Lok Sabha Question No. 359 (STARRED), answered on 2017-08-10
Subject: Thermal Power Stations
Ministry: POWER
Asked by: HEMANT TUKARAM GODSE

## GOVERNMENT OF INDIA MINISTRY OF POWER

LOK SABHA STARRED QUESTION NO.359 TO BE ANSWERED ON 10.08.2017

THERMAL POWER STATIONS

*359.   SHRI GODSE HEMANT TUKARAM:

Will the Minister of POWER be pleased to state:

(a) whether the Government proposes to increase the financial and logistic support for Thermal Power Stations in the country, if so, the details thereof and the decisions taken by the Government in this regard;

(b) whether the price of coal and other raw material and machineries used in Thermal  Power  Stations  has  risen  steeply,  if  so,  the  details  thereof  and  the reasons therefor; and

- (c) the remedial steps being taken by the Government in this regard?

A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) to (c) : A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF STARRED QUESTION NO.359  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  10.08.2017  REGARDING THERMAL POWER STATIONS.

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(a) : Following  decisions  have  been  taken  by  the  Government  to  increase the financial and logistic support for Thermal Power Stations in the country:

- (i) As  per  Mega  Power  Policy,  the  mega  power  projects  are  eligible  to  avail certain  fiscal  concessions/benefits.  The  projects  which  have  been  granted 'provisional'  mega  power  status  are  also  eligible  to  avail  these  fiscal concessions/benefits,  subject  to  the  condition  that  the  developers  of  these projects fulfil the conditions stipulated in the 'provisional' mega certificates and furnish the final mega certificates to the Tax Authorities within a period of  60  months.  As  most  of  the  developers  have  not  been  able  to  meet  the above  condition,  Government  of  India  has  extended  the  above  time  frame from 60 months to 120 months.
- (ii) For  grant  of  regular  coal  linkages,  Government  of  India  has  approved  New Coal  Allocation  Policy,  2017,  for  Power  sector,  on  17.05.2017  viz.  SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) under which coal  is  made  available  to  Public  Sector  Undertakings  of  Central  and State Government, and Independent Power Producers (IPPs) against already concluded  long-term  Power  Purchase  Agreements  (PPAs)  and  long-term  & medium-term PPAs, to be concluded in future.
- (iii) The  Government  of  India  approved  the  proposal  for  allowing  flexibility  in utilization of domestic coal amongst power generating stations to reduce the cost of power generation.
- (iv) Third Party Sampling has been started at both loading, as well as unloading end to address the problem of grade slippage.
- (b) & (c) : Coal India Limited (CIL) vide notification dated 29th May,  2016, rationalised the price of all grades of non-coking coal produced by subsidiaries of CIL with effect from 30 th  May, 2016. The increase in price of pithead run of mine non-coking coal for power utilities for G6-G17 grades of coal is in the range of 12.6% to 18.8% whereas, the price of higher grades of coal has been reduced to the extent of 29.2%.

As per Union Budget 2016-2017, the name of 'Clean Energy Cess' levied on coal, lignite and peat was changed to 'Clean Environment Cess' and its rate was increased from Rs 200 PMT to Rs. 400 PMT.

Government of India  has  reduced  the  tax  burden  on  coal  levying  the GST @5% on coal. In pre-GST regime there was Excise Duty on Coal @6%, Stowing Excise Duty @ Rs. 10/tonne, VAT @5% and CST @2% (on inter-state sale).

There is adequate domestic power equipment manufacturing capacity available  in  the  country  which  has  led  to  competitive  prices  and  improved equipment efficiencies.

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