Revised SHAKTI

Revised SHAKTI: Recently, Cabinet approves revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy for Coal Allocation to Power Sector.

• About : The revised policy simplifies coal allocation through two mechanisms—Window-I and Window-II—streamlining the existing eight allocation categories to promote ease of doing business.

o Under Window-I: through Tariff-Based Competitive Bidding (TBCB) or with existing Power Purchase Agreements (PPAs) .

o Window-II: allows all thermal power to acquire coal through auctions at a premium above the notified price. These linkages will be available for durations ranging from 12 months to 25 years.

• Key Features of the Revised Scheme: Streamlined coal allocation through a transparent, auction-based system

o Allows medium-term power purchase agreements (PPAs) to be linked with coal supply

o Prioritizes coal supply to power plants with untied capacity to meet electricity demand

o Eases coal linkage for state and private power producers, promoting competition and efficiency.