Policy on coal linkages likely in 15 days: Govt

New Delhi: To ensure fuel supply to power plants, the proposed policy for coal linkages is likely to be finalised within a fortnight, the government said Tuesday.

"Coal linkages policy is likely to be finalised in 15 days," Power Secretary P K Pujari told reporters on the sidelines of a function organised by India Energy Forum.

The Secretary also said that efforts are being made to seek Cabinet's approval on the amended power tariff policy in another 15 days.

Power and Coal Minister Piyush Goyal had said in September that the Power Ministry is at the final stage of framing the new tariff policy, which will soon be placed before the Cabinet for approval.

"We are finalising the contours of the (power) tariff policy. We will soon take the proposal for tariff policy to the Union Cabinet for approval", Goyal had said.

The central government had approved the Tariff Policy under the provisions of Electricity Act, 2003, in 2006.

The government, Pujari said, will call bids for two domestic coal-based ultra-mega power projects (UMPPs) next month and another two by March, 2016.

"But we intend to do (bidding of) four (UMPPs) before the financial year," Pujari said.

The UMPPs that could be offered include Bedhabahal in Odisha and Deogarh in Jharkhand.

He further said that the signing of agreements with state governments and their power distribution utilities under the Ujjwal Discom Assurance Yojna may begin in next seven to 15 days.

"We are in the process of finalising the OM now. We are already discussing with states....May be in the next seven-15 days we will start getting the details of it and start signing the MoU."

"During the discussion of this proposal most of the state governments having discoms in the financial distress position had shown the willingness to join. We presume that all of them will join", Pujari said.

In a bid to rescue almost bankrupt state electricity retailers, the Cabinet had earlier this month approved a scheme for rejig of Rs 4.3 lakh crore debt of the utilities besides measures to cut power thefts and align consumer tariff with cost of generating electricity.

The rescue plan called Ujjwal Discom Assurance Yojna or UDAY provides "a permanent resolution of past as well as potential future issues of the sector" and empowers the utilities to break even in the next 2-3 years, Goyal had earlier said.