'The Plan target is quite realistic'

The Central Electricity Authority (CEA) is the main planner for the country's power sector, with a brief to ensure reliable and affordable electricity to all consumers in the country.

The task is no doubt challenging, with the country having an energy shortfall of around 10 per cent and a peaking shortage of almost 14 per cent. The authority's Chairman, Rakesh Nath, however, tells Sapna Dogra Singh that a turnaround is imminent.Excerpts:

The CEA has a vast mandate, which include planning, monitoring, making projections and also providing advise to the government. Do you have enough manpower to carry out the gamut of tasks?

We are feeling handicapped with currently available resources. The CEA has about 1,000 people, but the number is gradually declining because people are not joining government services. In 2006-07, for example, we had given requisition for 41 engineers and appointment was approved for 31 engineers. But only eight joined. Also, about 30-40 people are retiring every year. Our work, on the other hand, has increased because we have to monitor a large number of power projects. Now we are taking people from outside on deputation from organisations like the NTPC and the NHPC and also sending our employees to these organisations to get field experience.

What went wrong in the 10th Plan?

The level of preparedness for taking up the power projects was not good in the 10th Plan. There were hydro projects in the Plan for which even the DPR (Detailed Project Report) was not prepared. But they were included in the plan. An attempt was made to correct that by taking some additional projects of 8,500 mw during the first two years of the plan. Most of them were extension projects of existing units, which can get clearances faster. Many of these would come up this year. About 1,400 mw of gas-based plants didn't take off during the 10th Plan. Another 900 mw of gas-based projects didn't come up because the gas was not available.

Is the 11th Plan target of 78,577 mw realistic?

Of course, it is. And we will achieve it. Already 49,000 mw is under construction and orders would be placed for the rest 30,000 mw by December 2007. In fact, we have also started working on the 12th Plan to ensure that work starts before the commencement of the Plan. The target for the 12th Plan would be about 80,000 mw.

Are there any more new gas-based projects in the offing in the 11th Plan, given that the supply of gas domestically would go up in the next couple of years?

No, we are only completing the ongoing gas-based projects, except for Tripura where gas is locally available. But we are keeping our options open. We have a list of gas-based projects that can produce 10,000 mw which could be taken up subject to availability and pricing of gas.

What is the current status of power plants in the country? How many needs to be decommissioned?

As of now, plants with a capacity of 2,000 to 3,000 mw needs to be decommissioned. It is not worthwhile to have plants with a capacity 1,000 mw operational due to their low efficiency. They are operating below 20-25 per cent of their efficiency levels. We have already retired quite a few small projects of 30 mw, 40 mw and 50 mw recently.

What about modernisation and reno-vation programmes for old plants?

It is not worthwhile to have an extensive renovation and modernisation scheme. We have now decided to spend small amounts on old machines to keep them running for 4-5 years till we have new capacities to replace them. Earlier, we had the modernisation and renovation scheme on a standalone basis. But now we are looking at overall efficiency. If an old project is not efficient and requires regular upkeep, then it is better to replace it with a new plant that would be based on new technology and requires less maintenance, but gives more output.

What about the 4,000 mw ultra mega power projects (UMPPs). There seems to be a slow down...

It is true there's a slowdown as Krishnapatnam (Andhra Pradesh) and Jharkhand UMPPs have missed their deadlines. Getting land, water, forest clearances take time and the support of state governments is very important. But these are being resolved, and by 2008, Krishnapatnam and Jharkhand will be awarded, and work on Sasan would also start.

What would you recommend to improve the power system in India?

I personally feel that states which are trying to improve their systems by being innovative and are reducing their transmission and distribution losses should be given more support by the government.

Can India be a power surplus country by 2011-12?

Well, some regions would certainly be surplus, especially the eastern region. Overall, the country will be in a comfortable position.