Pan Global Corp. (PGLO) is focused on building the world’s green economy by developing, building, owning and operating the necessary infrastructure. Current opportunities are currently concentrated on developing projects in India, specifically in the areas of hydro-power generation, solar PV, geo-thermal, sustainable agriculture, and green construction.
The India growth story is frequently compared to China, which has sustained above-average annual growth for three decades, whereas India’s take-off growth began at a later stage. During the last decade, India’s growth has averaged approximately 8% per year. India is poised for high GDP growth that will be sustained for decades to come.
Within the Indian market there are available various government-backed incentives programs, including those which provide direct tariff subsidies as well as market-based tariff support through renewable energy credits. Assessing project viability on a case by case basis, PGLO seeks to invest in projects both as owner-developers and/or as partners with other developers.
PGLO’s business strategy is an extension of the company’s commitment to improve human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. By developing a series of highly environmentally sustainable and high ROI projects, the company aims to accelerate business growth.
- Focused on Behemoth of Investment Opportunity in India
- Identifying Key Acquisition Opportunities for Growth
- Emerging Leader in Power Generation and Agriculture Solutions
- Positioned to Benefit from India’s Government-Backed Incentive Programs
- Targeting Opportunities in Fastest-Growing Renewable Energy Markets
- Providing Innovative Solutions to India’s Severe Energy, Water Challenges
PGLO is investigating opportunities to develop electric power generation projects from renewable energy sources such as solar, mini-hydro, geothermal and wind. While the company’s main focus is on potential projects in India, it is not exclusively so.
Mini-to-small-hydro is means of exploiting hydropower generating opportunities on waterways with low flow-rates but doing so without damning the channels or having to create a reservoir. These projects generate power by diverting a portion of the water flow, running the water through a turbine, and then returning it back to the water channel – the basic technology has been in use for more than a century around the world, so there is no inordinate technology risk.
PGLO in September 2013, entered into a non-binding letter of intent ("LOI") in which PGLO intends to acquire 100% of the outstanding equity of a privately held Indian corporation, which is commissioning a 5.7 MW small-hydro project in northern India. At the time of execution of the LOI the project is estimated to be 95% complete and has a planned commercial operation date during the fourth quarter of 2013.
PGLO is working with several parties to create a hydro project pipeline, wherein the company would acquire operating and under-development small-hydro projects. Thus far, the company is working with two parties to acquire up to 30 MW of hydro power projects that will produce revenue as soon as the acquisitions are completed, and another 15 MW of projects under development. PGLO is also in discussions with various players who have already been issued power purchase agreements, and is also exploring additional opportunities to explore small hydro potential in other areas, such as where historic technology cannot generate a fair return but best proven technology may be able to be implemented.
While India currently grows enough food to feed its population, food prices of many commodities have been increasing rapidly and many of India’s prime food growing regions face significant water shortages. PGLO management proposes to introduce controlled growing food production to India, wherein the company aims to grow certain vegetable and other crops under hydroponic greenhouse growing conditions that are based on proven techniques in North America and Europe. At present, there are a number of amateur hydroponic greenhouse operators in India. PGLO intends to be the first such commercial and professional operation, supplying the nascent market of large chain food retail stores and 5-star hotels.
PGLO is in discussions with one of the three players who have been issued a geothermal power production license in India. The company intends to assume the development of this project, including the initial engineering and preparation of the detailed project plan, and then expects to proceed to being one of the first to generate geothermal power in India. Currently only the National Thermal Power Corporation and is undertaking a geothermal project in India. PGLO believes it would be ahead of any other developers in exploiting such resources. The company intends to fund the development and construction of this project.
Throughout the past 10 years, approximately 1,000 LEED certified buildings have been built in India. Government building codes and the green requirements of various Indian companies are providing an impetus to house their facilities in environmentally sustainable buildings. PGLO aims to not only provide green building tech to Indian developers but to also be a major player in the development of highly environmentally sustainable building projects. The company aims to focus on developing environmentally sustainable residential housing and commercial premises, using best-of-breed technology adopted to the local condition.
Solar PV Opportunities
Many industrial and commercial energy consumers in parts of India face high electricity prices; these prices often exceed the price of electricity generated from solar PV. In southern India, many commercial users now pay up to $0.20 per kwh for grid electricity, and the grid is often down and backup generators powered by diesel fuel can cost up to $0.40 per kwh, whereas the cost of solar PV generated power is now $0.16 per kwh or less in parts of India.
PGLO is in discussions with various Indian companies and Indian subsidiaries of well-known international companies operating in India to undertake the development of various solar PV power generation projects directly on customer sites or supplying power directly to such private customers. This is directly the result of solar PV having achieved so-called “grid parity,” wherein unsubsidized solar PV costs are less than grid electricity prices. In this sense, the possibility for solar PV in India is limitless – PGLO faces a significant number of clients willing to adopt and host solar PV arrays at their facilities so long as PGLO pays the upfront costs. These customers are willing to sign long-term power purchase agreements at fixed rates.
Growth Opportunity In India
PGLO currently has a particular focus on opportunities in India. Whereas India’s take-off growth began at a later stage compared to China, after the currency crisis of 1991 the Indian government undertook a series of pro-growth reforms that led to a jump in annual GDP growth from approximately 3% to the high single digits.
During the last decade India’s growth has average approximately 8% per year, and is poised to outperform global growth expectations in the coming years.
A key driving factor of the country’s take-off growth is the so-called “demographic dividend.” India, unique among emerging markets and aged developed economies such as Europe, North America and Japan, has a population comprised of 50% under the age of 25. No other major emerging market has the same demographic profile. Historically, such a “demographic dividend” tends to drive growth and investment at accelerated rates. In fact, the demographic dividend is one of the major factors that helped to sustain China’s last three decades of hyper growth. While there is no assurance that India can meet China’s growth accomplishments, India is the only major emerging market that has the basic building blocks of the next big growth story.
India has a number of other factors that PGLO anticipates will drive growth and create significant investment opportunities for the company:
India daily faces up to 20% electrical power generation shortages in various regions. The government is desperately encouraging public and private power generation, but demand is increasing by 10%+ annually and supply fails to keep up. Many industrial and commercial power consumers are already paying electricity well in excess of the cost of various renewable energy technologies, and are willing to adopt renewable energy at costs that significantly exceed power costs abroad but which are lower than the grid electricity prices they face in India.
The Indian government has adopted policies to promote renewable energy technologies, including solar, wind, biomass and others. Various Indian states with hydro power potential have completed resource assessments and have adopted hydro power generation policies to develop not only traditional large-scale hydro dam projects, but more significantly, smaller scale small-hydro and mini-hydro plans, where PGLO intends to concentrate. India has potential for up to 20,000 MW of small-hydro and mini-hydro resources, whereas to date less than 1,000 MW has been installed. The Indian government and various states have also adopted policies to encourage wind power, whose cost is now competitive with grid electricity prices.
With oil prices trending at about $100 per barrel and international coal prices at highs, India’s current account deficit and its currency has faces significant pressure. There is very little possibility that the world can supply the oil, natural gas and coal resources that emerging behemoths such as China, India and other new and large energy consumers require. Therefore, many of these countries will be forced to choose alternative development paths wherein renewable energy technologies are the key component of power generation. Fossil fuel prices are poised to remain at high levels – marginal costs of the last barrel of oil is in excess of $80; natural gas prices have come down but will likely not remain so as marginal costs are in excess of $8/MMBT in North America. India’s coal import prices have increased significantly in recent years. Renewable energy technology such as solar, small-hydro and wind have reached the so-called “grid-parity,” where they are competitive with traditional fuel and power generation sources in the absence of subsidy.
Though India is one of the prime agricultural regions of the world, growing enough food to feed its own population, it faces significant water shortages and demands to increase yields to meet the needs of a growing population. India’s water tables are falling and global-warming induced annual stress from extreme weather events are increasingly hindering crop production. A nascent area of opportunity in India is to grow certain crops under controlled growing conditions, which significantly increase yields while using only 10% of the water resources. Controlled growing conditions means growing using hydroponic greenhouses, which requires significant up front capital investment. It is a well-tested growing technology in Europe and North America, and thus far in India only a few limited growers have taken up the challenge. PGLO management believes there is a significant opportunity for the company to lead the development of a professional-controlled growing operation in India. PGLO believes it would be the first professional organization to undertake such a task, but it would be done with the help of the Indian government and various state governments, who are keen to encourage the development of such agricultural technologies.
India has significant undeveloped geothermal power production resources at approximately 10 GW as estimated by the Geological Survey if India. It is estimated that only three licenses have been issued for less than 50 MW. PGLO management believes geothermal power development in India is a major sustainable energy growth opportunity. Thus far, only one project has been announced – the National Thermal Power Corporation (NTPC), a state-owned body, has announced the preliminary development of a project in conjunction with the Chhattisgarh Renewable Development Agency (CREDA). Additional opportunities are available to those willing to assume the development work.
There is a significant green building trend across the globe, wherein developers seek to build buildings that significantly reduce their environmental impact in terms of energy use and waste output. This trend is evident in Europe, North America and Japan. However, less well-known is that India has a nascent green building trend. The LEED building program (Leadership in Energy and Environmental Design), a North America certification process, has certified more than 1,000 building in India to date. The government and trade associations are encouraging more such green building design. PGLO seeks to be a leader in green building design in India in the residential and commercial markets.
PGLO operates under a focused leader who has built a career around India’s rapidly growing renewable energy market. The company is backed by several key partners assisting the company with its preparations in India.
Bharat Vasandani - Chairman
Bharat Vasandani has focused his career on India’s renewable energy and green building sectors. Vasandani began his career at Indian plastic manufacturing company Jyotika Industries from October 2001 to September 2003. In November 2005, he joined D’Essence Consulting in Mumbai, India, where he was part of a team that assisted private and public companies on business strategy and turnarounds. From November 2006 to April 2009, Vasandani served a similar role with TresVista Financial Services in Mumbai, India, providing strategic and operation advice to both Indian and international companies on valuation, equity investments and M&A.
Vasandani obtained his Bachelor of Engineering in Biomedical, from the University of Mumbai in 2001. In 2005, he completed his Masters in International Business at ESC-Grenoble, France.
Dr. Amanjit Singh Josan – India Partner
Dr. Josan is a Post-Graduate from Punjab Agricultural University, Ludhiana, India. He has over 20 years of experience in the field of Horticulture, Floriculture, Agriculture Extension and Greenhouse technology. His educational training in the field of greenhouse technology is from reputed institutes in Holland and his practical application has been in Ontario, Canada.
He has been involved directly in creating one of the leading and successful cucumber hydroponic growing systems in Canada. His specialty is transforming traditional agricultural farming system into productive, profitable and innovative agricultural unit. He is a visionary person with attention to critical detail. His emphasis is creating a practical training unit to impart education at the grassroot level and increase awareness among growers to maximize profitability with high degree of sustainability.
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