Cabinet meeting chaired by Prime Minister Narendra Modi unveiled a new power tariff policy which allows 100 per cent expansion by existing power plants, passing on levies to consumers and purchase of 100 per cent electricity produced from waste. It also okayed Rs30,000 crore investment expected ambitious 5000MW grid linked solar power projects.
“The Union Cabinet has approved the proposal of the Ministry of Power for amendments in the Tariff Policy,” an official statement said.
“A holistic view of the power sector has been taken and comprehensive amendments have been made in the Tariff policy 2006. Our aim is to achieve the objectives of Ujwal DISCOM Assurance Yojana (UDAY) with the focus on 4 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,” Power Minister Piyush Goyal said after the Cabinet meeting.
He said that under the first E (Electricity for all), the policy is aiming at 24X7 supply to all consumers and state Governments and regulators will devise a power supply trajectory to achieve this.
Under this, power to be provided to remote unconnected villages through micro grids with provision for purchase of power into the grid as and when the grid reaches there.
Goyal said: “Small plants will be set up in coal mining areas to provide power to people living near coal mines.”
The statement said that affordable power will be provided to people living near coal mines by enabling procurement of power from coal washery reject based plants.
“The Cabinet Committee on Economic Affairs has given its approval for setting up over 5,000 MW of Grid-Connected Solar PV Power Projects on build, own and operate basis,” an official statement said.
After the meeting, Power Minister Piyush Goyal said, “To push solar energy programme, a scheme to provide Rs5,050 crore VGF (Viability Gap Funding) for setting up 5,000 MW capacity has been approved.”
Elaborating further the minister said, “The VGF will be provided through reverse bidding. Whosoever will quote the lowest VGF will win. One part of these funds will be for domestic modules. These companies will be given Rs1.25 crore per MW and those coming through international competitive bidding will get Rs one crore per MW).” Goyal expressed hope that the VGF reverse bidding auction will help in reducing the power tariff in future.
According to the statement, it will be implemented by Solar Power Developers (SPDs) with VGF under Batch-lV of Phase-ll of the JNNSM. The total investments expected under this scheme is about Rs30,000 crore.
The Cabinet also cleared ex-post facto the stand taken by India on food security at the last meeting of the World Trade Organisation held in Nairobi. “Cabinet has given ex-post facto approval for the approach adopted by India at Nairobi WTO meeting. The outcomes of the Conference, referred to ‘Nairobi Package’ include ministerial Decisions on agriculture, cotton,” an official statement said today.
The Cabinet committee on Economic Affairs (CCEA) approved Rs.478 crore for the VRS packages to the employees of HMT Watches ltd, HMT Chinar Watches ltd and HMT Bearings ltd and close their operations. These three units were close down for the past two decades and was in the category of Chronic Sick PSUs. For the past eight years thousands of employees were deprived of salary and other benefits.”T he movable and immovable assets of the companies will be disposed of as per the Govt. policy,” said the statement.