The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi.
The union cabinet on Wednesday gave its approval to allow flexibility in use of domestic coal for reducing the cost of power generation.
The decision was taken at a cabinet meeting chaired by Prime Minister Narendra Modi.
"The union cabinet has given its approval for allowing flexibility in utilisation of domestic coal for reducing the cost of power generation," an official release said.
It said the objective of the proposal is to allow flexibility in optimal use of domestic coal in efficient generating stations which would result in reduction in the cost of electricity generation and reduce the power purchase cost of state distribution companies.