The Union Cabinet chaired by Prime Minister Narendra Modi has approved flexibility in domestic coal utilisation for reducing the cost of power generation. The objective of the proposal is to allow flexibility in optimal use of domestic coal in efficient generating stations, resulting in reduction in the cost of electricity generation and reduce the power purchase cost of State distribution companies. This proposal is also in line with the UDAY scheme of Government of India which also envisages liberally allowing of coal swaps from inefficient plants to efficient plants and from plants situated away from coal mines to pithead, to minimize cost of coal transportation thus leading to reduction in cost of power.
Contact: Ministry of Power, Govt. of India
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