Revised Scheme for SHAKTI, 2025

Notification/Circular No. – No. CPD-23011/24/2025-CPD (Comp. No. 360084) dated May 20, 2025

Ministry of Coal has introduced the Revised SHAKTI Policy, 2025, superseding the provisions of the SHAKTI Policy, 2017 and its subsequent amendments in 2019 and 2023. The revised framework aims to enhance transparency and efficiency in coal allocation for the power sector while ensuring rationalization and flexibility in coal linkages.

Continuation of Existing Coal Linkages: Coal linkages allocated under previous policies, including the Pre-New Coal Distribution Policy (NCDP), NCDP 2007, and earlier SHAKTI provisions, will remain valid under existing contractual terms. Upon expiry, power producers (Central Gencos, State Gencos, and Independent Power Producers) may apply under the revised policy for fresh linkages.

Sale of Power & PPA Adjustments: Power producers must sell electricity in accordance with Power Purchase Agreements (PPAs) (long-term, medium-term, or short-term). Un-requisitioned surplus power generated using linkage coal can be sold in the power market, with benefits shared as per government-notified rules. Generators terminating PPAs due to DISCOM payment defaults may use existing linkage coal for short-term PPAs via the DEEP portal or Power Exchange for up to two years or until securing a new long/medium-term PPA.

Coal Linkage Rationalization & Empowered Committee: Coal linkages may be rationalized per Ministry of Coal guidelines. An Empowered Committee comprising Secretary (Power), Secretary (Coal), and Chairperson, CEA will finalize methodologies and timelines for policy implementation.

Eligibility for Greenfield Thermal Power Projects: Greenfield thermal projects near pitheads are eligible for coal linkages. Empowered Committee may grant exemptions on a case-by-case basis.

Coal Linkage Allocation Mechanisms Two windows for fresh coal linkages:

    • Window-I: Coal linkage to Central Gencos/States at Notified Price.
    • Window-II: Coal linkage to all Gencos at a Premium above Notified Price.

 

Auction Mechanisms Under Window-II

    • Short-Term Auction: Conducted half-yearly for securing coal linkage up to 12 months.
    • Long/Medium-Term Auction: Conducted yearly for securing coal linkage for 12 months to 25 years.

 

Imported Coal-Based (ICB) Plants Inclusion: ICB plants may secure coal under Window-II, with benefits passed through to beneficiaries via regulatory-approved methodology.

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