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India Approves Revised SHAKTI Policy to Streamline Coal Allocation for Power Sector

The updated policy introduces a two-tier coal linkage system to address surging electricity demand and ensure energy security.

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Photo: IANS

Overview

  • The Cabinet Committee on Economic Affairs has approved the Revised SHAKTI policy, introducing two coal linkage windows for thermal power plants.
  • Window-I offers coal at notified prices for central and state sector power plants, continuing the existing allocation mechanism.
  • Window-II allows all power producers, including those using imported coal, to bid for coal at a premium over notified prices for flexible tenures up to 25 years.
  • The policy aims to meet rising electricity demand, projected to reach 277 GW in 2025-26, while reducing dependency on imported coal.
  • Coal India Limited and Singareni Collieries Company Limited have been directed to implement the policy, ensuring efficient supply to power producers.