Revised SHAKTI policy

The Cabinet Committee on Economic Affairs has approved grant of fresh coal linkages to Thermal Power Plants of Central Sector/State Sector/ Independent Power Producers (IPPs).

• Two windows have been proposed under the Revised SHAKTI policy: Coal Linkage to Central Gencos/States at Notified price (Window–I) and Coal Linkage to all Gencos at a Premium above Notified price (Window–II).

• Revised SHAKTI Policy would not involve any additional cost to the coal companies. Thermal Power Plants, Railways, Coal India Limited / Singareni Collieries Company Limited, End Consumers and State Governments would be benefitted.

• With the introduction of SHAKTI Policy, 2017, there was a paradigm shift of coal allocation mechanism from a nomination-based regime to a more transparent way of allocation of coal linkages through an auction / tariff-based bidding.