Revised 'SHAKTI' Policy For Coal Allocation To Power Sector

New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the grant of fresh coal linkages to thermal power plants of the Central Sector, State Sector and Independent Power Producers (IPPs) under the revised 'SHAKTI' policy.

The approval includes Coal linkage to Central Gencos and states at notified price in 'Window–I' and coal linkage to all Gencos at a Premium above notified price in 'Window–II', according to an official statement. For Window-I, the existing mechanism for grant of coal linkage to Central Sector Thermal Power Projects (TPPs) including Joint Ventures (JVs) and their subsidiary will continue, the statement said.

The coal linkages will be earmarked to states and to an agency authorised by group of states as per existing mechanism, on the recommendation of Ministry of Power. Coal linkage earmarked to states may be utilised 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) under Section 62 of the Electricity Act, 2003 for setting up of a new expansion unit having PPA under Section 62, the statement explained.