The Ministry of Power has issued directions under Section 11 of the Electricity Act, 2003, to address the prevailing demand-supply constraints and the anticipated rise in electricity demand in the coming months.
The ministry has mandated that the imported coal-based (ICB) plant of Coastal Gujarat Power Limited to operate at full capacity in the larger public interest. The move is aimed at augmenting generation from ICB plants to meet peak demand requirements. The tariff for power supplied to power purchase agreement (PPA) holders will be determined by a committee constituted by the Ministry of Power, with representation from the Ministry of Power, Central Electricity Authority and NTPC Limited. The committee will determine benchmark rates that adequately cover all prudent costs of generation using imported coal, including fuel costs, transportation expenses, operations and maintenance costs, along with a reasonable margin.