Patent Law- Patent Search- A Presentation by Mr. Nitin Nair at NLSIU
NLSIU-CEERA THREE-DAY CERTIFICATE COURSE
Transcript of NLSIU-CEERA THREE-DAY CERTIFICATE COURSE
NLSIU-CEERA
THREE-DAY CERTIFICATE COURSE
ON
“Energy Sector: Contractual, Financial & Regulatory Governance in India”
ORGANISED BY
CENTRE FOR ENVIRONMENTAL LAW, EDUCATION, RESEARCH AND
ADVOCACY [CEERA],
NATIONAL LAW SCHOOL OF INDIA UNIVERSITYBENGALURU
Date: November 11 to 13, 2019
Detailed Report
Day 1 – 11th
November 2019
Inaugural Ceremony The “Three Day Certificate Course on Energy Sector:
Contractual, Financial and Regulatory Governance in India”
organized by Centre for Environmental Law, Education,
Research and Advocacy [CEERA], National Law School of
India University at NLSIU Campus, Nagarbhavi, Bengaluru
from 11th to 13
th November began with an inaugural session
graced by the Chief Guest of the event Dr. Srinivas Ravindra,
CEO, Centre for Sustainable Development, Bengaluru joining
him were, Prof. MK Ramesh, Professor of Law, NLSIU, Prof.
(Dr.) Sairam Bhatt, Professor of law, NLSIU, Dr. Manjeri Subin
Sunderraj, Asst. Professor, NLSIU.
Prof. (Dr.) MK Ramesh emphasized on the uniqueness of this
course, which is not just limited to law but goes beyond it. It
includes the elements of contracts, business and has a lot to do with
economy. Sir emphasized that a discourse of this kind cannot really
be completed without understanding its implications on the
economy of the nation. It is a Herculean task to put together the
theoretical knowledge and practical aspects of such a broad topic
into a three days course.
Dr. Srinivas Ravindra stressed that in the last decade, the
world has been shifting from conventional to non-conventional
sources of energy. He explained about the current affairs at the
international sphere regarding the energy sector. US withdrew
itself from climate negotiation; China is emerging as a top
leader in renewable energy sector. Meanwhile, the PM of India
announced goal to achieve 175 giga watts of renewable energy
by 2020. Though it is a tall ambitious agenda, it can be achieved
with a boost in policies and financial support. He discussed
about domestic issues in India like credit worthiness, center- state disputes, taxation, grid integration,
etc. He ended his talk on the note that thrust is needed to handle these issues, after which the goals set
can be achieved.
Dr. Manjeri Subin Sunderraj appreciated the interest showed by
the participants in the energy sector by being a part of this course.
He commended the setting up of such an ideal platform and
wished the participants to have an insightful and knowledgeable
experience here.
Prof. (Dr.) Sairam Bhat thanked Dr. Srinivas Ravindra and
introduced him to the audience and assured that his session will
lighten up the spirits of everyone. He began explaining that energy
is a right and there’s rising demand for it in India. The three As in the energy sector need to be taken
care of; Availability, Accessibility and Affordability and emphasized each one’s impact on growth of
energy sector. He briefly addressed the constitutional dimension of this sector as well. These were the
kind of incentives which prompted the opening of an energy cell in CEERA. This course is set with
the intention of not only having a law perspective but looking at this sector through management
perspective. On this note, sir welcomed all the participants and wished them to have interactive and
inquisitive sessions.
Session 1 - Regulatory Challenges in Energy Sector; Clean
Energy vis-à-vis Sustainable Development
The Session was chaired by Dr. R Srinivas, CEO, Centre for Sustainable Development. The session
began with the introduction of the Energy sector as a subject of study which requires techno-legal
expertise. The speaker began the session on the note that the challenge that this sector poses is the
integration of a varied nature of subjects into the legal systems. Energy Sector was advocated as a
core component of sustainable development by means of the incorporation under the Sustainable
Development Goals (SDG 7). He touched upon the aspect of energy access and how we have a
Fundamental right under Article 21 to access energy by means of the ratio decidendi of Chameli
Singh v. State of Uttar Pradesh. He laid this as a foundation to establish that we are primarily
dependant on energy and there are different types of energy sources that we depend upon. With
respect to the power generation, our dependence continues to remain on coal, however with the
statistics in 2019 showing a reduced dependency, the potential for the growth of the renewable
energy sources is fairly high. He emphasised upon the core components that must follow the energy
regulation objectives which are-
Secure sufficient and continuous supply of energy
Affordable access to energy and universal access
Mix of fuel and non-fuel sources
He posed a very practical question of whether it is possible to be totally independent of coal as it is a
primary contributor to the GDP of the country. The need of the hour is to look for clean coal
technologies which have less ash and sulphur content, the area in which the United States of America
stands as a pioneer.
To provide a legal dimension to the understanding of the Energy sector, he provided the participants a
brief overview of the Energy Laws in India. He then briefly touched upon the salient features of the
Electricity Act, 2003 empowered with the objective of providing good quality power at reasonable
rates. He simplified and explained the various terminologies used in the legislation such as captive
generation, Renewable Purchase Obligations(RPO’s) for the ease of understanding of the various
intricacies of the law. The regulators in the Electricity sector i.e CERC( Central Electricity Regulatory
Commission at the Central level) and SERC ( State Electricity Regulatory Commission) and their
functions in brief were explained. The judicial pronouncement of Hindustan Zinc v. Rajasthan
Electricity Regulatory Commission established that Captive generation plants are not exempted from
the jurisdiction of the SERC in violation of the Renewable Purchase Obligation and the surcharge
imposed does not fall within the ambit of taxation. A brief overview of the Energy Conservation Act,
2001 also featured in his discussion. The next of the session focussed on the renewable energy sources
and its implications such as high capital investments, enormous land requirements, high start-up costs,
long term risk payments and the harmful effects on the environment. The speaker engaged the
participants in an interactive sessions and set the pace for the rest of the sessions by subtly
highlighting the challenges faced by the Energy sector.
Session 2 - Coal Regulations, Mines and Minerals, and the
Energy Sector The Session was
Chaired by Dr. R
Srikanth, Head of
the Energy and
Environment
Research Program
at NIAS. The
session began
with the role of
coal in the country
and what
challenges we
face with regard
to the coal sector.
He established the
link between the
growth in the
energy consumption and the increase in the Human Development Index (HDI). The growing energy
demand of India is coming at a huge cost of environmental degradation wherein the country’s per
capita Co2 emission is 40% of the world average. To draw a comparison of how other countries
satisfy their energy requirements, he demonstrated how France as of 2017 is clearly a forerunner in
harnessing nuclear energy wherein the energy requirements of the country are satisfied upto 72%
solely by nuclear energy. The tax rate of over 50% has enabled Germany to invest a huge amount in
Renewables. As of All India Record Electricity Generation, 2019 India continues to remain heavily
dependent on coal for achieving energy security.
In order to achieve a greater reliance upon renewables, he proposed for incorporating technologies for
pump storage and achieve greater efficiency in generating hydroelectricity. He pointed out that the
country will remain dependent on coal until 2040 and it requires a congruence of intellectual energy
to turn focus to the renewable energy sector. He further pointed out other challenges such as the
institutional incapacity of the CPCB, SPCB to deal with the enforcement and monitoring of the
renewable energy sector. He further pointed out that overlap of jurisdictions and authorities under the
Mining laws and the Environmental laws which calls for an unifying authority to improve
environmental governance as echoed in the decision of the Lafarge Umiam Mining Pvt. Ltd. v. Union
of India. The lack of consolidation in the laws creates ambiguity and he proposed for a fresh set of
laws and start afresh. He emphasised the importance of dedicating priorities for Environmental
Compliance of Coal sector.
The last part of the presentation focussed on the Challenges in the coal mining industries which would
lead to environmentally sustainable growth of the sector. In case of open cast mines and there is a
closure of the business in countries such as US and Australia the area has to be restored and
replenished with resources to achieve ecological stability. There is a need to benchmark current
policies and to learn from other countries to adopt environmentally sustainable practices. There is a
requirement of key policy recommendations and its implementation to develop compliance strategies
for a transition to a cleaner power. The major players in the Energy sectors must use their capital and
credit worthiness to support a green transition to more sustainable technologies. The speaker showed a
lot of illustrations, statistics, infographs to depict the topic at hand and lucidly gave a comprehensive
picture of the Coal industry in India.
Session 3 - Electricity Act and Energy Efficiency The Session was chaired by Dr. Manjeri Subin
Sunderraj, Asst Profesor of Law, NLSIU and Mr.
Raghav Parthasarthy, Teaching Associate, CEERA,
NLSIU. The Session was commenced with an
understanding of the concept of energy conservation and
the origin of the idea of energy conservation in India. In
the 1970’s, after the ‘Gulf Oil Shock’ created as a
consequence of the Yom Kippur war, there was a global
rise in oil prices. This repercussion also had a significant
effect in India. Prior to the oil shock, the Government of
India had taken some efforts towards the conservation of
petroleum products. However, it was only after this global
catastrophe that India began viewing the idea of energy
conservation from a different perspective. The legal
framework and the institutional mechanism was in its very
nascent stage. There was no separate and distinct ministry
at the centre to deal with energy in particular. However, energy conservation was vested with the
energy wing of the Ministry of Power.
The first step taken to improve the legislative framework was in 1994 when a working group was the
set up to formulate a legislation. As a result, the Energy Conservation Act, 2001 was enacted. The
main aim of the Act was to promote energy efficiency along with energy conservation.
Furthermore, the role and functions of the Bureau of Energy Efficiency was delved into. The Bureau
of Energy Efficiency was set up for the purpose of ensuring large number of programmes towards
promoting energy efficiency in the country.
Proceeding further, the session highlighted the role of the Central Government under the Energy
Conservation Act, 2001. The functions of the Central Government are as follows;
- To identify a designated class of consumers
- To notify Rules and Regulations
- To ensure concerted efforts between State Governments
Then, the session included a brief overview of the Energy Conservation (Amendment) Act, 2010 and
its implication on the legal framework. The critical points of the Amendment included the
introduction of trading in energy, the increase in penalties imposed for non-compliance of obligations
under the Act and the vesting of power with the CG to issue Energy Savings Certificate.
Finally, the discussion by Mr. Manjeri concluded with few pointers of the 11th Five Year Plan and its
role in the energy sector and the goals of the National Action Plan on climate Change.
Mr. Raghav steered his discussion with a
descriptive explanation of the constitutional
and legal framework for regulation of
electricity provision in India. Electricity as a
legislative subject is covered in Entry 38, List
III of Schedule VII of the Constitution. The
legislative framework in India on electricity
was initiated in 1948 with the enactment of the
Electricity Supply Act. This was followed by
the Electricity Commission regulatory Act,
1998. However, these legislations were
inadequate and wrought with ambiguities.
Therefore, post the privatisation era, a robust legislation was brought into force with the enactment of
the Electricity Act, 2003.
On a concluding note, Mr. Raghav instituted an interactive discussion on how ‘theft’ under the
Electricity Act, 2003 is different from ‘theft’ under the Indian Penal Code, 1861. It was stated that the
difference lay in the fact that since electricity is not property as defined under the IPC, it cannot be
covered within the Code.
Session 4 -Nuclear Energy in India: Legal and Regulatory
Challenges
The Session was chaired by Ms Raagya Zadu, Doctoral Scholar and Teaching Associate,
CEERA, NLSIU. In this session, Ms. Raagya delved into the regulatory aspects pertaining to
nuclear energy and the challenges that arise in that respect. The session began with an overview of the
evolution of nuclear energy in India. In 1948, Prime Minister Jawaharlal Nehru introduced the Atomic
Energy Bill in the Indian Parliament and the Atomic Energy Act, 1948 was enacted. The first nuclear
reactor in Asia – Apsara was built in India during the 1950s which marked a significant jump in
India’s nuclear policy. However, India did not ratify the Non-Proliferation Treaty in 1976. But, in
2005 India entered into the Agreement with United States under which India agreed to separate its
civil and military nuclear facilities and to put most of its civil nuclear facilities under International
Atomic Energy Agency (IAEA) safeguards and, in exchange, the United States agreed to work toward
full civil nuclear cooperation with India.
Proceeding further, the discussion delved into the institutional framework for regulating nuclear
energy in India and the role of India in the International realm. India is a signatory to the Convention
on Supplementary Compensation for Nuclear Damage. However, India is not a signatory to the
Vienna Convention on Civil Liability for Nuclear Damages and the Paris Convention on Third Party
Liability.
In the next portion of the session, Ms. Raagya ha an elaborate discussion on the Civil Liabilities
Nuclear Damages Act, 2010. The CLND is a parliamentary statute that creates water tight liability.
However, it is laden with many criticisms. The first criticism is that the legislation does not confirm
with the 1960 and 1963 Conventions. Secondly, the legislation, as under section 17, creates a right to
recourse against the supplier which has served as a major barrier for foreign suppliers to invest in
India. Thirdly, it allows the channelling of liability to the operator thereby making the operator strictly
liable for any of damage that arises from a nuclear accident. Lastly, the Act takes into account future
liability costs in the claims of victims.
Finally, the session concluded with a few highlights on why nuclear energy is the most viable option
for sustainable development and the challenges that arise in the implementation of effective policy
frameworks in India.
Day 2 – 12th
November 2019
Session 1 - Cleaner technologies, climate change and law in
the energy sector The Session was chaired Prof. (Dr.)
M K Ramesh, Professor of Law,
NLSIU. The session began with the
discussion on what possibly constitutes
clean technology. A clean technology
is any product or service which
channels human innovation in an
environmentally sustainable manner.
The range of technologic approaches
includes- Recycling, renewables and
green transportation. The human
activities lead to generation of
Greenhouse Gases (GHG’s) which
ultimately results in depletion of the
Ozone layer. He stressed that the Global economy is a carbon-based economy wherein 60% of the
global energy demand is met by carbon which calls for the need for cleaner technologies. He added
that clean technology is a part of human enterprise as there is a constant endeavour to improve upon
the existing product. Therefore, it becomes important and inevitable to shift to clean technologies.
His talk focussed on the constant tussle between the developing and developed countries with regard
to climate change concerns. The speaker traced the trajectory of the rise in the environmental
consciousness on the global level in 1992 by means of the Kyoto Protocol. This Protocol envisaged an
element of equity wherein the principle of common but differentiated responsibility. The Annex-1
countries to the Protocol are the ones who are responsible for the ecological debt on historic
emissions. The Protocol empowered with the objective of sustainable development by ensuring that
all the countries come together for the cause of climate change and reduce emission levels. It had 3
major means to effectuate the Protocol-
Joint implementation
Carbon credits
Clean Development Mechanisms(CDM)
Clean technologies is an offspring of the CDM’s envisioned under the Protocol. Until 2008, there was
no significant progress which was made. Upon the Russia becoming a member, developmental
projects in India gained a massive momentum which unfortunately took place at the cost of the
environmental concerns. This was followed by a proposal by a few countries demanding for a
protocol called Kyoto II, however it bore no fruit. In 2015, with the Paris Agreement, the countries
were to demarcate voluntary restrictions by means of Nationally Determined Contributions (NDC’s).
With the United States of America having withdrawn under the Paris Agreement, what the Agreement
is going to achieve in terms of achieving a global consensus remains a question in itself. The entire
session gave the participants a clear understanding of the interface of the energy sector and the
concerns of climate change. Being a discussion oriented session, the speaker engaged with the
participants in many thought-provoking discussions.
Session-2 - Energy Law in India: Sectoral Overview Right to
Energy: Constitutional dimension
The session was chaired by Prof. (Dr.) Sairam Bhat, Professor of law, NLSIU, and Raagya Zadu,
Doctoral Scholar and Teaching Associate, NLSIU. Prof. Sairam Bhatt began his session drawing
everybody’s attention to the licenses of the Electricity Act, 2003 and about the role, responsibility and
need of licensing. Generally, a license is perceived as a contractual agreement. The licensee has
certain obligations which he cannot violate under the respective act. As per the contractual rule, what
is stated in the statute cannot be abridged, waived or infringed.
Section 3 of the Electricity Act, 2003 deals with the National Electricity Policy and Plan. The latest
tariff guideline policy was recently released in 2019 by CERC. The National Electricity Policy, 2005
and the National Electricity Plan 2015 are being followed now. Discussion was done on various
sections of the Electricity Act which determine tariff, determination of tariff by bidding process, and
the procedure for a tariff order. Compensatory tariffs which was introduced by the SERCs which
deals with alteration, modification and novation.
Few Supreme Court judgements regarding Section 62 of EA were discussed.
EM Co. Ltd. v Gujarat Urja Vikas, 2016
Solar Semiconductor Power Ltd. v Gujarat Urja Vikas, 2017
Both of the cases stated that the Supreme Court has the right to intervene in determining tariff. When
tariff is determined under Section 63, the grounds of interference include, Change of law and Force
Majeure. The implications of competitive bidding process were also discussed in the session. Section
17 of EA deals with duties/ obligations of the licensee. HE discussed the CCI v CERC case and about
implications of abuse of dominance. On this note, he ended his talk.
Ms. Raagya Zadu continued the session and began her talk on the Constitutional dimension of right to
energy. She drew the attention of everyone by prompting a very interesting question in the room –
“Which sector sector is immune to the energy sector?”, which led to an interesting discussion. After a
lot of brainstorming by the participants, the answer was revealed that there is absolutely no sector
which is immune to the energy sector.
She further highlighted the differences between energy, clean energy, sustainable energy and
renewable energy. She raised questions in the session as to what should an energy policy include and
what would be an ideal mix. The Integrated Energy Policy was a practical approach to answering
these questions; however, it had its drawbacks too. An ideal energy mix must include conventional as
well as non-conventional sources.
Clean Energy was the next subject elucidated upon in the session. It includes the following:
Clean coal
This includes ultra-critical/ super critical TPPs. It confirms with the MOEF&CC 2015
standards. Three coal gasification plants had come up on this basis. However, this requires
maximum amount of electricity.
LNG- Liquified Natural Gas
CNG- Compressed Natural Gas
Geothermal Energy
Ethanol/ Jatropha Oil (Biofuel)
Nuclear Energy
Wind Energy
Hydro Energy/ Hydroelectricity
A detailed discussion followed on the impact of energy
on other sectors such as the Infrastructure sector,
automobile sector, transport, real estate, financial sector
and the information technology sector. Summing up all
of the sectors, ma’am addressed multiple questions and
doubts and clarifying all of them, and ended the session.
The session also had a discussion on the Natural Gas
sector by Mr. Raghav Parthasarthy.. The Natural Gas
Sector can be divided into upstream, downstream and
midstream sectors. In the division, the upstream sector
deals with exploration and tapping of resources by
Conventional Energy sources
•COAL
•OIL
•GAS
•FIREWOOD
Non Conventional
Energy sources
•SOLAR
•WIND
•HYDRO
•TIDAL
seeing viability and is governed by the Director General of Hydrocarbon. The downstream sector
deals with issues of licenses and permits which are governed by Petroleum and Natural Gas
Regulatory Board, a statutory authority established under the Act of 2006. The PNGRB has specific
powers like refining, retaining and supplying to consumers. There are several legislations that govern
Natural Gas like Petroleum Act of 1934, Oil Industry Development Act of 1974, Oilfields Act 1948,
Petroleum and Natural Gas Rules of 1959, etc. The first place to have oil in India was Digboi.
Exploration License Policies were initially granted only to PSUs or Government and there was not
much private participation. This lead to the enactment of a New Exploration and Licensing Policy
(NELP) for oil and natural gas in India to include private companies. NELP was in force from 1996-
2015 but only 28 plots were allotted for exploration and investment was required. This lead to the
enactment of the Hydrocarbon Exploration Licensing Policy (NELP) in 2016. NELP was based on a
profit sharing mechanism and revenue sharing but these were not implemented in HELP. Further
HELP extended the period of license to 8 and 10 years and gave exploration grounds to private
parties. Open Acreage Licence Policy was also implemented.
In 1999, Reliance got a licence through NELP to explore the Krishna- Godavari Basin. A Production
Sharing Contract was entered into and after exploring India’s biggest natural gas reserve, there was a
dispute on how to sell the resource. Reliance fixed a cost of $2.4mmBTU but the Government made it
4.2 and the same was finalised by Pranab Mukherjee, the then President. The natural gas was meant
for the citizens and not private parties thus the resource should be given to the Government after
explored. Thus the reserve was given to the Government and the Krishna- Godavari basin is the third
largest reserve of natural gas, after Russia and Qatar.
Session 3 - Power Purchase Agreements and PPP in Energy
Sector The session was chaired by Mr. Rohith
Kamath, Advocate and CS, Rex Law
Chambers.
He started his session by explaining
about the various forms of public private
partnerships and they are as follows-
● BOT- build, operate and transfer
● BOO/BOOM- build, own,
operate, manage
● BOOT- build, own, operate and
transfer
● BOLT- build, own, lease and
transfer
● LDO- lease, develop and operate
● ROT- rehabilitate, operate and transfer (in brownfields)
● DBFOT- design, build, operate and transfer
● Service and management contracts
PPPs help in bridging the gap between the government and private parties. The government has the
money but lacks management which is given by the private parties.
Power Purchase Agreements are entered into between the generation and transmission stages of
energy. It is entered into with DISCOMs, last consumers, private steel plant, industries and
independent power producers. The types of PPAs are synthetic PPA and behind the meter PPA. The
operations are usually given to DISCOMs. Dabhol in Maharashtra was the first PPA. An Engineering
Procurement and Construction Contract and Fuel Supply Agreement was entered into with Enron in
Dabhol-coast where there is a thermal heat cooling plant and cost of water is less. A 24/7 running
process was constructed. A power producer can go ahead with the industry unless he has a PPA. The
advantages of PPA is that there is revenue for generator and there is knowledge about how much
should be produced and sold.
Certain crucial clauses in a PPA were discussed such as the rules, output guarantees, cost allocation,
duration, tariff rate, payment terns etc. Green Procurement Policy of 2016 ensure long term contracts
of PPA.
The contracts that impact PPA are-
● Shareholder agreements and loan agreements
● EPC- Engineering Procurement and Construction Contract
● FPA/FSA- Fuel Purchase Agreement and Fuel Supply Agreement
● Operation and Management Contracts- economies of scale, Ancillary and wheeler agreements
● Land lease
● Utility agreement
● Financial agreement
The session was concluded by discussion about Privity and PPA and third party disputes. The cases to
be referred to are as follows-
● National Highway Authority of India v. China Coal Construction Limited (2006)
● Dabhol International Arbitration (2005)
Session 4-Consumer and the Electricity Sector The Session was chaired by Y.G Muralidhara, Founding Trustee, CREAT.
The session elucidated on the various nuances of the Electricity Act of 2003. It was mentioned that in
the earlier acts regarding this sector there was no mention about its implications on consumers, which
is now included in this act. Prior to this act, consumer was just considered as a receiver or beneficiary
of electricity. A consumer had no voice, no opportunity, no space available in the electricity
governance. That’s mostly because service providers enjoyed natural monopoly in the electricity
sector. Karnataka was the first state in India to privatize the electricity sector. Prior to the
implementation of the EA 2003, there were consequences on consumers. Consumer was not
recognized as a stakeholder. There was no RTI to seek information and absolutely no transparency
was present. The quality of services also suffered. Once the Electricity Act of 2003 was implemented,
consumer was accorded primacy. The electricity governance included three elements; Transparency,
Participation & Accountability
The power shifted from state to the regulatory authority. The functions of these regulatory authorities
include; Licensing authority, Fixing tariff and Adjudicating matters. Citizen involvement was made
mandatory, in whatever form or whatever subject.
This Act also addresses various concerns like ethical or social concerns. These concerns were raised
in the form of questions in the session. Towards the end of the session, sir opened the floor for
question and addressed all of them with utmost interest. He gave everybody very interesting answers
and delivered an insightful lecture.
Session 5 - Bilateral Investment Treaties and Energy:
International Contracts The Session was chaired by Mr. Rohith Kamath. Session was commenced with an overview of the
concept of privity to contract and its importance in the realm of Bilateral Investment Treaties (BITs).
On an informative note, it was stated that the Government of India had altogether entered BITs with
103 States. However, around 60 of term were unilaterally revoked by India and they are in the process
of re-negotiation Then he proceeded by giving a general understanding for the need of BITs and the
purpose of BITs. A BIT being in the nature of a Memorandum of Understanding, it has binding value
unless and until there exists a non-binding clause that particularly and expressly states that the MoU
and its terms and conditions are not binding. It is for the purpose of affording protection to the
investors and their investments and covers aspects of taxation. It also covers recourse to dispute
resolution which is most often Arbitration
The session then covered a basic understanding on the Rules of Interpretation for BIT It was stated
that the theory of precedent and Stare decisis is not strictly applicable. However, customary
international law requires that a uniform law may be in place and therefore previous cases may have
persuasive value.
The next part of the session went into the nuances of BITs by delving into various illustrative case
laws such as the Dabhol Debacle: June 1992 – 1995, the White Industries case and the Antrix – Devas
case.
Session 6 - Energy Audits The session was chaired by Mr. Sanjay Seetharaman, Assistant Director, National Productivity
Council, Bengaluru. The session began with the speaker giving a brief introduction regarding energy
management definition. The energy conservation Act, 2001 defines an “energy audit” as a method of
verification, monitoring, analysis and calculating the energy utilisation in the particular industry. He
emphasised the need for energy audits as it provides a benchmark for managing the energy
requirements and making optimum utilisation of the energy resources. On the basis of the function
and the type of industry, energy audits can be classified into 2 types- Preliminary energy audit and
detailed energy audit. Apart from this, there is a specialised type of energy audit known as the
targeted energy audits. Using the input obtained from preliminary audits, these audits conduct a
survey of target subjects and costs.
Energy audits in this day and age assume immense importance owing to its potential of achieving
energy efficiency and cost reduction. He provided an elaborate picture of the methodology adopted in
preliminary energy audit methodology wherein the following steps are followed-
Establish energy consumption
Volume of production
Scope of energy savings
Identify areas of attention
The detailed energy audit on the other hand is categorised into pre-audit phase, audit phase and post-
audit phase. The pre-audit phase is largely information intensive. The energy audit tem engages in
macro data collection. This method enables the team to familiarise themselves with the industry by
first hand observation. The audit phase includes the survey and monitoring of the industry by means
of drawing energy utility diagrams. This phase largely revolves around the cost-benefit analysis and
identification and development of Environmental conservation opportunities. The reports and insights
obtained by the energy audit team is presented to the top management. In the post-audit phase, there is
a consolidation of all the potential areas which are economically and technically feasible for
implementation in the industry to ensure better energy efficiency. The speaker then delved into the
benefits of energy audits as a means to attain optimality in energy efficiency. Energy audits are only
applicable to the designated consumers under the Bureau of Energy Efficiency Regulations, 2008.
This is one of the significant challenges as in addition these audit reports are not binding on the
Companies. The session concluded with a video on Sierra Offshore Software Development Facility as
the world’s 2nd
greenest building with emphasis on energy efficient mechanisms. This gave the
participants a unique insight into how small measures taken at an individual level can contribute to
achieving a greater energy efficiency.
Day 3 – 13th
November 2019
Session 1 – Solar Energy: Legal and Regulatory Challenges The session was chaired by Mr.
Ritesh R, Manager, BHEL
Electronics Division and Ms.
Raagya Zadu. Ritesh Sir
commenced the session by asking
which sector predominantly use
energy? The sectors that
predominantly use energy are the
industrial sector, agricultural
sector and the transportation
sector. The availability of water is
a problem in a place like
Bangalore where we use 900m lts
of water and sewage goes upto
1100m lts. Power is required in
every aspect of our life. The Human Development Index considers parameters like health, education,
living standards and per capita power consumption, thus, the better power consumption, better the
development index.
Mr. Ritesh further focused on solar as a renewable source of energy. There are two primary energy
sources, distributive and intermittent source, and concentrated and continuous source. The energy is
sourced base load of energy and peak load of energy, and the base load of energy can be satisfied by
nuclear and thermal energy. But there exists a power deficit and in order to overcome this power
deficit and develop, we can’t rely on solar or thermal. Nuclear should be concentrated upon and the
clean coal technology and the de- sulphurization of coal must be adopted. Bangalore is most polluted
because of automobiles. Methanol is blending with petroleum fuels up to 80%. The impact on balance
of trade is now negative due to import of fossil fuels.
The ability to establish a solar panel depends on various factors. The first one is the availability of
land. The consumption of space for a solar panel is huge so there have been solutions proposed like
canal top or roof top for better target to be achieved, for example the floating solar on Rihand Dam. It
is challenging to attain 175GH which is the International placed goal that India has set to achieve. The
second factor is the capacity factor where wind take around 25%, solar takes about 20% and Nuclear
takes 90%. But the efficiency of solar panel is only 14%-18% as the panels are sensitive and
susceptible to damage even form a peck of dust. Silica wafers are needed for solar panels which are
not manufactured in India and so they are imported. A landmark WTO ruling with regard to this is the
Solar DCR Case (2016). The manufacturers should further have a safeguard duty which was held in
Adani Renewables and ACME Solar v. Maharashtra State Electricity Distribution Company Ltd.
With regard to tariffs in solar energy, a renewable purchase obligation is placed and a case with
regard to tariffs is Hindustan Zinc Ltd. v. Rajasthan EC. There is a supply side push through FIT and
a demand side push through RPOs. Trading of REC is with the DISCOM. But the efficiency of the
solar panel is reduced when transferred to the DISCOM and additionally solar power is very costly.
Further, there is over-generation which is wasted because they aren’t stored in battery energy storage
solutions which is a long term goal.
Another pertinent issue with regard to solar panels is the chemical and hazardous waste generated
from the silica in the solar panel. When silicon tetrachloride is mixed with water it becomes a hazard
mixture of hydrochloric acid. It famous case in the regard is the GEDCOL or Green Energy
Development company of Odisha case. The waste generated from solar panels is like slow poison.
There is also a debt of over 70,000 crores from the DISCOMs in the establishment of solar panels.
There is an annual generation of over 7mn tonnes of waste.
Ms. Zadu discussed candidly about the challenges of solar energy in India by discussing the life cycle
assessment of solar panel and its waste generation and disposal. Some of the managerial and
regulatory challenges which pose a question mark on the future development were deliberated upon in
a discussion method.
Session 2 -Energy Management in India; A Policy and
Managerial Challenge in India The session was chaired by Dr.
Anil B. Suraj, Professor IIM
Bengaluru.
The session commenced with a
brief introduction and agenda
setting which included Indian
Regulatory System, Challenges
and necessary policy steps.
Under the Indian regulatory
system, he elucidated various
aspects. The importance of
equitable emphasis and
substantive principles was
discussed along with its
implications on regulators. In India, we have multiple regulators of different kinds like SEBI, telecom,
etc. These statutory bodies should have independence, not only on paper but even with respect to the
functional autonomy. The regulators must necessarily be specialized and experienced, and consumers
should be considered as a part of the regulators. These bodies need to be participative in the country’s
issues. As a part of the implications of the federal system in India, energy sector is mostly governed
by the laws made by the Parliament. The issues faced by the energy sector with respect to federal
matters include consumption pattern, statistical data reports, disclosure, etc.
Sir elucidated on the prevailing legislative trends in the world. These trends are moving from
normative to enforceable. He used the phrase “Don’t let the best become the enemy of good” to
explain the same. Different nations have different dynamics regarding legislative reforms. It is
practically not possible to borrow all of these trends from them, since we have to consider what would
best suit our nation’s policies.
Session 3 - Law and Policy for Generating Companies and
Administrative Challenges in the Electricity Sector The session was chaired by Shri U H
Subramanya, former Officer at BESCON.
The session began with the brief history of
the Electricity sector in India whose roots
can be traced back to Karnataka. In 1902,
Asia’s first hydro generating station was set
up in Shivanasamudra, Karnataka to supply
power to the Kolar Gold Fields. Following
this a series of legislations were enacted to
regulate the sector- Indian Electricity Act,
1910, Electricity Supply Act, 1948 which
resulted in the formation of the State
Electricity Board, closely followed by the
Electricity Supply Rules, 1956. In 2003, the
Electricity Act consolidated all other
previous legislations and provided for a
comprehensive legal regime for governing
the electricity sector in the country.
The power sector faces challenges in the technical as well as the commercial domains. Technical
challenges in the power sector:
Low plant load factor in Thermal plants due to Renewable Energy power contribution to the
Grid
Underutilisation of installed capacity
Challenges in implementation of environmental policies
Steep ramping requirements due to uncertainty leading to low balancing capacity
Commercial challenges in the power sector:
All DISCOM’s under huge losses
Stalled government subsidies for the power sector
Inability to clear off power purchase arrears
No means to invest money for improving existing works and new capital works
Placing these challenges in context, the speaker explored the possibilities of combating these
challenges in the power sector. The sector-specific requirements of the Industry pose significant
challenges to the growth and development of the power sector in the country.
The session concluded with the need to move to renewable energy sources and effective regulation of
Electricity sector.
Session 4 -Corporate Law and Financing as Applicable to
Energy Companies The session was chaired by Mr .J
Sundareshan, Founder & Chief
Advisor, J Sundharesan &
Associates, Bengaluru. He began
the session with an interactive
discussion on whether every asset
is backed by a liability or every
liability attracts an asset. With this
thought in mind, the session
focussed on the financial situation
of Jet Airways and the causes
underlying its adverse situation in
the commercial aviation sector.
Following this, Mr. Sundareshan
explained the meaning of
‘Liquidity Risk’ and the need for
business enterprises to identify the
existence of liquidity risk in their
businesses. Liquidity risk is said
to arise when a business defaults on repaying its creditor who supplies the most essential
material/component for running the business. By citing examples of Snapdeal, DHFL and Jet
Airways, the concept was made clear.
Proceeding further, Mr. Sundareshan gave an introduction to basic accounting principles to explain
the nuances of financing businesses and supported this explanation with various examples.
Furthermore, he provided a general understanding of company law by delving into the characteristics
of a company as under the Companies Act, 2013 and also explained the differences between a
company and other business entities.
The next part of the session focussed purely on the financial aspects of starting a business in India. In
this respect, Mr. Sundareshan highlighted the various methods of raising business finances in India
with example. A few methods of raising finance as discussed in the session include Bootstrapping,
Crowdfunding, Angel Investors, Venture Capitalists, Private Equity firms, Loans from Banks and
Financial Institutions etc. With specific reference to companies in the energy sector, Mr. Sundareshan
illustrated other means of raising finances by way of debt and equity, raising share capital, issuing
debentures, granting of hybrid perpetual securities. This was coupled with few examples such as Tata
Group and Sterling and Wilson Group.
Valedictory Ceremony The three-day certificate course
was concluded with a short
valedictory ceremony which
was presided over by the Chief
Guest Mr. S. Krishnan, Sr.
Head-Legal at Antrix
Corporation Ltd. The
ceremony began with Mr.
Krishnan acknowledging the
success of the course and the
efforts that the team of CEERA
has put into in making it a
success. This was followed
with a short speech by Mr.
Krishnan on the importance of
the energy sector in India and
the significant role it plays in
the development of the economy. He threw light on how the certificate course was an instrumental
step in incorporating practical expertise into the realm of energy law and policy. Following this, the
session moved on to the distribution of participation certificates to the participants. On this note, the
three-day certificate course came to an end.
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