PM Modi okays new power policy
Under the policy, power plants will have to use processed municipal waste water available in their vicinity.
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a slew of amendments in the power tariff policy that will ensure continuous power supply to all, including remote villages through micro-grids, and for those living near coal mines.
These amendments will also ensure affordable tariffs, and were effected to facilitate the ease of doing business to attract fresh investments and ensure financial viability. The revised policy will enable improved regulation of the power distribution companies (discoms) and a faster rollout of investments.
“The Cabinet approved a new power tariff policy which will promote clean energy, support the Swachchh Bharat programme, better regulations for discoms and encourage faster rollout of investments in the sector,” MoS power Piyush Goyal said.
Besides encouraging faster investments, the new policy will reflect a concern for the environment and encourage renewable energy. It will also strengthen the regulatory mechanism so that discoms become more efficient and conscious of their duty to consumers.
Under the policy, power plants will have to use processed municipal waste water available in their vicinity. The policy will allow distribution companies to buy any amo-unt of power that is produced from the waste.
The Cabinet has also approved a “viability gap funding” (VGF) of Rs 5,050 crores to set up over 5,000 MW of grid-linked solar power projects under the Jawaharlal Nehru National Solar Mission.