Source: PIB
Context: The Cabinet Committee on Economic Affairs (CCEA) has approved the Revised SHAKTI Policy 2025 to streamline coal allocation for thermal power plants through two simplified windows, enhancing transparency and flexibility.
About Revised SHAKTI Policy 2025:
- Nodal Ministries: Ministry of Coal (MoC) and Ministry of Power (MoP)
- Objectives:
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- Ensure transparent, flexible, and demand-based coal allocation.
- Promote long-term thermal power capacity planning.
- Encourage coal import substitution and optimize logistics.
- Enable market-driven electricity pricing and deeper power markets.
- Key Features of Revised SHAKTI Policy
- Two-Window Structure
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- Window-I (Notified Price):
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- For Central/State Gencos and IPPs with PPAs (Power Purchase Agreements).
- Coal allocated on nomination or tariff-based bidding.
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- Window-II (Premium Basis):
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- Open to any power generator, including imported coal-based (ICB) plants.
- No PPA required. Flexibility to sell power in markets or bilateral deals.
- Key Reforms and Highlights
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- Simplification: Previous 8 coal linkage categories now mapped to just two windows.
- No PPA Mandate (Window-II): Empowers plants to sell power freely in power exchanges or contracts.
- Encouragement for Private Sector: Boosts Independent Power Producers (IPPs) and private investment in thermal sector.
- Support for Greenfield and Brownfield Projects: Especially near pithead locations for cost efficiency.
- Import Substitution: ICB plants can switch to domestic coal, reducing forex outgo.
- Coal Rationalization: Lower landed cost and efficient rail logistics reduce final tariffs.
- Flexibility for FSA Holders: Can bid for coal beyond annual quota under Window-II.
- Market Linkages: Allows sale of surplus electricity in power markets, enhancing market liquidity.
- Empowered Committee: Headed by Secretaries of Power, Coal, and Chairperson of CEA to resolve implementation issues swiftly.
- Zero Additional Expenditure: No financial burden on coal companies.
