Why in the discussion?
The Ministry of New and Renewable Energy has prepared a new scheme called the Indian Wind Turbine Certification Scheme (IWTCS) in consultation with National Wind Energy Institute, Chennai.
- This format covers various guidelines for the turbine certification scheme.
- IWTCS is a compilation of the relevant national and international standards (IS / IEC / IEEE), technical regulations and requirements issued by the Central Electricity Authority, guidelines issued by the Ministry of New and Renewable Energy and other international guidelines.
- In order to ensure the quality of wind power projects, efforts have been made to incorporate specific best practices of other countries.
- From the concept in the draft plan, there are guidelines for the benefit of all stakeholders related to the life of wind turbine. These include Indian Type Approved Model-ITAM, Indian Type Certification Scheme- ITCS, Wind Farm Project Certification Scheme- WFPCS and Wind Turbine Safety and Performance Certification Scheme (Wind Turbine Safety & Performance Certification Scheme-WTSPCS).
- The IWTCS plan has been created to assist the following stakeholders
- Original Equipment Manufacturers -OEMs
- End user-utility, SNA, developers, IPP, owner, authority, investor and insurer
- Certification Institute
- Checking laboratories
- Wind power has become the main source of renewable power generation in India for many decades.
- Various types of wind turbines have been observed in the development of wind energy sector with various work and safety standards. Ministry of New and Renewable Energy has assisted in the development of wind power sector through various policies and schemes.
- The guidelines issued by the Ministry for the recognition of certification schemes in India were necessary for the success of quality-driven wind turbine installed in India.
- With the success of accredited plans, wind turbine has got place in the revised list of models and manufacturers.
- In order to ensure the quality of wind power projects, a detailed document is needed, in which all the technical requirements for the safe and reliable operation by the OEM, independent power producers, wind farm developers, financial institutions, etc. are provided by the wind turbine .
Why in the discussion?
The Indian Securities and Regulatory Board has tightened norms for disclosure and review for credit rating agencies in India’s market regulator. This step taken by SEBI is being seen as an effect of the IL & FS crisis.
According to new guidelines
- While disclosing credit rating agencies, many factors need to be kept in mind. These factors include the position of the promoter to support the relationship with the subsidiaries and to meet near term payment obligations.
- If the factor of the rating is endorsed by the parent company or the government, the name of the promoter and the argument for any hope will be provided by the rating agency. Apart from this, when the associate companies or group companies are mixed together for the rating, then credit rating agencies will have to list all these companies, as well as the reason behind the integration of these companies.
- Credit rating agencies need to add a section for cash in the press release about rating actions. In this section it should be told that what is the position of the company in relation to meeting close-term payment obligations. According to experts, this step will help investors understand the cash situation better.
- Must analyze the credit rating agencies to monitor the repayment schedule the company’s declining liquidity position as well as asset-liability must also pay attention to any kind of irregularity.
- According to new guidelines issued by SEBI, credit rating agencies must submit data based on quick rating action in yearly basis (March 31 investment-grade rating within September 30) 15 days category.
- Credit rating agencies monitor and analyze the factors affecting a company’s credit worthiness and thus help in determining the value of bonds.
- But the Indian market regulator was not satisfied with the functioning of credit rating agencies in the IL & FS case. Market regulator believes that credit rating agencies failed to detect the initial signs of the company, due to which they did not issue any warning in this regard. Subsequently, SEBI has held several rounds of meetings with senior officials of rating agencies and have finally issued these guidelines.