what is  SHAKTI Policy ?

The SHAKTI (Scheme for Harnessing as well as Allocating Koyala Transparently found in India) policy was endorsed in May 2017

using the intention of greater allocation of coal to present and upcoming power flowers and plants.

It aimed to phase out the current Letter of Assurance and Fuel Supply Agreement (FSA)-based regime,

and instead, introduce a much more transparent and competitive coal allocation policy.

The policy even supplied a possible resolution for the absence of coal linkages to 17 power plants accompanied by a capacity of about 15,000 MW, which was a component of the 34 power plants (of about 40,000 MW) declared as distressed.

The policy was amended in March 2019 especially to assist stressed-out projects depending on the suggestions of a High-Level Empowered Committee.

major Feature  of the methodology :

Duration of linkage: Coal linkages will be supplied for the usage of coal by the energy plant for a number of 3 weeks.

Periodicity : Auction of coal linkages will be carried out every quarter. An annual calendar will likely be published by the coal businesses in this regard.

Eligibility: All electric power plants, except captive power plants, that contain at least 50 % untied capacity (generation capability with no PPAs) will be eligible to get involved in the auction for short-term linkage.

Methodology for bidding: The coal company is going to conduct a competitive bidding procedure. The bid for the auction will include a high quality over the notified price of coal.

Problems on the usage of energy: The power generated under these coal linkages will have to be sold inside the day ahead market through power interchanges, and short term through a transparent bidding process thanks to the Discovery of Efficient Energy Prices (DEEP) portal.


The Ministry of Power had constituted a High-Level Empowered Committee to solve problems regarding stressed thermal electric power assets in July 2018. The Union Cabinet approved several of the Committee’s recommendations in March 2019.

One of many strategies of the Committee was to provide short-term coal linkage to power plants and flowers that don’t have power invest in agreements (PPA). This short-term linkage will be provided under the SHAKTI policy


Leave a Comment

Your email address will not be published. Required fields are marked *