Union Power Minister Piyush Goyal today said in the Rajya Sabha that the government may not provide free power to coal producing states of  Jharkhand, Chhattisgarh and Odisha due to negative impact of industrial activity in these states.

“The major coal bearing states – Odisha, Jharkhand and Chhattisgarh – have been airing their concerns about negative externalities they face in connection with coal mining and thermal power generation and have been demanding equitable compensation to host power generating states and levy duty on generation,” he said said in a written reply.

In this regard, the Planning Commission engaged The Energy and Resources Institute (TERI) to suggest a suitable way for compensation to the states. Thereafter, TERI submitted its report to the Planning Commission. “The report has not recommended the use of free power to cover negative externalities as the same may create different implications for power deficit and power surplus states,” Goyal said.