Govt allows flexible use of domestic coal

New Delhi: The Power Ministry has allowed flexibility in utilisation of domestic coal for reducing the cost of power generation. According to a power ministry statement, states can use their linkage domestic coal, under flexible utilization of coal, in the Case-2 Scenario-4 power plants leading to reduction in cost of power.

The Case-2 Scenario-4 power plants are those power plants which have been bid based on the Net Heat Rate and the power generated from such power plants is supplied to the state itself. "The Government of India has enabled State governments and UTs by allowing flexibility in utilization of domestic coal amongst power generating stations to reduce the cost of power generation," the statement said. Entire savings shall be passed on to the electricity consumers, it stated.

At present, consumers in Punjab, Haryana and Uttar Pradesh will benefit from this. The expected savings in Punjab alone is going to be Rs 300 crore per annum, it said. This will also help reduce import of coal and is aligned to the Aatmanirbhar Bharat initiative. It will also reduce the carbon emission as the coal will be used in the more efficient power plants with lower Station Heat Rate.

Under the flexibility in utilisation of domestic coal, states can also use their aggregated linkage coal i.e Aggregated Annual Contract Quantity in the power plants which have been established through competitive bidding under Case-2 Scenario-4. The Case-2 Scenario-4 plants have been established through a bidding process under the guidlines issued by the Ministry under Section 63 of the Electricity Act 2003.