Money Matters:

 

Investment, Savings & Speculation 

There is a big difference between Saving & Investment. Let’s have a look below two Equation:

Equation#1: Saving=Income-Expenditure

Equation#2: Expenditure=Income-Saving

You may choose the style of Expenses out of above two equation. Equation#1 is a typical & old style of saving. This method of saving doesn’t require much more knowledge of finance, so all of us choosing this option all the time.in this option, it is difficult to minimize Expenses. If you cannot able to minimize the expenses wisely then saving may be negative & nothing will be saved for tomorrow.

But Equation#2 however best style for growth of your investment & minimization of expenditure.in this option, it is very easy to minimize the expenses & saving is translate to Investment for tomorrow.

If you not able to control the expenses then choose Equation#2 option. Savings always eroded by inflation. Saving always has to fight with inflation.to ride the inflation saving has to be converted to investment, for better investment should be in view of long term horizon.

In terms of Economics: An investment is the purchase of goods or services that are not utilized/consumed at the present time but are used in the future to create wealth.

 In finance perspective: An investment is a monetary asset/interest purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit or growth of asset.

In term of macroeconomics, investment is everything that remains of total expenditure after consumption, government spending, and net exports are subtracted. Investment term always refer to any ways of time, money or effort used for generation of future income in mind. Investment can’t be imagine without Risk, it always comes with Risk.

Investment Vs Speculation

There is big difference between Investment & Speculation, Assets can be built by investing over the long term & and Through Speculation profit cab be made only for short period without any ownership of assets. Speculation nothing but a gambling & investment is considered as great way of making a better portfolio of assets with minimized risk. Another name of Speculation is gambling. Today many online trading are available which are nothing but purely example of speculation such as Equity/index derivatives (Future/Options), Commodity derivatives, bitcoin, games based on cards, casino games etc.

it is difficult to identify the which is best for option for saving of your hard earn money. There are many online platforms are available, whose intention is only to attract youngsters to join speculative type option for making money in short term by giving attractive offers. It is not possible to accumulate asset through speculation or its related option, these are only a trading option for short term

Factor affecting risk capability: there are many factors are available in life which are blocking the investment cycle i.e. marital status, Child education, inherit money, Job security, afford to lose money etc. For the growth of any country depends on trends & behavior of investment, volume & capacity of investment. Cash in portfolio is neither good for public nor good for individual, it is always trim by inflation.

Even though both investment & Speculation involves Risk of losing money, but it is suggested to be caution with speculative type of instruments. One famous phrase is that those who cannot afford to take risks should be content with a relatively low return on their invested funds. Investment with limited risk is always safer for future earnings.

Brief of Investment options

Equity definition: 

Equity/share is referred to as shareholder’s equity/share represents the amount of money that would be returned to a company’s shareholders after all of the assets liquidated and after paid off company’s debt. In addition, shareholder equity define in the book value of a company. It is a kind of ownership in the company as shares on pro rata basis. Equity is giving the ownership in company’s assets as well as liabilities. Equity represents ownership in the company to the extent of shares held. Shareholders participate in the management of the company by exercising the voting rights associated with the shares held. Investment in equity is a growth-oriented asset. The primary source of return to the investor is from the appreciation in the value of the investment. Dividends are periodic income to the shareholders also.Dematerialized (demat) account is required to purchase share/equity along with KYC. demat account is used to hold the shares in electronic form. Demat account can be obtained through depository participant (DP).DPs are act as an agent or broker between investor & depository.

Debt, Bond & Debentures:

Debt is an amount of money borrowed by one party from other party. Debt represents the borrowings of the issuer. Debt as an asset class represents an income-oriented asset. The major source of return from a debt instrument is regular income in the form of interest. The interest is typically known at the time of issue and may be guaranteed either by an undertaking of the government or by security created on the physical assets of the issuer.

The terms of the issue will determine the conditions such as the coupon or interest payable on the debt, the tenor of the borrowing after which the borrower/issuer has to return the principal to the lenders/investors, the security against the assets of the borrower offered as collateral, if any, and other terms.

Bonds are backed by the asset of the issuer whereas debentures are not secured by any of the physical assets or collateral. 

Debentures are issued and purchased only on the creditworthiness and reputation of the issuing party. 

The interest rate of bonds is generally lower than debentures.Governments and public sector companies tend to issue bonds, while private sector companies issue debenture

 

Mutual Fund:

It is a vehicle/trust to mobilize money from investors, to invest in different markets and securities, in line with the common investment objectives agreed upon, between the mutual fund and the investors. Through investment in a mutual fund, an investor can get access to equities, bonds, money market instruments and/or other securities market, investor in MF can able to avail of the professional fund management services offered by an asset management company (AMC).AMCs prime role is to assist investors in earning an income or building their wealth, by participating in the opportunities available in various securities and markets.

 It is possible for mutual funds to structure a scheme for different kinds of investment objectives. Mutual fund structured through various available schemes with different objective for investor. MF offer different kinds of schemes to cater to the need of diverse investor’s objective. For the purchase of Mutual fund,it is mandatory to have a Know Your Customer (KYC) in intermediaries. It is very important to choose the fund based on your requirement & time horizon. 

Types of Mutual Funds:

• .Open-Ended Funds, Close-Ended Funds
•   Actively Managed Funds and Passive Funds
•   Equity oriented, Debt oriented & Hybrid Fund
•   Regular & Direct Funds
•   Growth & Dividend Funds

Chapter:1

Once upon a time....

जान है, तो जहान है!

There is a tree in a garden of a populous city, tree has never counted their Leaves being falling per day or year. Tree never bothered about these Leaves because every day these fallen leaves is being replaced with new one. Tree is enjoying the nature & city environments. Suddenly one day, unnaturally one leaf has fallen down. Birds perched on tree giving Alarms for this unnatural events. Day by day in daily basis one or more leaves are being falling down. 

After some day tree feels, there is a scarcity of Food & Energy required to survive. Now Tree is not able to enjoy the Environment due to unnatural behavior of leaves being falling from tree.Tree remembered, how tree saved their leaves during  Great Disaster some year ago.Other trees also started to feel the same unnatural thing of falling leaves.

Now tree has realized that every leaf is important and tree has decided to count the numbers of leaves that left in tree. Now it is a big task for tree to save every leaves with limited resources. Tree has started to calculate the total Energy/Resources that kept for future purpose, all resources are re-structured. These resources are rerouted with every leaf so that continuous growth will happen to enjoy life.

Today, we are feeling the same situation like tree, due to unknown Virus called COVID-19. Now, we really feels every person is required to survive for enjoy the real social life. We are missing all those service providers whom we never bother before today from Milk man to fire Man, Newspaper boy to office boy, security man to sales Man etc.

The society is senseless/meaningless without every one. We started to be Social when we are at “Social-Distancing”. We started to learn the world with distance Learning. We are now moving toward a new world/society with new rules & Regulations. Regulators started to Frame a new society/Scenario with restructuring the current scenario, New Guidelines are launching every day to save a person for new or better Society.Without world it is difficult to imagine the Life & without life, it is difficult to imagine world. With very short span of Lock down due to Covid-19, world is recognizing the importance of both Life & World. Now it is the time to save both the World Economy & Life, Which is a big Challenges in current scenario.

Almost all Country has stared to offer Economic Stimulus packages, new steps opens for ease of economics recovery/Ease of Doing Business. Road maps has been started to make for fast recovery of Economies around the world. It is very difficult to save the society/sustain the Economic Growth with limited resources & restricted work force, as we can’t survive on savings only without regular income/Revenue. Every road maps are Reorganizing/Re-routing for recovering the Economies & Life.

All Sectors of economy recognize the needs of Migrant workers/service providers during the Covid-19, Migrant workers are badly affected throughout the world.

Migrant workers needs food as well as continuous works/earning source to cope up with effect of Covid-19. Minimum Guarantee work/wages should be introduce rigorously to cope up with slower Growth of Economy. 

World is changing rapidly with new ideas to overcome from Covid-19 & to save Economy. Lots of thing are changing from Pre-Covid , During Covid & Post Covid. During  Covid-19, our all service providers are playing an important role. This is the time to say Thanks to all Corona warriors. We have to analyze the every aspect of Work & Social Behaviors & responsibility for rapid Social & Economic Growth. Some Personal  Aspects during & Post Covid are listed below:

During Covid	Post Covid
Unemployment	E-Learning
Slower Growth	Digital World
Limited Demand	Easy Finance
Limited Supply	Boost for Transparent Economy
Restricted work Place	Boost Health care for All

Post Covid-19 will have to give more thrust on Digital Economies, we will have to encourage for Digital payments, online services etc. Restructuring, Recapitalization is required for every aspect of affected Economy though Reorganization, Re-routing of fund flow from non-Essential to Essential services/Benefits. Personal Savings shall be converted to Investments for long term. Banking door will have to open for every citizens for short & long term loans.

Education should be provided for needy persons for easier & hassle free borrowing from Banks/Financial Institutions. Self-defensive equipment or PPE should be available for all in affordable price.

All of us have to be restructured our personal expenditure such that essential items shall be listed first. & try to invest savings to Long term investment instruments.

It is the time to help needy people & save their life, do needful duties for fast recovery of our Economy by following Government Guideline regarding CIVID-19 because “जान है तो जहान है”...

ABC OF SUPER-CRITICAL

SUPER-CRITICAL FLUID:

A substance above its critical points at certain temperature & pressure. It do not have liquid- gas phase boundary. There is no surface tension in supercritical fluid. Above critical point in small increase in pressure causes a large increase in the density of the super critical phase. It has low viscosity and high diffusion.

1.    NO Gas –Liquid Phase boundary.

2.    NO Surface Tension

3.    low viscosities and high diffusivities

4.     capability to reduce particles up to a range of 5-2000 nm

5.    Less  reaction time

 Using water as the working fluid, this takes it into supercritical conditions. Efficiencies can be raised from about 39% for subcritical operation to about 45% using current technology

T_{c (mix)} = (mole fraction A) x T_c A + (mole fraction B) x T_c B

WHAT IS SUPER-CRITICAL?

Supercritical is a thermodynamic expression describing the state of a substance where there is no clear distinction between the liquid and the gaseous phase, as it is a Homogenous fluid.

Water reaches supercritical state at a pressure above 22.1 (MPa).

Operating pressure approx. at 19 MPa in the evaporator part of the boiler, the cycle is subcritical.

This means, that there is a non-homogeneous mixture of water and steam in the evaporator part of the boiler. In this case, a drum-type boiler is used because the steam needs to be separated from water in the drum of the boiler before it is superheated and fed into the turbine.

 Above pressure of 22.1 MPa in the evaporator part of the Boiler, the cycle is supercritical. The cycle medium is a single-phase fluid with homogeneous Properties and there is no need to separate steam from water in a drum.in supercritical cycle once-through boiler is required.

For once-through boilers, operating pressures up to 30 MPa represent the state of The art. However, advanced steel types must be used for components such as the boiler and the live steam and hot reheat steam piping that are in direct contact with steam under elevated conditions. Therefore, a techno-economic evaluation is the basis for the selection

Of the appropriate cycle parameters.

As the fluid pressure increases, Latent Heat (Enthalpy of Steam –Enthalpy of Water) reduces.

At Critical point it becomes zero.

In physical terms at this pressure water transforms to steam spontaneously.

SUPER CRITICAL STEAM PARAMETERS:

STEAM PRESSURE	STEAM TEMPERATURE
> 221.2 BAR	> 374.15 Deg C

   REQUIREMENT OF SUPER-CRITICAL

Supercritical coal fired power plants permits efficiencies that exceed 45%, depending on cooling conditions. Options to increase the efficiency above 50 % in ultra-supercritical power plants rely on elevated steam conditions as well as on improved process and component quality.

Steam conditions up to 30 MPa/600°C/620°C are achieved using steels with 12 % chromium content. Up to 31.5 MPa/620°C/620°C is achieved using austenite, which is a proven, but expensive, material.

Nickel-based alloys, e.g. Inconel, would permit 35 MPa/700°C/720°C, yielding efficiencies up to 48%. Other improvements in the steam cycle and components can yield a further 3 %.

Most of these technologies, like the double reheat concept where the steam expanding through the steam turbine is fed back to the boiler and reheated for a second time as well as heat extraction from flue gases have already been demonstrated.

There are no operational limitations due to once-through boilers compared to drum type boilers. In fact, once-through boilers are better suited to frequent load variations than drum type boilers, since the drum is a component with a high wall thickness, requiring controlled heating. This limits the load change rate to 3% per minute, while once-through boilers can

 Step-up the load by 5% per minute.

This makes once-through boilers more suitable for fast startup as well as for transient conditions.

Current designs of super-critical plants have installation costs that are only 2% higher than those of sub-critical plants. Fuel costs are considerably lower due to the increased efficiency & operating costs are at the same level as sub-critical plants. Specific installation cost i.e. Cost per megawatt (MW) decreases with increased plant size.

Reason behind need of super critical Power Plant:

      1. Demand for power is growing in fast pace with scarcity of Land,water & fuel.

       2. With tariff based bidding gaining ground, utilities have to bring down   their cost of generation to remain competitive.

      3. Requirement of Environment Green and Clean Technologies.

      4.  CDM (Clean Development mechanism) opportunities arising out of global warming concerns - by selling officially sanctioned certified emission reduction (CER) credits (Kyoto Protocol).

 Benefits of advanced supercritical power plants include:

1.     Reduced fuel costs due to improved plant efficiency.

2.     Significant reduction in CO2 emissions.

3.     Excellent availability, comparable with that of an existing sub-critical plant.

4.     Plant costs comparable with sub-critical technology and less than other clean coal technologies.

5.    Reduced NOx, SOx and dust emissions.

6.     Integrated with appropriate CO2 capture technology.

SUB-CRITICAL STEAM GENERATOR SYSTEMS

Water when heated at sub-critical pressure (< 22.1 MPa) increases in temperature until it starts to boil. While the water is boiling it exists as two phases, liquid and gas that have different mass densities, and remains at a constant temp. Known as the saturation temperature for the given pressure. Once all of the liquid has boiled off to steam (Evaporated) the temperature of the steam will continue to rise, at constant pressure, and is then referred to as superheated steam.

Sub-critical boilers typically have a means of separating the two phases, liquid and steam, to allow the process to be continuous. The separated liquid is recirculated through the evaporating section of the boiler and steam passes through to the superheating section.

This separation typically occurs in the boiler drum, a heavy thick walled steel pressure vessel with a series of cyclones and baffles to separate liquid from steam.

It is the mass of this boiler drum which limits the rate at which a sub-critical boiler can be brought on line and how well it responds to load changes which results in fuel being consumed for no energy compared with a more responsive boiler.

SUPER-CRITICAL STEAM GENERATOR SYSTEMS

When water is heated at a constant pressure above the critical pressure its temperature is Never constant and no distinction between gas and liquid can be made, the mass density of the two phases is the same. Properties of the water in the super-critical boiler continuously

Change from liquid to gas (steam).

i.e. Temperature rises steadily, Specific heat and rate of rise changes considerably

Liquid in the super-critical boiler is assumed to have changed to steam after the critical temperature for the super-critical pressure, as the steam is heated further it continues to gain temperature in a super heated state.

With the super-critical boiler there is no stage where the water exists as two phases and requires separation, so the boiler is constructed without a drum. Typically super-critical boilers are once through boilers where water pumped in at pressure by the Boiler Feed Pump passes progressively through the heating stages of the boiler and is delivered to the Turbine at final temperature with no re-circulation.

The actual location of the transition from liquid to steam in a once through super-critical Boiler is free to move with differing conditions. This means that for changing boiler loads & pressures the process is able to optimize the amounts of liquid and gas regions for efficient heat transfer keeping the high boiler efficiency over a wider range than sub-critical

Boilers with drums. 

TYPICAL BLOCK DIAGRAM FOR SUB-CRITICAL TURBINE CYCLE  

TYPICAL BLOCK DIAGRAM FOR SUPER CRITICAL TURBINE CYCLE

Enlight the world with Recycle & Retransmit of Free Energy.....

Now Today's scenario Solar energy getting more popular in Clean & Green energy field, but by insolation Earth receives Lacs of TW since its evolution then why it becomes popular today?

Let’s Have Look to “Photovoltaic Effect”
  When the sunlight or any other light is incident upon a material surface, the electrons present in the valence band absorb energy and, being excited, jump to the conduction band and become free. These free electrons which generates an electromotive force and light energy is converted into electric energy.
In similar fashion now all emerging country is now able to receives financial help from world’s leading Bank under Clean Development Mechanism (CDM) or new Market Mechanism/carbon credit Market or cap & trade scheme across the world. Which creates lot of opportunities for Renewable Energy Field. Every emerging country had shown great interest for clean & Green Renewable energy. Hence best to opt for solar energy.

Challenges & opportunities 
At present CDM is facing crisis due to Global Financial turbulence. With decreasing CER & interest is also showing less by developed country. No of Project registered under CDM is also declining. Demands for CER (Certified emission reduction) is expected to remains low.

With increasing uncertainties across the world it is very challenging task to handle Global warming.
Hence almost all Emerging countries runs for renewable energy technology. So it is best to go for “Solar Energy”. India’s plan to install 100 GW from solar Power, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power projects by 2022. india is second highest position in registering projects under CDM.
For achieving such large target, Indian Government initiated Incentives for new comers in this field. Most ambitious programme of the Indian government is the “Development of Solar Cities Programme” & solar Parks under which many projects have been already approved.

As Solar Power is best & easiest to install, so Topic covered only Solar Power.












So now let’s know the kind of solar Power option available:
  A.  Photovoltaic solar (PV)
  B. Concentrated solar power (CSP)
First one is direct type & second is indirect type. PV requires solar Modules for conversion of solar energy to electric energy through the photovoltaic effect.
Typical Solar PV Block Diagram












Silicon is the most popular material for solar cells though which solar modules & solar Panels.
Types of silicon used for solar cells are

A. Monocrystalline or single crystal silicon
B. Multicrystalline silicon
C. Polycrystalline silicon
D. Amorphous silicon.

Solar modules use light energy from the sun to generate electricity through the photovoltaic effect. The majority of modules use wafer-based crystalline silicon cells or thin-film cells based on cadmium telluride or silicon. Solar Modules is made from Solar Cells.From Combination of Solar Modules, solar Panels can be structured.

Concentrating Solar Power (CSP) systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. The concentrated heat is then used as a heat source for a conventional power plant, but CSP is less popular.
Roof based PV & Grid connected solar Power is growing very fast because of its low installation time & lesser complexity. Indian Government is helping for implementation of solar Roof Top widely across India.  A total of 3030 MW Of grid-connected power generation capacity from renewable energy sources like solar and wind has been added so far this year. With increasing demand of power & decreasing Natural resource of coal & Gas, it is better to utilize the solar energy & save the Earth from global Warming.
Rev:01_Chapter 1                                                                               

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