The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved grant of fresh coal linkages to Thermal Power Plants of Central Sector/State Sector/ Independent Power Producers (IPPs).  

Two windows have been proposed under the Revised SHAKTI policy: 1. Coal Linkage to Central Gencos/States at Notified price: Window–I; 2. Coal Linkage to all Gencos at a Premium above Notified price: Window–II 

Window-I (coal at notified price):

Existing mechanism for grant of coal linkage to Central Sector Thermal Power Projects (TPPs) including Joint Ventures (JVs) & their subsidiary will continue.

Coal linkages to be earmarked to States and to an agency authorized by group of States as per existing mechanism, on the recommendation of Ministry of Power. Coal linkage earmarked to States may be utilized by States in its own Genco, Independent Power Producers (IPPs) to be identified through Tariff Based Competitive Bidding (TBCB) or existing IPPs having Power Purchase Agreement (PPA) under Section 62 of the Electricity Act, 2003 for setting up of a new expansion unit having PPA under Section 62.

Window-II (premium over notified price):

Any domestic coal-based power producer having PPA or untied and also Imported coal-based power plants (if they so require) can secure coal on auction basis for a period upto 12 months or for the period of more than 12 months upto 25 years by paying premium above the notified price and providing the power plants the flexibility to sell the electricity as per their choice.

Implementation strategy:

Directions would be issued to Coal India Limited (CIL)/ Singareni Collieries Company Limited (SCCL) for implementation of the aforesaid decisions. Besides, the concerned Ministries and all the States shall also be apprised of the revised SHAKTI Policy for further dissemination to the concerned Departments / Authorities and also to the Regulatory Commissions.