Revised SHAKTI Policy for Coal Allocation, 2025

On May 7, 2025, the CCEA approved the revised SHAKTI Policy to streamline coal linkages for Thermal Power Plants (TPPs). This reform simplifies the previous allocation framework into two primary “Windows,” enhancing transparency and market flexibility.

Key Feature	Details
Window-I (Fixed Price)	Coal is allocated at notified prices to Central/State Gencos, Joint Ventures, and IPPs with existing or competitive tariff-based Power Purchase Agreements (PPAs), following Ministry of Power recommendations.
Window-II (Auction-Based)	Open to all domestic and imported coal-based producers. Linkages are secured through auctions (12 months to 25 years) at a premium. Notably, no PPA is required, allowing generators to sell electricity freely in the open market.
Implementation & Oversight	Coal India Limited (CIL) and SCCL execute the directives under the supervision of a high-level committee from the Coal and Power ministries.

PT Facts

Approval Date: 7 May 2025.
Approved By: Cabinet Committee on Economic Affairs.
Sector: Coal allocation for Thermal Power Plants.
Window-I: Fixed-price coal allocation.
Window-II: Auction-based coal allocation.
Key Change: No PPA required under Window-II.

Source:

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