The Government introduced Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), 2017, which was issued by the Ministry of Coal on 22.05.2017, followed by amendments in this Policy issued by the Ministry of Coal on 25.03.2019 and 08.11.2023 respectively. SHAKTI Policy is a transparent way of allocating coal to Power Sector.
The beneficiaries of the coal allocation under the SHAKTI Policy are the coal-based Power Generating Companies in the country. As of now, coal linkages to the following capacities have been granted under various Paras of the policy:
- Clearance has been given for signing of Fuel Supply Agreement (FSA) to Letter of Assurance (LoA) holders with a total capacity of 8,780 MW under the provisions of Para A(i) of SHAKTI Policy.
- 58 Thermal Power Plants (TPPs) have been granted linkage for a total capacity of 63,670 MW under the provisions of Para B (i) of SHAKTI policy.
- Under SHAKTI B (ii), total six rounds of auction have been held in which total booked quantity of coal linkage is 38.90 Million Tonne Per Annum (MTPA).
- Under SHAKTI Para B (iii), six rounds of auction have been held and about 40.27 MTPA of coal linkage has been booked.
- Under SHAKTI Para B (iv), the coal linkages have been earmarked to the States of Gujarat, Uttar Pradesh, Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, West Bengal, Assam and Kerala for a capacity of 4000 MW, 5600 MW, 6740 MW, 3299 MW, 1600 MW, 2000 MW, 4100 MW, 500 MW and 500 MW respectively.
- Under Para B (v) of SHAKTI Policy, coal linkage has been earmarked for a capacity of 4500 MW.
20 tranches of linkage auction have been conducted by Coal India Limited under Para B (viii) (a) of SHAKTI Policy and about 76.30 MT of coal has been booked by the successful bidders.
All the Power Generating companies are eligible for coal linkage under SHAKTI Policy, subject to terms and conditions mentioned in the Policy. The SHAKTI Policy has various mechanisms of coal allocation to the power plants in a transparent manner.
