Gujarat has become the India’s first state to implement coal utilisation between power units. The Gujarat government has recently issued a tender for power developers to receive cheap coal marked for the state in return for selling coal-based power at less than Rs 2.82 a unit. Through the auction, Gujarat will transfer the coal allocated to power generating stations owned by Gujarat State Electricity Corporation (GSECL) to more fuel-efficient private power plants. The aim here is to reduce the cost of fuel for financially ailing distribution companies and ensure effective distribution of domestic coal.
