ARC Foresees Robust Growth of SCADA Systems in India

by Piyush Dewangan on 12/2/2011 7:10 AM Category: Asset Management; Operations Mgmt Piyush Dewangan and Rajabahadur V. Arcot Indias infrastructure industry is currently expanding due to the growth of the manufacturing sector, which in turn is propelled by a burgeoning middle-class populace with a propensity to spend. In its 12th five-year plan the State proposes to allocate investment of about $1 trillion in the infrastructure industry. Apart from roads, ports, railways, and others, the country will invest in utilities, such as electric power, oil & gas, and others. Due to these robust growth opportunities, automation companies will find India an attractive market for automation systems. Automation systems, such as SCADA and others help companies improve

infrastructure asset utilization and the reliability of their systems. SCADA systems are used for various industries, such as transportation (including rail, mass transit, and traffic control, as well as asset tracking), telecommunications, mining, electric power, oil & gas, and water & wastewater.

Supervisory control and data acquisition (SCADA) systems find extensive application for automating, controlling, and monitoring various parameters for geographically distributed sites, such as oil & gas pipelines, electric power transmission and distribution, water distribution systems, telecommunications, and others.

Earlier, due to the technologies available then, the data handling capacities were a constraint and therefore SCADA system designs often relied on relatively limited amount of data collection with slow sampling speeds. However, due to recent technological advancements and industrys expanding needs, SCADA

systems that perform far beyond the earlier communication and collaboration constrained systems are now available. The latest SCADA systems encompass a new generation of technology components that are easier to integrate and provide vastly improved capabilities and functionalities. As a result, SCADA finds application in mission critical process control situations and links it with business performance management, and such others.

The SCADA system specifications may vary from industry to industry. Application software and system response are matched according to each industrys needs and the SCADA configuration must meet the functional requirements of the served industry needs. For example, the electric power SCADA monitors and controls the transmission, substation, and distribution field devices using remote terminal units (RTUs) at geographically dispersed sites. The system is generally used for functions, such as switching on generators, controlling generator output, switching in or out various system elements for maintenance purpose, and

such others. Electric power SCADA requires very short data response time and high data accuracy, and high resolution time lagging of reported data. In case of water & wastewater, SCADA systems are used for monitoring and control corrosion of pipelines. This empowers companies for better asset management and its utilization. Clients can replace corroded pipelines before they fail and create a catastrophic situation. SCADA systems enable operators to monitor various parameters related to the medium flowing in the line, as well as send operational commands (open/close valves, turn on/off compressors or pumps, change set points, among others) through the SCADA system to the field.

Presently, Indias electric power industry is augmenting its generation capacities to bridge the demand supply gap; expanding its transmission and distribution infrastructure for efficient delivery of power across the country; and reducing aggregate technical and commercial (AT&C) losses. Currently Power Grid

Corporation (PGCIL), central transmission utility of India, has around 135 sub-stations across the country with over 82,354 ckm of transmission lines. PGCIL, which carries over 50 percent of the countrys power generation, is continuously expanding its infrastructure. The company will be adding another 13,000 ckm of transmission lines by 2012. While it invested around $22 billion during 2007-2012, it is expected to double the capital expenditure during the period 2012-2017. In addition to building T&D infrastructure, the country will also focus on improving infrastructure efficiency, such as improving power quality and reliability,

reducing AT&C losses, and others. Indias R-APDRP has provided significant thrust and focus on electric power AT&C loss reduction through reliable automated systems and adoption of information technology, including SCADA systems. Under the R-APDRP program, 77 towns have been identified for SCADA implementation. The country is also formulating its plans towards smart grid implementation on a pilot basis, and the deployment of SCADA systems will pave the way to achieve this goal. According to ARCs estimate, the countrys R-APDRP program will entail around $400 million investment in the next few years.

Apart from investments in electric power transmission and distribution, several projects, such as laying oil & gas pipelines, water & wastewater systems, city gas distribution, and others are also coming up in India. Recently, GAIL India won rights to lay 1,550 km natural gas pipelines from Surat in Gujarat to Paradip in Orissa, connecting west to east coast. The bi-directional pipeline would have a capacity to transport up to 60 million standard cubic meters per day of gas. The company is also laying another 8,000 km of pipelines across the country. Gujarat State Petronet Ltd (GSPL) - led consortium also announced its plans to lay around 4,000 km of pipeline with investment of $2.7 billion. The consortium will construct Mallavaram

(Andhra Pradesh), Vijaipur (Madhya Pradesh), Mehsana (Gujarat), Bhatinda (Punjab), and BhatindaSrinagar (J&K) trunk pipeline for carrying natural gas. In addition, city gas distribution (CGD) and related pipelines are also coming up in India. According

to Petroleum and Natural Gas Regulatory Board (PNGRB), currently 41 cities are covered in the CGD network, and the coverage is expected to grow to over 230 cities in India in the coming decade. Recently GAIL, pioneer of CGD in India, announced its plans to set up a new subsidiary for undertaking city gas distribution (CGD) projects in India and abroad. The company has identified 230 cities for CGD projects in a phased manner. In the first phase GAIL will set up CGD projects in 17 cities investing over $100 million by 2012. The company is also planning to set up a joint venture with private pipe manufacturing companies for manufacturing and laying pipelines across the country. Projects related to the water & wastewater industry are also coming up as the country has planned investments of around $25.8 billion for urban water supply and sanitization, including urban drainage and solid waste management.

ARC foresees robust growth of SCADA systems in India in the next five years and beyond. ARC believes that the industry must adopt SCADA systems to improve infrastructure efficiency and better asset utilization by improving overall asset reliability and availability of the system. While electric power SCADA systems will help reduce AT&C losses and building intelligence into the grid, in case of oil & gas and water & wastewater industries, SCADA will reduce transportation cost, conserve energy use, and such others. It is time for suppliers of SCADA systems in India to develop strategies to address the market opportunities.

ARC is currently working on a market outlook study on SCADA systems in India for electric power, oil & gas, and water & wastewater industries.

Please send in your views on this subject to pdewangan@arcweb.com.