Rs 3/unit to be benchmark price for power in medium term: Piyush Goyal

The government is looking at Rs 3 per unit as the benchmark price for power from all energy sources like thermal, solar and wind in the medium term.

The government's aim is to ensure power at Rs 3 per unit irrespective of source in the medium term, Power Minister Piyush Goyal said at the annual session of the Confederation of Indian Industry (CII).

As per a statement issued by the CII after the session, Goyal assured that there is no proposal to increase tariffs for farmers.

Goyal stated that 100GW of stranded and stressed assets have been revived through policy reforms and resource mobilisation.

Power demand has increased by 6.5 per cent last fiscal, even as India became power surplus for the first time. The DDU Gram Jyoti Yojana has reached 75 per cent target to electrify 18452 villages, Goyal said in the statement.

The minister further said that two years of coal reforms have led to surplus supply for power plants and now focus is on ensuring better domestic coal quality and re-engineering processes so that legacy imported coal-based plants can use indigenous supply.

He stated that short-term reduction in plant load factors or capacity utilisation is due to stagnant generating units coming online and increasing capacity.

India has seen a 370 per cent growth in renewable-based generation capacity in the past three years. Well-organised and transparent competitive bidding processes have driven tariffs for solar and wind below Rs 3/unit, he said.

He stated that with reducing costs and the opportunity to build capacity in EPC services, offshore wind may be taken up for pilot studies through NTPC.