Union Cabinet approves amendment to Tariff Policy, 2006

The union cabinet has approved amendments to the Tariff Policy, 2006. The amendments focus on four broad areas – electricity for all, efficiency to ensure affordable tariffs, environment for a sustainable future, and ease of doing business for attracting investment. The amendments are aimed at achieving the objectives of the Ujwal Discom Assurance Yojana and other central sector schemes. Some of the new provisions in the policy are mandating renewable generation obligation for new coal/lignite-based plants, removal of market uncertainty by allowing pass-through of any change in domestic duties/levies/cess/taxes in competitively bid projects, setting up of small washery reject-based plants near coal mines and microgrids in rural areas, etc. Also, all transmission projects, including intra-state ones, are proposed to be awarded through the competitive bidding process to ensure faster completion at lower costs.