State ministers study NTPC proposal to pool power rationalise tariffs

New Delhi. State power ministers are considering a proposal to mitigate electricity tariffs by pooling NTPC's power and rationalising subsidies. Speaking at a press briefing during the power ministers' conference in Delhi, Power Minister, Piyush Goyal said, "NTPC has proposed to pool the generated power and this will significantly lower purchase costs for state government-run power distribution companies."
 
This proposal is being considered by the states and a final call will be taken by them, he added. He said, "Multiple tariff structures have become a reason for corruption in some centres. All states have agreed to consider changes in their power tariff structures." 
 
He elaborated on the Bihar model where power tariffs have been aligned in line with the generation cost of power and good economic principals. The consumer is subsidised by the state government, but the subsidy component is notified by the government transparently. Tripura has a similar model in place, he added.

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