https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Cabinet Committee on Economic Affairs Approves Revised SHAKTI Scheme to Streamline Coal Allocation for Power Sector

The SHAKTI Policy, first introduced in 2017, shifted the coal allocation system from a nomination-based approach to a more transparent auction and tariff-based bidding system.
Indian Masterminds Stories

New Delhi: On Wednesday, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the revised Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) to simplify the allocation of coal to the power sector. This decision is aimed at addressing both long-term and short-term coal requirements for thermal power plants across India.

The revised SHAKTI scheme introduces two key windows for coal allocation:

  1. Coal Linkage to Central/State Sector Thermal Power Plants at Notified Price
  2. Coal Linkage to All Power Generating Companies at a Premium Above Notified Price

Under the new framework, the existing coal linkage mechanism will continue for central sector thermal power projects, including joint ventures (JVs) and their subsidiaries. Additionally, coal earmarked for states may now be used by state-owned generating companies (gencos) or Independent Power Producers (IPPs) identified through Tariff-Based Competitive Bidding (TBCB) for the development of new or expanded units under the ‘coal at notified price’ category.

For the ‘premium over notified price’ segment, both domestic coal-based power producers with Power Purchase Agreements (PPAs) and those without PPAs, as well as imported coal-based plants, will be able to secure coal through auctions. These auctions will allow for flexible coal allocations for periods of up to 12 months or longer, extending up to 25 years. This flexibility is designed to support the growth of new thermal power capacities and ensure a steady supply of coal for power generation.

The revised policy will further promote the establishment of new thermal power projects, particularly at pithead locations closer to coal sources, helping reduce logistical challenges and supporting brownfield expansion.

The SHAKTI Policy, first introduced in 2017, shifted the coal allocation system from a nomination-based approach to a more transparent auction and tariff-based bidding system. While the nomination-based allocation continues for central and state sector power plants, the revised policy includes several enhancements to provide greater flexibility in coal distribution, especially for private power producers.

Importantly, the updated policy eliminates the requirement for a Power Purchase Agreement (PPA) for electricity generated using coal secured under the ‘premium over notified price’ segment. This change offers power plants the flexibility to sell electricity as per their market choices. Additionally, imported coal-based plants can now secure domestic coal under the ‘premium over notified price’ segment, which is expected to reduce their dependency on imported coal and lower energy costs for consumers.

“The benefits accrued from substituting imported coal with domestic supplies will be determined by the Appropriate Regulatory Commission and passed on to electricity consumers and beneficiaries,” stated the Ministry of Coal in a press release.

The revised SHAKTI scheme marks a significant step towards a more efficient and transparent coal allocation system, which is expected to boost the country’s power generation capacity and reduce coal import dependency in the long term.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
India’s Missile Strikes on 11 Pakistani Airbases Forced Islamabad Into Panic: Ex-UK Envoy Reveals Secret Saudi Defense Pact
India’s Missile Strikes on 11 Pakistani Airbases Forced Islamabad Into Panic: Ex-UK Envoy Reveals Secret Saudi Defense Pact
Devendra Kumar Tiwari Alka Tiwari  IAS Jharkhand
First IAS Couple in India to Hold Both Chief Secretary & State Election Commissioner Posts Consecutively - Know This Powerful Pair
Policing, Trust, and Investment: Insights from IPF - Indian Masterminds
Indian Police Foundation Marks 10 Years, Discussion on How Policing Builds Investor Confidence
Madhya Pradesh football training
Mini Brazil to Germany: Vicharpur’s Young Footballers Get CM Mohan Yadav’s Blessings on Vijayadashami Week
bureaucracy news
Centre Announces Key Bureaucratic Appointments & Deputation Extensions: Neeraj Surendran, Arun G, Anand Mohan Among Key Names
PM Modi CM Nitish Kumar
Bihar Receives Rs. 10,219 Crore from Centre: A Festive Gift On Vijayadashami to Fuel Development & Welfare, Backed by GST Reforms
Chhattisgarh government
Chhattisgarh CM Charts Development Roadmap: Push for Capital Expenditure, Biometric Attendance, & Transparent Governance
Vishnu Deo Sai CM
Chhattisgarh Gets Rs. 3,462 Crore Boost from Modi Government: Here's How CM Sai Pledges To Spend It!
ADVERTISEMENT
ADVERTISEMENT
Videos
IFS Ravikant Meena UPSC IFS
Ravikant Meena on IFS Preparation, Optionals, and Life in Forest Service
Siddhartha Saxena UPSC CAPF
How Siddhartha Saxena Cracked UPSC CAPF AIR 326 Against All Odds
Dr. S.K
Technology Meets Ecology: IFS Dr S K Srivastava’s Game-Changing Innovations in Forest Management | Eco Warrior Awards 2025 Interview
ADVERTISEMENT
UPSC Stories
UPSC Chairman Ajay Kumar Live Interaction
From Cut-off Dates to Coaching & Reforms: UPSC Chairman Ajay Kumar Assures Aspirants of Fairness, Transparency & a Future-Ready UPSC | UPSC@100
A Century of Service: The UPSC’s Landmark Year Begins. Chairman Ajay Kumar on UPSC’s Centennial: “Merit,...
Giriraj Parihar MPPSC 2024
From Constable to Deputy Collector: Giriraj Parihar’s 9-Year MPPSC Journey | Farmer’s Son, Brother to Five Sisters
From a jail guard to MPPSC 2024 Rank 8, Giriraj Parihar’s nine-year journey of self-study, hard work,...
Ankit MPPSC 2024 Rank 3
From Village Dreams to Deputy Collector’s Chair: Meet Ankit, MPPSC Rank 3 Hindi Medium Topper
Ankit, a Hindi-medium aspirant from Balaghat, secured Rank 3 in MPPSC 2024 and became Deputy Collector...
Social Media
World Rhino Day India
On World Rhino Day, IFS Officer Parveen Kaswan Shares Rare Insights - India Now Hosts 80% of the World’s One-Horned Rhinos
September 22 Marks Global Call for Rhino Conservation; India Holds 80% of World’s Greater One-Horned...
Parag Madhukar Dhakate
Relentless Rains Wreak Havoc in Dehradun: IFS officer PM Dhakate Warns Citizens Amid Flash Floods
Cloudbursts in Dehradun triggered flash floods. IFS officer Dr. PM Dhakate warned citizens to stay indoors...
Forest Guard Tiger Encounter
Tigers Clash in the Wild as Forest Guards Capture Rare Footage , Retired IFS Mohan Pargaien Posts Viral Video
Retired IFS officer Mohan Pargaien shares viral video of three tigers brawling in Ramnagar, as forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
India’s Missile Strikes on 11 Pakistani Airbases Forced Islamabad Into Panic: Ex-UK Envoy Reveals Secret Saudi Defense Pact
India’s Missile Strikes on 11 Pakistani Airbases Forced Islamabad Into Panic: Ex-UK Envoy Reveals Secret Saudi Defense Pact
Devendra Kumar Tiwari Alka Tiwari  IAS Jharkhand
First IAS Couple in India to Hold Both Chief Secretary & State Election Commissioner Posts Consecutively - Know This Powerful Pair
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IFS Ravikant Meena UPSC IFS
Siddhartha Saxena UPSC CAPF
Dr. S.K
ADVERTISEMENT
ADVERTISEMENT