Winds of Change: Issue 35
In this week's issue, I am smug because Twitter changed my status from a nobody to a somebody.
Welcome to Winds of Change, a weekly newsletter that collates my work as I chase the winds that bring us the monsoon and drive our turbines.
Happy Sunday! I got verified by Twitter this week, which is usually a big deal in some parts. Unfortunately, it's the same old me.
So even as I type this from my mini Bombay break in Bangalore, I can't help but celebrate this occasion in a way only I know how — use GIFs about Twitter in today’s newsletter.
Insufferable as always, verified or not. Thanks for always reading my newsletter, I appreciate you! 💐
Cashing in
The Centre's plan to ‘strategically lease out’ assets has attracted a lot of flak. By selling off infrastructural goods such as highways and railway stations, the government hopes to essentially collect a consistent rent on these assets, while the private companies are supposed to maintain and run these projects efficiently.
The opposition parties have come down heavily on this move, saying that the ruling party cannot take advantage of these assets that have been built by taxpayer money over the past few decades.
Theoretically, it's a good idea. While it's a taboo to say this, any government-owned organisation comes with its fair share of redundancies. A private entity will look closely at such inefficiencies plug them in.
Practically, it sounds like a disaster in the making. A government posting is perhaps the most coveted job in the Indian market, because one can sign up for it without really having to worry about being ousted from the gig until one reaches retirement (or senility, whichever comes first). For that to lose its sheen will be a big blow, especially in rural areas, where a government job is seen as a solution to all problems.
Then, there is the real threat of monopolisation of assets by companies. Certain conglomerates already work in some sectors with impunity; to see them control our roads and tolls will result in costs going through the roof in no time.
We explain the assets at play here, and the potential pitfalls of such a move in this podcast of The Morning Brief.
RIL kicks off the renewable spree
Reliance's $10 billion bet on renewable energy has gotten off to a blistering start, after it is close to acquiring Norwegian solar panel maker REC Solar for a deal upwards of $1 billion, people in the know told Arijit Barman and me.
This is a crucial step in RIL's renewable journey that has just begun. REC has some great technology on its hands, and boasts of efficiency numbers higher than other manufacturers. RIL now hopes that they can replicate this technology with their giga factories in Jamnagar, Gujarat.
Spanner in the works
State-owned Power Grid Corporation of India (PGCIL) is a power company that sets up and operates power lines across the country. With new renewable energy projects on the horizon, PGCIL has shifted its focus to transmitting sustainable power.
However, Supreme Court's order that forbade any overhead power lines to protect the Great Indian Bustard has halted some projects in Rajasthan.
This could lead to projects worth $4 billion being stuck without any way to evacuate the power.
PGCIL argues that laying high voltage power lines is not feasible. They will now be preparing evidence to support that claim — something too look out for. That could result in the SC amending their judgement, which would be a landmark win for the renewable energy industry.
Trending downwards
In a pure wind energy tender held this past week, the winning tariff got cheaper — a welcome move for the sector that has been struggling from a myriad of issues.
In the last couple of years, wind energy has fallen out of fashion in favour of solar projects, which in essence are more convenient to build and operate.
Now, Megha wants to barso
While a near-drought monsoon continues, the weather bureau's forecast says that September will bring with it excess rain, coming at least 10% above normal for the month. However, the entire monsoon season will end with a deficit.
Currently, rainfall since the season started on June 1 has been 9% below normal, a number that has persisted since July began. August ended with a 24% shortfall on the month, one of the worst in recorded history.
We need this rainfall. Our reservoirs are drying up, and kharif sowing remains laggard. A boost during the final month of the rainy season could go a long way in improving the harvest and reducing inflation by the end of the year.
That's all for this week's issue. Thank you for reading! This issue was written by me, Shashwat Mohanty, and the artwork was produced by Devika Menon for Winds of Change.
I hope you learnt something new. Please feel free to reply to me about any errors or typos you spotted, any clarifications, and most importantly, any feedback. Till next Sunday!