India’s Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved a revised policy to improve coal access for thermal power plants across the country.
The updated Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI), announced by the Ministry of Coal, introduces two new options for power producers to obtain coal.
The first option allows central government and state-run power companies—including their joint ventures and subsidiaries—to continue receiving coal at the notified price through the existing linkage system.
The second option opens coal access through auctions at a premium above the notified price. It is available to all domestic coal-based power producers, whether they have power purchase agreements or not, and also to power plants using imported coal.
Officials said the revised SHAKTI policy aims to increase coal supply efficiency without adding any cost burden to coal companies.
The government hopes the move will help meet growing electricity demand and support stable operations of power plants nationwide.
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