Insta
Modi Government’s Coal Reforms Are Reducing Power Costs
Swarajya Staff
Apr 17, 2017, 11:30 AM | Updated 10:39 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The reforms launched by the Narendra Modi government in the Coal sector are beginning to pay.
According to a report in the Times of India, the initiatives to improve the quality of coal and efficiency in the supply chain have brought down the cost of power from coal-fired plants. This is despite the revisions in coal prices, central cess and railway freight in the last three years.
There is also import substitution worth Rs 23,349 crore, which saves fuel costs.
According to government data, power stations are now burning eight per cent less coal than they used to three years ago for each unit of electricity.
State-run NTPC, which accounts for 17 per cent of all generation capacity in the country, and is the key supplier to states, reduced its coal consumption by 5.5 per cent in 2016-17.
Since cost of coal makes up 54-60 per cent of the price charged by power producers and is passed on to consumers, coal consumption has a bearing on tariffs and environmental dividend in terms of emissions.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.