Millennium Post

Govt may not give free power to coal-producing states: Goyal

"The major coal bearing states — Odisha, Jharkhand and Chhattisgarh — have been airing their concerns about negative externalities they face in connection with coal mining and thermal power generation and have been demanding equitable compensation to host power generating states and levy duty on generation," Power Minister Piyush Goyal said in a written reply in Rajya Sabha. In this regard, the Planning Commission engaged TERI (The Energy and Resources Institute) to suggest a suitable methodology for compensation to the states.

Thereafter, TERI submitted its report to the Planning Commission.

"The report has not recommended the use of free power to cover negative externalities as the same may create different implications for power deficit and power surplus states," Goyal said.

He added that the government had already introduced in 2010 a Clean Energy Cess for which a levy of Rs 100 is now imposed on every tonne of coal. The amount collected is provided to National Clean Energy Fund (NCEF) which aims to fund projects on clean energy, including the host states.

Meanwhile, Goyal also said that the government is working on a new renewable energy policy to facilitate speedy growth of the sector. Minister of State for Renewable Energy Piyush Goyal in a written response to a question in Rajya Sabha said the new policy is under consultation with the stakeholders.

“The Ministry is preparing a Renewable Energy Bill to facilitate speedy growth of renewable energy power generation in the country. The details are being worked out in consultation with concerned stakeholders. Efforts will be made to bring the policy in place as early as possible,” he said.
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