The Government has enabled State governments and UTs by allowing flexibility in utilization of domestic coal amongst power generating stations to reduce the cost of power generation. States can use their Linkage domestic coal, under flexible utilization of coal, in the Case-2 Scenario-4 power plants leading to reduction in cost of Power. Entire savings shall be passed on to the electricity consumers. The Case-2, Scenario-4 power plants are those power plants which have been bid based on the Net Heat Rate and the power generated from such power plants is supplied to the state itself.
At present, consumers of Punjab, Haryana and Uttar Pradesh will benefit from this. The expected savings in Punjab alone is going to be around Rs 300 Crore per annum. This will also help in reduction in import of coal and is a step towards Aatmanirbhar Bharat. It will also reduce carbon emission.