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Joint Statement on the occasion of the 6th India-Japan Energy Dialogue between the Planning Commission of India and the Ministry of Economy, Trade and Industry of Japan

October 10, 2012

  • H.E. Mr. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission of India and H.E. Mr. Yukio Edano, Minister of Economy, Trade and Industry of Japan held the 6th meeting of the India-Japan Energy Dialogue on October 10, 2012 in Tokyo.
  • Senior officials of the relevant ministries and departments of both sides participated in the discussions. Both sides welcomed the progress achieved so far in the previous five rounds of the Energy Dialogue and in the deliberations of the various Working Groups. They appreciated the sector-specific discussions by experts of both sides and the progress made in various areas of cooperation.
  • During the dialogue, both sides reaffirmed that it is important to hold the ministerial-level India-Japan Energy Dialogues annually, and shared the recognition that the issues of energy security and global environment are high priority challenges requiring continuous and effective action. In particular, to overcome challenges such as the global-scale changes in the energy demand structure seen in recent years and soaring energy prices, both sides confirmed to strengthen consumer-producer dialogue on LNG and deepen cooperation in energy conservation and renewable energy sectors. In addition, both sides decided to strengthen programs to further disseminate and expand model business projects that have thus far been implemented by the two sides, and to enhance cooperation in upstream development of petroleum and natural gas.
  • The two sides recognized the need to promote industrial cooperation to expand bilateral energy cooperation on a commercial basis. From this point of view, they reiterated the importance of India-Japan Energy Forum and regular inputs from the forum to the dialogue. Both sides discussed to explore way forward to showcase Japanese technology in energy sector for wider dissemination in India.
  • The two sides engaged in discussions in the following areas:

    Cooperation in energy efficiency and conservation
  • Both sides reached a common recognition that it is important for them to cooperate with each other in the energy efficiency and conservation sector, and welcomed that the meeting of Energy Efficiency and Conservation Working Group under the India-Japan Energy Dialogue was held in Japan on October 9, 2012.
  • Both sides decided to strengthen their cooperation concerning energy conservation and environmental issues. Progress in cooperation among the Petroleum Conservation Research Association (PCRA), the Bureau of Energy Efficiency and the Energy Conservation Centre of Japan (ECCJ) was welcomed. Both sides welcomed the enhancement of the capabilities of regional State-Designated Agencies (SDA) to execute the Energy Conservation Act, and the development of guides for dissemination of the Total Energy Management Systems in small-to-medium enterprises (SMEs) through the dispatch of experts and the acceptance of trainees. They also welcomed the implementation of cooperation to develop and spread the energy conservation audit manual in the textile industry, as well as of cooperation toward developing similar manuals for use by other industries that consume large amounts of energy. Both sides confirmed to continue the training and capacity building program further for SDAs, SMEs and energy managers and energy auditors.
  • The two sides reconfirmed the importance of the projects carried out by the Regional Energy Efficiency Center (REEC) set up in Chennai with technical assistance from the Ministry of Economy, Trade and Industry (METI) in promoting energy conservation at the working level in India. In addition, they welcomed the training of trainers at the Dr. Ambedkar Institute of Productivity for hands-on training of energy-using equipment such as furnaces, motors, compressors, etc. which is being implemented as part of the capacity-building project by New Energy and Industrial Technology Development Organization (NEDO). They also welcomed the fact that the facility continues to be utilized, with the Government of India taking the lead in implementing training for over 120 people. The Indian side sought Japan’s further technical support for other REECs to be established by India.
  • Both sides welcomed the progress made in the demonstration project for a sinter cooler waste heat recovery system, currently being implemented by NEDO based on the energy conservation cooperation of industries that consume large amounts of energy. They also welcomed the achievements of the demonstration project utilizing a coke dry quenching facility, and the demonstration project for fuel conversion using a diesel generator facility, both of which were implemented by NEDO, and confirmed their continued cooperation in promoting those projects. Moreover, recognizing the need to strengthen bilateral relationship in the energy sector, focusing on energy conservation and environmental issues, and to expand the consultation process between the government and the private sector, both sides confirmed continued cooperation.
  • Both sides decided to study the possibility of further cooperation in establishing statistics in the sectors in India where consumption of energy has been growing in recent years, including SMEs. In addition, based on the fact that demand for energy is increasing in the transport sector in line with India’s economic growth, both sides decided to explore the possibility of cooperation in this area.
  • Based on the Joint Statement issued at the 2nd India-Japan Energy Dialogue, both sides welcomed the fact that The Energy and Resources Institute (TERI) and the Institute of Energy Economics, Japan (IEEJ) have implemented joint surveys and studies relating to the possibility of energy conservation centering on India’s industrial sector, as well as the establishment of necessary statistical data and the establishment of energy conservation goals. The Indian side sought finalization of work program under TERI-IEEJ cooperative project through discussion on specific terms of reference (ToR) or report which defines the basis and benefits of the study. The Indian side also sought further details about the design and implementation process of the Bilateral Offset Credit Mechanism (BOCM) which was earlier proposed by METI.
  • Both sides confirmed the need for expanding the consultation process involving both the private and public sectors in order to strengthen bilateral cooperation in the energy sector focusing on energy conservation. Moreover, they welcomed continuation of the studies in 2012 regarding creation of a list of Japan’s energy-saving and environmental technologies for enhancement of energy-saving in the Indian iron and steel industry that started in 2011.
  • Japan commended India’s initiatives to promote energy conservation such as the introduction of Perform, Achieve and Trade (PAT) scheme. To realize the effective and efficient implementation and management of these initiatives, both sides recognized the importance of mutual cooperation, and confirmed to share information and exchange views on a regular basis through such measures as Energy Efficiency and Conservation Working Group and various research projects.
  • Both sides confirmed the importance of conducting vigorous activities under the International Partnership for Energy Efficiency Cooperation (IPEEC) framework. In this light, they praised the activities of Global Superior Energy Performance Partnership (GSEP) with the aim of promoting best practices and spreading high-efficient and low-carbon technologies in the industrial sectors (steel, cement and power) under public-private partnership. Both sides will continue to collaborate and aim to further expand its activities.

    Cooperation in renewable energy
  • Both sides concluded that bilateral cooperation is important in the renewable energy sector. They welcomed the fact that a meeting of the Working Group on Renewable Energy, established under the India-Japan Energy Dialogue framework, was held on October 9, 2012 in Tokyo.
  • Both sides welcomed the Delhi-Mumbai Industrial Corridor (DMIC) Smart Community Project that utilizes Japan’s environmental system technologies and IT technologies such as solar power, smart grids, smart urban transportation, as well as water management, recycling and treatment, to uniformly develop next-generation energy infrastructure, noting that it is important from an energy perspective. Both sides welcomed the MoU for demonstration of large-scale photovoltaic power generation using state-of-art photovoltaic modules and of micro-grid system for providing clean and stable electricity and minimizing diesel consumption in Neemrana Industrial Park in the state of Rajasthan signed among the Department of Economic Affairs, Ministry of Finance, Ministry of New and Renewable Energy and the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) and NEDO following which a 5 MW solar Photovoltaic plant under NTPC Vidyut Vyapar Nigam Limited (NVVN) has been allotted for development. They confirmed that they would implement further cooperation, so that the demonstration project of 6MW in total to be implemented by NEDO could be initiated smoothly. The two sides will study ways to disseminate these technologies widely throughout India. Both sides confirmed that they would cooperate with each other for the preparation of NEDO’s demonstration project for introducing a photovoltaic system, lithium ion batteries and energy management system into telecommunication towers in India. Both sides welcomed the National Solar Mission launched by the Government of India, focusing on building a system for generating 22GW of solar energy by the year 2022, and decided to study the possibility of contribution to be made by technologies and products from Japan. Both sides also welcomed the feasibility study in the form of joint study program towards electrification of non-electrified areas by introducing micro hydroelectric generation facilities, which will be conducted in states such as Uttarakhand.

    Cooperation in electricity
  • Both sides concluded that bilateral cooperation is important in the electricity sector. They welcomed the fact that a meeting of the Working Group on Electricity, established under the India-Japan Energy Dialogue framework, was held on October 9, 2012 in Tokyo.
  • Both sides shared a common recognition that it is important and beneficial to closely collaborate in the development of infrastructure in the electricity and energy sector such as deployment of high-efficiency coal-fired power generation and development of pumped-storage power generation, as well as electrical power transmission and distribution systems in order to meet the rapid increase in power demand, and promote sustainable economic growth taking environmental issues into consideration. Both sides welcomed the satisfactory progress of the project by JCOAL for advising the renovation of equipment and facilities of coal fired-power plants, of which three sites (Wanakbori, Gujarat, Dr. Narla Tata Rao, Andhra Pradesh and Kahalgaon, Bihar) have been completed and four more sites (Badarpur, NCT Delhi, Unchahar, Uttar Pradesh, Durgapur, West Bengal and Dr. Narla Tata Rao, Andhra Pradesh) will be done before the end of this fiscal year, in order to improve the efficiency of the plants and environment in India. Both sides also welcomed the mutual cooperative efforts for the transfer of clean coal technology, which has been continuously under way since the fiscal year 2001, through the invitation of Indian experts to Japan and the dispatch of Japanese experts to India. Both sides confirmed to consider the possibility of cooperation for the development of an integrated gasification combined cycle (IGCC) in India.

    Cooperation in coal
  • Both sides concluded that bilateral cooperation is important in the coal sector. They welcomed the fact that a meeting of the Working Group on Coal, established under the India-Japan Energy Dialogue framework, was held on October 9, 2012 in Tokyo.
  • Both sides expressed their strong expectation that the commercial-scale demonstration project by NEDO aiming to reduce ash content of coal in India using high-efficient coal washery technology at Angul, Talcher, Odisha would be completed by early 2013, and the technology would be widely deployed in India. Both sides welcomed the efforts for renewal of the MOU among Department of Economic Affairs, Ministry of Finance and Ministry of Coal, India, NEDO and M/s Monnet Ispat Ltd. for the project.
  • Both sides welcomed the launch of a feasibility study by NEDO concerning a project that combines Upgraded Brown Coal (UBC) technologies using Indian lignite with Ultra Super Critical (USC) coal power generation technologies.

    Cooperation in petroleum and natural gas
  • Both sides concluded that bilateral cooperation is important in the petroleum and natural gas sectors, and welcomed the fact that a meeting of the Petroleum and Natural Gas Working Group, established under the India-Japan Energy Dialogue framework, was held on October 9, 2012 in Tokyo.
  • Both sides confirmed that Japan, the world's largest consumer of LNG, and India, a country where large increases in consumption are anticipated in the future, would cooperate inter alia, through participation in LNG Producer-Consumer Conference, to ensure the stable and low-cost supply of LNG. In addition, they confirmed that they would start a joint study on "Pricing of LNG in the Asia Pacific market.”
  • Both sides confirmed that they would strengthen their cooperative relationship relating to upstream development of petroleum and natural gas. Both sides confirmed to explore possibilities of collaboration in exploration and production activities in India and in third countries.
  • Both sides also confirmed to continue cooperation in the study of Indian off-shore seismic data and delineation of gas hydrates area, and to explore further cooperation in gas hydrate research and development. Both sides confirmed to continue to collaborate and jointly work in the field of fuel conservation. In this regard, both sides also confirmed to consider the extension of the existing MoU between PCRA and ECCJ. Regarding the continuation of the existing collaboration between PPAC and IEEJ, the Indian side proposed a joint study on "Unbundling of gas markets in India."

    Cooperation in nuclear energy
  • Both sides concluded that bilateral cooperation is important in the nuclear power sector, and welcomed the fact that a meeting of the Nuclear Energy Working Group, established under the India-Japan Energy Dialogue framework, was held on October 9, 2012 in Tokyo. The Indian side made a presentation on India’s plan for expanding nuclear energy generation in the coming years.
  • Both sides reconfirmed the importance of civil nuclear cooperation between the two countries. Based on the experience of the accident at the Fukushima Nuclear Power Station of Tokyo Electric Power Company (TEPCO) and the lessons learned from it, both sides confirmed the need to cooperate in enhancing the safety of nuclear power plants.

    Cooperation in other areas
  • Both sides recognized that the reinforcement of energy security in East Asia is one of the highest priority issues in the region. In this context, they welcomed the outcome of the Sixth East Asian Summit Energy Ministers Meeting in September 2012, including commencement of new studies by Economic Research Institute for ASEAN and East Asia (ERIA) on energy outlooks for medium-to-long term and strategic usage of coal through Clean Coal Technologies. They confirmed that the two sides will exercise leadership in achieving secure and sustainable energy future in East Asian region.
  • Both sides stressed that the bilateral cooperation in the framework of India-Japan Energy Dialogue should not be limited to the above-mentioned activities, and such cooperation should be further deepened. They decided to hold the 7th India-Japan Energy Dialogue in India at a mutually convenient time in 2013.

Tokyo
October 10, 2012

(For the Planning Commission of India)
Montek Singh Ahluwalia
(Deputy Chairman of the Planning Commission of India)
(For the Ministry of Economy,Trade and Industry of Japan)
Yukio Edano
(Minister of Economy, Trade and Industry of Japan)
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