The Cabinet Committee on Economic Affairs has approved the tariff policy on electricity, which will enable the state regulators to regulate power tariffs.
Finance Minister P Chidambaram, deputy chairman planning commission Montek Singh Ahluwalia and Minister of State in the Prime Minister's Office Prithviraj Chavan met this evening to finalise the details of the policy.
"There were a few remaining glitches which were ironed out today," said an official. There were issues related to surcharge which had to be addressed, the official added. An official announcement is expected on Monday.
The new tariff policy provides for setting up a contingency reserve fund to help distribution. It also aims to promote non-conventional energy sources and projects with lower greenhouse gas emissions. Besides, it will guide the direction of investments in the power sector.
The policy will curtail surcharges on captive generators to make their power competitive to other