Coal India and Singareni Collieries Company are offering independent power producers the option of swapping their sources of fuel supply to cut the cost of transportation and generation.
The Central Electricity Authority will oversee the one-time offer for power generators willing to pass on the savings to customers. This would also require regulatory approval.
“The plan is to change source of coal for as many independent power producers as possible, keeping the quality of coal at almost same levels after the swap. It is expected to reduce distance over which coal is sent, reducing transport costs, cost of generation and finally electricity bills for consumers,” said a senior Coal India executive.
The scheme is being offered to power companies that receive coal from state-owned suppliers by rail. Read More
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