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State utilities debars from purchase of power under medium term due to higher tariffs.

In a scheme towards revival of power plants power ministry auctioned 2500 MW of power for medium term(3 years), scheme shall provide coal linkage to the functional power plants that are starving for fuel in the absence of coal linkages. Due to higher tariff of Rs. 4.41, auction had less participation from the power utilities, due to lack of interest of Discoms. Government will reauction 2500 MW of power.