Cummins India slumps as DG set users urged to shift to renewable energy
Cummins India fell 8.48% to Rs 908.10 after the Union Power Ministry urged diesel generating (DG) set users to shift to renewable energy in five years.
The Union Power Ministry on Thursday issued an amendment to the Draft Electricity (Rights of Consumer) Amendment Rules, 2021.
The Ministry has advised consumers using DG sets to shift to a cleaner technology, such as renewable energy with battery storage, in five years.
“Consumers, who are using the Diesel Generating sets as essential back up power, shall endeavor to shift to cleaner technology such as RE with battery storage etc in five years from the date of the publication of this amendment or as per the timelines given by the State Commission for such replacement based on the reliability of supply by the distribution company in that city,” the Ministry notified.
In view of the increasing pollution level particularly in the metros and the large cities, distribution licensee shall ensure 24×7 uninterrupted power supply to all the consumers, so that there is no requirement of running the DG sets. Accordingly, the State Commission shall give trajectory of System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) for the cities, it said.
“The State Commission may consider a separate reliability charge for the Distribution company, if they require funds for investment in the infrastructure for ensuring the reliability of supply to the consumers. The State Commission shall also make a provision of penalty in case the standards laid down are not met by the distribution company,” the Ministry added.
It further said, “The process of giving temporary connections to the consumers for construction activities or any temporary usage shall be simplified by the distribution licensee and given on an urgent basis and not later than 48 hours. This will avoid any use of DG sets for temporary activities in the area of the distribution licensee. The temporary connection shall be through a prepayment meter only.”
The Ministry has has sought comments on Draft Rules by 21 October 2021.
Cummins India, part of the Cummins Group, is the country’s leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
The company’s consolidated net profit soared 365.7% to Rs 246.94 crore on 141% jump in net sales to Rs 1,177.71 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).
Source : capital markets
