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Informist, Wednesday, May 7, 2025

 

KOLKATA – The Centre has approved fresh coal linkages to thermal power plants operated by central and state government enterprises and independent power producers under the Scheme for Harnessing and Allocating Koyala Transparently in India, or SHAKTI. The move is aimed at boosting power production and make electricity readily available with the onset of summer when power demand increases considerably.

 

The government has proposed two windows under the existing SHAKTI scheme which was last amended in 2023. Under the first window, the existing mechanism for grant of coal linkage to government owned power projects, including joint ventures will continue. However, coal linkages earmarked for states may now be utilised by them at their own power generating plants or private power plants.

 

Under the proposed amendment, private power plants will be identified by the states through tariff based competitive bidding or considering the existing power purchase agreements such private power producers may have with the states. Private power producers can get coal from state owned coal producers at notified prices through the state government for expansion projects. This provision was not available earlier.

 

Under the second window, any domestic coal-based power producer, irrespective of having power purchase agreement or not, can now obtain coal from state-owned coal producers through linkage auction for a period up to 25 years by paying premium above the notified price and providing the power plants the flexibility to sell the electricity as per their choice. Power plants using imported coal can also avail this facility. Earlier, only plants having power purchase agreements with distribution companies could avail the linkage facility under the SHAKTI scheme.

 

A statement from the government said that directions would be issued to state-owned Coal India Ltd. and Singareni Collieries Co. Ltd. to implement the aforesaid decisions.

 

The government said that coal producing companies will not have to bear any additional financial burden on account of the new rules and this revision in SHAKTI policy will enable sale of power generated through linkage coal in power markets. This will not only deepen power markets by increasing availability of power in power exchanges but will also ensure optimum utilization of generating stations, the government said.  End

 

Reported by Avishek Rakshit

Edited by Ashish Shirke

 

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