Power ministry's coal tolling policy languishes as State discoms stay away

The policy was announced in 2016; has so far seen only two states float tenders under the scheme

The power ministry’s coal tolling policy has failed to pick up pace even two years after its announcement, with state power distribution companies (discoms) showing little interest in the initiative.

The policy, announced in 2016, allows the utilisation of linkage coal of a state power generating station by any independent private power producer (IPP) for supplying power back to the same discom.

So far, only two states, Maharashtra and Gujarat, have floated tenders under the scheme. Industry officials and experts say the policy does not provide discoms any incentives.

“Not many states will be willing to disturb operations at their generating companies and