Cabinet clears coal linkages to Barh power project in Bihar1 min read
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 added. He further informed that the the decision regarding providing coal linkage to the Barh project was taken yesterday. NTPC’s Barh project’s 660 MW capacity was operational. Now the decision will enable the state run utility to operationalise the remaining 660 MW by next month, the minister said.
The coal linkage will result in savings of Rs 2,000 crore every year out of this Barh project, he said. Goyal also informed that 1,010 MW will be given to Bihar from NTPC (Barh) plant.