New Delhi: The new tariff policy will boost the regulatory mechanism and bring efficiency in the functioning of discoms, even as the proposed framework will help attract investments in the power sector, Union Minister Piyush Goyal said Wednesday.


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"The policy will reflect a concern to environment and encourage renewable energy. It will encourage faster roll out of investment in the sector," Goyal told reporters here.


Power Ministry is in the process of getting approval from Union Cabinet for its new electricity tariff policy. The central government had approved the Tariff Policy under the provisions of Electricity Act, 2003, in 2006.


Goyal said that the new policy will strengthen the regulatory mechanism so that discoms become more efficient and conscious towards their duties to consumers.


"It will also help India's energy security by planning in advance for the requirements for tomorrow. Several unique aspects which have not been touched in the past are being brought out in this policy," he added


Earlier, Goyal had indicated that the new tariff policy will give a big push to electricity generated from renewable energy sources and address concerns related to environment.


Goyal had said, "We will come out with a new tariff policy


very soon. It will allow distribution companies to buy any amount of power produced from the waste. The power plants will have to use processed municipal waste water available in their vicinity (in 100 km radius)."


The proposed tariff policy is aimed to provide incentives to renewable energy projects as well as efficient use of resources by power generation plants based on conventional sources of energy like coal-based thermal projects.