Cheap power for industry to push Make in India: Piyush Goyal

The Union power ministry is set to contribute to the National Democratic Alliance government's Make in India, by working on a model of cheap power at fixed long-term rates for industry. This will not end cross-subsidisation for agriculture demand. Union Minister of State for Power, Coal & Renewable Energy Piyush Goyal told Business Standard the effort was to have a back-to-back arrangement, where state-owned NTPC supplied power at a fixed price.

The effort was to make power affordable, through reduced costs from higher plant utilisation. Currently, state governments encourage investment by giving subsidy and tax waivers but Goyal made a case for trying out a new model of giving low-cost power to attract industry. "Give land and a 10-year power at fixed rate to industry." There was, however, merit in continuing with subsidy to farmers.

Goyal said private investment in the energy sector would come in transmission, mining development and operations in coal and in renewables. The government expects Rs 10 lakh crore investment by 2022 in renewable energy alone.

He said the time was not opportune for commercial coal mining, since international prices were low. There was sufficient coal. "I will be considered an irresponsible minister who gave out natural resources when I could have held back."