In line with various measures being taken in view of the increasing power demand, the Union Power Ministry has amended the methodology for use of coal allocated to states by Private Power generating stations (IPPs).
Larger visibility has been given to the power plants by extending the period of supply of coal from one year to three years.
"The Ministry has further made amendments in the timeline of the bidding process which has been reduced from 67 days to 37 days. The measures have been taken for ensuring more efficient utilisation of domestic coal," the Ministry said in a statement.
Further, the Ministry said that the Government has taken these measures in order to optimally utilise the railway infrastructure for maximum transportation of coal to the power plants.
As per the Ministry, this would enable states to optimally utilise their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far off states.
( With inputs from ANI )
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