Which one of the following would be achieved through measures such as

Which one of the following would be achieved through measures such as increased supply of cheaper domestic coal, coal linkage rationalisation, liberal coal swaps from inefficient to efficient plants, coal price rationalisation based on GCV (Gross Calorific Value), supply of washed and crushed coal, and faster completion of transmission lines ?

Operational efficiency
Reduction in cost of power
Reduction in interest cost
Enforcing financial discipline
This question was previously asked in
UPSC SO-Steno – 2018
The listed measures are primarily aimed at optimizing the cost of fuel (coal) and improving the efficiency of its usage and transmission in the power sector. Using cheaper domestic coal, rationalizing linkages, allowing swaps, pricing based on Gross Calorific Value (GCV), and using washed/crushed coal all directly reduce the cost of fuel per unit of energy or improve plant efficiency to get more energy from the fuel, thereby lowering the cost of power generation. Faster completion of transmission lines reduces transmission losses and grid costs. All these measures directly contribute to a reduction in the overall cost of generating and supplying power. While operational efficiency (A) is improved by some measures (like washed coal), the overarching goal and consequence of these actions in the context of the power sector are primarily related to reducing the cost of electricity. Options C and D are related to financial aspects not directly addressed by these technical/operational measures.
Measures targeting cheaper, better quality, and more efficiently supplied coal, along with improved transmission, directly reduce the input costs and losses in power generation and delivery, leading to a reduction in the cost of power.
The cost of coal is a major component of thermal power generation costs in India. Measures to optimize coal sourcing, quality, and usage are crucial for making power more affordable and improving the financial health of power generation and distribution companies. Similarly, reducing transmission and distribution losses through better infrastructure is vital for delivering power efficiently and reducing costs for the end consumer.
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