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Home2020November (Page 7)
Finance, India, Sustainable Energy

Govt policy initiatives cited as major contributor

The 33rd Annual General Meeting (AGM) of Indian Renewable Energy Development Agency Ltd (IREDA) , a PSU under Ministry of New & Renewable Energy, was held on November 11, 2020, at India International Centre, New Delhi. Annual accounts for financial year 2019-20 were adopted at the AGM.

Addressing the Directors and Shareholders, Pradip Kumar Das, CMD, IREDA highlighted the performance of FY2019-20 and informed that gross income of the company increased to Rs. 2,372.38 Crore, registering a growth of 17.32 per cent. IREDA has sanctioned the loans of Rs 12,696 crore and disbursed Rs 8,785 Crore. Loan sanctioned during the year including co-financed projects/ take over loans ,would support capacity addition of 5673 MW as against 3266 MW in last year. 

Speaking about future strategies, Das emphasized that Green Energy portfolio of the country is consistently growing in terms of both quantity and quality; and is expected to get a further boost with various policy initiatives of the Government, such as PM-KUSUM scheme, Solar and Wind hybrid technologies, Biofuels such as Ethanol and Compressed Bio Gas (CBG), E-mobility and associated infrastructure, Off-shore Wind energy, Solar Roof-top programme etc.

Govt policy initiatives cited as major contributorThe

Acts & Schemes – Centre, Agro chems – Fertilizers, India

Part of the larger Aatmanirbhar Bharat 3.0 stimulus package

Close on the heels of agri reform Bills, the Centre has provided another fillip to the Indian agriculture sector by announcing Rs 65,000 crore fertilizer subsidy to farmers.

As part of the larger economic stimulus package of Aatmanirbhar Bharat 3.0, this subsidy of fertilizers will directly help increase the supply of the same, ensuring adequate fertilizer availability in the upcoming crop seasons, as per a statement issued by Nirmala Sitharaman, Finance Minister of India. 140 million farmers will be positively impacted by this subsidy. 

The growth in usage of fertilizer has been estimated at 17. 8 per cent over the actual usage in 2019-20 of 581 lakh metric tonnes. This increase has been attributed to favorable monssons and the subsequent increase im sown area. The fertilizer use is expected to be around 673 lakh metric tonnes in 2020-21, as opposed to the 499 lakh metric tonnes in 2016-17.

Another additional stimulus of Rs 10,200 crore has been set aside for capital and industrial expenditure on defence equipment, industrial infrastructures and green energy. 

 

Part of the larger Aatmanirbhar Bharat 3.0

AgroPolicy, Webinar

Focused on training , capacity building of farmers in production and packaging of kiwi products. 

The Ministry of Agriculture along with Central Institute of Horticulture, Nagaland organized a virtual meeting on ‘Value Chain Creation for Kiwi fruit – Farm to Fork’ keeping in mind the popularity of the fruit due to its tremendous commercial potential. The meeting was chaired by the Union Minister of Agriculture and Farmers’ Welfare, Narendra Singh Tomar in presence of Minister of State for Agriculture,  Parshottam Rupala, Secretary, Department of Agriculture and Farmers Welfare and other officials of the Ministry and State of Nagaland.

 Tomar stated that the Himalayan Sub – Temperature climate is suitable for Kiwi production and there is a need to introduce high yielding cultivars. With extensive research and development support, the commercial cultivation of Kiwi fruit has been extended from the Sub – Himalayan Regions of India to the mid hills of Himachal Pradesh, Sikkim, Meghalaya, Arunachal Pradesh, Nagaland and Nilgiri Hills. Presently, India is producing 13,000 MT of Kiwi in an area of about 4,000 Ha in Arunachal Pradesh, Nagaland, Mizoram and Himachal Pradesh.

He said that a new chapter is being introduced in the Agricultural history of Nagaland which will be highly beneficial to the Kiwi farmers of the State. He said that this programme of Kiwi Production enhancement will prove to be a milestone in the years to come.

Tomar also elaborated on the problems faced by the farmers in the North East region namely lack of good planting material, productivity issues, and lack of packaging facilities and marketing networks for farmers. Considering the problems faced, he said that Centre is working hand in hand with State Governments and especially the Central Institute of Horticulture, Nagaland and the Department of Agriculture and Farmers’s Welfare has taken key steps to ensure proper training and capacity building of farmers in production as well as packaging of kiwi products is done.

 The Government is also ensuring that farmers are connected to the market so that they can reap a fair price for their produce. The institute in Nagaland has also conducted training and exposure visit of farmers from Phek District of Nagaland for helping them understand how to reap good returns through Kiwi production.

Tomar added that persistent efforts should be made by all to ensure Nagaland can emerge as the ‘Kiwi State’ of India.

Focused on training , capacity building of

Agro chems – Fertilizers, E-commerce

The cost is reduced by ₹1000/Ton as support to farmers on Sulphur, a key input nutrient for the soil. 

IFFCO has announced the reduction of ₹50/bag in the price of NP 20:20:0:13 Ammonium Phosphate Sulphate Fertilisers across India with immediate effect on all stocks.

According to an IFFCO statement of the cost is reduced by ₹1000/Tonn as support to farmers on Sulphur, a key input nutrient for the soil. This nutrient is very important for all type of oilseeds crops. It improves the quality of the crops and also helps in the good growth of the plants. This reduction of ₹50/- per bag on NP 20:20:0:13 Fertilisers reducing agriculture input cost to farmers is in line with Prime Minister Narendra Modi’s vision of doubling the farmers’ income by 2022.

IFFCO will keep on reducing prices wherever possible for farmers. Recently in September, 2020 IFFCO also announced that they will not increase any cost of DAP & NPK fertiliser in this Rabi season for the farmers.

The cost is reduced by ₹1000/Ton as

Acts & Schemes – Centre, Dairy

The ministry has also issued the revised Export of Milk and Milk Products (Quality Control, Inspection and Monitoring) rules

Under the Export of Milk and Milk Products (Quality Control, Inspection and Monitoring) Rules, 2020, the government of India has recently set up a standing committee under Chairman, Export Inspection Council (EIC) to formulate standards for which none are available.

Under the rules, the government has made a health certification mandatory for all milk and milk product exports that will be subject to stringent quality control, inspection and monitoring. Export of milk and milk products that do not comply with the standards will be prohibited as per rules notified by the commerce and industry ministry.

As per the rules, it is further notified by the government that milk and milk products shall be subjected to quality control or inspection or both prior to export in cases where importing countries require such an export certification.

The ministry has also issued the revised Export of Milk and Milk Products (Quality Control, Inspection and Monitoring) rules.

According to the rules, as part of the procedure for quality control, inspection and certification, an exporter intending to export milk or milk products would have to apply for the approval of its establishment where the intended product is prepared or processed as per the Food Safety Management System based inspection system.

 

 

The ministry has also issued the revised

E-commerce, Machinery - Pre-harvesting, R&D

A winning combination of FPT 6-cylinder engine and New Holland’s exclusive Dual Clutch technology 

New Holland Agriculture extends its acclaimed all-purpose T6 tractor range with a new 6-cylinder model, the T6.160 Dynamic Command™. This unique tractor combines the high performance of the proven NEF 6-cylinder engine with New Holland’s exclusive Dual Clutch and CVT technology to deliver high efficiency and productivity. This comes in a compact package with a 2.6-metre wheelbase and 10.5 tonnes Gross Vehicle Weight.

Benjamin Davies, T6 Series Global Product Marketing Manager, explains: “New Holland has a proud legacy in this segment that started more than 30 years ago, when we launched the first compact 6-cylinder tractor on the market, the 7810. It was a true game changer, and the new T6.160 Dynamic Command builds on this rich heritage to offer farmers a compact low power Stage V 6-cylinder tractor with embedded technology for operator efficiency.”

 

The T6 range now offers two six-cylinder models with Dynamic Command: the existing 145-hp T6.180 and the new 135-hp T6.160 – the only compact 6-cylinder tractor on the market with rated power below 140 hp.

The T6.160 Dynamic Command will be available in the second half of 2021.The T6.160 Dynamic Command features the proven, powerful NEF 6-cylinder 6.7 litre engine that generates 135 rated horsepower and delivers a strong pulling away performance, engine stability with fluctuating loads, and effective engine braking in downhill operation and transport.

 

 

A winning combination of FPT 6-cylinder engine

Agro chems – Chemicals, Finance

Net income declined to Rs 460.89 crore during July-September quarter of 2020-21 from Rs 504.86 crore in the year-ago quarter. 

Commenting on the performance, Rajesh Agarwal, Managing Director, said, “Second quarter of the fiscal year had a varied experience for the agriculture and agrochemicals sector, the quarter was marked with normal monsoon on an average, resulting in adequate soil moisture and improving agricultural activity on one hand, but uneven and excess rainfall in certain parts of India. This has also led to lower pest infestation and reduced frequency of sprays during the quarter.

 The Company recorded revenue from operations of Rs. 456 crores in Q2FY21, representing a decline of 9.4% on a Y-o-Y basis. The Company delivered EBITDA of Rs. 58 crores in Q2FY21, with margins of 12.7%. Net profit for the year was Rs. 41 crores, with margins of 9.0%.

Revenue growth was adversely impacted primarily due to continued focus on cash sales and collection as a part of strategy and limited interaction of regional sales team with the distributor and farmers amidst the Covid-19 crisis. We continue to focus on efficient working capital management, as a result the overall cash conversion cycle has been reduced to 115 days from 184 days in FY2020.

During the first half, we have generated robust cash from operations of Rs. 156 crores and we have also reduced out total debt by Rs. 128 crores, the company is now cash surplus with cash and cash equivalents of Rs. 80 crores, at end of Sept 2020. In light of strong cash flows, Board of Directors has recommended interim dividend of 20% on face value i.e. Rs. 2 per share.

Agarwal also added that with our focus on maintaining growth momentum by launching new innovative products and improving product mix, we have launched three new products in Q2FY21 – Master Stroke, Dominant and Mahir. The new product launches contributed Rs. 10.6 crores to net sales during the quarter, with Dominant receiving strong response from farmers. For replacement of Thimet, three product have been planned: Lethal Granules, Tadaki (in association with OAT, Japan) and Supremo (9(3) product), with later two planned to be launched in Nov 2020 and Jan 2021 respectively. Revenue from these three products combined is expected to substitute Thimet sales in the coming year.

Net income declined to Rs 460.89 crore

E-commerce, Finance, Sustainable Energy

Reiterates swift move towards renewable energy

Adani Green Energy Ltd, a part of the Adani Group, announced the financial results for the quarter and half year ended September 30, 2020. Sale of Energy for H1 FY21 increased by 23 per cent Year on Year (YoY) on the back of capacity addition of 630 MW, consistent Solar CUF and improved Wind CUF.

Solar CUF has remained steady for H1 FY21 at 22.7 per cent, better than P75 target of 22.5 per cent, supported by strong Plant availability of ~ 100 per cent and consistent Solar irradiation. Wind CUF has improved from 33.5 per cent in H1 FY20 to 34.8 per cent in H1 FY21 with improved Plant availability.

Commenting on the quarterly results of the Company, Mr. Gautam Adani, Chairman, Adani Green Energy Limited said, “At UN Climate Summit in September 2019, he reiterated the commitment to increase India’s renewable capacity much beyond 175 GW and to take it further to 450 GW by 2030”.

Reiterates swift move towards renewable energy Adani

E-commerce, Machinery – Post-harvesting

Operating margin to rise 100-200 bps, will help keep credit quality stable

 According to latest report by , CRISIL Ratings ,domestic tractor sales volume should recover faster than expected and notch up 10-12% growth this fiscal, compared with a de-growth of 1%1 estimated earlier, as a raft of tailwinds lifts farm incomes despite the Covid-19 pandemic. Higher volume and improved product mix will drive expansion in operating margin2 of tractor makers3, supporting credit profiles.

 

Good monsoon and higher crop production generally support farm incomes and provide a fillip to tractor demand. In the just-past rabi season, crop production surged a significant 7% on-year. This is reflected in the strong pick-up in tractor sales volume in the second quarter of this fiscal despite a sharp de-growth in the first quarter due to pandemic-related containment measures. In April-September, industry volume was up 12% on-year.

 

Tractor volumes may continue to grow for the rest of this fiscal given good crop prospects over the medium term and timely government interventions. Good rains in June have facilitated early sowing and boosted kharif acreage. Further, a well-distributed and 9% above-normal monsoon season have meant reservoir levels surging to their highest in five years. That is a good augury for the upcoming crop seasons.

 

Gautam Shahi, Director, CRISIL Ratings,said “Strong upsurge in government spending on agriculture in the first six months of this fiscal, and a 4% increase in minimum support price for marketing year 2020-21, should boost farm incomes. That may help sustain the growth momentum in tractor volume.”

 

Tractor demand growth in the southern and western parts of India is expected to be particularly strong, given higher kharif sowing and a copious monsoon, both of which are crucial for these regions. Sales volume in the two regions in April-September (see annexure) has surged almost 45% and 13%, respectively.

 

Also, tractor demand for use in agriculture, which accounts for two-thirds of total demand, is expected to significantly outpace commercial-usage demand, which is linked to economic activity. This is expected to materially improve the volume share of 41-50 horse power tractors to ~52% this fiscal from ~49% last fiscal. That could tantamount to ~200 basis points (bps) fillip in the average realisation of tractor makers.

 Naveen Vaidyanathan, Associate Director, CRISIL Ratings, said “Higher utilisation and better product mix will crank up the operating margins of tractor makers by 100-200 bps to ~17% this fiscal. That, and healthy balance sheets (with debt to equity ratio at ~0.1 time on average) and robust liquidity (~Rs 11,000 crore as on March 31, 2020) will support credit profiles.”

 

In the road ahead, the spread of the pandemic, especially in rural areas, and whether it leads to further containment measures, will be a monitorable.

 

Operating margin to rise 100-200 bps, will

Finance, India, Sustainable Energy

EBITDA of Rs 112 crore

India’s largest renewable energy solutions provider, Suzlon Group has announced its second quarter results for the financial year 2020-21 (Q2 FY21). The company’s Q2 FY21 consolidated numbers indicate Revenue of  Rs 725 crore, with  EBITDA  at Rs 112 crore, EBIT at Rs 43 crore and PAT at Rs 670 crore in Q2 FY21. Ashwani Kumar, CEO, Suzlon Group said, “Q2 of FY 21 was the first quarter post closure of our debt restructuring process.

This quarter marked the restart of our operations and entry back into the market amidst the constraints of COVID 19. I am encouraged by the financial performance of our operations and service business in these challenging times. Overall despite the ongoing challenges, I remain confident of growing momentum in the coming months’’.

According to him, the government’s focus on ’Aatmanirbhar Bharat’ and the overall encouraging environment would pave the way for boosting the sector and attracting diverse investors. “We are particularly enthusiastic about forthcoming bids being conducted by Solar Energy Corporation of India Limited (SECI) for round the clock (RTC)  renewable energy power and wind-solar-storage hybrid power procurement,’’ he added.

Swapnil Jain, CFO, Suzlon Group said, “In the Q2 results we again see a clear improvement in EBIDTA over last year. Our focus on controlling operating and fixed cost as well as reduction in finance costs is reflected in our P&L performance.

EBITDA of Rs 112 crore India’s largest renewable

Dairy, E-commerce, Live Stock, R&D

The Grōv Olympus Tower Farm is economically viable and environmentally sustainable feed solutions to dairy and beef producers  

 

 

 

 Grōv Technologies announced its newest innovation in controlled environment agriculture (CEA) – the Olympus Tower Farm. Combining science and patented technology, Olympus is an automated indoor growing system for commercial scale production of fresh animal feed, helping dairy and beef producers become more sustainable and economically viable.

 

Sustainable and Economically Viable

Grōv’s team of botanists, animal nutritionists and engineers have spent years developing science and technology-based growing protocols for Olympus that produces unmatched high-density nutrient (HDN) feed and in trials has shown to provide health benefits for the animals and improved feed-to-yield efficiency. These protocols are formulated by combining thousands of operational and environmental data points from micro-sensors in the tower with daily laboratory analysis of each harvest to ensure the best HDN feed possible.

 

Taking up only 857 square feet of space, just one Olympus Tower can produce from 5,000 to 6,000 pounds of sprouted wheat/barley grass per day using less than 5 percent of the water and replacing between 35 to 50 acres compared to traditional farming. Olympus requires minimal labor by leveraging proprietary, robotic seed-to-harvest technology. Plant growth is constantly analyzed with data collected from integrated tower sensors and testing performed by Grōv’s scientists to adjust and optimize tower performance, yield and nutrition.  

 

Grōv Technologies enters the $90 billion global market for dairy and beef cattle feed at a time when the industry is at an inflection point. Indoor vertical farming technology has emerged as a viable solution to help farmers address the challenges of rising feed and labor costs, supply-chain disruptions, water shortages and green-house-gas emissions.

 

“Increased consumer demand for traceable, local food and the agricultural risks associated with climate change have made it essential for farmers to adopt sustainable technologies,” said Steve Lindsley, president of Grōv Technologies. “We believe Olympus holds the promise to help operators meet the challenges they face today. Implementing Grōv technology and science has proven to grow a more nutritious feed and sustainably produced foods, while improving long-term economic viability for farmers.”

 

The Grōv Olympus Tower Farm is economically

Agrotech

He has also worked as the MD and CEO of the Multi Commodity Exchange of India (MCX) 

 

 

 The board of directors of NCDEX eMarkets Ltd (NeML) announced the appointment of Mrugank Paranjape as the company’s managing director and chief executive officer.

NeML is a 100 per cent subsidiary of the National Commodity and Derivatives Exchange (NCDEX), according to a statement.  Paranjape has taken over the charge effective from November 5.

Prior to joining NeML, Paranjape worked with Alpha Alternatives, a boutique alternative asset manager in the absolute return and commodities area where he was a senior partner.

He has also worked as the managing director and chief executive officer of the Multi Commodity Exchange of India (MCX) for three years.

Paranjape said, “I am excited by this opportunity to lead the able team of NeML in these challenging yet interesting times. The Indian agriculture today stands at a cusp of a transformation and will enhance its significance to the Indian economy.”

 

He has also worked as the MD

Agro Universities, Environment, North America

Agriculture in the Midwest is dominated by just a few crops, mainly corn and soybeans

A new study published by Iowa State University, US shows diversifying agricultural systems beyond a narrow selection of crops leads to a range of ecosystem improvements while also maintaining or improving yields. But a professor of agronomy at Iowa State University who co-authored the study said some marketing and agricultural policy considerations will have to change for farmers to adopt diversification practices more widely.

The study, published last week in the academic journal Science Advances, analyzed the results of 5,188 separate studies that included 41,946 comparisons between diversified and simplified agricultural practices. An international team of researchers carried out the study, known as a meta-analysis, and looked for patterns in the mountains of data collected in previous field studies. The results showed that in 63% of the cases examined, diversification enhanced ecosystem services while also maintaining or even improving crop yields. The researchers described this as a win-win result.

Agriculture in the Midwest is dominated by just a few crops, mainly corn and soybeans. But the study looked at a range of farming practices aimed at introducing more diversity to cropland. Those diversification practices include crop rotations, planting prairie strips within and along with fields, establishing wildlife habitat near fields, reducing tillage and enriching soil with organic matter. Such measures improve water quality, pollination, pest regulation by natural enemies, nutrient turnover and reduced negative climate impacts by sequestering carbon in the soil.

Agriculture in the Midwest is dominated by

Agro Universities, R&D, Webinar

Guidelines for gene editing being finalized in India

The fourth and fifth webinars of One CGIAR Global Webinar Series on ’Genome Editing in Agriculture’ saw the coming of researchers and policy specialists from across the world who called for a uniform enabling regulation to use new breeding technologies (NBTs) effectively.

Dr Donald Mackenzie, Executive Director at the Institute for International Crop Improvement at Donald Danforth Plant Science Center, US, said that all plant breeding methods can cause unintended effects, some with a higher likelihood than others, but there is no hazard that is unique to methods that move genes between unrelated organisms. “The assessment of risks should be based on the product and not the method by which it is produced,” he said, referring to Canada, which was the first country where regulation was  implemented by the nature of the product.

Citing India, Dr Trilochan Mohapatra, Director General, Indian Council of Agricultural Research (ICAR), spoke about how research from public sector research systems reaches the farmers in India. “The Indian breeding system is elaborate and more than 50 different crops important for agriculture are handled. The best material from both private and public sector is compared and then gets notified in the Indian system,” he said.

 Mohapatra also informed that the guidelines for gene editing are being finalized in India. In the context of Public-Private engagement, he said that there is scope for public and private institutes, including small and medium enterprises, to collaborate in using new breeding technologies, as they have been doing thus far with existing technologies.

Guidelines for gene editing being finalized in