Cabinet clears coal linkages to Barh power project.

Ahead of assembly elections in Bihar, the Union Government has sanctioned coal linkages to Barh power project in the state to halve the cost of generating 1,320 MW of electricity.

Besides, an additional allocation of Rs. 1,850 crore has been made to improve power situation in the state, Power Minister Piyush Goyal said at a post-Cabinet briefing barely an hour before the Election Commission announced five-phase assembly elections in Bihar.

Bihar will get 1,010 MW out of 1,320 MW power to be generated at state-owned NTPC's Barh plant at a variable cost of Rs. 2 per unit as compared to Rs. 4.15 currently.

'There was no coal linkage for Barh power plant in Bihar. The power plant was purchasing coal directly from the market which resulted in underutilisation of capacity as well as rise in cost of power.

'Now it has been given coal linkage which would help it reducing variable cost of power from Rs. 4.15 per unit to Rs. 2 per unit,' he said.

He further informed that the the decision regarding providing coal linkage to the Barh project was taken recently.


ET