Cabinet clears revised SHAKTI policy for coal

New Delhi

The Indian Cabinet, led by Prime Minister Narendra Modi, has approved a revised SHAKTI policy to improve coal supply for power plants. This new plan supports thermal power units owned by the central government, states, and private producers. It includes two main systems, called Window-I and Window-II, to make coal access easier and more flexible.

Under Window-I, coal will be given to central and state power companies at a fixed government price. States can also use this coal for their own projects or private producers selected through competitive bidding. This system will help in building new power units and expand existing ones.

Window-II allows all coal-based power plants, including those using imported coal, to buy domestic coal through auctions. These plants will pay more than the standard price and can use the coal freely. They can also sell electricity in any market without needing prior agreements. This system is flexible and supports coal use for up to 25 years.

Coal India and Singareni Collieries will carry out the new coal plan. Ministries and state departments will be informed to help spread the word. The revised policy reduces eight older rules to just two simple options. It aims to make business easier for power producers.

The change also supports setting up new power plants close to coal mines, lowering coal delivery costs. Less railway use and cheaper electricity are also expected. An empowered group will handle smaller policy changes and any issues. This plan should help cut imported coal use and lower electricity bills.