Govt announces new rules to ease power sector woes
The ministry of power on Saturday announced new rules to sustain economic viability of the sector, ease financial stress of various stakeholders and ensure timely recovery of costs involved in electricity generation.
The ministry notified rules for the sustainability of the electricity sector and promotion of clean energy to meet India’s commitment towards climate change, a statement said.
Investors and other stakeholders in the power sector had been concerned about the timely recovery of the costs because of change in law, curtailment of renewable power and other related matters.
The rules notified by the ministry of power under the Electricity Act, 2003 are in the interest of the electricity consumers and stakeholders, it added.
“At present, the pass through under change of law takes time. This impacts the viability of the sector and the developers get financially stressed. The rules would help in creating an investment friendly environment in the country,” it stated.
“The energy transition is happening across the globe. India has also made commitments to bring about energy transition. India has also announced international commitment to set up 175 GW of RE capacity by 2022 and 450 GW by 2030,” the ministry said.