Cabinet approves Revised SHAKTI Policy For Coal Allocation To Power Sector

New Delhi: The Cabinet Committee on Economic Affairs chaired by way of Prime Minister Narendra Modi has authorized grant of clean coal linkages to Thermal Power Plants of Central Sector/State Sector/ Independent Power Producers (IPPs).  

Two home windows were proposed beneath the Revised SHAKTI coverage: 1. Coal Linkage to Central Gencos/States at Notified worth: Window–I; 2. Coal Linkage to all Gencos at a Premium above Notified worth: Window–II 

Window-I (coal at notified worth):

Existing mechanism for grant of coal linkage to Central Sector Thermal Power Projects (TPPs) together with Joint Ventures (JVs) & their subsidiary will proceed.

Coal linkages to be earmarked to States and to an company licensed by way of workforce of States as in line with present mechanism, at the advice of Ministry of Power. Coal linkage earmarked to States could also be used by States in its personal Genco, Independent Power Producers (IPPs) to be known via Tariff Based Competitive Bidding (TBCB) or present IPPs having Power Purchase Agreement (PPA) beneath Section 62 of the Electricity Act, 2003 for putting in of a brand new growth unit having PPA beneath Section 62.

Window-II (top rate over notified worth):

Any home coal-based energy manufacturer having PPA or untied and likewise Imported coal-based energy crops (in the event that they so require) can safe coal on public sale foundation for a duration upto 12 months or for the duration of greater than 12 months upto 25 years by way of paying top rate above the notified worth and offering the facility crops the versatility to promote the electrical energy as in line with their selection.

Implementation technique:

Directions can be issued to Coal India Limited (CIL)/ Singareni Collieries Company Limited (SCCL) for implementation of the aforesaid selections. Besides, the involved Ministries and all of the States shall even be apprised of the revised SHAKTI Policy for additional dissemination to the involved Departments / Authorities and likewise to the Regulatory Commissions.