Archive · 2 Jun 2025
Cabinet Approves Revised SHAKTI Policy for Coal Allocation
The Indian government has changed how it gives coal to power plants.
The new plan, called SHAKTI, aims to make it easier for power plants to get coal.
There are two main ways to get coal now.
One way is for government-owned plants and states to get coal at a set price.
The other way is for any power plant to bid for coal, potentially paying more.
The changes are meant to help power plants, coal companies, and consumers by simplifying the process.
The plan also supports building new power plants, especially near coal mines, and reduces the need to import coal.
The Cabinet approved the revised SHAKTI policy for coal allocation.
The policy aims to allocate coal to the power sector transparently.
Two windows are proposed: coal linkage at notified price and at a premium.
The policy will support brownfield expansion and promote greenfield projects.
The changes will streamline coal allocation and reduce coal imports.
- Who
- Cabinet Committee on Economic Affairs
- What
- Revised SHAKTI policy for coal allocation.
- When
- May 7
- Where
- India
- Why
- To allocate coal transparently and cater to the dynamic coal requirements of the power sector.
- Policy Name
- SHAKTI
- Approval Date
- May 7
- Approving Body
- Cabinet Committee on Economic Affairs
- Chair
- Prime Minister Narendra Modi
- Primary Beneficiaries
- Thermal power plants, railways, coal companies, end consumers, and state governments
- Objective
- Coal allocation to power sector