"Union Cabinet today approved a new power tariff policy which will promote clean energy, support Swachh Bharat programme, better regulations for discoms and encourage faster roll out of investments in the sector," said a source after the Cabinet meeting here.

Besides encouraging faster roll-out of investment, the new policy will reflect a concern for environment and encourage renewable energy.

It will also look to strengthen regulatory mechanism so that discoms become more efficient and conscious towards their duties to consumers.

In 2006, the central government had approved the National Tariff Policy under the provisions of Electricity Act, 2003.

Indicating that the policy will focus on clean energy, Power Minister Piyush Goyal had recently said: "Now that we have a challenge to add 1.75 lakh MW of renewable energy, we are also bringing in certain more elements in tariff policy which will promote renewable energy."

It will also promote Swachh Bharat initiative. Under the policy, the power plants will have to use processed municipal waste water available in their vicinity (in 100 km radius).

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