The Cabinet Committee on Economic Affairs (CCEA) under Prime Minister Narendra Modi has sanctioned the revised Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI). This policy modernization delivers a streamlined processing method for coal linkages while serving both long-term and immediate coal needs of thermal power operations.
The revised SHAKTI policy introduces two key coal linkage windows: one at a notified price for central sector, state, and independent power producers (IPPs), and another at a premium above the notified price. The Ministry of Coal stated, "The CCEA has approved grant of fresh coal linkages to thermal power plants of central sector/state sector/independent power producers (IPPs)."
Under the 'coal at notified price' segment, the existing mechanism for granting coal linkages to central sector thermal power projects (TPPs) will continue, ensuring a stable supply to these plants. Additionally, "Coal linkage earmarked to states may be utilized by states in its own genco, Independent Power Producers (IPPs) to be identified through Tariff-Based Competitive Bidding (TBCB) or existing IPPs having Power Purchase Agreement (PPA) for setting up of a new expansion unit under 'coal at notified price' window."
The 'premium over notified price' segment allows domestic coal-based power producers with PPAs or untied agreements, along with imported coal-based plants, to secure coal via auction for durations ranging from 12 months to 25 years. This revision ensures efficient coal allocation, ultimately strengthening India’s energy security.
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