The Ministry of new and renewable energy (MNRE) clarified on Wednesday(9.10.2019) that the deadline for installing 175 giga-watt (GW) of renewable energy isDecember 31, 2022. At places the date for achieving the stated target is mentioneddifferently, by the year 2022 or by FY22, the clarification stated.
Rising finance costs, government-mandated tariff caps in reverse auctions andcancellation of renewable project tenders, the pace of adding renewable generationcapacities already slowed down in FY19, when the country added 8.6 GW against 11.3GW and 11.8 GW added in FY17 and FY18, respectively. The installed renewablecapacity now stands at 81.3 GW.
The renewable energy industry is one of the major FDI earners with the sectorattracting $4.8 billion foreign capital since FY15. Prime Minister NarendraModi announced in the United Nations General Assembly that the country aims to have450 GW renewable energy capacity. However, experts cautioned that recent instancesof curtailment of solar and wind power in Andhra Pradesh and Uttar Pradesh can throwa spanner in the country’s ambitious plans.
Coal India Ltd (CIL), witnessed a 6% drop in production at around 241 million tonnesduring April-September and is hopeful of regaining its production tempo in theremaining part of the year.
CIL’s coal offtake was down around 5% to 276 million tonnes during April-September2019 compared to the same period last year. This year, the monsoon severely dentedproduction, especially in September, inundating mines, said a senior official at CIL.
For the financial year 2019-20, Coal India is envisaging an 8.5% growth in productionat around 660 million tonnes, says its MoU with the Coal Ministry. CIL had registered7% growth in production at 606.89 million tonnes in 2018-19, around 3 million tonnesshort of its planned target of 610 million tonnes last fiscal. Coal stock at power plants ason September 30, 2019, stood around 17.3 million tonnes, which is 6.3 million tonnesmore as compared to the same period last year.
Even as the auto industry clamours for fiscal relief in the form of a GST rate cut, truck operators say there is no real benefit from such a move. GST reduction, according them, is akin to giving vitamins to a sector that is desperately in need of a lifeline. There has been a call to cut the GST rate from 28% to 18% for trucks to jump-start demand.
A slowdown in infrastructure and real estate projects has weighed on demand forconstruction equipment. After three years of consecutive growth in volumes, sales ofsuch equipment including excavators and backhoe loaders, have been affected sincethe crisis at IL&FS (infrastructure and leasing Financial Services) broke. It is expectedto end this calendar year with a decline of 15-18%, the sharpest in many years.
CARE Ratings expects the overall pace of road construction to slow down to about 26-27 km per day during FY2019-20 (April to March) owing to slow down in pace ofawards, limited budgetary support, high risk aversion of public sector banks toinfrastructure projects, worsened liquidity position of NBFCs and disruption inconstruction activity during monsoon and high cost of land acquisition.ICRA has revised the outlook on the Construction Equipment (CE) sector to Negative.
Demand headwinds are likely to continue in the near-term unless there is a coursecorrection by the public sector.
The residential real estate sector in the national capital and its satellite towns fell 22% quarter-on-quarter (Q-o-Q) to 9,830 units during Q3 2019 calendar year (CY) on account of a subdued buyers’ market due to ban on subvention schemes, coupled with monsoon rains and the inauspicious period of Shradh.
According to a ports’ body, Coal shipments handled by India’s 12 major state-run portsduring April-September rose by 15.25% to 29.29 million tonne, The state-run ports hadhandled 25.41million tonnes of coking coal cargo in the corresponding period of theprevious fiscal. Shipments of thermal or steam coal, however, declined by 13.20% to44.87 million tonne, the Indian Ports Association (IPA) data showed. The IPA saidthese ports handled 51.69 million tonnes of thermal coal in the April-September periodof the previous fiscal.
According to ICRA, the country’s overall thermal coal import is likely to cross 200million tonnes mark in 2019-20. As per report the Coal India’s production might fallshort of its 2019-20 target of 660 million tonnes by around 55-75 million tonnes. CoalIndia accounts for over 80% of the country’s domestic coal requirement. Overall, the 12major ports recorded a marginal 1.48% upswing in cargo handling at 348.44 milliontonnes in April-September this fiscal against 343.37 million tonnes in the year-agoperiod.