issues. For example, in the US, much of Uber’s business comes from the “peer to peer” model where any person who owns a car can become a driver for Uber. Private ride sharing can become a long-term solution for urban commuters especially given the fact that percentage of commercial vehicles is very less in India. Ride sharing as a concept however is gaining immense popularity in Indian cities and both the major players in the market (Uber and Ola) are continuously pushing to expand in this area.

Uber, which operates its UberPOOL cab sharing service in six major Indian cities (Mumbai, Delhi, Bengaluru, Pune, Hyderabad and Kolkata) claims that since the launch of the service in 2016, 3.44 million litres of fuel, 73.38 million km of travel, and 8.12 million kilograms (kg) of carbon dioxide emissions have been saved. In Delhi National Capital Region (NCR region), known for its substandard air quality and vehicular pollution, UberPOOL claims to have contributed to cutting around 1.7 million km travel, which equals a saving of 84,000 litres of fuel and a reduction of over 198,000 km in CO2 emissions.

Ola, which provides cab sharing services as well, had launched its #DoYourShare campaign in August 2016 across Delhi, Mumbai and Bengaluru along with World Resources Institute (WRI). The company’s target was to reduce CO2 emission by 1,200 tonnes across the three cities by 15 August 2016. Its last (10 August) social media post on the target says Bengaluru has saved 255 tonnes, Mumbai 247 and Delhi 246 tonnes. In order to raise awareness about the benefits of cab sharing, the company had also put up billboards across the three cities to display real-time data on carbon emission saving by commuters using Ola Share services.

Regarding the campaign and the larger role of cab sharing in conserving environment, Vivek P Adhia, head business engagement, WRI India, said: “Initiatives promoting sustainable transportation, such as Ola’s ride-sharing offering have the potential to significantly reduce the carbon footprint on the environment. We believe the proliferation of such initiatives would help support ambitious climate action at the ground level and play a key role in accelerating progress towards India’s national commitments on 33 to 35 per cent intensity reductions made at Paris COP21 last year (2015).”

So, can cab pooling services with their easy one-touch smartphone access change the way we travel in urban India? It definitely appears to be a more convenient way than looking for keys, finding directions and a parking space for one’s personal car.

This article is part of our special series on urban mobility.

PPP Phobia: Why Kerala Government Is Stalling Light Metro Projects

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Snapshot
  • The light metro projects in Kozhikode and Thiruvananthapuram have run aground, thanks to the Left government’s disapproval of private participation.When the state cannot afford the project on its own, why shun help?

The light Metro projects in Kozhikode and Thiruvananthapuram may not get off the ground and this will only be due to the ideological dogma of the Left Democratic Front (LDF). They will not happen only because the central government insists on public private partnerships (PPP) for all new metro projects. The Communist Party of India (Marxist)-led LDF would surely be against such a metro policy, due to “ideological qualms” of private participation in such a project. But to avoid private participation, the state would have to mobilise Rs 6,728 crore for the project. The state government, which is in dire financial straits, cannot afford such an expenditure on its own.

The LDF government had stopped PPP for Kochi Metro as well. The then LDF government had refused to adhere to the central government’s suggestion of bringing Kochi Metro under the public private participation built operate transfer model in 2008. The V S Achuthanandan ministry was insistent on a ‘Delhi Metro’ model for the Kochi Metro. This delayed the metro project for almost three years, and the project was revived only in 2011, after the Congress-led United Democratic Front was elected to power. One can only wonder how the metro work would have taken shape if the LDF been not so obstinate in their demands.

‘Metro Man’ E Sreedharan is also highly sceptical of PPP for metro projects, and there is some cause for healthy scepticism: the returns for the metro are very minor in the initial years, and the investment required at the initial stage itself is quite high. However, this is not to argue that all PPP metro projects would fail: perhaps, a creative policy can be worked out. With mounting fiscal deficit, it only seems prudent that the central and state governments tap the private sector for funds. The new metro policy, therefore, holds the key to new metro projects in the state. The policy requires private participation in all metro projects, either for the whole or some unbundled components. It also allows the state governments, greater freedom in crafting their own policies.

With the Kerala state government’s coffers running dry, it would be prudent for it to tap the private sector for the much needed investment. While the Kozhikode Light Metro won’t solve most of the basic urban governance issues that the city faces, it surely would add value to a local economy that is currently sustained by non-resident Indian (NRI) remittances, and not industry or agriculture. Public spending isn’t a zero sum game, and while there are certainly basic urban infrastructure projects that require attention, the light metro is a welcome project.

Government Happy With PPP In Other Sectors

What is more baffling to one is that the government follows double standards with regard to its own ideological position: the earlier LDF ministry, had approved and supported the Kannur International Airport, which is being constructed with private investment. The LDF government is also proposing to start a rubber factory on the PPP model.

In fact, the Kerala government is aiming to finance its coastal highway project through a ‘chitty’ with the Kerala State Finance Corporation for NRIs.

One must also not forget that the country’s first PPP airport was the Cochin International Airport Limited (CIAL). The Kerala government is also collaborating with CIAL to create inland waterways. The rubber factory that has been proposed will also follow the CIAL model of investment.

Now the question that arises after seeing all this is why is the Kerala government reluctant to opt for a PPP model for the light metro project?

The ideological obstinacy of the Kerala government is costing its people dearly. In a state which has no industry to speak of, and non-existent agriculture, the state government is hoping to drive investment through infrastructure projects to the state. The state’s Finance Minister Thomas Issac said this in his budget speech, 2017-18:

“We cannot trample on trade union rights and environmental laws for attracting investments into new growth areas as is being done in some other states. The only thing we can do is to arrange high quality infrastructure facilities.”

If infrastructure is such an important focus area for the state government, it should display its intention by pushing through the light metro projects at Kozhikode and Thiruvanathapuram. If they do not, Keralites will be paying the price for their government’s ideological obstinacy.

How Varanasi Is Turning Into A Showcase For Mega Infrastructure Projects

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Snapshot
  • Proposed investments in Varanasi range from Rs 20,000 crore for the metro to Rs 170 crore for the multi-modal transport terminal and Rs 1,000 crore for a freight village.

The ancient city of Varanasi is undergoing a multi-billion-dollar transformation.

This small, congested city of around 82 square kilometres on the banks of the river Ganga has emerged as the showcase for India’s next generation urban infrastructure schemes.

These range from a metro rail, a multi-modal terminal, logistics parks, waterways, even a pod taxi project to ease congestion on the city’s chaotic streets. Given the importance of rice cultivation in Uttar Pradesh, an International Rice Research Institute is also being set up at Varanasi, which is represented by Prime Minister Narendra Modi in the Lok Sabha and was included in the second phase of the government’s Smart Cities Mission.

“Varanasi is the heart of Uttar Pradesh and the city has importance from several aspects – tourism, religion and politics, apart from being the Prime Minister’s constituency. That’s one of the reasons the Centre is keen on developing it and presenting it as a model city,” said a Union government official, who spoke on condition of anonymity.

Proposed investments range from a staggering Rs 20,000 crore for the metro rail system to a more modest Rs 170 crore for the multi-modal transport terminal and Rs 1,000 crore for a so-called freight village. Other projects on the anvil include a Rs 300 crore railway station redevelopment one, a Rs 153 crore sewage treatment plant, a Rs 100 crore pod taxi project, and a Rs 211 crore convention centre.

A majority of these projects are coming up with central government’s assistance.

From its ancient ghats to temples, the promise of change is everywhere.

Varanasi is among three cities shortlisted for testing a rapid transport systems using pod cars – driverless vehicles that run along a pre-determined course, Mint reported on 15 September.

The government’s focus on Varanasi hasn’t lost on lending agencies such as Japan International Cooperation Agency (JICA), which inked a 2,240 million yen (around Rs 130 crore) grant agreement last week for the construction of the Varanasi International Cooperation and Convention Centre.

To be sure, experts believe that the planned transformation may take some time.

“Given the complexity of land acquisition in India, and especially in Varanasi which is one of the oldest continuously inhabited cities in the world, implementing such infrastructure projects will be a challenge and will be slow. However, each of these projects will contribute to significantly transforming Varanasi,” said Jaijit Bhattacharya, partner and head, economics, regulatory and policy advisory, KPMG in India.

Queries emailed to the Prime Minister’s Office and the ministries of urban development and agriculture remained unanswered.

The importance of Varanasi and Ganga was apparent in the recent cabinet reshuffle, with Nitin Gadkari given charge of the Ministry of Water Resources, River Development and Ganga Rejuvenation to deliver on the key election pledge of cleaning the Ganga before the next general election in 2019.

The 2,525-km river which flows through Uttarakhand, Uttar Pradesh, Bihar, West Bengal and Jharkhand is also of key electoral importance as these states account for approximately 167 Lok Sabha constituencies.

Varanasi is also playing a key role in the National Waterway-1 (NW-1) programme on the river Ganga under the Jal Marg Vikas Project with a multi-modal terminal being developed there.

“Varanasi is strategically located with a huge potential to facilitate the transshipment of domestic and export-import freight,” said Inland Waterways Authority of India (IWAI), which is implementing the ambitious project in an emailed response.

“The project will connect the landlocked state of Uttar Pradesh to the South-east Asian countries through National Waterway 1 on river Ganga via the Bay of Bengal. National Waterway 1 will also provide seamless connectivity for cargo movement from Varanasi to country’s North-Eastern region via India-Bangladesh Protocol Route,” IWAI added.

(Mint)

Fadnavis Says His Govt’s Infra Push Will Help Maharashtra Become A Trillion Dollar Economy

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Maharashtra is on track to become a trillion-dollar economy, given the impetus to infrastructure development in the last three years, Chief Minister Devendra Fadnavis said today (18 September). The state attracted more than half of the total foreign direct investment (FDI) in the country last fiscal, Fadnavis said at the fifth edition of the Progressive Maharashtra Summit, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

The theme of the summit this year is Maharashtra 2025: Leapfrogging to $1 Trillion Economy.

Noting that the state has always been a leader in industry and business in the country, the chief minister said there have been times when Maharashtras leadership position was “threatened, challenged and compromised” to some extent.

“However, I should tell you that in the last three years of our government, we have been successful in bringing the state back to the leadership position in the country,” he asserted.

Using the FDI metrics in Maharashtra as an indicator, Fadnavis said the state accounted for more than half of the countrys foreign direct investment last year, which shows the confidence of global investors. He also added that there used to be a very close competition between Delhi, Karnataka and Gujarat in terms of attracting FDI, but in 2016-17, of the overall FDI, as much as 53 per cent came into Maharashtra, making it the undisputed leader.

“We have the demography, democracy and demand,” he said, adding that when the world population is ageing, 50 per cent of Indias population is under 35.

“This demographic dividend can be leveraged to transform Maharashtra into a manufacturing hub to cater to domestic and global demand,” he explained.

Fadnavis said that his government has created infrastructure projects to the tune of Rs 5.96 lakh crore and is looking at setting up more projects worth Rs 1 lakh crore, going forward which would create a lot of jobs for industries in the services sector and enable delivery based on information, communication and technology (ICT).

He also said his government will complete 120 km of new Metro rail lines in Mumbai and another 200 km in the Mumbai metropolitan region in the next four years.

On the trans-harbour link connecting Mumbai-Navi Mumbai, the chief minister promised that the job order will be issued in the next 20 days with the work set to start before the year ends while the Navi Mumbai International Airport’s first phase is likely to be commissioned by December 2019 and the second by 2022.

Fadnavis also said the Nagpur-Mumbai Super Communication Expressway will integrate 24 districts in the hinterland of the state to Indias largest port, JNPT, enabling transporting cargo to the port within 12 hours. PTI

A Top-Notch Plan And Tenacious Execution Is All We Need To Realise India’s ‘Electric Car’ Dream

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  • A raft of policy changes will have to be made to start building a future for electric cars, starting from tax concessions to importing of EVs.Is India ready for bold initiatives and tough schedules to eliminate petrol and diesel-powered cars by 2030 and fix the murderous air pollution?

Minister for Road Transport and Highways Nitin Gadkari rattled the auto industry when he recently declared his intention to “bulldoze” it out of the manufacture of petrol and diesel-powered cars by 2030. Gadkari must be applauded.

Columnists friendly to the financial markets in general, and to the auto industry specifically, are moaning about unreasonable burdens that the auto industry is made to face. One editorial whined about the need to speed up the implementation of new emissions standards, even though the industry has been enjoying vastly relaxed emissions norms compared to North America and Europe.

Such bleating should be completely ignored.

Bharat Stage emission standards has stipulated extremely relaxed  standards for particulate emissions and NOx, particularly in regard to diesel vehicles. Taking advantage of this leniency, the auto industry rolled out a huge number of heavily polluting vehicles, reducing India to a home to virtually all of the most polluted cities in the world. Even now, as always, the auto industry wants the government to drag its feet on technological standards while it keeps perpetuating the environmental disaster that India has run into.

The statistics on air pollution and its murderous consequences are horrifying for Indians to contemplate. Global Burden of Disease Study for 2010, published in 2013 found that 600,000 people die in India prematurely due to air pollution. Delhi alone is estimated to see 50,000 premature deaths due to bad air, annually.

On overall air quality in terms of effect on human health, the Yale University’s Environmental Performance Index ranks India last – at 132 out of 132 countries. A World Health Organization (WHO) study found that 13 of the 20 most polluted cities are in India. WHO data shows that of the 12 of 22 cities worst affected by PM2.5 pollution (ultra-fine soot that is the most dangerous type) are in India. Parts of the capital city reach as much as 20 times the levels of PM2.5 that are specified by the WHO as maximum safe levels.

The BS2, BS3, and BS4 standards, peddled by the government as panaceas to the problem of air pollution, in fact standardised very high level of soot and NOx emissions from diesel vehicles. Worse, preferential pricing of diesel fuel caused an explosion of diesel vehicles, resulting in millions of pollution belching vehicles on the road, entirely sanctioned by the government.

The problem with our norms is that they are derived from Euro Standards, rather than from the standards set by the US Environmental Protection Agency (EPA). Euro 3 and 4 standards are shockingly lenient compared to the US standards, most especially towards diesel.

Euro 3 allows diesels to emit 16 times as much NOx as the US EPA does.  For soot, the EPA allows no emissions at all during the majority of a vehicle’s life, and only a very small quantity by the end of life, while Euro 3 and 4 permit soot emissions throughout the vehicle’s life. This means that over its life, a Euro 4 compliant vehicle can emit as much as 30 times more soot than an EPA compliant vehicle!

Is it any surprise that Indians suffer the most polluted air in the world?

Even the Euro 6 standard that’s now being rushed through is inadequate compared to the US EPA standards, which themselves are being tightened to effectively strangulate the fuel burning cars over time and force the transition to Zero Emissions Vehicles (ZEVs).

That’s where India has to go as well. At 600,000 deaths a year, 75 lakh Indians will die by 2030 due to air pollution. We cannot wait another 30 years going through iterative versions of incrementally improving standards while millions of Indian citizens continue to die every year.

While there are other varieties of ZEVs, such as hydrogen-fuelled cars, the electric car is the most viable and proven type of ZEV. It has already gone mainstream in the West. It has not yet made the conventional automobile obsolete, but it’s not far. The only limitations that remain are charging times and charging locations.  But the range and charging situation has improved enough in the West that for most people in most urban situations, electric cars have already become a viable choice. Like a phone or a laptop computer, electric cars are now able to fulfill the daily commuting needs of a typical person, before being charged overnight.

The advantages are enormous. Because electric motors have high, consistent torque, they accelerate powerfully. Since there is no engine, they are nearly silent. Running costs are low because there is no fuel to burn. And the elimination of burned hydrocarbons is something all of our lungs are screaming for. Since ZEVs produce no emissions from the vehicle itself, the extent to which electric vehicles help clean up our air is limited only by how many fuel burning vehicles are replaced by electric cars.

Virtually, all major car manufacturers in the world have some form of electric car for sale, and even the prestigious brands like Porsche and Jaguar are working hard to recreate their brand appeal in electric cars. The global car industry knows that the electric car is the inevitable, imminent future and that the fuel-burning engine is on its way out.

It is only natural that the auto industry doesn’t want to discard its existing investments nor spend the billions it will take to completely restructure its operations. But if India is to really ramp up its development trajectory, it is imperative for the government to take bold initiatives that commit India to catching up with the rest of the world, on a reasonable but tough schedule. And electric cars are a good point to start.

But the government will have to get serious about doing its bit. A raft of policy changes will have to be made to ensure the goal is achieved. Currently, the policy is a real hodgepodge, like taxing hybrid cars at the highest GST rates on the grounds that they are luxury cars, when the path to electric cars in the West was created by significantly subsidising hybrid cars, which contain all the advanced components that electrical cars fully need (high capacity batteries, sophisticated electromechanical controllers, powerful electrical motors, exotic lightweight materials etc). These technologies have to be subsidised, their growth encouraged with favourable taxation and easy policies, to enable the industry to start getting big volumes. Taxing hybrids at a high rate, while aiming at a future where use of electric car is mandatory, is just madness.

The government must streamline all of the policies that enable or obstruct the electrification of India’s road transport by thoroughly understanding what is required, and delivering it. This will mean encouraging the unlimited import and domestic development of know-how in all the components and technologies that electric cars rely on.

If necessary, the import of electric cars should be allowed without import duties for a period to enable them to loosen the grip that petrol and diesel powered cars have on the market, to establish electric car as a viable and desirable option in the mindset of the buyer, to create the economies of scale, and to spur companies that manufacture cars in India to shift to electric car design and production themselves.

Almost all foreign manufacturers are advanced enough in the state of electric car technology that they can easily bring in all of their knowhow into India. Indian companies that do not have it can easily purchase the technology from tier 1 vendors. But the government has to enable it all by reviewing all taxation and industrial policies that destroy the economic feasibility of the modern electric car in India. The loss in revenues should be regarded as an investment by government in the ‘electric’ future.

The government must also understand the infrastructure development that will be needed. At the current rate of 3 million vehicles sold per year, if all of them were electric, at an average energy consumption rate of 350Wh per km and assuming an average of 12000 kilometres /yearr, the net energy demand for 3 million cars would be 12.6tWh, as against a current net generation in India of 1400tWh, implying an additional load of about 0.9 per cent every year. Adding 1 per cent capacity per year for electric cars alone is a serious but easily manageable target, especially when considering the money India will save on its vast oil import bills.

More significantly, the government will have to build a nationwide network of literally tens of thousands of charging points that will enable cars to be plugged in where they are parked overnight or at commercial locations. This is the most serious challenge since the electric car future cannot be realised unless every single one of the millions of electric cars that are envisioned to be on the roads cannot be charged on a daily basis.

Unless the government has a top-notch plan and all the seriousness in the world, the failure to provide adequate charging outlets will doom Gadkari’s electric car dream.

However, if the government combines flexibility, strong policy and execution, and strong-arm treatment of the entrenched industry, India will reach technological parity in the world and our children will thank us for the clean air we battled to give them. If we are serious about our health and the electric car future, there can at this stage simply be no question of even considering protections for local industry.

India, The EV Nation: Here Is How The Government May Be Planning That

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Snapshot
  • The move to electric vehicles will occur in phases, with an aim to create an ecosystem of such vehicles in collaboration with several manufacturers.

India’s plan to move towards an entirely electric road transport system by 2030 is slowly taking shape.

It has often been touted as the next “LED movement”, referring to union minister Piyush Goyal’s push for faster adoption of light-emitting diode (LED) bulbs across the country, which was described by the Vienna Energy Forum as the “largest energy transformation project in the world”. The LED programme was successful, and it subsequently aided in electrifying many rural pockets around the world.

Like the LED movement, the electric vehicle (EV) movement – spearheaded by state-owned Energy Efficiency Services (EESL) – is being planned in several phases, and aims to create an ecosystem of EVs in collaboration with several manufacturers.

Under the first phase, due for launch this December, EESL will invite tenders for the supply of 25,000 e-autos and 25,000 e-rickshaws, which will then be sold to aggregators. An e-rickshaw can carry four passengers and travel at speeds up to 25km/hr while an e-auto can travel longer distances at faster speeds, writes Lijee Philip for the Economic Times.

Among those in the fray to supply these vehicles are Mahindra Electric, Kinetic Green, Electrotherm and Lohia Auto. Taxis manufactured by Mahindra and Kinetic’s e-rickshaws are among the vehicles that Nagpur is using under its ‘electric mass transit’ project that was launched in May this year.

The process of setting up charging infrastructure is also gaining momentum, with public sector establishments such as NTPC Limited and the Power Grid Corporation of India Limited as well as private players such as the Hero Group setting up the required infrastructure.

Breaking convention, Mahindra’s e-rickshaws will not feature lithium-ion batteries but lead-acid batteries. Manufactured in Haridwar, these vehicles can run 80km in one charge. Kinetic is currently the market leader in the segment, selling over 10,000 units last year. Unorganised players form the bulk of the operators in this segment, currently witnessing one lakh vehicles being sold every month. However, unlike Mahindra, Kinetic plans to use lithium-ion batteries because they are easier to swap. This is because of their faster charging speeds and lighter weights.

We are geared up to participate in the project with the specs required for e-rickshaws. We are pleased that the government has stipulated stringent quality and efficiency criteria for e-rickshaws. At the same time, the infrastructure for swapping and charging will be a key requisite.

Kinetic Green Chief Executive Sulajja Firodia

With 10 lakh e-rickshaws on the road – as compared to two crore autos – the sector is attracting more players such as SUN Mobility and Lohia Auto.

The government’s vision of 100 per cent electric mobility by 2030 is the right aspiration. Even if we are able to achieve 50-70 per cent, India will be one of the largest adopters of electric mobility.

SUN Mobility Vice Chairman Chetan Maini

The rising costs of fuel-powered vehicles vis-à-vis the falling prices of batteries and EVs in general are making the latter more viable for operators.

India’s goal to be free of fuel-powered vehicles by 2030 now rests with the private sector, but the government will be able to leverage it well to expand the fledgling ecosystem.

Also Read: Switching To Electric Cars By 2030: What India Needs To Do

The Economics Of Mumbai-Nagpur Expressway

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  • Excerpts from a conversation with R L Mopalwar, managing director and vice-chairman of Maharashtra State Road Development Corporation, on the various aspects of the Maharashtra Samruddhi Corridor.

One of the ambitious projects that Maharashtra State Road Development Corporation (MSRDC) is focusing on is the Maharashtra Samruddhi Corridor. This project is known to be the pet project of Chief Minister Devendra Fadnavis and promises to connect Eastern Maharashtra with Western Maharashtra. Despite the economics that supports the project, there has been a big hue and cry when authorities started approaching farmers and tribal communities to buy land.

The project which was approved in 1999, has seen many pit stops.

But now with start of land acquisition, R L Mopalwar, managing director and vice-chairman, MSRDC looks optimistic about completing the project by 2019. Mopalwar, who has (among other postings) served as chief executive officer of rural development at Hingoli; director of water resources at Pune and general manager at Transport Department (Pune), believes that the present government has given Samruddhi Corridor the much-needed direction.

MSRDC: Executors Of Infrastructure Projects In Maharashtra

The MSRDC has successfully executed projects like the Mumbai-Pune Expressway; Bandra-Worli Sealink; 32 bridges (of the 55 bridges in Mumbai) among others. Thus, MSRDC was selected for Mumbai-Nagpur Expressway (Maharashtra Samruddhi Corridor). MSRDC – established in 1996 – has executed projects worth Rs 25,000 crore, and total projects at an advanced stage is around Rs 80,000 crore.

Infrastructure is the key, and this was recognised by the National Democratic Alliance government in 2001-2004. In four years, we had four national highways – Delhi-Mumbai, Mumbai-Chennai, Chennai-Kolkata and Kolkata-Delhi – measuring 5,700 kilometres. They were collectively referred to as the Golden Quadrilateral (GQ).

That infrastructure changed the country. We expect the Samruddhi project to do the same for Maharashtra what the GQ did for India.

Despite the 2008 global financial crisis, we survived because we had the GQ infrastructure in place and had other such projects at hand. In the transport sector, roads have enjoyed a pre-eminent position. Around 70 per cent of freight traffic and 85 per cent of passenger traffic takes place on roads. The freight growth is 7.6 per cent which is extremely robust.

The bottleneck is that our freight travels at 250 km a day, while the world average in developed countries is 800 km a day. Jawaharlal Nehru Port (JNPT) is very important as the whole of central India wants to come to JNPT and does not want to go to Vizag because of the Naxal issue. To cover this distance of 800 km, freight in India takes anywhere between 36 to 48 hours. This time span has to be reduced. It is estimated that the cost of transportation in the selling price of any product is six times higher due to such bottlenecks and inefficiencies.

South Korea Is One-Third Of Maharashtra

South Korea is 100,210 square kilometres and Maharashtra is 307,713 sq km. South Korea is almost equal to Vidarbha, which is 97,321 sq km. The density of population in Korea is one-and-a-half times that of Maharashtra and agricultural land is much less. South Korea has 30 per cent of agricultural land, and Maharashtra has 70 per cent agricultural land. In 1972, they started their expressways but today, if you look at the length of their expressway it is around 5,000 km whereas Maharashtra has 95 km of the expressway.

Infrastructure Position

When the present government came to power, Maharashtra had barely 5,000 km of roadways. At the beginning of last year, it was 7,400 km. Now, it will touch 20,000 km soon. This figure is only about Maharashtra.

In 2001, the whole of the country had 55,000 km of national highways. Once Maharashtra will have 20,000 km of highways, it will bring in investments.

Bird’s Eye View Of Samruddhi

There are six main division in Maharashtra – Nagpur, Amravati, Aurangabad, Nashik, Pune and Konkan. If you look at the western part that is Konkan region, you will see that it is already very well connected and is an affluent region. The rest of the state could have been affluent too if infrastructure was in place. The reason more than 50 per cent of Maharashtra remains underdeveloped is that there is no proper infrastructure that connects that part of the state to the developed parts.

For any investor or company, infrastructure part plays a huge role. If they want to go to the countryside, they cannot as there is a lack of infrastructure that connects them to the region. Almost 60 per cent of industrial production takes place in the western part of this state. This is where 90 per cent of the IT firms are present. On the other hand, the eastern part comprising Nagpur, Amravati and Aurangabad (which accounts for more than 50 per cent of Maharashtra) does not have major industries or IT firms. These regions account for more than 90 per cent of mineral deposits of the state, 90 per cent forest (100 per cent of paper production) and 60 per cent steel. All these resources are there in the eastern part, but all the benefits are there in the western part. This project is about empowering the eastern Maharashtra. It also empowers the west by reducing transportation costs.

This road is not just a road but a way for sustainable development of Maharashtra and not just about Mumbai, Pune and Nashik.

The road will run through 65 per cent of agro-based areas. Thus agro-based industries will generate more employment in those pockets of Maharashtra. It will generate wealth for these regions, build robust infrastructure and decrease migration to cities. If a farmer gets non-farming work in his area, then it will reduce migration.

After the success of expressway, we will not just have around 800 km of highway but this state will have 5,000 km of expressways. If this expressway succeeds, the southern portion of Maharashtra will be connected as well with smaller roads and not through expressways. We have already issued work orders for cement or concrete-based roads (in the southern region) that are three- to four-lane projects.

After implementation, vehicles can move at 150 km per hour speed. It will have vehicular passes or crosses, pedestrian crosses, flyover, CNG/PNG pipeline, CCTV monitoring, etc. It will also connect dry ports of Jalna and Wardha.

Our tender process is already out. The time period to finish the project is two-and-half years.

Dedicated Freight Corridor: Don’t Touch Area

Everyone wants to do everyone else’s job. I decided not to fall into that trap. I will do what I am doing. This (dedicated freight corridor) thought was there right from the beginning. To get permission from highways and railways is very difficult. If you talk about expressway and railways together, it will take 10 years to get composite permission. The government of India had appointed a consultancy to study dedicated freight corridor and to combine railway and expressway. The feasibility report stated this is not possible.

On Town Planning Path

Along the Mumbai-Pune expressway, there are unorganised and unplanned clusters like the ones at Khalapur. To prevent the eruption of unplanned structures, we are planning townships along the Samruddhi corridor. We are hoping to have around 24 such townships, but as of now, only 18 have been notified. These would be minimum 400 hectares of townships and developing will be an ongoing process spanning some 20 years. These townships will have cold chains, godowns, hospitality infrastructure and other logistics requirements. By creating these facilities, we will generate jobs. Each node will employ at least 25,000 people. The consultancy firm that was hired to prepare a report on town planning stated primary employment of 30,000 people and secondary employment of 60,000 people per node.

Challenges In Land Acquisition

Our land measurement work is over, and rates have been declared. Purchase of land in Jalna, Nagpur, Vashi, Thane and some places have already started. People in the country are not ready for an open-minded discussion. Whenever there is a project, there is always opposition. Whatever you say they call you mercenary agents (dalal). These people are not ready for peaceful discussion; they harass government officials.

In such a situation, only money works, and we are offering farmers fabulous compensation for their land. Initially, we presented all the plans to the delegates who came to visit us. We also showed them our plan to develop the region from where the expressway will pass, but they were not impressed. We gave them offers of being partners and also having placement cells. These things too did not matter. But at the price at which we are ready to purchase land directly from landowners, we have begun getting excellent results. We pay only to land-owners, and not to brokers. The money is directly paid into the bank account of the land-owner. Of course, the middlemen are upset. But ours is a much better system for ensuring that the money goes to farmers.

In case of Thane, tribal community members are queuing up because in the past a member of the tribe would get Rs 2-3 lakh from the land sharks. But now they get Rs 30 lakh per acre to Rs 2.34 crore from us. Now, the farmers or tribal communities are getting money directly. The land is getting acquired. It is a huge exercise.

This interview was first published in Free Press Journal and has been republished here with permission.

Brighter India Making Huge Savings On Power Bills; Thank Those LEDs, And Energy Efficient Fans

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Snapshot
  • In order to make the country more energy efficient, the government distributed energy efficient LED bulbs, tube lights, fans and also pumps. It has not only put India on the path of energy efficiency but also saved huge costs.

Prime Minister Narendra Modi led National Democratic Alliance (NDA) government’s initiative to ‘Make India Energy Efficient’ is in full swing and yielding good results.

In order to make the country more energy efficient, the NDA government is distributing energy efficient LED bulbs, tube lights, fans and also pumps used in the country’s agriculture sector by rural farmers.

According to data available with the Ministry of New and Renewable Energy, pan-India distribution of energy-efficient LED bulbs has crossed over 24 crores, fans 10 lakh and tube lights 27, 45,175 as on till 6 July 2017.

The government has set to achieve the target of replacing all the 77 crore inefficient bulbs in India with LEDs. This will result in a reduction of 20,000 megawatt (MW) load, energy savings of 100 billion kilowatt hour (kWh) and Green House Gas (GHG) reduction of 80 million tonnes every year.

It is estimated that this is equivalent to establishment of roughly five large format thermal generation plants in the country. The country also stands to save Rs 40,000 crore in electricity bills of consumers.

The centre on 6 April 2017 launched two schemes, namely the National Energy Efficient Agriculture Pumps Programme and the National Energy Efficient Fan Programme in order to make the country more energy efficient.

The energy-efficient fans, distributed in the rural areas mostly, have helped to save 3,87,689 kWh energy worth Rs 13,18,144 per day. It has also avoided peak demand of 25MW energy and has also helped in reduction of 318t carbon dioxide per day.

India is the largest consumer of ceiling fans in the world. But, people are largely unaware of energy-efficient fans or super-efficient fans. The demand of energy efficiency fans in India is still very less due to price variations and lack of awareness.

Household electricity consumption is largely for refrigerators, lighting, fans and air conditioners. Experts believe that shifting to LED lights and five-star fans can enable average households to reduce their power bills by 45 per cent.

As on today, the government has distributed 27, 45,175 energy efficient tube lights, which will save 12, 02,38,665 kwh energy worth Rs 40,88,11,461 per year. It has also avoided peak demand of 55 mw electricity and helped reduction of 98,596t carbon dioxide per year.

Satisfied with the progress of making India Energy Efficient programme, Power Minister Piyush Goyal expressed his happiness in a tweet on Wednesday.

Similarly, the distribution of LED bulbs, which has crossed over 24 crore, will save 32,174 mn kwh energy worth Rs 12,869 crore per year, according to the data published by the ministry under Ujala scheme. The distribution of LED bulbs have also avoided peak demand of 6441 MW electricity and will help reduction of 2,60,61,314t carbon dioxide.

These two schemes are being implemented by EESL (Energy Efficiency Services Limited) a joint venture (JV) of Public Sector Undertakings (PSUs) under Ministry of Power.

The EESL is also implementing ‘UJALA’ an acronym for Unnat Jyoti by Affordable LEDs for All for the LED based Domestic Efficient Lighting Programme (DELP), which is currently running successfully in over 120 cities across India.

Union Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal had launched National Energy Efficient Fan Programme for Indian households and businesses through its state owned entity-EES, wherein Energy Efficient Ceiling Fans of five-star rating 50 Watts (from leading companies such as Usha and Bajaj) was to be provided at Rs 60 a month on EMI (equal monthly instalment) basis and Rs 1250 on upfront basis.

With the usage of these energy efficient fans under the programme, consumers also stand to save on their electricity bills by Rs 700 a year, i.e. a consumer recovers the cost of this energy-efficient ceiling fan in less than two years.

While these energy-efficient ceiling fans cost Rs 1440 to a consumer, who uses the instalment route. For those who can pay upfront can buy this fan for Rs 1250. According to the scheme, a total of two ceiling fans can be bought on one electricity bill from domestic category consumers only.

Another scheme, National Energy Efficient Agriculture Pumps Programme (NEEAPP), aimed to help farmers in replacing energy guzzlers age-old agricultural pumps across the country with the new-age energy efficient agricultural pumps, with a five-star Rating is also being implemented in the rural India. These pumps, enabled with smart control panel and a SIM card, are giving farmers the flexibility to switch-on and switch-off these pumps from their mobile phones and the comfort of their homes.

Through these new-age energy efficient SIM-enabled agricultural pumps, Union Power Ministry is looking at a 30 per cent savings in energy by 2019. This will then boil down to an annual savings of approx Rs 20,000 crore on agricultural subsidies or a saving of 50 billion units of energy every year.

(ANI)

This article is a part of a Digital Special Series on the Power Sector sponsored by Powergrid.

A Quiet Revolution: Electric Vehicles Strategy Turning The Corner

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Snapshot
  • These are still early days of EV and battery storage revolution. But it would seem like the stars are finally aligning to increase the pace of change.

A dream you dream alone is only a dream. A dream you dream together is reality – said the Japanese artist Yoko Ono.

A world with controlled carbon emissions is a dream which has been dreamt by many. Individual dreams and government policies to promote non-polluting sources of energy or mobility have frequently been sacrificed at the altar of budget constraints, difficulty to scale solutions, or simple consumerism.

A few disconnected events taking place across the world in the last few days however should make as pause and think – is the inflexion point here?

Electric vehicles (EVs) have been available in some form or the other for a couple of decades now. They are only just beginning to catch up on volumes. Yet, difficulties abound when it comes to mass adoption. Battery storage is another area where rapid progress can promote renewable power generation as well as longer-range EVs. The disconnected events may foretell good news on both these fronts.

China Doubling Down On Battery Manufacturing

In the month of June, the Chinese government lifted manufacturing licence restrictions on a host of items. One of these items was rechargeable batteries. The country has been working on a friendly industrial policy in an area, where it does not want to miss the bus – literally and figuratively. China, despite being the leading automotive consumer in the world, could never create a booming global auto industry. Manufacturing lithium ion batteries at scale is the Chinese government’s second attempt at dominating global automotive business. Chinese firms now plan to increase battery manufacturing capacity to 120 gigawatt-hours by 2021, taking the country’s share in global battery production from current 55 per cent to 65 per cent in four years. This scale of storage capacity will drive down costs, and hence promote applications like solar power storage, storage for household, agricultural, and light industrial use. Also EV makers can be more assured of low-cost battery availability at scale.

Volvo Goes Electric, Almost

This Chinese battery bounty may immediately find a taker 7,000 kilometres away in Volvo. The Gothenburg, Sweden headquartered firm announced this week that beginning 2019, it will stop producing cars running solely on fossil fuels. The internal combustion engine, an 1862 invention which propelled the Industrial Revolution, will no longer be the only source of running Volvo cars in two years. Every new Volvo car in two years will be either electric or a hybrid. The firm will introduce five new electric cars in the first two years after adopting the new strategy – three under Volvo brand, and two under Polestar performance brand. Starting 2019, Volvo will effectively have two chassis architecture for all its cars, supporting three electrified power trains. These power trains will include a gasoline engine with a mild-hybrid system, a plugged-in hybrid EV, which will have both types of motors, and a pure EV. Volvo is still not doing a Tesla – a pure-play EV strategy – but more automakers may follow their lead over time.

French Climate Policy

The new French government has announced a total end to sale of petrol and diesel vehicles by 2040. The country will also aspire to be a carbon neutral country by 2050. Energy Minister Nicolas Hulot has set an ambitious target for his country, where more than 95 per cent of the cars sold are still run on fossil fuels. The aggressive French response also comes in the wake of the American snub to the Paris Climate Accord. The minister also announced that France will have no coal powered plants by 2022 and cut the share of nuclear in energy mix to 50 per cent by 2025, the rest coming from renewable sources. The French announcement cited the Volvo electrification plan and the progress countries like Sweden have made in promoting EVs. The announcement also mentioned how India is aggressively chasing a 2030 deadline for cutting over to EVs.

Electric Buses In Gurugram

Gurgaon may have been renamed as Gurugram, but no one was expecting it to emerge as the guru of using EVs in public transport. Swarajya had earlier argued that the best way to promote EVs in India was to design policy interventions around scaling battery technology quickly. Gurugram seems to be the first major city to create an electric bus programme. The city is now targeting introducing 75-100 buses in the first phase, catering to 50,000 riders a day. A tie-up with the JBM Group of Poland may be the conduit for manufacturing these buses in Ballabhgarh in the state. Also this plan is still on the drawing board, rapid strides can be made if a few other cities join in to create economies of scale.

As if these global events were threaded together, Bloomberg New Energy Finance produced their Electric Vehicle Outlook Report 2017 this week. This report makes the following broad and bold predictions:

1. About 54 per cent of all new vehicle sales in 2040 will be EV sales

2. About 33 per cent of light duty vehicle fleet including the 1.6 billion cars will be EVs in 2040

3. Just three countries – China, the US and Japan will form 60 per cent of the EV market in 2040

4. Starting 2025, there will be more pure-play battery EVs (BEVs) than plugged-in hybrid EVs (PHEVs), signifying the availability of large-scale affordable battery storage

5. Post 2025, EVs will not need subsidies to compete with fossil fuel powered vehicles

6. By 2040, there will be 65 million EVs being sold globally every year

7. Battery manufacturing capacity will go from the current 90 gigawatt-hour to 270 gigawatt-hour in 2021, while the demand will rise to 1300 gigawatt-hour by 2030

8. EVs will consume 5 per cent of total power produced globally by 2040

9. EVs will displace 8 million barrels per day of fossil fuels by 2040

10. Europe will hit 5 per cent of total cars being EVs by 2021, while the USA and China will close in at 4 per cent mark

More details on these encouraging Bloomberg predictions can be looked up at the Twitter feeds of Nathaniel Bullard and Colin Mckerracher. The full Bloomberg report can be read here.

Environment protection benefits are not the only reason why governments are looking to cut carbon emissions. Geopolitics is a far greater driver – all large countries want to reduce their dependence on the Middle East oil and gas to the extent possible. Lithium driven world rather than a carbon driven one is likely to be infinitely more peaceful and predictable.

These are still early days of EV and battery storage revolution. But it would seem like the stars are finally aligning to increase the pace of change. The directionality was always right. We may now find momentum.

Regional Politics Threaten To Derail Mumbai-Nagpur Expressway Project

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The Maharashtra government’s ambitious 700 km Mumbai-Nagpur Expressway has triggered protests in several regions of the state. The flagship project of Chief Minister Devendra Fadnavis, the Maharashtra Samrudhhi Expressway aims to connect the state capital of Mumbai with its winter capital, Nagpur.

Farmers, allegedly backed by Nationalist Congress Party (NCP) supremo Sharad Pawar have raised objections to the land acquisition. Government officials say that the project, which would give the entire state’s economy a fillip by providing connectivity to Vidharbha and Marathawada — two backward regions in the state, is being hijacked by politicians with vested interests from western Maharashtra. Senior officials have claimed that politicians from the Mumbai-Pune region and their proxies are trying to throw a spanner into the wheel of the project.

A former NCP legislator said that both incumbent as well as former politicians want the project to be completed as it would benefit the long neglected eastern half of the state.

The 700 km long expressway will cost the state Rs 46,000 crore and will be executed by the Maharashtra State Road Development Corporation (MSRDC) that had also executed the Mumbai-Pune Expressway in the late 1990s.