MoP: Clarification to Revised Policy for Biomass Utilization for Power Generation through Co-firing in Coal based Power

Background:

Ministry of Power had issued a Revised Policy for Biomass Utilization for power Generation through Co-firing in Coal based Power Plants, vide letter dated 08.10.2021 (copy enclosed) which included the provisions related to tariff determination.

Power plants with provision for fuel cost pass through in their Power Purchase Agreement (PPA) signed under Section 63 of Electricity Act, 2003 (such as Case-2 Scenario 4 plant), have raised concerns regarding the Para 3 (viii) (b) of MoP's revised biomass policy dated 08.