New Delhi Power companies, which are forced to import coal despite high costs due to delays/denial over environment and forest clearances of their captive coal mines, can breathe easy now.

The government is planning to allow incremental cost of fuel owing to such forced imports as a pass-through in tariff. Sources told FE that the provision would be included in the standard bidding document (SBD) of all forthcoming power projects. The changes would not only allow power companies to relinquish their commitments under the terms of power purchase agreement entered with state utilities but also get full compensation for increased fuel cost if coal is imported at a higher cost.