Government allows flexibility in use of domestic coal o reduce power generation cost

The Ministry of Power (MoP) has allowed state governments and union territories (UTs) flexibility in utilisation of domestic coal in power generating stations to reduce the cost of power generation. 

States are permitted to utilise their linkage domestic coal, under flexible utilization of coal, in the case-2 scenario-4 power plants which will result in reduction in the cost of power. The savings will be passed on to the electricity consumers. This will also help reduce the import of coal,  in line with the Aatmanirbhar Bharat initiative. It will also decrease carbon emission as the coal will be used in the more efficient power plants with lower station heat rate. Presently, consumers of Punjab, Haryana and Uttar Pradesh will benefit from the scheme with the expected savings in Punjab being about Rs 3 billion per annum.


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