MoP notifies Methodology for Use of Coal by States for Private Generating Stations

The Ministry of Power (MoP) has notified the Methodology for Use Coal by States for Private Generating Stations under the policy on the Flexibilisation in Utilisation of Coal for Reducing Cost of Power Generation, which was notified in May 2016. As per the methodology, states can invite tariff bids from independent power producers (IPPs) using the coal that the states themselves assign to them. The landed cost of power from the IPP should be less than the variable cost of power from the state power generation unit which the private player is seeking to replace.