Annexure to the Directors' Report
 

Particulars of Conservation of energy, Technology absorption and Foreign exchange earnings and outgo in terms of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Directors) Rules, 1988 forming part of the Directors' Report for FY 2012-13:

A. CONSERVATION OF ENERGY

The Company has always been conscious of the need for conservation of energy and has been sensitive in making progress towards this end. Energy conservation measures have been implemented at all the plants and offices of the Company and special efforts are being made on undertaking specific energy conservation projects like:

  • Installation of Waste heat recovery for paint baking oven flue gas to heat water of process, improvement in burning efficiency of burners by controlling the air - fuel ratio with the help of flue gas analysis.
  • Conversion of electrical heating into Natural Gas heating system of washing machines, Conversion of electrical heating into LPG heating of Endogas generators.
  • Installation of Variable Frequency Drives for various applications like Blower's and Pump's Motors as a flow control strategy for energy conservation.
  • Installation of CFL, LED bus bar indicators, Use of 54Wx4 T5 lamps for high bay lights, Installation of energy savers in lighting circuits, Installation of LED street lights.
  • Installation of Light pipes and Transparent Polycarbonate sheets, Installation of Solar water heating system for Crèche.
  • Modification in electrical logic for automatic switching On-Off operation of hydraulic motors, coolant pumps, blowers etc. Optimization of AC plant operations, removal of unwanted AC systems.
  • Wind Ventilators, downsizing of motors, trimming of impeller of oversized water recirculation pump, Delta to star connection of motors etc.
  • Installation of Biogas plant for canteen waste and generation of electrical energy from biogas and used for pumps at ETP.

    These changes have resulted in energy saving of 1.93 crores units of electricity, 275KL of LDO, 5.95KL of HSD and 124MT of Propane. The whole effort resulted in cost savings for the Company of around Rs.14.04 crores and annual CO2 reduction of 17,265 tCO2.

    New initiative has been taken for implementation of ISO: 50001 Energy Management System (EnMS) across all Plants of the Company in India. Company's Dharwad Plant, Pantnagar Plant and Sanand Plant are certified for ISO: 50001 Energy Management System (EnMS) by M/s Bureau Veritas Certification. The certification work for Pune, Jamshedpur and Lucknow Plants is in progress.

    The Company's Endeavour for tapping wind energy has also made significant contributions.

  • Energy is being generated from existing captive wind power. Further initiatives have been taken up to make Pimpri Plant "carbon neutral" by purchase of wind power from Third Party through open access. Towards this end, a Power Purchase Agreements (PPA) have been signed with 4 parties for an additional Rs.7.40 crores wind units. Presently, Commercial Vehicle plant at Pune annually utilised Wind Power (Green Power) of Rs.8.04 crore wind units (equivalent CO2 Reduction of 75,242 tCO2) and this resulted in savings in electricity charges of Company's Pune plant of Rs.25.89 crores.
  • Company's 20.85MW Wind power project: United Nations Framework Convention for Climate Change (UNFCCC) issued 24,432 CERs on April 5, 2013, for the wind power generation period 2010 to 17th April-11.
  • Initiative towards Renewable Energy Certificate (REC) Creation: As per CERC guidelines, Company has got its' 21.95MW Wind Power REC project accredited by Maharashtra Energy Development Agency (MEDA) and registered by National Load Dispatch Centre (NLDC) New Delhi on 3rd July 2012. Total 16,976 RECs have been issued by NLDC since July 2012 and total 12,480 RECs sold through auction resulted into accrued benefit of Rs.1.81 crores.
  • Initiatives towards Carbon Neutral Manufacturing Plant have been implemented at Company's Sanand Plant by using Green Power (Wind Power). PPA was signed with a wind power supplier, which will allow tCO2 emission reduction of 9,500 tCO2 per annum, resulting in energy cost savings of Rs.0.78 crore.

Award/Recognition received during the year:

The Company's Lucknow Plant was awarded the Certificate of Merit in National Energy Conservation Award 2012, in Automobile Manufacturing category by Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.

B. RESEARCH AND DEVELOPMENT (R & D)

Specific areas in which R & D carried out by the Company

The Company has continued its endeavor to adopt technologies for its product range to meet the requirements of a globally competitive market. All Company products and engines are compliant with the prevalent regulatory norms. The Company has also undertaken programs for development of vehicles which run on alternate fuels such as LPG, CNG, bio-diesel, electric traction and hydrogen.

Benefits derived as a result of the above R&D

In keeping with the requirement of technological up-gradation of its engine development facility, the Company has added facilities enabling compliance of regulations and reducing product development time to meet market requirements.

During the year, the Company filed 83 Patent Applications and 38 Design applications. In respect of applications filed in earlier years, 16 Patents were granted and 68 Designs were registered.

Future Plan of Action:

The Company continues its effort on developing new products and technologies to meet growing custome expectations. The existing products will be refreshed at regular intervals to suit upcoming trends. In the long term, the Company is focusing on improving driving comfort, fuel efficiency, performance and aesthetics.

Expenditure on R & D
    (Rs. in crores)
Expenditure incurred on research and development : 2012-13 2011-12
(a) Revenue Expenditure - charged to Profit and Loss Statement 500.15 243.30
(b) Revenue Expenditure - capitalised 1,142.38 1,127.86
(c) Capital Expenditure 116.78 177.53
  1,759.31 1,548.69
R & D cost as a % to Revenue from Operations 3.9% 2.9%
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