Coal sector reforms brought down power cost: SJVN
Shimla– Coal sector reforms as improvement in coal quality and efficiency in the supply chain has brought the cost of power from coal-powered plants in the country, an official of Satluj Jal Vidyut Nigam (SJVN) said on Friday.
The official said that the reforms initiated by the Central government headed by Prime Minister Narendra Modi are beginning to pay now. “In spite of revisions in coal prices, central cess and railway freight in the last three years, the cost of power from coal powered plants has come down due to the reforms brought in the sector,” he said.
He said that the decline in the cost of power has accrued mainly from power stations burning less coal to generate each unit of electricity on the assured quality of domestic fuel.
“There is also import substitution worth Rs 23,349 Crore which saves fuel costs. Since the 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,” he said.