Government tweaks coal utilisation norms for private power producers

News: The Union power ministry on Friday said that it has allowed private power generating stations to secure coal supplies for up to three years instead of current norm of one year, a move that comes against the backdrop of rising demand for electricity. The ministry has tweaked the methodology for the use of coal, allocated to states, by Independent Power Producers (IPPs) wherein the timeline for the bidding process has also been reduced to 37 days from current 67 days.

Views: The measures have been taken for ensuring more efficient utilisation of domestic coal as well as for optimally utilising the railway infrastructure for maximum transportation of coal to the power plants. Larger visibility has been given to the power plants by extending the period of supply of coal from 1 to 3 years.

Impact: Positive