CCEA approves Revised SHAKTI policy: coal linkages to power plants through two windows
The Cabinet Committee on Economic Affairs on 7 May 2025 approved the Revised SHAKTI policy for coal allocation to the power sector, mapping the existing eight paras into two windows — coal at notified price and coal at a premium above notified price.
Summary
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on 7 May 2025 approved the Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy for grant of fresh coal linkages to thermal power plants. The existing eight paras for coal allocation have been mapped to two windows. Window-I gives coal linkage to Central gencos and States at the notified price. Under Window-II, any domestic coal-based power producer, and imported-coal-based plants if they need, can secure coal on auction basis for up to 12 months or for more than 12 months up to 25 years by paying a premium above the notified price. No power purchase agreement (PPA) is required to sell electricity generated from Window-II coal. Coal India Limited and Singareni Collieries Company Limited will implement the decisions. SHAKTI was first introduced in 2017.
Key facts
- Approved
- 7 May 2025, CCEA
- Structure
- Eight paras mapped to two windows
- Window-I
- Coal linkage to Central gencos/States at notified price
- Window-II
- Auction at premium above notified price; up to 12 months or up to 25 years; no PPA needed
- Implementation
- Coal India Limited and SCCL
- Original policy
- SHAKTI introduced in 2017
Practice MCQs 3 questions
Under the Revised SHAKTI policy approved on 7 May 2025, the existing eight paras for coal allocation have been mapped into how many windows?
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Correct answer: C — Two
The eight paras were mapped to two windows: Window-I (notified price) and Window-II (premium above notified price).
Consider the following statements about Window-II of the Revised SHAKTI policy: 1. Power producers can secure coal for a period of more than 12 months up to 25 years by paying a premium above the notified price. 2. A power purchase agreement is mandatory for selling electricity generated from Window-II coal. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. The requirement of a PPA has been done away with for electricity generated from Window-II coal.
In which year was the original SHAKTI policy for coal allocation introduced?
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Correct answer: D — 2017
The Ministry of Coal noted that SHAKTI was introduced in 2017, shifting coal allocation from nomination to auction/tariff-based bidding.