Union Power Minister Sushilkumar Shinde, speaks on the import of Chinese power equipment and other current issues, in an interview with Sanjay Jog. Edited excerpts:
Is the power ministry against the use of Chinese equipment? Do you support the imposition of import duty of 15 per cent, as demanded by Indian firms and the ministry of heavy industries?
The power generating companies are free to source their equipment from anywhere. However, with the induction of supercritical units in a big way and the thrust on creating indigenous manufacturing capacity for these, several new joint ventures have come up in the country for manufacture of supercritical steam generators and turbine generators. To provide a level playing field and with the disadvantages faced by domestic manufacturers, a Committee under a Planning Commission member has recommended levy of a 14 per cent tariff on imported equipment. Its recommendations are under consideration.
What is happening on the joint ventures for manufacturing of BTG (boiler, turbine, generator) and BoP (balance of power) units?
Joint ventures for manufacture of supercritical boilers and turbine generators for thermal power plants have been set up by L&T-MHI, Alstom-Bharat Forge Toshiba-JSW, Gammon-Ansaldo, Thermax-Babcock & Wilcox. BGR-Hitachi seems to be also intending to set up a JV here to make supercritical boilers and turbine generators. DUSSAN from Korea is putting up an equipment manufacturing unit in India, entirely foreign direct investment.
It is not mandatory to associate an Indian partner. However, the foreign players are preferring an India associate and setting up their manufacturing facilities as a JV.
What is the latest on capacity addition during the 11th Plan?
The Planning Commission had fixed a capacity addition target of 78,700 Mw during the 11th Plan (2007-12). However, by the mid-term appraisal, the likely capacity addition during the 11th Plan is 62,374 Mw, comprising 21,222 Mw in the central sector, 21,355 Mw in the state sector and 19,797 Mw in the private sector. The total capacity commissioned during the Plan till October 1 was 27,837 Mw, more than the capacity added during the 10th Plan, which was only 21,800 Mw. Between January 2006 and this September, we added more than 41,000 Mw capacity. About 9,585 Mw was added during 2009-2010, the highest in a single year during the past 60 years. More than 100,000 Mw capacity is under construction for commissioning in the 11th and 12th Plan. We are confident on the addition.
What are the reasons for slippage in meeting the target?
The targets envisaged in the beginning of the 11th Plan for hydro capacity addition was 15,627 Mw. Against this, 3,882 Mw of hydro capacity has been achieved so far and the balance is under various stages of construction. By the present assessment, 5,442 Mw of hydro capacity is slipping from the 11th Plan target. Slippages are due to geological surprises, environmental concerns, law & order problems & local issues, and natural calamities.
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Awards for civil and electro-mechanical packages for hydro schemes with aggregate installed capacity of 15,627 Mw have been placed and no hydro project under construction is affected due to delay in supply of equipments. Also, land acquisition has not affected the overall progress. Also, all 11th Plan hydro projects under construction by private developers have achieved their financial closure.
What are the targets for the 12th and 13th Plans?
A working group is yet to be set up by the Planning Commission to finalise the 12th Plan. However, preliminary studies have indicated capacity addition requirement for that Plan to be 1,06,470 Mw to meet the demand projects of the 17th EPS (Electric Power Survey). Capacity totalling 65,945 Mw is under execution for likely benefits during the 12th Plan.
Preliminary studies for the 13th five-year plan (2017-22) have indicated a capacity addition requirement of about 82,000 Mw (excluding renewables).
What are the ministry’s views on availability of adequate funds for power developers? Do you seek further incentives from the finance ministry?
The working group on power has estimated the total requirement of funds in the sector during the 11th Plan at Rs 10.59 lakh crore.