States' role, quality manpower key to meet capacity addition target

The Union power ministry has set a capacity addition target of 15,600 Mw in the concluding year of the 11th Five-Year Plan (2011-12). However, the ministry, in its ‘Results Framework Document’ signed by Power Minister Sushilkumar Shinde and Power Secretary P Uma Shankar, said the proposed capacity addition would be possible if there was cooperation from various ministries and state governments and, more importantly, on the availability of skilled manpower.

Against the original target of 78,700 Mw (in the Eleventh Plan), as per the revised target fixed during the mid term appraisal by the Planning Commission the actual addition of 62,374 Mw is achievable.

“The capacity addition of 15,600 Mw with an excellent rating is feasible provided the coal ministry ensures supply of 335 million tonnes (mt) of coal from Coal India and its subsidiaries and early clearance of coal blocks,” A power ministry official, who did not want to be identified, told Business Standard.

“There is a need to finalise a long-term arrangement for the requirement of a coal-based capacity addition programme in power generation. Power utilities, who have captive coal mines, are expected to ensure supply of 23 mt during 2011-12. Besides, power utilities in the central and state sectors and their canalising agencies such as MMTC and State Trading Corporation need to ensure import of 35 mt of coal during the current financial year. Second, the petroleum ministry’s intervention is quite important in the supply of addition gas of about 60 million standard cubic meters per day (mmscmd) of gas during the year under administered price mechanism (APM) and from KG basin (D6) operated by Reliance Industries. Already the gas supply has been affected due to heavy fall in the production of D6 gas.”

The power ministry expects the Ministry of Environment and Forests to give early clearance of pending, new and proposed generation projects and transmission lines, expeditious clearance of hydro projects without waiting for the reports of a comprehensive study. “What the ministry is emphasising is speedy resolution of issues like ‘go’ and ‘no-go’ areas regarding coal mining,” the official noted.

The official admitted that land acquisition continued to be a major roadblock in expediting the timely implementation of projects.