Gujarat state become the first in India to implement the policy of coal utilization

Highlights: 

  • Gujarat has become the first state in India to come up with the policy of coal utilization between power units based on fuel-efficiency. 
  • During August 2017, the Gujarat Government issued a tender for power developers to receive cheap coal marked for the state in return for selling coal-based power at less than Rs 2.82 a unit.
  • Through the auction, Gujarat will transfer the coal allocated to power generating stations owned by Gujarat State Electricity Corporation (GSECL) to more fuel-efficient private power plants.
  • The reverse auction would be held in September 2017 for procuring 1,000 megawatt (Mw) of power. 
  • The successful power plant would be selling electricity to the state from 1 October 2017 to 30 June 2018.
  • The move is in line with the initiatives of the Central Government to ensure fuel availability to stressed power plants. 
  • The aim is to reduce the cost of fuel for financially ailing distribution companies and ensure effective distribution of domestic coal.