Percentage of the price charged by power producers is on account of cost of coal. It is almost always passed on to consumers and hence coal consumption has a bearing on tariffs as well as environmental dividend in terms of emissions.
The reduction in quantity of coal burnt by power stations than they used to 3 years ago to generate one unit of electricity due to improved quality of domestic coal. The company consumed 155 million tonnes in 2015-16.
Cost of coal per unit of electricity generated by NTPC, one of the largest generators in the country, in the period 2014-15.
increase in cost of coal per unit of electricity generated from 2014-15 to 2016-17. The increase is due to to revisions in coal price, government cess and railway freight.
cost of coal per unit of electricity generated in 2016-17 by NTPC. The cost per unit has declined, from 2014-15 levels, even as there was a hike in costs by 33 paise as mentioned above.
Net reduction in cost of coal per unit as a result of improved quality of domestic coal and efficiency in the supply chain (improved linkages between coal mines and power plants).