INDIA & CHINA 2010

India and China will witness steady high growth rates of 8.8 and 10 per cent respectively in 2010, and Asia will continue to lead global recovery, according to the latest communication by International Monetary Fund (IMF) officials in April 2010. Furthermore, India and China continue to attract high rates of investment. At 35 per cent and 42 per cent of gross domestic product (GDP) respectively in 2008-09, the levels of gross domestic fixed capital formation in India and China are the highest in the world. The rising rates of investment in India and China, as opposed to declining rates in Japan and South Korea, have led to the former replacing the later as Asia's powerhouses. Moreover, according to the global management consulting firm, Boston Consulting Group's (BCG), in its10th annual Global Wealth Report released in June 2010, India and China will generate triple the growth of other countries from 2009-end to 2014. Furthermore, Moody's Analytics predict that led by India and China, most of the Asian economies will expand in 2010 and 2011. As per the report released in June 2010, "China will lead (growth in Asia this year), expanding around 10 per cent followed by India and Vietnam at around 8.5 per cent". According to PricewaterhouseCoopers (PwC), Indian and Chinese firms will lead a host of new multinational firms from emerging economies over the next 15 years. India and China will account for 42 per cent of the new multinationals over the next 15 years, with India overtaking China in producing multinationals from 2018. More than 2,200 Indian companies are expected to open operations overseas over the next 15 years, overtaking China because of easing foreign investment rules. Trade Trade has been the vital part of strengthening the bilateral economic relationship between the two countries. In 2008-09, China was India's second largest trading partner after the UAE. Bilateral trade engagement between India and China stood at US$ 41.85 billion in 2008-09, an increase of nearly 10 per cent over US$ 38.02 billion in the year ago period, according to data available with the Ministry of Commerce and Industry. Imports from China expanded 19 per cent and stood at US$ 32.5 billion in 2008-09, while exports were at US$ 9.35 billion. During April-December 2009, exports to China have been US$ 7.3 billion, while imports from China have been US$ 22.57 billion. During April-December 2009, China has overtaken the UAE to become India's largest trading partner. Investments With increased mergers and acquisitions (M&A) both India and China are aggressively redrawing the global landscape through their M&A deals. According to UK-based Chartered Management Institute's study released in March 2008, India and China (along with Brazil and Russia) would exert a greater influence on business markets and transform the business landscape by 2018. In addition, India and China are expected to see the highest-ever rise in private equity (PE) investments from new and existing investors over the next two years, according to a survey by global PE firm Coller Capital, titled "the Global PE Barometer" report, which was released in June 2010. As per the bi-annual survey of trends PE, investors — mainly from Europe — plan to boost their exposure to the Asia-Pacific region over the next three years. "Of those, China and India will see by far the largest increase in PE investment from new and existing investors ....over the next two years," the report stated. The survey further revealed that 44 per cent of the global PE investors studied, want to either expand or invest in India, while 53 per cent plan to do the same in China.

India and China with their rapid economic growth rates have bettered their rankings as preferred investment destinations, while Europe has taken a hit, according to the global consultancy firm, Ernst & Young's 2010 European Attractiveness Survey, released in June 2010. India is the fourth most attractive foreign direct investment (FDI) destination for this year with 22 per cent of the 814 leading global investors voting for it. China tops the list with 39 per cent. The survey ranks India as the most attractive destination second only to China, three years from now. "For the next three years, investors continue to see China, India and Central and Eastern European (CEE) nations as their route to future riches," the report further highlighted. Singapore-based DBS Group is looking at operations in Greater China and India. According to Sanjiv Bhasin, General Manager and CEO, DBS Bank India, "China, India, Indonesia and Taiwan will be growth pockets for DBS. And being two of the largest economies, India and China will obviously govern the growth path of the bank." Siemens Group plans to invest US$ 43.25 million by 2013 in India and China to strengthen local operations of its wholly-owned metal and mining technology solutions firm Siemens VAI. The investment will fund expansion of local production, engineering and project handling capabilities. In India Siemens VAI has one plant and employs around 800 people across its operations in Kolkata and Mumbai. France's Sodexo is looking at double-digit revenue growth in India and China over the next couple of years, according to Michel Landel, Chief Executive of the company. According to Franklin Templeton Investments, India offers better long-term returns on stocks than China, given the outlook for economic growth and corporate earnings. India's economy may sustain faster expansion from a smaller base as "favourable" demographics boost consumption, said Stephen Dover, Managing Director and International Chief Investment Officer for Franklin Templeton Investments' Local Asset Management Groups. According to him, India is still quite underinvested. India offers an opportunity to investors to participate in its growth. Increasing synergies Both India and China provide huge investment opportunities across a range of sectors. Significantly, many Indian and Chinese companies are collaborating to create a new competitive force. TKM, the wholly-owned subsidiary of TM International Logistics, the JV between Tata Steel and Germany's Martrade, has opened an office in Shanghai to undertake freight forwarding business. Two-wheeler maker, Bajaj Auto, has begun production of its bikes in China for exports to Nigeria, a potential market for low-cost and unbranded bikes. The India-China Business Technology Summit took place in March 2010 in Beijing and was attended by officials of over 300 top-end Chinese companies, including those of government-owned undertakings. Officials of top Indian IT firms made presentations in an attempt to showcase India's IT prowess and to attract the local Chinese companies. Mr KV Thomas, Minister of State for Agriculture on a visit to China in June 2010, said that India and China will extend mutual support in the field of food grain storage. Technical experts and engineers from India's leading agriculture warehousing and storage agencies, including the Food Corporation of India (FCI), will visit China to study modern warehouse construction and preservation methods for food grain storage. Similarly, a group of technical experts from China will be invited to visit India during October-November 2010 to visit storage facilities in India and interact with the officials of FCI.

INDIA &US -2010

Politically and economically, India and the United States (US) play a significant role in the global arena. The US is India's largest export destination and also one of the leading foreign investors in India. Further, according to a PricewaterhouseCoopers study released in 2008, the Indian economy is estimated to grow to 90 per cent of the US economy by 2050. In November 2009, as part of the India-US Green partnership, the US agreed to help India set up the National Environment Protection Authority (NEPA). The move is part of efforts to strengthen cooperation and partnership between the two countries on environment and climate-related issues. Moreover, US fund houses are showing great confidence in the Indian economy. In August 2009, they launched five more India-specific exchange-traded funds (ETFs) to tap India's growth potential. On other fronts too, India and the US continue to enter into agreements. In July 2009, they concluded three agreements including the creation of a science and technology endowment fund and a technical safeguard agreement for the launch of civilian satellites incorporating US components. On Prime Minister Dr Manmohan Singh's US visit in November 2009, the Obama-Singh 21st Century Knowledge Initiative was set up to strengthen linkages between American and Indian universities. Other key outcomes as a result of the visit include partnership for global peace and security and cooperation in energy security, food security and climate change. India and the US signed the India-US Trade Policy Forum Framework for Cooperation on Trade and Investment in March 2010, which seeks to facilitate trade and investment flows between the two countries. An initiative "Integrating US and Indian small businesses into the global supply chain", which aims to expand trade and job-creating opportunities for US and Indian small and medium-sized companies, was also announced. Trade According to the Ministry of Commerce, bilateral trade between India and US amounted to US$ 39.71 billion in 2008-09. Imports from US form 6.11 per cent of India's total imports. India imports fertilisers, nuclear reactors, gems and jewellery, aircraft, electrical machinery and equipment from the US. Indian imports from the US dropped by 11.89 per cent to US$ 18.56 billion in 2008-09 as against US$ 21.02 billion in 2007-08. Exports to the US form 11.41 per cent of India's total exports. India mostly exports gems and jewellery, articles of iron or steel, electrical machinery and equipment, apparel and clothing accessories to the US. During 2008-09, merchandise exports from India to the US went up by 2.02 per cent to reach US$ 21.14 billion against US$ 20.73 billion in 2007-08. Between April and September 2009-10, India has exported goods worth US$ 8.94 billion to the US, while it has imported goods worth US$ 7.43 billion during the same period. According to a study released by the Confederation of Indian Industry (CII) in November 2009 titled 'India and the United States: Trade and Investment Analysis' the Indo-US services trade is likely to grow to US$ 150 billion by 2015.

US Investments in India India's rapidly expanding economy along with a booming consumer market and easy availability of skilled personnel has been instrumental in attracting several American companies to invest in India. The US is the third largest contributor of foreign direct investment (FDI) in India. The overall FDI flow into India from the US during April 2000-February 2010, according to the Department of Industrial Policy and Promotion was US$ 8.21 billion. During 2008-09, FDI inflow from the US was US$ 1.80 billion. FDI inflow between April to February 2009-10 was US$ 1.88 billion. After companies like Microsoft, Intel, IBM, Dell, Citigroup, J P Morgan and Morgan Stanley, many other US companies are also planning to enter the Indian market with big investments. In May 2010, US-based Abbott Laboratories bought Piramal Healthcare's formulation business for US$ 3.63 billion. USA's biggest independent tower firm American Tower Corp (ATC) in February 2010, agreed to acquire 4,450 towers of Essar Telecom Infrastructure (ETIPL). The purchase estimates an enterprise value of US$ 431.4 million for ETIPL. BorgWarner Inc, a US based auto component and systems manufacturing company with presence in 18 countries, has established its Indian manufacturing facility at Sipcot Industrial Park at Sriperambadur near Chennai. Set up on a 6.3 acre campus at a cost of US$ 6.6 million, the plant will have an annual capacity of 300,000 assemblies. US-based Hospira has bought Orchid Chemicals & Pharmaceuticals' injectables business for around US$ 400 million Indian Investments in the US India has emerged as the second fastest growing investor in the United States after the UAE between 2004 and 2008, according to Under Secretary of State for Economic, Energy and Agricultural Affairs Robert D Hormats. Between 2004 and 2008, India accounted for 64 per cent of the foreign direct investment in the US. According to data released by the US Treasury Department, India's holdings amounted to US$ 29.6 billion in December 2009. The holdings were higher than in the corresponding period of the previous year by US$ 400 million. Besides the Reserve Bank of India (RBI), institutions that invest in US Treasuries include the General Insurance Corporation of India, foreign branches/subsidiaries of domestic banks and domestic mutual funds that are permitted to invest in foreign securities. Some recent investments include: In April 2010, information technology company Rolta acquired US-based IT consulting firm OneGIS for an undisclosed amount. Inox Group's venture, Inox India, has acquired US-based Cryogenic Vessel Alternatives (CVA), the world's largest cryogenic transportation equipment maker. Road Ahead There are several areas where there is abundant scope to further improve economic cooperation between India and the US. Opportunities for progress exists especially in areas like communication infrastructure, IT, telecom, IT-enabled services, data centres, software development, and other knowledge industries such as pharmaceuticals and biotechnology. According to a CII report titled 'India-US Economic Relations: The Next Decade' released in June 2009, bilateral trade between India and the US could increase eight fold to US$ 320 billion in 2018 from US$ 42 billion in 2007-08.

INDIA & THE WORLD 2010

India & ASEAN

Since its start about a decade ago, the partnership between India and the Association of South East Asian Nations (ASEAN) comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam has been developing at quite a fast pace. India became a sectoral dialogue partner of ASEAN in 1992. Mutual interest led ASEAN to invite India to become its full dialogue partner during the fifth ASEAN Summit in Bangkok in 1995. India also became a member of the ASEAN Regional Forum (ARF) in 1996. India and ASEAN have been holding summit-level meetings on an annual basis since 2002. In August 2009, India signed a Free Trade Agreement (FTA) with the ASEAN members in Thailand. Under the ASEAN-India FTA, ASEAN member countries and India will lift import tariffs on more than 80 per cent of traded products between 2013 and 2016, according to a release by the Ministry of Commerce and Industry. In January 2010, Singapore, Malaysia and Thailand accepted the FTA on goods. The other seven ASEAN countries are expected to operationalise the FTA by August 2010. India and ASEAN are currently negotiating agreements on trade in services and investment. The services negotiations are taking place on a request-offer basis, wherein both sides make requests for the openings they seek and offers are made by the receiving country based on the requests. India has made requests in a number of areas including teaching, nursing, architecture, chartered accountancy and medicine as it has a large number of English speaking professionals in these areas who can gain from job opportunities in the ASEAN region. India is also keen on expanding its telecom, IT, tourism and banking network in ASEAN countries. Trade The deepening of ties between India and ASEAN is reflected in the continued buoyancy in trade figures. India’s trade with ASEAN countries has increased from US$ 30.7 billion in 2006-07 to US$ 39.08 billion in 2007-08 and to US$ 45.34 billion in 2008-09. During April – September 2009-10, India’s trade with ASEAN was US$ 20.19 billion, according to data released by the Ministry of Commerce and Industry. In 2008-09, India's exports to ASEAN totalled US$ 19.14 billion. During April-December 2009-10, India exported goods worth US$ 12.8 billion to ASEAN, according to data released by the Ministry of Commerce and Industry. India imported goods worth US$ 26.3 billion in 2008-09 from ASEAN. During the period April-December 2009-10, India's imports from ASEAN totalled US$ 18.09 billion, according to data released by the Ministry of Commerce and Industry. Singapore The growing bilateral economic relationship is reflected in the rapidly rising bilateral trade between Singapore and India. Singapore continues to be the single largest investor in India amongst the ASEAN countries and the second largest amongst all countries with foreign direct investment (FDI) inflows into India, totalling US$ 2.4 billion in 2009-10. The cumulative FDI inflows from Singapore during April 2000 and March 2010 were US$ 10.2 billion, according to data released by the Department of Industrial Policy and Promotion (DIPP). The total bilateral trade during 2008-09 was US$ 16.1 billion, an increase of 3.86 per cent over US$ 15.5 billion in 2007-08, according to data released by the Ministry of Commerce and Industry. During 2008-09, India exported goods worth US$ 8.45 billion to Singapore. During April-December 2009-10, Indian merchandise exports to Singapore totalled US$ 5.12 billion, comprising mainly of mineral fuels and oils, ships, boats and floating structures and natural pearls, gems and jewellery, according to data released by the Ministry of Commerce and Industry.

According to a press release issued by the Ministry of Commerce and Industry, in May 2010, Mr Anand Sharma, the Union Minister of Commerce and Mr Lim Hng Kiang, Minister for Trade and Industry, Singapore, agreed on a bilateral economic roadmap to take the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) forward in the coming five years. As per the roadmap the two countries will work towards doubling the annual bilateral trade by 2015. Moreover, they will promote greater business and investment flows by identifying ways in which Indian businesses can leverage on Singapore as a business hub in the Asia Pacific to support their international expansion. The two countries will also explore and develop co-operation, in science and technology, intellectual property rights, and media. India-Singapore Bilateral Economic Roadmap includes: • Increase two-way flow of tourists, businessmen and professionals • Expedite conclusion of mutual recognition agreements (MRAs) for dentistry, medical, nursing, architecture, accountancy and company secretary professionals on priority • Explore expansion of the provisions of CECA to liberalise and facilitate movement of Indian professionals to Singapore. • Develop closer co-operation in tourism Moreover, according to Standard Chartered Bank, the business between India and Singapore is set to double in the next five years. The number of Singapore-based companies setting up operations in India, 350 at present, is expected to double in the next five years. Similarly, India-based business community in Singapore is likely to increase to 5,500 companies from the present 4,000 in the next two and a half years. Malaysia The bilateral economic relationship between India and Malaysia has been steadily moving ahead. Malaysia has been a huge source of FDI for India. In fact, Malaysia is the 25th largest overall investor and third largest investor among ASEAN countries with a total inflow of US$ 252.97 million during the April 2000-March 2010 period, according to data released by the Department of Industrial Policy and Promotion. Bilateral trade among the two countries amounted to US$ 10,604.75 million during 2008-09, an increase of 23.48 per cent over 2007-08, according to data released by the Ministry of Commerce and Industry. India exported goods worth US$ 3.42 billion to Malaysia in 2008-09. During April-December 2009-10, India’s exports to Malaysia totalled US$ 2.14 billion, comprising ships, boats and floating structures, mineral oils and fuels, and organic chemicals, according to data released by the Ministry of Commerce and Industry. Indians play an important role in promoting tourism in Malaysia. Following a 7.1 per cent growth in revenues from Indian tourists in 2009, Malaysia expects 650,000 visitors from India in 2010, according to the Director General of Malaysia Tourism. Moreover, Indian biotech companies are increasingly looking at making investments in Malaysia. Malaysia is positioning itself as a cost-competitive country and a regional hub for global biotech companies. It is attracting Indian companies with a large number of sops including a 10-year tax holiday, duty exemptions, customised incentives for large investments, access to ASEAN markets through free trade agreements and no restrictions on equity. Thailand Bilateral trade between the two countries touched US$ 4.6 billion in 2008-09, as compared to US$ 4.12 billion in 2007-08, registering a growth of 12.9 per cent, according to data released by the Ministry of Commerce and Industry. India exported goods worth US$ 1.94 billion in 2008-09 and worth US$ 1.25 billion during April-December 2009-10, to Thailand which included natural pearls, gems and jewellery, residue and waste from food industries and organic chemicals, according to data released by the Ministry of Commerce and Industry.

Total FDI inflow during the period April 2000-March 2010 from Thailand was US$ 77.97 million, according to data released by the Department of Industrial Policy and Promotion. India and Thailand are targetting bilateral trade worth US$ 12 billion by 2012. In May 2010, the Thai Deputy Minister of Commerce, Alongkorn Ponlabhoot said, "We are hoping that the increase in trade would be generated through cooperation under various agreements like the BIMSTEC, the Asean-India FTA and the proposed Thailand-India FTA." Indonesia Bilateral trade between India and Indonesia totalled US$ 9.3 billion in 2008-09, an increase of 32.08 per cent over US$ 6.99 billion in 2007-08, according to data released by the Ministry of Commerce and Industry. During the period 2008-09, India exported goods worth US$ 2.56 billion to Indonesia. During April-December 2009-10, India exported goods worth US$ 2.3 billion to Indonesia comprising mainly of organic chemicals, mineral fuels and ships and boats, according to data released by the Ministry of Commerce and Industry. India and Indonesia are targetting bilateral trade worth US$ 20 billion by 2020 according to Indonesian ambassador to India, Andi M Ghalib. Indonesia is an important source of FDI for India. It is the 16th largest FDI investor amongst all countries and the second largest amongst the ASEAN countries. FDI inflows from Indonesia into India totalled US$ 604.28 million during April 2000-March 2010, according to data released by the Department of Industrial Policy and Promotion. Myanmar During 2008-09, India exported goods worth US$ 221.64 million to Myanmar comprising mainly of pharmaceuticals and iron and steel. Bilateral trade stood at US$ 1.15 billion during 2008-09, an increase of 15.7 per cent over US$ 994.45 million in 2007-08, according to the latest data by the Ministry of Commerce and Industry. During April-December 2009-10, India’s exports to Myanmar totalled US$ 159.77 million, according to the latest data by the Ministry of Commerce and Industry. FDI inflows from Myanmar into India totalled US$ 8.96 million in the period April 2000-March 2010, according to data released by the Department of Industrial Policy and Promotion. Vietnam Bilateral trade between India and Vietnam grew to US$ 2.15 billion in 2008-09 from US$ 1.78 billion in 2007-08, registering a growth of 20.38 per cent, according to the latest data by the Ministry of Commerce and Industry. Indian exports to Vietnam in 2008-09 totalled US$ 1.7 billion, while India exported goods worth US$ 1.25 billion from Vietnam during April-December 2009-10 comprising mainly of residues and wastes from food industries, animal fodder, meat and cereals, according to the latest data by the Ministry of Commerce and Industry. Philippines Bilateral trade between India and Philippines was worth US$ 998.54 million in 2008-09 as compared to US$ 824.87 million in 2007-08, an increase of 21.05 per cent, according to the latest data by the Ministry of Commerce and Industry. Indian exports to Philippines during 2008-09 totalled US$ 743.77 million. During April-December 2009-10, India exported goods worth US$ 534.38 million to Philippines, comprising chiefly of meat, iron and steel and vehicles other than railways, according to the latest data by the Ministry of Commerce and Industry. Cambodia During 2008-09, bilateral trade between the two countries stood at US$ 49.61 million. India exported goods worth US$ 46.90 million to Cambodia in 2008-09. During April-December 2009-10, India exported goods worth US$ 30.53 million, chiefly comprising pharmaceuticals, cotton and tobacco, according to the latest data by the Ministry of Commerce and Industry.

GENERAL STUDIES/ESSAY 2010

Sustainable Development Sustainable development in India now encompasses a variety of development schemes in social, cleantech (clean energy, clean water and sustainable agriculture) and human resources segments, having caught the attention of both Central and State governments and also public and private sectors. In fact, India is expected to begin the greening of its national income accounting, making depletion in natural resources wealth a key component in its measurement of gross domestic product (GDP). Sustainable energy investment in India went up to US$ 4.1 billion in 2008, up 12 per cent since 2007, according to a report by UN Environment Program (UNEP), ‘Global Trends in Sustainable Energy Investment 2009.' The largest portion of investment went to the wind sector, which grew at 17 per cent from US$ 2.2 billion to US$ 2.6 billion. While investment in solar energy rose from US$ 18 million in 2007 to US$ 347 million in 2008, most of it was channelised to setup module and cell manufacturing facilities. Small hydro investment grew by about fourfold to US$ 543 million in 2008. India's sustained effort towards reducing greenhouse gases (GHG) will ensure that the country's per capita emission of GHG will continue to be low until 2030-31, and it is estimated that the per capita emission in 2031 will be lower than per capita global emission of GHG in 2005, according to a new study. Even in 2031, India's per capita GHG emissions would stay under four tonnes of CO2, which is lower than the global per capita emission of 4.22 tonnes of CO2 in 2005. India has been ranked ninth in the tree planting roll of honour in 2009 in a campaign to plant a billion trees, which was launched by the United Nations Environment Programme (UNEP) in November 2006. The country registered 96 million trees till 2009. Two Indian companies, namely, Wipro and HCL, have figured in the list of top five green electronics brands as per the latest edition of the Guide to Greener Electronics by Greenpeace released in October 2009. They have been featured because of their strong focus on the e-waste management and climate control. The study which for the first time has included climate and energy as criteria for evaluation has placed Wipro in joint second position with Samsung. The number of carbon credits issued for emission reduction projects in India is set to triple over the next three years to 246 million by December 2012 from 72 million in November 2009, according to a CRISIL Research study. This will cement India's second position in the global carbon credits market (technically called Certified Emission Reduction units or CERs). The growth in CER issuance will be driven by capacity additions in the renewable energy sector and by the eligibility of more renewable energy projects to issue CERs. Consequently, the share of renewable energy projects in Indian CERs will increase to 31 per cent. CRISIL Research expects India's renewable energy capacity to increase to 20,000 MW by December 2012, from the current 15,542 MW.

Corporate Initiatives According to a study released in May 2010 by leading Swiss lender, Bank Sarasin, Indian information technology (IT) giant Tata Consultancy Services (TCS), telecom major Bharti Airtel and wind-turbine maker, Suzlon are among the global firms having high sustainable development standards. Other Indian firms, which have high level of sustainability standards mentioned in the report include India's largest manufacturer of irrigation plants, Jain Irrigation and leading IT-firm Infosys. The study, which was conducted among 360 emerging market companies, found that a third of these firms have high rating in terms of sustainability. Further, Indian Space Research Organisation's (ISRO) commercial arm Antrix Corporation was awarded the Globe Sustainability Research Award 2010, set up by Stockholm-based Global Forum, for fostering sustainable development. The prestigious award has been conferred on Antrix for its contribution to improve sustainable livelihood of the rural poor while reducing their vulnerability to climate risks. • Tata Steel Rural Development Society (TSRDS), an organisation involved in the steel major's community building initiatives, embarked on an initiative to empower communities by creating awareness on the Right to Information (RTI) Act at the grassroot level, in October 2009. • Wipro Infotech, provider of IT and business transformation services, has unveiled its new eco-friendly and toxin-free desktops, manufactured with materials completely free of deadly chemicals like polyvinyl chloride and brominated flame retardants. • Ramky Enviro Engineers Ltd and GE Power & Water have signed an agreement, to work together and offer environment management solutions, including waste-water treatment and recycling. National Solar Mission According to Union Minister of New and Renewable Energy Dr Farooq Abdullah, the government targets to set up 1,100 mega watt (MW) grid-connected solar plants, including 100 MW capacity plants as rooftop and smaller solar power plants for the first phase of the National Solar Mission till March 2013. The government has approved US$ 974.65 million for this plant. In addition, the government plans to generate 20,000 MW solar power by 2022 under the three-phase National Solar Mission, with 2000 MW capacity equivalent off-grid solar applications, including 20 million solar lights, also planned to be installed during this period. Clean Energy and Technology The Energy Efficiency Indicator (EEI) survey for corporate India, released in June 2009, reveals that 47 per cent of the respondents are paying more attention to energy efficiency, compared to 2008 and 94 per cent of the respondents feel that energy management is extremely important. An increase in capital investments for energy efficiency is needed according to 62 per cent respondents, while 72 per cent of the respondents feel their organisations can achieve more energy efficiency from operating budgets. More than 92 per cent of the respondents say energy efficiency is a priority in new construction as well as in renovation projects. Green Industry Bio Energy Private Limited, a special purpose vehicle (SPV) formed by Emergent Ventures and US-based Indus Terra is aiming to use poultry litter in Haryana to generate power for the state power grid.

The power project, costing US$ 13.23 million, will convert poultry manure into electricity and slurry into fertiliser by the process of anaerobic digestion at a high temperature through a process called thermophilic digestion. The 5.6 MW power project would be built in two phases; phase one with a capacity of 1.4 MW and the second with 4.2 MW capacity. The Bureau of Energy Efficiency (BEE) is looking to create a demand for energy efficient, products, goods and services awareness. The Bureau has set up an energy efficiency financing platform (EEFP), which aims at ensuring availability of finance at reasonable rates for energy efficiency project implementation and its expansion. The Indian Renewable Energy Development Agency Ltd (IREDA), Power Finance Corporation, SIDBI, PTC India Ltd and HSBC India have come together to reap the estimated US$ 15.9 billion energy efficiency investment market in India, as they join the Bureau of Energy Efficiency's (BEE) proposed financing platform. Corporate Investments • Gamesa Corporacion Tecnologica, a Spanish company specialising in sustainable energy technologies, especially fabrication of wind turbines and setting up of wind farms, has set up a 500-MW per year capacity facility in Chennai at an investment of US$ 54.7 million. • CLP India aims to add around 200 MW of wind power installations every year to its portfolio and has committed an investment of over US$ 2.2 billion towards this. It recently opened its 99-MW Theni Wind Farm in Tamil Nadu taking its total wind power portfolio in India to 446 MW. Government Initiatives • In the Union Budget 2010-11, the government announced the setting up of the National Clean Energy Fund (NCEF) for funding research and innovative projects in clean technologies. To build the corpus of the NCEF, clean energy cess on coal produced in India at a nominal rate of US$ 1.08 per tonne will be levied. This cess will also apply on imported coal. • Moreover, the plan outlay for the Ministry of New and Renewable Energy has been increased by 61 per cent, from US$ 134.7 million in 2009-10 to US$ 217.2 million in 2010-11. • The Urban Development Ministry has launched a US$ 300 million green urban transport project called the Sustainable Urban Transport Project (SUTP). Under the project, green urban transport will be introduced in select cities to overcome pollution and other hazards of the existing urban transport system, including traffic impediments for pedestrians. • The Central Electricity Regulatory Commission (CERC) has announced renewable energy certificate (REC) norms in a bid to promote power generation from clean sources in the country. • The Orissa government has come out with a draft Action Plan on Climate Change entailing an investment of around US$ 3.6 billion in 11 key sectors over the next five years. It has proposed to put in place a Climate Change Agency to ensure effective implementation of the plan. Orissa has become the first state to have formulated the Climate Change Action Plan.