Power generation costs to reduce on relaxation of coal norms: Piyush Goyal

A proposal to relax norms for utilisation of domestic coal to bring down cost of power generation has been approved by the government, Power Minister Piyush Goyal said on Thursday.

He said in Lok Sabha during Question Hour the decision will provide flexibility in utilisation of domestic coal for reducing the cost of power generation.

The decision by the Union Cabinet on Wednesday is expected to help reduce cost of power generation by 40-50 paise per unit and will lead to savings of Rs 25,000 crore per annum in 4-5 years.

The Minister said the government has notified a new tariff policy on January 28, which mandates that thermal power plants, located within 50 km radius of sewage treatment plant of a municipality or local body,

will in order of their closeness to sewage treatment plant, mandatorily use treated sewage water produced by these bodies.