Govt approves amendments in Power Tariff Policy to improve ease of doing biz
Updated: Jan 20, 2016 04:33:53pm
New Delhi, Jan 20 (KNN) The Union Cabinet today approved the 'National Tariff Policy for Electricity' with the view to regulate setting of power rates and promotion of clean energy.
The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the proposal of the Ministry of Power for amendments in the Tariff Policy.
“The amendments are also aimed at achieving the objectives of Ujwal DISCOM Assurance Yojana (UDAY) with the focus on 4 Es: Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability,” the Cabinet release said.
According to the Amendments, 24X7 supply will be ensured to all consumers and State Governments and regulators will devise a power supply trajectory to achieve this.
The Amendment also proposes to provide power to remote unconnected villages through micro grids with provision for purchase of power into the grid as and when the grid reaches there.
The amended policy envisages affordable power for people near coal mines by enabling procurement of power from coal washery reject based plants.
The amendment will generate employment in coal rich Eastern states like Odisha, West Bengal, Jharkhand, Chhattisgarh etc. by encouraging investments. States allowed to setup plants, with up to 35% of power procured by DSICOMs on regulated tariff.
It will also remove market uncertainty by allowing pass through for impact of any change in domestic duties, levies, cess and taxes in competitive bid projects.
The tariff policy would clarity on tariff setting authority for multi-State sales.
“Central Regulator to determine tariff for composite schemes where more than 10% power sold outside State,” the Cabinet release said.
These amendments will benefit power consumers in multiple ways. While reducing the cost of power through efficiency, they will spur renewable power for a cleaner environment and protect India's energy security.
They would also aid the objectives of Swachh Bharat Mission as well as Namami Gange Mission through conversion of waste to energy, usage of sewage water for generation and in turn ensure that clean water is available for drinking and irrigation.
These amendments will ensure availability of electricity to consumers at reasonable and competitive rates, improve ease of doing business to ensure financial viability of the sector and attract investments, promote transparency, consistency and predictability in regulatory approaches across jurisdictions. It will further facilitate competition, efficiency in operations and improvement in quality of supply of electricity. (With PIB Inputs)
The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the proposal of the Ministry of Power for amendments in the Tariff Policy.
“The amendments are also aimed at achieving the objectives of Ujwal DISCOM Assurance Yojana (UDAY) with the focus on 4 Es: Electricity for all, Efficiency to ensure affordable tariffs, Environment for a sustainable future, Ease of doing business to attract investments and ensure financial viability,” the Cabinet release said.
According to the Amendments, 24X7 supply will be ensured to all consumers and State Governments and regulators will devise a power supply trajectory to achieve this.
The Amendment also proposes to provide power to remote unconnected villages through micro grids with provision for purchase of power into the grid as and when the grid reaches there.
The amended policy envisages affordable power for people near coal mines by enabling procurement of power from coal washery reject based plants.
The amendment will generate employment in coal rich Eastern states like Odisha, West Bengal, Jharkhand, Chhattisgarh etc. by encouraging investments. States allowed to setup plants, with up to 35% of power procured by DSICOMs on regulated tariff.
It will also remove market uncertainty by allowing pass through for impact of any change in domestic duties, levies, cess and taxes in competitive bid projects.
The tariff policy would clarity on tariff setting authority for multi-State sales.
“Central Regulator to determine tariff for composite schemes where more than 10% power sold outside State,” the Cabinet release said.
These amendments will benefit power consumers in multiple ways. While reducing the cost of power through efficiency, they will spur renewable power for a cleaner environment and protect India's energy security.
They would also aid the objectives of Swachh Bharat Mission as well as Namami Gange Mission through conversion of waste to energy, usage of sewage water for generation and in turn ensure that clean water is available for drinking and irrigation.
These amendments will ensure availability of electricity to consumers at reasonable and competitive rates, improve ease of doing business to ensure financial viability of the sector and attract investments, promote transparency, consistency and predictability in regulatory approaches across jurisdictions. It will further facilitate competition, efficiency in operations and improvement in quality of supply of electricity. (With PIB Inputs)
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