GS Paper - 3 (Energy)

The Ministry of Power on 22 September 2021 issued an advisory to power plants to auction fly ash through a transparent bidding process. This will reduce the tariff of electricity and burden on the consumers," Power ministry said. The advisory stated that power plants shall provide the fly ash to end users through a transparent bidding process only.

What

  1. If after bidding/ auction some quantity of fly ash still remains unutilsed, then only, as one of the options, it could be considered to be given free of cost on first-come-first-served basis if the user agency is willing to bear the transportation cost.
  2. If ash remains unutilised even after the steps taken as above, the thermal power plant (TPP) shall bear the cost of transportation of fly ash to be provided free to eligible projects.
  3. The end users shall be obligated to source the fly ash from the nearest TPPs to reduce the cost of transportation. If the nearest TPP refuses to do so, the end user project shall approach the power ministry for appropriate directions.
  4. TPPs shall prepare a panel of transportation agencies every year, based on competitive bidding for transportation in slabs of 50 kms which may be used for the period.
  5. The power plants may offer fly ash subject to their technical restrictions such as all precautions required for dyke stability and safety etc.
  6. The plants having lower ash utilisations shall make all out efforts to increase the utilization, as per the advisory.