Coal news and updates

New coal linkage, tariff policies coming soon

Government will soon come out with a coal linkage policy to ensure supply of fossil fuel and a new tariff policy aimed at boosting regulatory mechanism for discoms and attracting investments.

“In the coal sector, a lot of policies are being changed. The process (for coal linkage policy) is underway. Both (the policies) are coming out very soon,” Coal and Power Minister, Piyush Goyal, told reporters here.

When asked whether the government would go ahead with one billion tonnes of coal production target when there were raging concerns about rising pollution level Goyal said “100 per cent we will make one billion tonnes. Maybe, more than that.”

On the concerns expressed by the Finance Ministry that the implementation of bailout scheme for discoms UDAY will push up the combined fiscal deficit of states and Centre, Goyal said . “They have not raised concerns to me. They are all delighted. “Every banker, both the ministers, junior and senior, have thanked me,” he said. The government had earlier said the framing of new tariff policy is in the final stages and will be placed before the Cabinet for approval.

The central government in 2006 had approved the Tariff Policy under the provisions of Electricity Act, 2003. The Power Ministry has to get the approval from the Cabinet for a new electricity tariff policy.

Goyal had earlier said “the policy will reflect a concern to environment and encourage renewable energy. It will encourage faster roll out of investment in the sector“.

Besides, it will strengthen the regulatory mechanism so that discoms become more efficient and conscious towards their duties to consumers, he had said.

“It will also help India’s energy security by planning in advance for the requirements for tomorrow. Several unique aspects which have not been touched in the past are being brought out in this policy,” he had added. The minister had indicated the new tariff policy will give a big push to electricity generated from renewable energy sources and address concerns related to the environment.

Source: http://www.thehindu.com/