Cabinet may approve new tariff policy next month: Goyal

The approval of the new power tariff policy may come next month as the government's focus will be on passage of crucial Bills, including the Whistle Blowers Bill, said Power Minister Piyush Goyal today.

The new policy is aimed at boosting regulatory mechanism for discoms and encouraging faster rollout of investments in the sector with a focus on renewable energy.

"Till (December) 23rd, we are busy. Once we are free, we will be focusing on tariff policy in the new year," Goyal said on the sidelines of the Ficci annual general meeting here.

"We are hearing there will be some let-up from opposition parties in Parliament and they may start functioning from Monday to pass some very important Bills like the SC and ST Act, the Whistle Blowers Bill. People want action on these fronts."

On implication of the Paris agreement on thermal power, he said the sector is a very robust industry and will continue to be the backbone.

About the UDAY scheme designed to tackle debt of stressed discoms, he said, "Uttar Pradesh approved it yesterday. I am sure that with the speed at which states have come on board (for UDAY), they would be able to sign MoUs at the same speed."

An agreement among states, discoms and the Centre is essential for availing of benefits under the UDAY scheme.

The Power Ministry is now in the process of getting approval from the Cabinet for a new electricity tariff policy, which is expected to come by next month.

"The broader idea is to strengthen the regulatory mechanism so that discoms become more efficient and conscious of their duties," Goyal had said earlier. "It will also help India's energy security."

The minister had indicated that the new tariff policy will give a big push to electricity generated from renewable energy sources and address concerns related to environment.