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Diverting Coal Supply may Reduce the Tariff

News

The government is likely to allow companies to divert coal supply to efficient power plants from inefficient plants to generate more electricity with the available fuel.
Source: ET

SNP Insight

Diverting coal from inefficient plant to efficient one is certainly a good move by the government as it will not only benefit economically but also help in reduction of CO2 emission. This would also reduce the INR/Unit charges of electricity because of reduction of landed cost of coal with approx. saving of around INR 6000 crore in coal transportation. But it would be interesting to see when private players will be benefiting from coal swapping.
Source: SNP Infra Research