According to reports, Faridabad industrial units have been reeling under a power crisis for many years. This has resulted in players either moving out or closing down their production units in the city.
Seeing the situation worsening, Faridabad Small Industrial Association (FSIA), with the help of Bosch – a German firm, ministry of new and renewable energy (MNRE) and Small Industrial Development Bank of India (SIDBI), have taken an initiative to reduce the power deficit through solar energy.
Players believe that this would solve the power crisis for micro, small and medium enterprises (MSMEs) to some extent for the next couple of decades. FSIA has signed an MoU with Bosch to provide renewable energy to local MSMEs.
Industry experts have expressed confidence in the project, saying that soon the power grievances would be reduced to some extent. “Having achieved complete success in last year’s testing done in 14 micro units in the city, we decided to scale up. We have installed solar devices in 100 manufacturing units,” said Rajesh Nangia, project head, Solar Power Assistance, Faridabad Small Industrial Association (FSIA).
Nangia’s company, Encoders India manufactures electronic devices for industrial usages. He pointed out, “At present, we are using 2 kilowatt SPV (solar photovoltaics) with five to seven hours battery backup connection, and it saves about Rs 6.50 per KW hour.”
According to players, the use of solar energy not only helps in saving electricity, but it also cuts down daily production costs. As informed by Indrajeet Bhatia, director and CEO, Haryana Grind Well Industries, a Faridabad- based company that manufactures tractor parts, ” Although, the power generation is not sufficient enough to run all industrial machines at the same time, we are saving a lot on small machines, ceiling fans, refrigerators, and computers.” Haryana GrindwellBSE -0.62 % has installed 2 kilowatt connection in its production unit.
Bhatia added, “This has cut down Rs5,000 from our overall monthly expenditure on power.” The move is expected to increase the margins of his company by Rs60,000 annually. Amit Aggrawal from Priyanshu Engineerings Pvt Ltd further elaborated on power saving, “There is a 1,000 units of energy generation every month. Most of the players, like us have started with 2 kilowatt connection, in order to test its capacity.
We have started using it since 4-5 months, and results have been pretty impressive.” Rajiv Chawla, president, FSIA said, “There has been a major cost reduction due to Bosch’s involvement. The actual price of installing one kilowatt power is Rs2.70 lakh (exclusive of taxes) per kilowatt, but due to MoU signed with Bosch, they have given it at Rs 2.19 (exclusive of taxes) lakh per kilowatt.”
Government and SIDBI also sponsor the project. Indrajeet Bhatia said, “The ministry of new and renewable energy has provided us 30 percent of subsidy and also income tax rebate of 80 percent, on the final price. After the cost reduction by Bosch, the price of a one-kilowatt connection with battery would be Rs1.6 lakh. Since we are using 2 kilowatts, the cost of connection would go up to Rs3.2 lakh (with taxes).”
He said major relief came from SIDBI, which is giving loans. Amit Aggrawal owner of Priyanshu Engineering added, “We are paying 12.5 percent interest on 2 kilowatt connection,. We are saving more now on power expenses than.”
He added, “The major advantage of the loan is that now we can think of running the entire unit on solar energy.” Nangia informed that the company has provided solar kits by Bosch Solar Energy Division that contain PV modules, mounting structures, junction boxes, batteries, power conditioning unit, cables (DC and AC) and lightening arrester.”
He added, “The company also gives a 25 year performance warranty for the PV panels, over two-year warranty for the entire system except batteries.” ET tried to reach Bosch to understand their interest in MSMEs in Faridabad, but could not get any answers from them.