New power tariff policy to boost investment, clean energy

The Centre on Wednesday unveiled a new power tariff policy which allows passing on of taxes and levies affecting power generation cost to consumers.

The policy also permits power  producers to sell spare capacity via exchanges so as to improve availability.

The policy, approved by the Union Cabinet headed by Prime Minister Narendra Modi, also allowed 100 per cent expansion by existing power plants and mandated states to buy all power generated from waste.

"The Union Cabinet has approved the proposal of the Ministry of Power for amendments to the tariff policy”, Power Minister Piyush Goyal told reporters after the Cabinet meeting. The policy, termed as bold steps towards reforming the domestic power sector, will help meet the objective of making electricity available to all, reduce litigation, revive investments and protect environment, said the Minister.

"The government aims to achieve the objectives of Ujwal DISCOM Assurance Yojana (UDAY) with focus on four 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 Minster said.