The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a new power tariff policy, which aims at better regulation of distribution companies and faster investments, according to an official statement released on Wednesday. The policy also reflects a concern for the environment and encourages renewable energy.

One highlight of the amended policy is 24X7 electricity supplies to be ensured to all consumers, and state governments and regulators will devise a power-supply trajectory to achieve this.

It also said power would be supplied to remote unconnected villages through micro-grids with the provision for purchase of power into it as and when the grid reached them.

Additionally, affordable power is to be provided to people near coal mines by enabling procurement of power from coal washery reject-based plants, said the official statement.

"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. We are bringing in elements, which will Swachh Bharat Abhiyan and help waste-to-energy prosper in India. These are certain new elements we decided to bring in," Minister of State for Power Piyush Goyal had recently told Press Trust of India.

Solar power tariff fell to an all-time low level of Rs. 4.34 per unit when Finland-based energy firm Fortum Finnsurya Energy quoted the price to set up a 70-MW solar plant in Rajasthan through reverse bidding, an official statement stated on Tuesday.

The Central government had approved the National Tariff Policy under the provisions of the Electricity Act in 2006.