Coal auctions to ensure cheaper power, says Finance Minister Arun Jaitley

NEW DELHI: Finance minister Arun Jaitley on Tuesday said the government has taken a series of decisions on building energy infrastructure and that the auction of coal blocks will reduce electricity costs. "Ongoing auction of coal mines will help in providing cheaper electricity to the common man," he said. Coal blocks for power generation are being sold on the basis of reverse bidding, where companies compete to offer lower electricity tariffs. Speaking at renewable energy conference ' Re-Invest 2015,' he said cheaper power through state subsidy is not viable.

"One way by which people want to provide cheaper electricity is by the state subsidising it. A state subsidy really means that you will have to tax people more in order to provide something free to some other people. Is that a sustainable cause?" he asked.

Delhi's Aam Aadmi Party government has promised to provide cheaper power and free water up to a limit. On the opening day of the conference on Sunday, PM Narendra Modi had questioned how politicians in states that depend on others for electricity could promise free power during election campaigns.