Mahagenco reduces electricity generation cost by 9.32 per cent in July

Maharashtra State Power Generation Company (Mahagenco) has stated that it has reduced its generation cost by around 9.32 per cent in July 2020 by adopting merit order dispatch (MOD) for coal sourcing.

According to the company, this will result in a reduction in the cost of power for consumers by around 20-22 paise per unit. In 2016, the Centre had approved the MOD mechanism to reduce the cost of electricity generation in the country and, thereby, reduce the cost of power for consumers. Under the mechanism, the government eased the geographical restrictions in coal provisioning and allowed flexibility in utilisation of domestic coal among state and central power producers to reduce unnecessary transportation of coal and involved costs of the same.

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