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