SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India)

The salient features of the SHAKTI ( Scheme for harnessing and allocating Koyala transparently in India) are as follows:

• Thermal Power Plants (TPPs) having Letter of Assurance (LoA) shall be eligible to sign Fuel Supply Agreement (FSA) after ensuring that the plants are commissioned, respective milestones met, all specified conditions of the LoA fulfilled within specified time frame and where nothing adverse is detected against the LoA holders and the TPPs are commissioned before 31.03.22
• TPPs, part of 78000 MW, that could not be commissioned by 31.03.15 shall now be eligible for coal drawal if the plants are commissioned before 31.03.22.
• Actual coal supplies to all TPPs shall be to the extent of long-term Power Purchase Agreement (PPAs) or medium-term PPAs to be concluded in the future.

Future coal linkages shall be granted as per the following provisions:

1.   To Central and State Gencos, on recommendations of Ministry of Power (MoP).
2.   Coal linkages shall be granted on an auction basis for Independent Power producers (IPPs) with PPA based on domestic coal. The IPPs participating in the auction will bid for a discount on the existing tariff. The discount on tariff would be adjusted from the gross amount of the bill at the time of billing.
3. The future coal linkages for the supply of coal to IPPs without PPA shall be based on auction where bidding for linkage shall be done over the Notified Price of Coal Company. The LoA shall be issued to the successful bidders and FSA signed after meeting the terms of LoA.
4.   Linkages shall be earmarked to the States where any linkage quantity unutilized for two years shall lapse. States may indicate the earmarked linkages to the DISCOMs/SDAs, who may:

• Undertake tariff-based competitive bidding on long-term and medium-term PPAs and allot these linkages to the successful bidder; or
• Assign these linkages to capacities that are covered under exceptions and proviso clauses of para 5.2 of the Tariff Policy dated 28.01.16.

1. The power requirement of a group of States can be aggregated and procurement of power on tariff-based bidding shall be made by a designated agency. Coal linkages shall be earmarked for such an agency.
2. Linkages, for full normative quantity, shall be granted for setting up Ultra Mega Power Projects (UMPP).
3. Coal linkages, for IPPs having PPA based on imported coal, shall be made available through a transparent bidding process.

Source: Pib