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Power Min allows gencos to charge compensatory tariff for importing coal

Power plants constructed had asked the power ministry for pass through of the cost they are incurring due to costlier imported coal cost to the consumers

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The direction was issued under Section 11 of the Electricity Act by the power ministry.

Shreya Jai New Delhi
The Union power ministry has allowed power units to charge a compensation tariff in lieu of importing coal. This would cover both state government-owned and privately owned power generation units (gencos).

"The methodology shall be used by the generating companies supplying power under Section 63 and state governments to calculate the compensation due to blending with imported coal. The mechanism for billing and payment for these plants shall be as per PPA,” the order said.

The direction was issued under Section 11 of the Electricity Act by the power ministry.

'Business Standard' recently reported that state-owned NTPC will see its