“IMPLEMENTATION OF IT IN INDIAN POWER

SECTOR”
Dissertation (I) submitted to the School of Business in partial
fulfillment For the degree of
MBA- POWER MANAGEMENT

Under the supervision of

Dr. Anil Kumar

Department of Power Management

School of Business, Kandoli,
Dehradun- 248007

BY

ANIKET ARPAN (500074491)

Batch: 2019-2021
Semester: IV

University of Petroleum & Energy Studies

Knowledge Acres, PO Kandoli
Dehradun (248007)
 Mentor Agreement Form for Dissertation

I Aniket Arpan, student of MBA – Power Management Semester III, with Enrolment
number R130219004 and SAP ID 500074491 will undertake Dissertation in the topic Future
of Grid Balancing by integration of Energy Storage, under the guidance* of Dr. Anil Kumar.

Student Name Mentor Name

Aniket Arpan Dr. Anil Kumar

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 Declaration

I, Aniket Arpan, Roll No. R130219004, MBA (Power management), batch 2019-21 of
University of Petroleum and Energy Studies, Dehradun, hereby declare that the summer
internship report on “Implementation of IT in Indian Power Sector” is an original work
and the same has not been submitted to any institute for the award of any other degree.

Dr. Anil Kumar

HOD Energy Management Dept.

(Project Mentor)

Aniket Arpan

Countersigned

Prof. (Dr.) Anil Kumar

H.O.D Power and Infrastructure management

UPES Dehradun

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 Abstract

India has made significant progress in the power sector since independence, but it is not
enough. Although new capacity has been added in terms of generation, demand has far
outstripped supply, resulting in a widening gap. The primary cause of the widening gap is the
supply chain's distribution connection. The generation firms have had a difficult time
collecting debts from their largest customers, mostly the State Electricity Boards (SEBs).
SEBs lose a lot of money every year due to power theft and inefficient billing and collection
methods. The annual losses have risen to an alarming Rs. 26,000 crore. The sheer volume or
frequency of Transmission and Distribution (T&D) losses that amount to 25%, a very high
level by any measure, is clearly the most fundamental problem impeding the viability of the
Indian Power Sector. To make matters worse, indirect estimates indicate that T&D losses are
even higher, ranging from 40 to 50 percent.
Furthermore, India's distribution system is characterized by inefficiency, low productivity,
frequent supply interruptions, and low voltage. To realize the vision of "reliable, accessible,
and quality power for all by 2012," some fundamental changes in the workings of the power
sector entities are clearly needed. The reform process is underway in a number of nations,
with the MoP providing overall guidance. Its goal is to make utilities more profitable
companies by bringing about long-term changes in their operations. Several states have seen
changes in organizational structure, commercial focus, operational transparency, and overall
consumer orientation as a result of the reforms.
However, there has been mixed success in terms of institutionalizing these reforms and
maintaining them over time. As a result, the urgent need is to institutionalize the reforms and
achieve long-term, widespread improvements. Using information systems to allow core
business operations at the transaction level will lay the groundwork for long-term reforms.
This would ensure world-class operating procedures and controls, as well as a significant
improvement in the utilities' overall health.
The overall quality of data will increase, and the flow of knowledge for decision support will
improve as a result. As a result, information technology (IT) will become a key enabler in the
reform process' initiatives. IT would not only help the reform process succeed, but it would
also serve as a catalyst by creating an information infrastructure that is critical to the reform
process and practices.

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The Ministry of Power has established an IT Task Force for the power sector with a focus on
distribution in order to use IT as a strategy to increase commercial and operational efficiency
in distribution and to ensure its successful implementation. The IT Task Force is working to
create a connection between IT and India's power sector. The aim of this task force is to write
a report outlining the role of information technology in increasing profitability, improving
service quality, and so on.

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 1. Introduction

1.1 Overview:
One of the most important functions of smart grid networks is smart metering. Smart meters
are enhanced variants of traditional power meters built in response to advancements in AMR
and AMI. The advanced ICT interfaces on the smart meters make them very sophisticated
and detailed. Smart meters can measure multiple parameters such as power factor or THD, as
well as predict power usage at specific intervals, in addition to metering features. MDMS not
only has remote-control capabilities, but it also enables users to track and control their home
energy management systems from a far. Smart meters are also known as smart sockets
because of their ability to distribute power from the residential grid to individual homes.
Since it offers measurement of consumed electricity, power demand rates, and power quality
of the entire grid, the AMI is used to describe a smart meter based infrastructure along with
smart grid applications. Two-way communication between the grid and the smart meter, data
recording capacity at intervals of 10–60 minutes, at least regular data transmission to the
monitoring center, integrated remote disconnection switch, HAN interface, data storage
capability for blackouts, voltage and current values, and reliable data communication
infrastructure are all common features of smart metering applications..
Power quality issues such as automatic voltage restore, frequency and voltage regulation,
active and reactive power control, DSM, decentralized generation in the sense of microgrids,
and cyber-secure communication systems have been the focus of recent smart metering
research. In terms of metering and communication substructures, the smart metering interface
can be seen in Fig. 1.15, where smart meters interface consumption and distribution grids.
The AMR, DMS, and TOU pricing sections make up the metering portion, while the
communication system includes control infrastructure and network access interfaces like
HAN and WAN that make up the HEMS. Wireline and/or wireless communication methods
can be available via the communication interface, allowing for a two-way data stream
between the user and the DSO. A smart meter can also include auxiliary modules such as a
power supply, controller, metering and data acquisition interface, timer, safety equipment,
data logging module, and encoding/decoding modules in addition to the two main sections..
Consumer information such as identity, energy usage logs, time stamps, and outage records
are stored in the data logging module, which is required for smart meters. The metering

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segment includes an analogue interface that communicates with the grid to link residential
wiring to the distribution network, as well as voltage and current transducers for metering
interface installation. To produce TOU pricing data with a timestamp, the billing module is
linked to the timing module.

IT Road Map
The definition of an IT blueprint is used globally to approach IT in a very structured and
well-thought-out manner. As a result, the task force recommends that the Indian power sector
develop a detailed IT blueprint that integrates global best practices. The report serves as a
blueprint for its growth.
The task force recommends a three- to five-year IT development plan that includes both
short- and long-term IT initiatives. Prioritize the use of IT in commercial processes and in
enhancing supply efficiency in selected high-revenue areas for short-term IT interventions.
The main goal of the IT solution should be to reduce the amount of human interaction in
commercial processes in order to reduce human errors and the risk of willful mistakes. After
focusing on fast wins in the short term, long-term areas will include business processes.
Billing, for example, will be extended to include all forms of customers and developed into a
robust customer information system (CIS) and sophisticated call center.
With this CIS, service link and maintenance processes will be systematized and incorporated.
Parallel implementations of asset and job management, outage management, and distribution
automation are planned. During this step, material management and support processes (such
as HR, Finance, Accounts, and so on) will be IT allowed. SEBs should also provide an
efficient Management Information System (MIS) for decision support and better decision-
making, according to the task force.
This study also discusses various funding mechanisms for IT implementation, which is a key
prerequisite for the task force's recommendations to be implemented successfully. SEBs must
consider different business models when implementing IT initiatives. It would be difficult for
a SEB to carry out these initiatives using only one "project model." The task force also
suggests that SEBs / utilities be aided in the process of selecting solution providers by
enacting a national accreditation programmed. In consultation with NASSCOM, a committee
of experts in the fields of scientific, commercial, finance, and project management may be
established to accredit various agencies to begin implementation.

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1.2 Impact of smart meter:
General aspects:
Smart metering allows for more precise billing of energy used based on actual demand, as
well as tariff decision-making for load curve flattening and invoice reduction. The benefits to
the entire community that may result from the introduction of smart grid solutions (smart
grids) based on a smart metering infrastructure are also reasons for implementing smart
metering in the electricity sector.
Important reductions in energy usage and CO2 emissions can also be achieved by providing
consumption information on central Internet websites that customers can access directly or
through electronic devices at the point of consumption. Furthermore, by using data from
smart meters, "demand response" solutions will assist in reducing peak load. Due to the
introduction of smart metering in India, the amount of expenditure, losses in the electricity
distribution networks, and the volume of investments are monitored indicators in order to
enhance the efficiency of the distribution service.

Thus, smart metering will have a direct impact on:

 The need to improve energy efficiency by increasing metering information

accountability and motivating consumers to change their consumption habits.
 Regulatory pressure to reduce costs by reducing energy losses and metre reading
costs, as well as a better recognition of appropriate investments.
 Customer education to minimise consumption during peak loads.
 Protection of the environment (reducing the peak load will lead to a decrease in
electricity production and the use of power plants with high emissions of carbon
dioxide). Increase the share of electricity generated from renewable sources while
increasing the security of the electricity supply by integrating versatile infrastructure
and reducing the number of power plants.

1.3 Smart-Decarbonized Energy Grids:

Upscaling Net Zero Energy Buildings (NZEB) necessitates a shift in how we produce and
distribute power and heat. We must reinvent energy grids and promote engagement between
them and facilities in order to scale up NZEB and reap the greatest economic, environmental,
and social benefits. As a result, the aim of this chapter is to look into the consequences of
upscaling NZEB and to share best practices and possible insights on grid interaction with

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users. We provide transition and widespread use of NZEB on urban, city, and national scales
in this chapter.
There are the three key factors to a successful energy transition and widespread use NZEB:
(1) Creating and running NZEBs as smart houses, 
(2) Transforming the current grid into smart interactive grids with connected and
autonomous micro grids,
(3) The power grids must be decarbonized. The chapter gives an overview of the
requirements and best practises for incorporating sensing technology to track the state of
the grid, using distributed renewable energy generation, and using information
technology for collaborative interactions between energy providers and consumers. We
explore how to track a dependable and scalable infrastructure that can meet potential
demand growth while also providing economic and environmental benefits to users in
order to aid NZEB upscaling..
(4) Finally, we discuss some of the lessons learned in developing smart and decarbonized
grids that take mobility, energy stability, and spatial planning into account. Energy
producers, customers, energy service providers, and experts with a general interest are
given advice on key factors that will contribute to a competitive energy industry.

 1.4 Advanced Metering Infrastructure:

The term AMI (Advanced Metering Infrastructure) refers to the entire infrastructure, which
includes everything from smart meters to two-way communication networks, control center
equipment, and all the applications that allow for the collection and transmission of energy
consumption data in near real-time. AMI enables two-way connectivity with consumers and
serves as the smart grid's backbone. Remote meter reading for error-free results, network
issue detection, load profiling, energy audit, and partial load curtailment in lieu of load
shedding are some of the goals of AMI.
Building Blocks of AMI :
Smart Meters- Advanced metering systems capable of collecting data on electricity, water,
and gas consumption at various intervals and transmitting the data to the utility through fixed
communication networks, as well as receiving information from the utility such as pricing
signals and relaying it to the user.
Communication Network: Smart meters can send data to utility providers and vice versa
thanks to advanced communication networks that allow two-way communication. For these
purposes, networks like Broadband over Power Line (BPL), Power Line Communications,

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Fiber Optic Communication, Fixed Radio Frequency, or public networks (e.g., landline,
telephone, paging) are used.
Meter Data Acquisition System- Data is collected from meters via a communication
network and sent to the MDMS using software applications on the Control Centre hardware
and DCUs (Data Concentrator Units).
Meter Data Management System (MDMS): Host system which receives, stores and
analyzes the metering information.

1.5 General Framework and Implementation:

The energy demand, generation power, transmission, and distribution networks in India have
all increased dramatically. It is introducing new types of devices and ICT infrastructure,
implementing new monitoring, control, and energy management tools, and planning for rapid
implementation of smart grid concepts at both the delivery and transmission levels, in order
to keep up with recent technological developments. Electricity is a concurrent subject in
India, and its development, activity, and control are the responsibility of both the central and
state governments.
The federal government creates the overall regulatory structure, while each regional (state)
government develops policies within that framework. Generation, transmission, and
distribution are all owned by independent utilities. The Ministry of Power, under the
Government of India, is responsible for long-term planning, policy formulation, project
processing for investment decisions, power project monitoring and execution, training and
manpower development, and administration and enactment of legislation in the areas of
power generation, transmission, and distribution. According to the CEA Report, the capacity
of the entire Indian transmission system as of April 30, 2017 is as follows:
The Central Electricity Authority of India (CEA) provides advice to the government on issues
relating to the National Electricity Policy and develops short- and long-term plans for the
growth of electricity systems. At the federal and state levels, the Central Electricity
Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs)
control tariffs, devise subsidy policies, and encourage effective and environmentally friendly

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policies.

The construction of a reliable, organized, and cost-effective interstate and intrastate

transmission system is ensured by the Central Transmission Utility (CTU) and the State
Transmission Utility (STU). Power Grid Corporation of India Ltd (PowerGrid) is the central
transmission utility in charge of national and regional power transmission planning, while
state transmission utilities are separate.
In India, grid maintenance is carried out on a regional level. The country is divided into five
electrical regions: Northern, Western, Southern, Eastern, and North Eastern. The Indian grid
became operational as a single synchronous grid running at a single frequency in December
2013. Each of the five regions has a Regional Load Dispatch Centre (RLDC), which is the
apex body for ensuring integrated operation of the power system in the concerned region,
according to the Electricity Act of 2003. The National Load Dispatch Centre (NLDC) was
developed at the national level to ensure the most efficient scheduling and dispatch of
electricity among the regions.
The RLDCs, in collaboration with the State Load Dispatch Centers (SLDCs), are in charge of
ensuring the safe and efficient operation of the regional grid in real time and dispatching
electricity throughout the country. Both operations are carried out in compliance with the
CEA's Grid Standards as well as the CERC's Grid Code and other regulations. With effect
from January 3, 2017, Power System Operation Corporation Limited (POSOCO), an

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autonomous government entity, operates the NLDC and RLDCs. It ensures that the
mechanism runs independently and that all stakeholders have a fair playing field. Private
sector participation is increasing in generation, distribution sectors following the Electricity
Act 2003, allowing increased competition.

The gross electricity produced by utilities in India in fiscal year 2016-17 was 1159.835
billion units, while per capita electricity consumption in the year (2015-16) was 1,075 kWh.
Oil, coal, gas, nuclear power, and hydro power have all steadily increased their share of the
country's energy mix. During the 2014-15 fiscal year, transmission and distribution losses,
including commercial losses, totaled about 22.77 percent. 1. Distribution utilities must reduce
aggregate technical and commercial (AT&C) losses to less than 15% by 2017, less than 12%
by 2022, and less than 10% by 2027, while transmission utilities must reduce transmission
losses to less than 4% by 2017 and less than 3.5 percent by 2022 in the country.
The Indian government announced an ambitious plan in 2014 to increase the share of
renewable energy in the country's energy mix, with goals of achieving 175 GW of installed
renewable energy capacity by 2022. India's renewable energy sector would need an additional
$189 billion in investment to reach this goal by 2022.

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1.6 Smart Grids Activities:
The Indian electricity market has a lot of untapped potential. Government officials and
energy industry representatives have stressed the importance of Smart Grid and Micro-grid
for the region, creating a promising business opportunity. By 2019, India's primary aim is to
electrify all homes, provide sufficient power for agriculture, and provide power to every
citizen 24 hours a day, seven days a week. The erratic nature of supply, i.e., the energy can
only be harnessed during a certain part of the day, such as during the day for solar energy and
during windy conditions for wind energy, is a disadvantage of renewable resources. These
conditions are also uncontrollable.
With such unpredictably variable energy sources feeding the grid, a highly adaptive grid is
needed (in terms of supply and demand). As a result, the prospects for developing smart grids
in India are vast, both at the distribution and transmission levels, as stable electric supply is
one of the most important infrastructure requirements for overall growth. India's Smart Grid
Vision is to "transform the Indian power sector into a stable, agile, sustainable, and digitally
powered ecosystem that provides reliable and quality energy to all with active stakeholder
participation."
The introduction of Smart Grid systems faces a number of challenges. High capital costs and
benefit limitations at the same expense to the customer as seen by the regulator are the key
obstacles that policymakers face. Since a secure communications network is needed, the
capital and hardware costs are greatly increased. The Smart Grid's efficient operation
necessitates seamless infrastructure connectivity.

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India's information infrastructure is on par with that of many developed countries around the
world. However, there are concerns about device and system interoperability in the context of
smart grid implementation in the utility world. Even if technical advancements are in sync,
there is a problem with integrating the entire hardware infrastructure to handle large amounts
of data. To handle the various data formats that flow into the system, complex data models
are needed.

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1.7 Peak Load Management:
Peak load management is the process of managing demand and matching it to available
supply at peak times. The peak load management role will receive information about power
availability and shortage volume from SCADA/EMS. Based on the shortage, the peak
management feature will run algorithms that take into account various constraints and goals
predefined by the System Integrator (SI) in collaboration with Employer/ Utility staff based
on the customer profile, and recommend the best options. The strategy would be to stop
tripping feeders for load shedding and control peak load either by AMI or load curtailment.

1.8 Power Quality Management:

Voltage flickering (Sags/Swells), unbalanced phase voltages, and harmonic distorted supply,
among other things, are addressed by Power Quality Management. This would make the
power system more effective and reliable, reduce delays, increase customer loyalty, and
reduce equipment (utility/consumer) failures. Voltage/VAR control, load balancing, and
harmonics control are all examples of power quality management.

1.9 Outage Management:

Unscheduled distribution infrastructure, such as Distribution Transformers (DTs), HT/LT
feeders, and so on, are managed by the Outage Management System (OMS). It gathers and
coordinates information about outages, including customer calls, and reports it to the operator
for corrective action through crew management and remote control, resulting in improved
system availability and reliability and improved customer satisfaction.

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1.10 Distributed Generation:
Development and implementation of new and innovative distributed generation technologies,
including PHEV/EV (Plug-in Hybrid and/or Electric Vehicles), wind, photovoltaic, and other
distributed generation technologies, systems and solutions supporting flexibility of customer
interaction, energy usage/exchange, demand and loss management, and management of
telecommunications networks.

1.11 Smart Metering:

Several government initiatives and policies have paved the way for intelligent smart metering
in the country, including the Restructured Accelerated Power Development and Reform
Program (R-APDRP) and Central Electricity Authority (CEA) guidelines. The energy
metering market is currently valued at US$ 340.82 million and is projected to expand at a
CAGR of 8-10% over the next 4-5 years.
UDAY is also a scheme for DISCOMS to turn around their operations and finances, with the
aim of installing 35 million smart meters by 2019. Over 400,000 of India's electricity supply
and output meters were shipped to Australia, with another 50,000 going to Malaysia, the
United Kingdom, and the United Arab Emirates. In 2012, India imported fewer than 5,000
meters of electricity supply and output meters from Hungary, Singapore, Indonesia, and
China; the leading foreign suppliers by volume were Germany and the United States.
The Prime Minister of India launched the Smart Cities Awas Yojna Mission (Smart City
Mission) in June 2015.
The Government of India's Smart Cities Mission is an urban regeneration and retrofitting
initiative with the aim of developing 100 cities across the country that are both citizen-
friendly and sustainable. One of the areas found by the Indian government in this mission is
smart meters.
The Central Transmission Utility is in charge of and funds the implementation of FACTS and
PMU for the transmission grid.

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1.12 Why we need them:
Smart meters can monitor energy use in 15-minute increments or at least hourly and relay
data to utilities continuously, whereas conventional electricity meters calculate the power
consumption of a home or company. Smart meters, above all, allow for two-way
communication between the utility and the home or company.
Smart meters do not require physical inspection of meter readings for power generation, as
conventional meters do. The user and the DISCOM can also track the readings remotely
through the internet.
Due to social distancing limits, DISCOMs in states without smart meters are now being
forced to require customers to submit photographs of their meter readings or to bill
provisionally based on previous bills. The use of smart meters eliminates the need for
physical presence. In times like these, remote meter reading will be a big help to the industry,
as billing inefficiencies cost DISCOM a considerable amount of money.
According to a recent study by the Energy Efficiency Services Limited (EESL), the agency in
charge of smart meter deployment across the country, all states where smart meters were
deployed experienced positive results, with an average increase in billing of nearly 25%.
With a billing efficiency of over 99 percent, revenue has increased by $500 ($7) per month
per meter in the New Delhi Municipal Council (NDMC) district of the national capital.

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Aside from providing additional revenue to DISCOMs, smart meters may also assist
customers in monitoring and regulating their usage, allowing them to save money on their
electricity bills. The increased revenue could also assist DISCOMs in paying their dues to
generators on time. Smart meters have far-reaching implications for the electricity industry as
a whole.
“Smart meters are the only approach that has shown such a high level of value to the entire
power sector. There is no better way for utilities in this country to get out of their financial
crisis,” said Saurabh Kumar, Managing Director of EESL.
“Billing performance was 83 percent last year, which means 17 percent of the time was not
billed at all. The country's total power demand was 1.3 trillion units at the time, and 17
percent of it was around 220 billion units. When you multiply that by 5 ($0.07)/kWh, you get
a total loss of well over 1.1 trillion ($14.7 billion), which is considerably more than the
government's 900 billion ($11.98 billion) package,” Kumar said, emphasizing the importance
of plugging these losses.
Morcom recently announced that the central government's financial stimulus package for
DISCOMs might not be enough to address the sector's problems. The power sector can only
progress by implementing new and creative technologies such as smart meters.

1.13 Road ahead and the roadblocks:

Under the Ministry of Power's (MoP) Smart Meter National Program, the EESL recently
announced that it has installed over 1.2 million smart meters in India to date (SMNP).
Although this may seem to be a small number, it represents a significant achievement. The
EESL has been able to deploy between 8,000 and 10,000 smart meters a day. Their initial aim
was to install 100,000 a day, but the coronavirus outbreak drastically slowed things down.
According to Anil Rawal, CEO of Intelli Smart, a joint venture between EESL and the
National Investment and Infrastructure Fund, even these figures are much higher than what
other projects in other countries have been able to achieve (NIIF).
“At the end of the day, smart meters are a win-win solution for the customer, the distribution
business, and the entire power sector,” Rawal said.
He clarified that there are still some problems to work out, such as system adaptability,
DISCOM acceptance rates, and the program's overall scope.
Smart meters are incompatible with traditional meters because they depend on an outdated
infrastructure. The entire infrastructure must be overhauled in order to sustain a fully
digitised ecosystem that will also propel the country forward in terms of smart-grid viability.

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“Being digitally strong is more important than just implementing smart metering systems,
which is just one small step. A smart metre is “a complex piece of equipment in people's
homes that communicates with the digital backend around the clock,” Rawal explained,
adding that “the backend should be very good at doing all that used to be done physically,
digitally.”
There's also the issue of implementation at the state level. Although the federal government
has made its intentions clear, state governments must eventually decide whether or not to
introduce smart meters based on the financial performance of the power distribution sector.
According to EESL's Kumar, the best responses so far have come from Uttar Pradesh,
Haryana, and Delhi.
NDMC was the first municipal council in India to introduce a smart metre solution that was
100 percent accurate in its region. Even after the installation of nearly a million smart meters,
Uttar Pradesh is still having trouble collecting power dues. The state aims to build four
million smart meters across five DISCOMs by the end of the year.
In Bihar, EESL and DISCOMs have signed a memorandum of understanding to instal smart
meters in 130 towns and rural areas, covering approximately 1.8 million customers. In
another state, the Haryana DISCOMs and EESL signed an agreement to instal one million
smart meters across the state, with the aim to extend the project to more towns later.

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 2. Need for the work / Justification of Project

Why FDI is needed in India?

Indian multinationals use foreign direct investment (FDI) as a strategy to broaden their
presence and business operations in emerging customer and development markets. It could
gain access to a wide range of small and large capital, as well as qualified and unsolicited
management and technologies, such as fossil fuels and precious metals. By exploiting low-
cost products and heading straight to the raw materials source rather than sourcing them from
third parties, FDI helps a company minimize manufacturing costs. In addition, a company's
FDI receives a number of tax benefits. This would depend on whether the country of origin
has a tax deduction for foreign salaries or whether the recipient country provides FDI
organizations with tax breaks and incentives.
The Indian power sector is on the verge of change, as we move towards a more sustainable
future by implementing more and more renewable energy sources, which need a lot of
funding and new technologies, and FDI had the potential to overcome all of these challenges,
making this the golden time, and the government is also working to promote renewable
energy sources and FDI, making the project a success.
Here are some benefits of FDI:-

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3.1 Economic Growth and Jobs:
The most obvious benefit of FDI is the creation of new jobs. It's also one of the main reasons
a country, especially a developing one, seeks FDI. Both the building and service industries
profit from increased FDI. As a result, job prospects for talented young people around the
world are expanding – both for professionals and for unqualified workers – and
unemployment is decreasing.

3.2 Human Resource Development:

One of the less apparent benefits of FDI is this. It cannot be overstated, but it is important.
Employee skills and talents are referred to as human capital. The development of schooling
and the country's human capital share is aided by the training and experience gained, as well
as improved skills.

3.3 Finance & Technology:

Organizations that receive funding have access to cutting-edge financial innovations,
technologies, and operational strategies from all over the world. The adoption of modern,
applied technologies and practises would support the local economy in the long run, resulting
in increased market competitiveness and productivity.

3.4 Exports Increase:

Not all FDI products are intended for domestic use. Many of these items have a worldwide
audience. FDI investors have also helped to establish 100 percent export-driven units and
industrial zones, which have continued to expand their exports to other countries.

3.5 Capital Flow:

Capital inflows are particularly beneficial to countries with small domestic resources and
little opportunities to raise funds on global capital markets.

3.6 Competitive Market:

FDI helps to build a competitive atmosphere and break down domestic monopolies by
allowing international organizations to join the domestic market. Companies may refine their
goods and processes on a regular basis in a stable business environment, which encourages
creativity. Consumers now have a larger selection of products to choose from at lower prices.

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 1. Business Problem

The way the power distribution business is conducted has changed as a result of the reforms
and restructuring of the power sector. The Indian power sector faces a number of challenges,
including fierce competition from both the private and public sectors, structural shifts in
pricing and tariff systems, and rising environmental concerns. The use of IT tools will make a
big difference in overcoming these obstacles and improving power delivery performance.
Given the current use of IT by distribution organisations in India versus adoption of IT by
global distribution utilities, IT has enormous potential to transform distribution industry. In a
best-of-class delivery utility, information technology serves as the medium for business
process implementation and the data source for operational and strategic decision making. To
meet global standards, a large investment will be needed, but given India's financial situation,
this investment will not be possible all at once.
As a result, they must take a staged approach to IT implementation. Business needs and
payback periods can guide IT investment decisions. This necessitates a comprehensive long-
term IT adoption plan. However, it is important to note that IT is a palliative, not a cure. IT
serves as the sole change agent, allowing business processes to work better.

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Literature Review

3.1 Introduction:
A smart metre allows for objective monitoring of utility energy usage on the device or outlet
to which it is connected. A smart metre connected to a natural gas line, for example, keeps
track of how many therms the facility uses. The meter's "smart" function allows it to regulate
the flow of the resource being consumed, such as natural gas, water, or electricity. The smart
feature also allows for remote control of the metre.
Smart metering allows companies to keep track of how much energy they use and change
their consumption as required. Smart meters record a number of data points on use, including
when a resource is used, how much is used at a time, and where it is directed, in addition to
measuring usage. The data is relayed to a console through an internet or wireless link, where
you can see a breakdown of the data.
Many power, gas, water, and other utility providers have adopted smart metering as a cost-
effective way of monitoring consumption through their customer bases in order to better
assess costs and infrastructure requirements. Smart metering can help utilities and their
customers understand how usage affects their costs and develop new cost-cutting strategies.
Despite the fact that smart metering is a relatively new technology, it already has a wide
range of applications. Smart metering has been used by the internet of things (IoT) sector to
extend a network of interconnected devices that produce vast amounts of data.
Since smart metering is a newer method of tracking energy use, it is an optional installation
for businesses in many markets. While utilities can charge for the installation, it may be
worth it for businesses because it allows them to change their consumption to save money on
electricity.

It depends on who owns the facility and what device is being regulated whether you can
reject a smart metre. Many jurisdictions have enacted laws and legislation requiring smart
metre installation and usage of municipal devices such as natural gas outlets and electricity
connections.
It is up to the owner in other jurisdictions. When a homeowner or business owner rents a
home, they do not have a say in whether or not a smart metre is installed.
The direct advantage of smart metering is having a detailed understanding of your company's
energy and service use. Most smart meters connect to an app that provides an accurate

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readout of your use, broken down by time of day, day of week, and month. Having this
knowledge at your fingertips will assist you in making informed decisions about your
resource use and maintaining accurate records.
Having a clearer understanding of how much you're eating at any given time will motivate
you to start reducing your consumption. Some user interfaces link use to a monetary value,
such as a watts-per-hour rating, allowing you to see how much electricity costs you by the
minute.
A project with an Illinois school district to set up an interactive smart metering interface for
students to track their own school's energy usage was represented by Neil Maldeis,
engineering leader with HVAC device manufacturer Trane.
"The district's improvements improved energy efficiency, provided comfort for improved
learning environments, and improved environmental literacy," Maldeis said. "As a result, the
district's energy and maintenance expenses have decreased, nearly 20 hours of weekly
employee work has been replaced, and nearly $64,000 in rebates has been earned. Officials
from the district hope to save $500,000 over the duration of the project, which is one of their
strategic plan goals."

Since smart meters are linked to the internet, they pose certain security risks: Anyone who
knows how to hack the computer might theoretically take control of it. Several real-life
hackers have shown that this is possible if there is an open public source, such as an internet-
connected IoT system. It is much more difficult to gain unauthorised access to closed signal
networks, but it is still possible.

3.2 The future of smart metering:

New and improved communication technologies, especially IoT, boost smart metering. We
can delegate some of our decisions to automation backed by machine learning now that
meters are linked to the mechanisms that regulate the resources they're measuring. According
to an IBM blog, a smart metre connected to a thermostat will help it decide when to adjust the
heat based on changing energy costs. Smart meters can be used on a variety of equipment and
machinery, allowing companies to better control their power consumption per unit.
Another possible use is for devices that need recharging of consumable resources.

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The more smart meters connected to their networks, the more data on consumer use service
providers will collect to operate their grid more effectively. They can spot anomalies in real
time and go on-site and make preventative fixes before an outage happens.

3.3 IoT and smart meters:

A smart metre is an electronic system that allows for remote control and recording of energy
usage. It is traditionally a part of the electrical grid infrastructure. Standalone smart meters
are giving way to more sophisticated and multi-purpose smart metering systems in the era of
IoT and IoT platforms. These solutions provide a wider range of remote monitoring and
alerting capabilities, as well as powerful data analytics tools, to assist businesses and
individuals in reducing their electricity, water, gas, and fuel usage.
One of the most common challenges for businesses adopting smart meters is figuring out how
to incorporate them into their infrastructure and create custom smart metering use cases. The
best way to accomplish these goals is to use an IoT platform like Things Board, which
provides out-of-the-box smart metering solutions and models. The ability to process data is
one of the most powerful features of an enterprise-grade IoT platform. You'll be able to
centrally collect data from your various smart meters, as well as build custom visualization
dashboards, customize user alerts and notifications, and feed the collected data into other
applications or data stores.

Another significant benefit is the low cost of implementing smart metering. Using an IoT
framework allows you to provide all of the required features right away, allowing you to
concentrate on developing specific smart metering use cases instead, saving time and
avoiding the risks of in-house IoT growth.

3.4 Building end-to-end smart metering solutions

Things Board's IoT platform includes out-of-the-box modules and APIs that substantially
reduce the time and effort taken to develop smart metering solutions, resulting in significantly
improved time to market, efficiency, and competitiveness. Using the following features and
benefits of Things Board, businesses can save up to 90% of their product development time,
according to our estimates:
 Data collection for smart water meters, energy sensors, and smart energy meters that
is reliable and fault tolerant;
 For real-time and historical smart metering tracking, advanced, customizable data
visualization is available.

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  Alarm widgets to alert users and/or operators to any critical events or unusual
consumption levels in real time;
 Device management allows you to organise your endpoints into groups based on
unique attributes, make navigation between different types of entities and endpoint
groups easier, and perform more versatile data analysis using your custom groups.
 End-user dashboards that can be customized (with drill-down capabilities) to evaluate
and share smart metering monitoring results;
 For advanced processing and reporting of smart metering data, integration with third-
party analytics frameworks and solutions is needed.
 Smart metering management with the Things Board API for controlling and managing
smart meters.

The Things Board IoT platform offers production-ready server infrastructure for connecting
smart metre units, collecting, storing, and analyzing smart metering data, and sharing analysis
results with customers and end-users.

Smart metering infrastructure:

Smart meters provide a variety of add-on applications and services, including DSM, energy
theft safety, and CPS security, in addition to remote monitoring and smart metering. The
DSM and DR systems have been improved to satisfy customer energy demand while
maintaining the generation-consumption balance. DSOs may also use DSM and DR systems
to efficiently control energy generation demands by avoiding mass generation at inconvenient

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times. Controlling peak clipping, load shedding, valley filling, and peak shifting methods is
one of DSM's most critical goals.
To operate these load shifting methods, the balance is calculated based on load sufficiency
and demand rates, with peak clipping allowing for lower energy consumption during peak
times and valley filling allowing for higher energy consumption during valley times. Peak
shifting, which refers to the composition of peak clipping and valley filling, allows for peak
load reduction when reacting to base load energy demand.
Smart meters can be used to meet the instant and precise metering specifications of DSM and
DR systems. The DR systems are focused on price-based or incentive-based methods, with
TOU, critical peak pricing (CPP), critical peak rebate (CPR), and real-time pricing being the
most common price-based programmed (RTP).
Smart grid (SG) systems rely heavily on smart metering and monitoring processes. Due to the
widespread use of SG systems for metering, tracking, and control operations in industrial
systems, the communication infrastructure of these processes is receiving a lot of attention. In
addition, in both renewable energy plants and microgrids, metering and monitoring
transactions should be allowed. PLC systems are thought to be the most rapidly developed
innovations within the SG scope because they deliver significant cost savings by reducing the
need for communication channel installation.
This chapter begins by presenting the basics, context, and implementations of PLC
technology in a logical order to aid comprehension. Following that, the PLC technologies are
categorized according to the frequency bands that are used, and each one is thoroughly
explained. The characteristics of power lines are then discussed, with noise and channel
characteristics, electricity grids and geographical variations, and features of power cables
used in power grids all being considered. Following the summary of recent regulations and
requirements, the electromagnetic compatibility (EMC) regulations are presented ,by the
following, several metering and monitoring applications of the SG systems based on the PLC
method are presented as case studies.

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3.5 Key Characteristics of Smart Grid:
The capabilities and operational characteristics of a smart grid may be more important than
the technologies used to describe it. Smart grid technology will be implemented over time,
with successive levels of functionality and capability being added to existing infrastructure
and systems. Technology is the most important factor to consider when constructing smart
grids, and it can be characterised by a variety of characteristics.

3.6 Smart Grid and Integration of Renewable Energy Sources :

The form and scalability of renewable energy resources varies greatly. Biomass, waste,
geothermal, hydro, solar, and wind are among them. Renewable energy resources can be used
to generate power on their own or in islanded (system isolated) systems, but their benefits are
greatly increased when they are incorporated into larger electric power grids. Higher degrees
and rates of penetration can be accommodated with increased use of smart grid technologies.
From the grid's perspective, each resource is unique, and some are easier to incorporate than
others. Variable generation, provided by many renewable-energy sources, can be a challenge
to electric system operations, but when used in conjunction with smart grid approaches,
responsive distributed generation also can be a benefit to system operations if coordinated to
relieve stress in the system.
The size (generation capacity relative to other sources of power generation on a system),
location (both geographically and in terms of network topology), and variability of renewable
resources are all important factors in their incorporation into power grids (minuteby-minute,
daily, seasonally, and intermittently). Smart grid technology can monitor renewable energy to
alter grid operating conditions, and it can also provide additional benefits as distributed
generation assets or when deployed at the transmission level.
Distributed generation refers to small, electricity-generating systems that are located near or
at the point of use and are linked at the distribution level. Distributed generation includes
small-scale wind and solar energy projects. Distributed generation assets can help poor grids
by adding voltage to the grid and improving power quality. Having generation close to the
load reduces transmission losses and maintenance costs, as well as allowing for the operation
of local electricity islands to mitigate the effects of large-scale blackouts.
Smart grid technologies and concepts can help to break down barriers to renewable energy
integration and enable power grids to accept a higher percentage of variable renewables. The
ability to influence and manage supply and demand is increased by enabling smart grid
technology, such as distributed storage, demand response, advanced sensing, control

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software, information infrastructure, and market signals. Grid operators can better coordinate
and monitor the infrastructure in response to grid conditions with smart grid technology,
allowing for more efficient and cost-effective integration of increasingly higher levels of
renewable energy.

3.7 Features of Smart Grid

 Smart grid has several positive features that give direct benefit to consumers:
 Real time monitoring.
 Automated outage management and faster restoration.
 Dynamic pricing mechanisms.
 Incentivize consumers to alter usage during different times of day based on pricing
signals.
 Better energy management.
 In-house displays.
 Web portals and mobile apps.
 Track and manage energy usage.
 Opportunities to reduce and conserve electricity etc.
Smart Grid will also make distributed generation easier, especially rooftop solar, by allowing
energy to be moved and measured in both directions using control systems and net metering,
allowing “prosumers,” or consumers who both generate and consume electricity, to safely
connect to the grid.

3.8 Benefits of Smart Grid Deployments

Smart Grid implementations support a number of different groups in society. Utility,
consumers, and regulators are some of the beneficiaries, while some of the advantages
include:
 Reduction of T&D losses.
 Peak load management, improved QoS and reliability.
 Reduction in power purchase cost.
 Better asset management.
 Increased grid visibility and self-healing grids.
 Renewable integration and accessibility to electricity.
 Increased options such as ToU tariff, DR programs, net metering.

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  Satisfied customers and financially sound utilities etc.

3.9 Steps to performing a smart grid cost/benefit analysis:

Smart grid projects are being implemented around the world, using new technology to
improve the efficiency of the power system for the benefit of customers, society as a whole,
and utilities.
Step 1: Identify the research question. The cost/benefit analysis process starts with defining
the research issue or opportunity that motivated the project. This statement will outline the
project's priorities and objectives, as well as how they should be calculated.
Step 2: Determine which technology will be used. Identifying the functions that are required
guides the technology that can be used to provide certain functions.
Step 3: Create a testing strategy as well as assessment and verification procedures. The most
important step in the process is to create a comprehensive research plan. The following
should be included in the study plan: Create a baseline – What would have happened if the
experimental procedure hadn't been used? Define the experimental design – How can the
technology be used to keep its effects apart from other factors? What criteria will be used to
evaluate its performance? What other factors could have an impact on results and should be
monitored? Protocols for measurement and verification – Determine the baseline and
experimental treatment success measures.
Step 4: Calculate the project's benefits and costs. Calculating project impacts by beneficiary
community, translating physical impacts to monetary values, and defining roles that support
multiple stakeholders are all steps in the process. When measuring cumulative benefits for all
classes, it's important to make sure that all benefits are correctly accounted for and that no
benefits are counted twice.
Step 5: Conduct a cost-benefit study and report the findings. Finally, by aggregating the
findings to consider the system-wide costs and advantages of smart grids around the world,
significant value can be derived from the demonstrations. The dissemination of results to all
beneficiaries would also aid in the widespread adoption of smart grid technology. The
cost/benefit analysis should ensure the following to optimise learning opportunities from
smart grid demonstration projects:

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 Transferability of results - Projects should yield outcomes that can be extrapolated to
other technological and business conditions, both individually and as part of a broader
portfolio.
 Smart grid technologies are implemented in a way that maximises benefits to
customers, infrastructure, and society.
 Smart grid technologies are deployed in a way that maximizes benefits to consumers,
utilities, and society.

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 3. Research Gap

After going through all the research papers I feel that following research gaps are found in the
respective papers.
 Only Secondary Data is available,
 Unknown Effect of wide implementation of IT in Power Sector,
 Some papers are outdated and also the data is obsolete,
 A suitable country who had successfully deployed the IT or smart grid in power sector
in comparison to India,
 Not much details are available regarding the current infrastructure,
 High cost of deployment of IT,
 There aren’t many IT technologies implemented in Indian power projects to identify
the exact effect of these Investments.
 There is a higher dependency on secondary data so the research can be biased.
 Since secondary data will be collected from the government website, confidential data
such as the area study, the exact terrain and location etc cannot be extracted.
 Primary data will typically be based upon the opinions of the personnel and the
energy department students.

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 4. Research Problem

Solar is the key priority of the Indian government, which is more focused on the growth of
renewable energy in the region. However, in order to achieve these objectives, the Indian
Power Sector requires additional investments to help it build the necessary infrastructure to
become self-sufficient, and FDI and FII is a better choice because it will develop the Indian
economy while also being a clean investment. However, India has been a close economy for
decades and is not particularly welcoming to foreign investors, making it difficult for FDI to
succeed in the region.

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 5. Research Questions & Objectives
 

Following are some objective that we wish to achieve :

 To study IT implementation in Indian Power sector,
 How to deploy IT in Indian solar power sector,
 Analysing the different policies and the regulations regarding the deployment of IT in
Power Sector,
 Comparing different IT technologies.
 Identify the challenges regarding the It and Smart grid in India.

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 6. Research Design & Methodology

7.1 DATA COLLECTION:

Main and secondary data are combined in the data used for analysis.

Primary data:

Qualitative data in the form of answers to questions posed to Energy staff will be recorded for
the purpose of primary data collection.

Secondary information:

Data can also be derived from a variety of other secondary sources, such as published papers,
surveys conducted by other researchers in the past, data published on blogs, census data, and
so on.

RESEARCH DESIGN:

The study's aim is to build and investigate a cause-and-effect relationship.

Energy Personnel and Energy Department students were chosen as the population for the
purpose of data collection.

Sample Size:

The responses of about 50 people will be collected and used for research purposes. The type
of information that would be gathered from them would be qualitative. This will help people
better understand the idea of "Role of Smart Metering in Distribution Reforms."

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 7. Data Analysis & Findings

9.1 Findings and suggestions:

Current Trends &Issues:
After taking office in May last year, Prime Minister Narendra Modi has visited a dozen major
FDI source countries, and India received $19.78 billion (Rs 1.3 lakh crore) in FDI in 2014-
15. This represents more than half of the $34.93 billion in FDI the country received in the
fiscal year, an increase of 27% over the previous year. FDI grew faster after the Make in
India programmed was launched in September 2014, according to data from the Department
of Industrial Policy and Planning, with inflows jumping 48 percent between October 2014
and April 2015 compared to the previous year..
Tarun Das, a former Confederation of Indian Industries (CII) mentor, discussed the “Modi
government and recent FDI developments and issues” – “Modi has merged foreign policy
with economic and business policies to great effect. India is emerging as the apple of
everyone's eye as other BRICS economies face a slowdown. As a result, the Prime Minister
has agreed to meet with individual CEOs of multinational corporations, indicating a major
change in the country's attitude toward foreign investors. FDI is vital to the economy's growth
as domestic deposits are small and Indian banks have significant nonperforming assets
(NPAs).
Japan, one of the countries Modi visited, has committed to spending $35 billion over the next
five years, while South Korea has committed to spending $10 billion. Over the next five
years, China has pledged $20 billion, while France has pledged $2.26 billion. The UAE has
promised to contribute to India's $75 billion development programme. Chancellor Angela
Merkel's visit to New Delhi in the first week of October preceded Modi's planned visit in
November, with the UK announcing an investment scheme and Germany making
announcements related to the Make in India initiative.
A foreign diplomat in Delhi said, "Some questions have been raised about the Modi
government's performance in terms of reform pace and ease of doing business." However, a
government official from Japan, one of the countries Modi visited and from which he earned
a significant investment commitment, said there was no need to be upset now that Modi is
Prime Minister.

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The Ministry of Home Affairs had previously approved the proposal to allow foreign direct
investment in railways during the last two terms of the UPA government. The Cabinet
Committee on Economic Affairs was expected to consider the proposal (CCEA). Foreign
investors may only invest in railway construction and maintenance, not operations. India's
then-Prime Minister, Manmohan Singh, had pushed for more Japanese investment in the area.
The two countries have discussed the possibility of concrete cooperation in areas such as
computer engineering, research and development, and energy efficiency and conservation
technologies.

From 2000-2001 to 2014-2015, India's FDI and GDP were assessed.

9.2 Statics:
 About 73.4 GW of renewable energy capacity was installed in 2018. (till October).
 Wind power capacity additions in 2016-17 were the highest ever, at 5.5 GW, beating
the previous record by 38%. Between April and November 2018, a total of 841 MW
of power was added, taking the total capacity to 34.9 GW.
 In terms of installed wind power capacity, India ranks fourth in the world, behind
China, the United States, and Germany.
 The highest-ever addition of solar power capacity was 9.4 GW in 2017-18. Between
April and November 2018, 2.6 GW of capacity was added, taking the total capacity to
24.3 GW.As of October 2018, the country had installed over 196,000 solar pumps and
1.7 million solar home lights.
 Biomass electricity installations include biomass combustion, biomass gasification,
and bagasse co-generation. 9.5 GW of accumulated capacity has been achieved so far,
with a target of 10 GW of bio-power by 2022.
 The National Biogas and Manure Management Program sets up Family Type Biogas
Plants, which are mostly for rural and semi-urban households (NBMMP). In March
2018, the Ministry of New and Renewable Energy set a physical target of 65,180
biogas plants for 2017-18. The NBMMP had resulted in the construction of
approximately 5 million biogas plants by November 2017.
 As of November 2018, 22.8 GW of solar projects had been tendered, with 13.8 GW
under construction.

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9.3 Sector policy:
 Amendments to the Ministry of Power's Tariff Policy 2016 to encourage clean
energy:
 Solar Renewable Power Obligation (RPO) to be increased to 8% by March 2022
 After a certain date, the Renewable Generation Obligation (RGO) will be
implemented for new coal/lignite-based thermal plants.
 Providing sustainable solar energy by bundling renewable energy with thermal energy
from the government's unallocated limit. This allowed distribution companies to
generate grid-connected solar power at lower costs.
 Solar and wind resources will not be subject to interstate transmission costs or
damages.
 In the Indian Exclusive Economic Zone, there is an offshore wind energy program for
the production of offshore wind energy.
 The Ministry of Power released a notification in June 2018 detailing the RPO's long-
term growth trajectory for solar and non-solar capacity. Solar and non-solar clean
energy projections, except hydro, are 17.5 percent, 19 percent, and 21 percent,
respectively, for 2019-20, 2020-21, and 2021-22.
 Solar parks and ultra-mega solar power parks are being built.
 The Green Energy Corridor Project is assisting in the creation of a power transmission
network.
 Solar panels on the roof are also used with bank-provided home loans.
 Repowering the next generation of wind power projects for maximum wind resource
use.
 Supporting research and advancement on different facets of clean energies, with
industry involvement.
 Off-grid and decentralized solar energy projects and devices are eligible for financial
incentives to satisfy energy demands for cooking, illumination, and efficient uses.

9.4 Financial support:

 The Ministry of New and Renewable Energy has announced that borrowers would be
eligible to get bank loans up to $2.3 million for solar power generators, biomass
power generators, wind power projects, and micro-hydel plants.

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  Loans are also available for renewable energy-based public services such as street
lighting and electrification in rural villages.
 The loan is capped at $15,384 per borrower for individual households.

9.5 Investment opportunities:

 The $5.8 billion Green Energy Corridor was built to ensure that renewable energy is
transported from generators to load centres through transmission networks.
 The Scheme for Development of Solar Parks and Ultra-Mega Solar Power Projects
has authorised a total of 40,000 MW of solar parks and ultra-mega solar power
projects. At least 50 solar parks, each with a capacity of more than 500 MW, will be
needed to achieve this. The federal government is expected to contribute $1.2 billion
to the scheme.The Smart City Project's upcoming 100 smart cities have a lot of
potential to be driven by green energies.
 Hydro schemes are not eligible for open bidding until 2022.
 The National Mission on Small Hydro has designated small hydro project creation as
a "priority." Under the same plan, watermills and micro-hydro schemes will be
updated.
 Battery packs for electric vehicles.9.6 Foreign investors:

Name of some foreign investors and their origin country

 Enercon (Germany)
 Vestas (Denmark)
 Applied Materials (US)
 Asian Development Bank
 Enel (Italy)
 Gamesa (Spain)
 Orix (Japan)
 Nordex (Germany)
 Mudajaya (Malaysia)

9.7 Key achievements:

 During the 2017-18 fiscal year, the country produced more than 100 billion kWH of
electricity from all renewable energy sources.

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  Renewable energy's total installed capacity has grown from 35.5 GW in March 2014
to 73.4 GW in October 2018.
 Solar parks with a total capacity of 21,144 MW have been authorized in 21 states.
 A Geographic Information System (GIS) called Wind Atlas 2015 was unveiled.
 Under emission regulations, the renewable energy industry has been reclassified as a
"white group" sector.
 India is the world's fourth-largest installed wind power capacity, fifth-largest installed
solar power capacity, and fifth-largest installed clean energy capacity.

8. Recommendation & Conclusion

Increased skills, capacity, technology, exports, employment, and management will all benefit
India as a result of FDI. MNCs, on the other hand, may cause an outflow of foreign currency
from India. For Indian companies, foreign firms will be fierce competitors. As a result, the
Indian government should exercise caution when enabling various sectors such as multi-
brand retailing. Domestic retail traders will face unfair competition as a result of FDI in
retail, resulting in job losses. A neutral and unbiased perspective is needed in this regard;
foreign investments in a portfolio may be withdrawn at any time.

As a result, India's government should place a greater emphasis on attracting equity

investments. In order to increase FDI in India and, as a result, GDP, trade, and foreign
reserves, regulatory policies should be favorable, and policymakers should avoid risks. Indian
retailers can compete with foreign retailers and thrive due to their own merits, such as a local
market, low prices, close customer relations, credit facilities, familiarity with customers, and
personalized services.

FDI inflows into India have shown a positive trend over the study period. In terms of gross
inflows, FDI inflows include a 63 percent share of direct equity investment and a 37 percent
share of institutional investment. The Indian government's adoption of a more liberal foreign
policy, as well as a host of other steps, resulted in an increase in FDI. Mauritius and
Singapore earned 48 percent of total FDI inflows, according to the study. When looking at
FDI inflows from a sectoral perspective, it is discovered that the service sector, followed by
the manufacturing sector, attracts the most FDI in equity inflows.

In addition, following the recent global recession, FDI inflows have continued to grow. FDI
is expected to rise in the coming years. It was predicted that FDI inflows would show a

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positive growth trend. Based on the above data analysis and discussion, this hypothesis must
be agreed upon. The results of the correlation study showed that, as anticipated, there is a
strong link between FDI inflows and other economic indicators. The impact of FDI in multi-
brand retailing on India's retail sector has been mixed.

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