statesman news service
NEW DELHI, 22 JUNE: The Confederation of Indian Industry (CII) has welcomed the government’s decision to pass on the increased cost of imported coal for power generation to the consumers of electricity.
“The decision taken by the Cabinet Committee on Economic Affairs to allow power companies to pass on the cost of imported coal to electricity consumers is, indeed, a welcome development and will benefit the 78,000-megawatt (MW) of capacity that is envisaged in the current plan period,” the industry body said in a statement issued here today.
While this may lead to a very marginal increase (15-17 paise) in the per unit cost of power, the move will ensure availability of power and will also prevent the creation of stranded capacity which currently is estimated at about 20,000 MW, the chamber said. The move is clearly a step in the right direction, it added.