Annexure to Board's Report

  2. Statutory Reports
  3. Annexure to Board's Report

ANNEXURE 2

Particulars of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

[In terms of Section 134 (3) (m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, forms part of the Board's Report for Fiscal 2017]

  1. CONSERVATION OF ENERGY

    The Company has always been conscious of the need for energy conservation. In Fiscal 2018, the Company has signed a Memorandum of Understanding (MoU) with Energy Efficiency Services Limited (EESL), Ministry of Power, Government of India to achieve energy saving and resource conservation by implementing various energy efficiency initiatives across the Company’s manufacturing facilities in India. Phase I of the project is being rolled-out at the Pantnagar, Lucknow and Pune plants and will be extended later to other plants. Key Highlights of the MoU include - diagnostic studies and pilot projects, implementation of energy efficiency projects through innovative financial models and capacity building & training.

    The Energy Conservation (ENCON) projects have been implemented at all plants and offices of the Company in a planned and budgeted manner. Some of the major ENCON Projects in Fiscal 2018 include:

  1. The steps taken or impact on conservation of energy:
  • Pune plant optimized power consumption in ventilation systems at engine shop, installed energy efficient LED lighting systems, converted washing machines from electrical to natural gas heating, provided interlocks and auto switchoff timers in engine shop, installed Intelligent Flow Control in compressor for paint shop operations and integrated painting operations into a single paint shop.
  • Jamshedpur Plant optimized engine test bed utilization and installed energy efficient LED lighting.
  • Sanand Plant optimized use of Air Supply Plant (ASP), washing process in head & block at engine shop, replaced Nd-YAG laser with fiber laser, and provided interlocks and auto switch-off timers for energy intensive machines and equipment.
  • Lucknow Plant implemented empty skid storage facility in paint shop and installed energy efficient LED lighting.
  • Pantnagar Plant contributed by reduction in no-load losses in transformers and installed energy efficient LED lighting.

These efforts have resulted into energy savings of 86,086 GJ (power + fuel), avoided 18,378 tCO2e and cost savings of Rs. 1,746 lakhs in Fiscal 2018.

  1. The steps taken by the Company for utilizing alternate sources of energy:
  • The Company has set up in-house Renewable Energy generation capacity (solar and wind) which includes:
    • 21.95 MW Captive Wind Power project at Supa and Satara in Maharashtra;
    • 2 MW Roof-top Solar PV installation at Sanand Works;
    • 2.1 MW Roof-top Solar PV installation at Pune Works and work is ongoing for additional 2 MW installation;
    • 2 MW Solar PV installation at Lucknow Works;
    • 18.5 kWp Solar PV installation at Pantnagar Works; and
    • – 7.2 kW hybrid-wind and solar installation at Dharwad Works.
  • the Company sources off-site wind power at its Pune, Sanand and Dharwad Works through Power Purchase Agreements (PPA) with Third Party Wind Power Generators and will continue to source renewable power from the grid in line with regulatory policies / frameworks and tariffs in the States of operations.
  • the Company generated / sourced 99 million kWh of renewable electricity for its manufacturing operations, which contributed to financial saving of span class="WebRupee">Rs. 666.3 lakhs and avoided 64,657 tCO2e.
  • in addition, past wind power arrears of 20 million kWH (Fiscal 2015 & Fiscal 2017) were realized in Fiscal 2018, which is an additional avoidance of 16,837 tCO2e.
  • auction of 13,332 Renewable Energy Certificates (RECs) resulted in revenue of `121 lakhs to the Company.
  1. The capital investment on energy conservation equipments:

    In Fiscal 2018, the Company has invested Rs. 428 lakhs in various energy conservation projects.

Award/Recognition received during the year is as below,

  • the Company’s Jamshedpur Plant won First Prize in the Automobile (Manufacturing) Sector at the National Energy Conservation Awards-2017 by Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India. The Award was received from Shri Ram Nath Kovind, Hon’ble President of India on December 14, 2017 - National Energy Conservation Day, at Vigyan Bhawan, New Delhi.
  • the Company’s CVBU Pune awarded “Certificate of Merit” at the National Energy Conservation Awards-2017, in Automobile (Manufacturing) Sector by Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.
  • the Company’s CVBU PUNE won the “Golden Peacock Award for Energy Efficiency-2017”. The award was received on July 7, 2017 at the 19th World Congress on Environment Management, at Hyderabad.
  • the Company’s CVBU Pune won the “CII-National Award for Excellence in Energy Management -2017” and declared as “Excellent Energy Efficient Unit”
  • the Company’s CVBU Pune, was re-certified ‘GOLD’ under CII’s GreenCo Rating system in 2017. CV Pune received the original ‘GOLD’ rating initially in 2014.
  1. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
  1. Efforts made towards technology absorption, adaptation and innovation

    The Company used a three-horizon strategy for managing its engineering and technology initiatives. The first-horizon involved products that the Company is working on currently, to bring to the market. The second-horizon involves researching known technologies that the Company may not be entirely familiar with at present, but are needed for our future products. And the third-horizon is for ‘blue sky’ research projects and there are a number of projects aimed at fostering a culture of innovation in the Company.

    The Company has its sights set on delivering well engineered, safe, technology laden cars to the market continuously. The Company’s future technology pipeline focuses on four key pillars namely smart autonomous & connected vehicle, clean vehicle, capable vehicle and desirable vehicle. The Company has set up lean and agile innovation hubs to kindle innovation, by focusing on testing of solutions and go-tomarket strategies. The setting up of the first of these centers is already underway in Silicon Valley (US) and the UK.

    Key areas of technology engagement in line with global and Indian trends:

    • Advanced HMI technologies for improved user experience.
    • Advanced occupant safety and driving convenience adapted to Indian driving conditions
    • Advanced connectivity architecture to support future mobility driven features
    • Advanced vehicle with improved efficiency through light-weighting of body and chassis structures and use of higher efficiency aggregates

    The Company believes in bringing academia and the industry together for advancements in automotive research. Recent research with various leading technical institutes include:

    • Development of full vehicle multi-body dynamic model for simulation of PAT targets for engine mounting system
    • Brake disc temperature rise simulation for multi-stop applications
    • Tire component target cascading simulation for vehicle ride and handling (ongoing) (Customer Delight)
    • Engine vibration frequency calculation and simulation in ADAMS for improved NVH
    • A new approach for powertrain multi-attribute target development & balancing for vehicle integration
    • To develop a mathematical model of powertrain for the passenger vehicle with Front Wheel Drive(FWD) to address torsional vibrations

    The main endeavor of the Company has been to continuously scan for innovative projects in the third and second horizon to

    integrate the promising ones to the main stream projects in the first horizon.

    The forward-looking technology programs that the Company is concentrating on are:

    • Soot emission reduction of 55% from light commercial vehicle engine by combustion optimization through simulation program executed with IIT Bombay.
    • Participation in a consortium led by a US research firm, for thermal efficiency improvement of diesel engines.
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  1. The Company continued to strengthen its capabilities across technology by careful selection of advanced engineering and future technology portfolio, with intent to capitalize and bookshelf the developed technology into the future products for making them more exciting and more attractive to the end customers. The Company wishes to mitigate all future risks related to technology by timely having appropriate emerging technology on emissions, FE enhancement, powertrain, safety, connectivity, infotainment, telematics, green initiatives etc., to meet and exceed all future emissions and vehicular safety norms.
  2. The Company continued efforts have translated into successful product launches and concept unveils. Fiscal 2018 marked the launch of Tata Nexon and the first batch of Tigor Electric Vehicles to state-run Energy Efficiency Services Limited was delivered. The Company future vehicle concepts for the H5X,the 45X and the EVision at the Geneva International Motor Show were lauded by automotive critics. The Company harnessed the talent in India’s reputed academic institutions to realize state of the art and emerging concepts for current and future vehicles.

Major technology absorption undertaken during the last year includes:

  1. Major Technology Imports includes (preceding 3 financial years):
  1. Research and Development