The Advisory Group for Integrated Development of Power, Coal and Renewable Energy headed by the current Railways Minister Suresh Prabhu has recommended urgent action on providing coal linkages to power plants likely to be commissioned by March 2015.

The Group, set up by the Government on June 25, has also suggested that opening up of the coal sector may be necessary for enhancing the domestic production.

Other suggestions on coal include setting up of railway infrastructure to evacuate the fuel from the mines apart from swapping and rationalising of coal linkages.

On the power sector, the Advisory Group’s recommendations include urgent reforms in the distribution sector, phasing out old thermal power plants which are inefficient and consume more fuel.

The recommendations on separating carriage and content by amending the Electricity Act have already been accepted by the Government with the amendments being tabled in the Lok Sabha last week. The Group also suggested authorising the Central Government for making the Tariff Policy obligatory to Regulatory Commissions.

For renewable energy, the Group suggests that large scale capacity will be required to balance the power sector profile of the country. The Group recommended setting up of Green Transmission Corridors, incentivising renewable capacity addition, improving the Solar Energy Corporation of India and Indian Renewable Energy Development Agency.

The Group’s suggestion on making it mandatory for coal based power plants to set up renewable generation capacity and enforcing renewable purchase obligations has been included in the amendments to the Electricity Act.

“The Advisory Group interacted with officials of Ministries of Power, Coal, New and Renewable Energy, Environment and Forest, Cabinet Secretariat, Central Electricity Authority, various Public Sector Companies, consulting organizations like Mckinsey, Bain & Company, KPMG, Centre for Policy Research, World Bank, Association of Power Producers to ascertain their views and suggestions,” an official statement issued on Monday said.

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