Revised SHAKTI Policy: Two-Window Coal Linkage for Power Plants
Why in the news
The CCEA cleared a revised coal allocation policy that gives power producers more routes to secure fuel.
Key facts
- SHAKTI: Scheme for Harnessing and Allocating Koyala Transparently in India.
- Gives fresh linkages to Central, State and IPP thermal plants with simpler allocation.
- Window-I coal for State Gencos can also go to IPPs via TBCB or to new expansion units with PPAs.
- Benefits: employment, flexibility for FSA holders, optimal plant use.
| Feature | Window-I | Window-II |
|---|---|---|
| Price | Notified | Premium |
| Eligible | Central Sector projects, State-linked IPPs | Domestic and imported coal-based producers |
| Tenure / PPA | Existing mechanisms continue | 12 months-25 years; no PPA |
Background
- SHAKTI replaced the LoA-FSA regime on 22 May 2017 (Ministry of Coal) for transparent domestic coal allocation.
- Transition: about 68,000 MW kept supply at 75% of ACQ; about 19,000 MW delayed capacity eligible if commissioned by 31.03.2022.
- Clauses B(i) to B(vii) cover notified-price linkage for Gencos, auctions for IPPs with or without PPAs, pooled State demand, UMPP SPVs and imported-coal IPPs.
Exam angle
- Nodal ministry: Coal; approving body: CCEA.