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From rural electrification to UDAY Scheme, here's what Piyush Goyal said at Make in India event today

Here are takeways from Piyush Goyal’s address at the Power and Coal seminar at Make in India Week in Mumbai.

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Piyush Goyal speaking at Make In India event on February 15, 2016.
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Power and Coal Minister Piyush Goyal lauded Prime Minister Modi government and said India has come a long way from the time he came into power. To date, the Central Government has successfully auctioned 31 coal mines and allotted 43 coal mines to Central/State government companies under relevant Statutory Provisions

From surplus coal production to rural electrification, here are takeways from Piyush Goyal’s address at the Power and Coal seminar at Make in India Week event in Mumbai.

Coal Supply

Piyush Goyal said when PM Modi came into power there were serious issues of stress in power sector.

“There was huge disparity in cost of power. There was no access to electricity. The government had issues where in most projects were delayed...At that stage PM Modi articulated to convert the crisis into an opportunity for investment in India.”

He further added that when he came into power as the Minister of Power and Coal, 204 coal blocks allotted to different people in power sector were cancelled as an aftermath of a huge scam. “There were headlines which read ‘How power plants will not have enough coal, how India will run out of power and how there will be no availability of power’. "

But today, he said, India has coal in abundance. India has been able to increase production base and increase coal output. “Not one plant is facing shortage of coal in India”, he said. “The bigger problem now is the problem of plenty.” He said the companies have coal in abundance and that they don’t need any more.

He said, “To increase productivity and distribution of coal, we need to raise the tariff and deal with issues like power theft, and loss in energy efficiency.”

“Swapping of coal linkages will bring down cost and inefficiency of coal linkages and by 2020, the country will witness an investment of about $250 million dollars in power sector,” he added.

UDAY Scheme

Speaking about Ujwal Discom Assurance Yojna (UDAY) Scheme, Piyush Goyal said that this will being about a drastic change in India’s power sector. “UDAY addresses large no of issues and can take India to 7-8% growth in economy.”

UDAY is a rescue plan where it allows the states to participate in the scheme to borrow more and help with the additional burden.

“This scheme will electrify all the villages in the country by 2019,” said Goyal at the event.

Rural Electrification

When the Modi govt came into power, around 18,482 villages didn’t have electricity. Even after 68 years of independence some had not even seen a bulb. “PM Modi in August 2015 said, in next 1000 days, all the villages in the country will have access to electricity.”

“By 31st March, we expect over 6500 villages to be electrified which comprises of around 80-90% villages across India and by 2019 every home will get electricity connection.”

The benefit to consumers in terms of reduction of electricity tariff is estimated to be over Rs 69,000 crore.

LED bulbs

Being concerned about the energy efficiency of India, Goyal said LED bulbs has brought India’s share up from 0.2% to 12%. “In the next three years, entire nation will have LED bulbs. 35 million street lights will be converted to LED.”

This in turn will help save around Rs 40,000 crore and this is an opportunity for investors to invest in India.

Goyal’s note to investors

Piyush Goyal urged investors to invest in India and help the country ‘Make in India’. With the agenda to provide electricity to the poorest of poor he said the nation will become a part of the developed countries with proper investment.

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