The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal under the Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy, aimed at increasing coal availability for thermal power plants in the Central and state sectors, along with independent power producers (IPPs).

Originally launched in 2018, the SHAKTI policy was designed to support stressed power units by ensuring consistent coal supply. Under the revised framework, the government introduces two new coal linkage windows. Window-I offers coal at the notified price to central and state thermal power plants. The current allocation mechanism for Central sector thermal power projects, including joint ventures and their subsidiaries, will remain unchanged. Furthermore, coal linkages will be extended to individual states or agencies representing groups of states, based on recommendations from the Ministry of Power. Window-II provides coal to all power generation companies (gencos) at a premium over the notified price.

Through this mechanism, both domestic and imported coal-based power producers, whether tied to power purchase agreements (PPAs) or operating without one—can participate in auctions. The premium-based coal linkage auctions will be available for durations ranging from under 12 months to 25 years. Crucially, these power producers will have the flexibility to sell electricity as they choose, without restrictions. The implementation will be carried out by Coal India (CIL) and Singareni Collieries Company (SCCL), who will be directed to operationalise the new policy guidelines.