Sep 15 2017 | Industry View

Tomohiko Okada, Managing Director, Toshiba India Pvt Ltd

Tomohiko Okada, Managing Director, Toshiba India Pvt Ltd shares his view with Sandeep Sharma about his organisation’s greatest strengths in hydro power projectexecution, upcoming and ongoing hydro projects, challenges and opportunities, future plans and recommendations to boost power equipment manufacturing in India.

Tell us about your organisation’s greatest strengths in hydro power project execution.
Toshiba Group is one of the World’s leading suppliers of Hydro Power equipment including pumped storage
hydroelectric equipment and has supplied over 2,000 hydro power generators with over 56,000 MW generating capacity around the world for over 120 years. Toshiba is also the first manufacturer of hydroelectric generating equipment for electric utility in Japan. Toshiba has three hydraulic turbine/ generator manufacturing facilities that through a rigorous quality assurance program and quality compliance program like the International Electro-technical Commission (IEC) and other international quality control standards, can supply high-performance, highly reliable turbines, generators for installations ranging from the smallest to the largest.

Toshiba, a global name for state-of-art-technology and super-efficiency, is elaborately involved in diverse aspect
of hydro plant designing and construction. Toshiba supplies equipment like hydraulic turbines, hydraulic generators,
balance of plants (BoPs) like control systems, transformers,switch gears, and does installation and commissioning work.

Toshiba is also intensively involved in turnkey projects in India which require contractor’s strong leadership for
successful project completion. For hydroelectric power generation plants in India, Toshiba offers turnkey solutions
by providing turbines and generators of all sizes. The company delivers small to large hydropower systems and
micro hydro equipment of remarkable design and efficiency, which cater to rivers, discharge channels, agricultural and industrial waterways, etc. One of the strongest features of Toshiba’s hydro plant equipment is their long life cycle and efficient performance. For example, the Umiam I & Umiam II power plants, set up in 1965 and 1967, were renovated and modernised in 2003 and 2011, respectively – a remarkable 38-44 years of life cycle against an industry expectation of 30 years.

Toshiba has cultivated expertise on hydropower systems and solutions for over a century, and is positioned to look at the specifics of individual plants and offer the best solution. Toshiba aims to contribute to clean and sustainable energy, including hydroelectric power generation, for India’s growing economy and FOR THE NEXT INDIA.

What kind of Hydro projects have you executed in India? Could you tell us about your upcoming and
ongoing hydro projects?

In India, Toshiba delivered both conventional and pumped storage plants and small to large capacity machines. In
1965, Toshiba commissioned 4x9MW Umiam I Hydro Power Station. Since then, the company has supplied and installed over 24 hydroelectric turbines and over 34 hydro generators for 50 years that have been operating smoothly.

Some of the other notable Hydroelectric Project (HEP)
Reference in India includes:
• Umiam-I, HEP (Meghalaya), 4x10.5MW (1965)
• River Bed HEP (Gujarat), 6x200MW (2006)
• Purulia PSPP (West Bengal), 4x225MW (2008)
• Teesta-V HEP (Sikkim), 3x170MW (2008)
• Koldam HEP (Himachal), 4x200MW (2015)

Francis Turbines and Hydraulic Generators that were designed and developed by Toshiba Corporation
consummated full-scale commercial operations of Koldam Hydropower Electric Project in July 2015. Toshiba, as
Technical Leader, was responsible for Technology and Design of Turbine and Generator and supplied the main
critical products such as Runner, Generator parts etc. and commissioned the plant along with its main contractor –Bharat Heavy Electricals Limited (BHEL).

We foresee a huge future in Pumped Storage Project (PSP) and Adjustable speed PSP, and therefore Toshiba is
focusing to contribute as a major electro-mechanical supplier.

What are the challenges and business opportunities do you see in the hydro power sector in India?
Although there is very little recurring cost, the hydropower generation is highly capital-intensive mode
of electricity generation, requiring high initial expenditure.Furthermore, the economic viability of hydroelectric projects also depends on the geology, topography,hydrology and accessibility to project area. Difficult terrain, hostile weather coupled with lack of adequateg Transmission & Distribution (T&D) System, adversely
affects developments of Hydroelectric Projects (HEPs). Land acquisition, environmental clearance and litigations may also result in delays and consequent cost overruns.Besides, the lack of a compulsory hydropower purchase obligation impacts the signing of long-term PPAs and financial closure for projects. Levies such as transmission charges, water cess and free power to state governments add to the cost and thus raise tariffs vis–à-vis other renewable energy sources.

However, in order to create a competitive environment for hydropower industry, the Government of India is
creating a level playing field with other renewable forms of energy. The hydropower potential of India is around
1,45,000 MW and at 60% load factor, it can meet the demand of around 85,000 MW. But currently, only around
26% of Hydropower potential has been exploited in India. Recognizing a significant opportunity, the government
is now promoting a number of hydropower plant construction projects. Government of India has been
making substantial investments under the “Power for All” initiative, and the Power Ministry has finalized a policy
for the revival of 40 hydro power projects of 11,639 MW and has also provided support of `16,709 crore, plus has declared all large and small hydro projects as renewable energy projects.

Toshiba stands ready and willing to provide strong support for these plans by leveraging cutting-edge technologies and an extensive product line-up. The extraordinary longevity of Toshiba-designed plants also translates to a cost-effective operation. And this factor is of decisive importance in a country like India, where it is essential to produce power at the cheapest possible rates.

What needs to be done to boost power equipment manufacturing in India?
With its ‘Make-in-India’ program and progressive policy framework, the government has created a conducive
business environment in India. Manufacturing Ecosystem along with ready availability of skilled labour force,
complement the government’s vision of making India a global manufacturing hub. To further give a fillip to the power equipment manufacturing, the government needs to focus on consolidating the infrastructure that offers better connectivity thereby reducing the shipping time and easing the cost overruns, and implementation of international safety and quality standards that will make the products ‘Made-in-India’ ready for ‘Export-from-India’ ASEAN, Africa, Middle East and other accessible markets across the world.

Do you have any plans to set up manufacturing unit in India in the near term?
As a part of its ‘Make-in-India’ initiative, we have multiple manufacturing and marketing bases for our power systems, industrial and social infrastructure systems and advanced electronic and electrical products. Setting up our power generation operations in India, Toshiba established a manufacturing facility in Chennai to manufacture and market super-critical steam turbines and generators for thermal power plants in India, under the name – Toshiba JSW Power Systems. Today, TJPS offers from manufacturing to one-stop solution for EMPCS of thermal power plants.

High quality power generation requires an efficient T&D network. Identifying a huge potential in this sector,
we established TTDI in 2013 in Hyderabad. We further reinforced our T&D business in India by expanding capacity
and introducing new manufacturing lines. In April FY2016 by adding another manufacturing facility in Hyderabad, established for production of electrical equipment for railway systems, and accelerating our ability to supply to international markets in the future. This new unit will manufacture power conversion systems and train control
systems that provide overall operation management.

Going forward, where do you see your India operations five years from now?
Toshiba has been constantly innovating its product line and making it highly efficient by bringing in cutting-edge
technologies and development practices. The company has developed an extensive line-up of hydropower systems, ranging from small to large.

Toshiba’s micro-hydropower generating system was initially designed for non-electrified areas, as a compact
system that can be installed in rivers, discharge channels, agricultural and industrial waterways to cater to the electricity needs of rural and small communities.

Toshiba’s strengths in technology and number of installations for large hydropower systems stand out most
notably in the development of the adjustable-speed pumped storage system. The adjustable-speed pumped storage system works like a rechargeable battery that acts as a utilityscale grid storage system. The key benefit of the system is its support for tuning the electric grid’s frequency to secure its stability. This is becoming a more important concern in India, with increasing installations of renewable energy systems that causes frequency fluctuations.

Toshiba has been an integral part of India’s power generation journey for decades. The demand for power in
India continues to increase and Toshiba aims to utilise its overall experience and technical expertise in supplying
higher quality products at competitive prices, to contribute to the growth of industries FOR THE NEXT INDIA