The power sector has been laggard in the tenth plan period and may prove a constraint in India’s growth story. In an exclusive interview with Chaganti Sarita, minister of state for power, Jairam Ramesh, who was given this additional charge a few months ago, expresses his concern over the sector even as he supports private participation in the country's nuclear power sector. Excerpts:

How would you describe India's power scenario?

The power scenario is indeed grim. We have states like Maharashtra, Karnataka, Andhra Pradesh, to an extent Punjab and Haryana, which have been facing very serious energy shortages. So far as south India is concerned, a large part of it has been caused by the failure of rains. There have also been delays in bringing commissioned projects into commercial operation. Not every commissioned project is a commercially operating project. Just because the project is synchronised on oil, it is considered commissioned. So, this peculiar definition of commissioning has now been changed. In 2007-08, we had commissioned about 6,620 mw of coal-based capacity, but almost 58 per cent of that has not reached commercial operation. From public's point of view, commissioning is only when the power plant is ready to put power of the rated capacity into the grid.

Having painted a bleak picture of the sector, what are your priorities?

When I joined, I set for myself three priorities. First, get project implementation going by putting delayed projects on a fast track. Second, empower the public sector undertakings such as NTPC, Bharat Heavy Electricals (Bhel), Power Grid and NHPC as they are the foundation of the power sector. Give them a good work environment and solve their problems, which they come across in their interface with the government. The third is to look at new technologies that can make a substantial difference to the power industry.

We are aware of delays. How many projects have not come up as scheduled?

Virtually every project is delayed, ranging from a few months to a couple of years. In the last four months, I have been to 11 projects all over the country plus Bhel in Trichy, Haridwar, and Hyderabad. There have been some success, but my main concern is how to institutionalise problem solving. In the government, we are experts at finger pointing. That mechanism to solve problems has to be put in place.

The government has set for itself an ambitious target of adding 78,577 mw capacity during the 11th five-year plan period (2007-12). The yearly target plans have been devised accordingly. Do you think the targets are achievable?

The targets are meaningless because they are based on the old definition of commissioning. We should revise the targets now. Last year, we commissioned 9,200 mw and this year we are expected to do 11,000 mw. Whether we will achieve the targets is difficult to say. May be in another six months, I will have a better feel. We could reach 75 to 80 per cent of this year's target.

Nuclear energy contributes a very small portion to India's electricity sector. Do you see a case for allowing private participation to bridge the energy shortages?

Nuclear role is very important for India. It is expected that by May 2011, the 500-mw fast breeder reactor at Kalapakkam will go commercial. That would be a very critical turning point. It is true that by 2020, nuclear capacity will account for only about six per cent of the installed capacity compared to about 3.5 per cent now. But by 2050, nuclear capacity can easily go up to 25 per cent. Whether private companies should be allowed in nuclear energy space is up to the department of atomic energy to decide. But I think there could well be a role for private players, why not? There are private companies elsewhere in the world. Already, companies like Bhel are involved in the nuclear power programmes. There is a history of private participation in nuclear space. Companies like Reliance and Jindal have expressed interest. Things would be clear only after the nuclear agreement (with the US) goes through.

The debate on whether we should import equipment from China has been going on for quite some time. What is your view on the issue?

In the 11th five-year plan, Chinese equipment will contribute 20 per cent of the capacity. I am not very happy with this. If Shanghai Electric manufactures them in India, it is welcome. We should encourage domestic progressive manufacturing. China encourages that. Why should we not do the same? I am not terribly in favour of this open ended free imports. The 16,000-mw imports could have been manufactured in India. It is not a small sum. I think straightforward import is bad for our capital goods industry and domestic manufacturing. I have been saying this from day one. Chinese plants are not equipped to run at higher availability of 90 per cent because China does not face the shortage situation as we do. Moreover, they do not deal with the quality of coal we use. There are some technical problems we are looking into for assessment. I hope that in the 12th plan, we do not repeat the 11th plan scenario that 20 per cent of the capacity is coming from Chinese imports. It should come down. If the same Chinese plants are competitive, they should be used but they should be manufactured in India.

What is the progress on bulk tendering of super-critical equipment?

Technical specifications are being worked out. The portfolio of projects is being worked out by CEA. We could be ready to go in for the bulk tenders sometime by the end of October and by middle of February, we should be placing the orders. That's the schedule. The orders will be placed for Damodar Valley Corporation and NTPC. The minimum that will be tendered is nine units; the number can go to a maximum of 12.

The coal ministry has recently said that the power utilities are to be blamed for the inadequate coal stock position at the plants. What is your take on this?

Instead of having three weeks' stock, many power companies are having a stock position of about a week or even less. The situation should improve collectively. There is no value in blame game.

Land acquisition has been a major impediment to implementation of power projects. Do you see a need for a better compensation package?

We should look at ways of cutting the land size. Right now, the one-acre-per- megawatt is too steep a ratio. In countries like Germany, they are able to do with 0.6 acre per megawatt. My view is we should seriously look at cutting land and water also.