Rapid Fire
Revised SHAKTI Policy 2025
- 15 May 2025
- 2 min read
The Cabinet Committee on Economic Affairs (CCEA) approved the revised SHAKTI policy for coal allocation to enhance coal availability, and promote ease of doing business in the power sector.
- SHAKTI Policy (2017) aims to make coal allocation transparent by moving from a nomination-based system to auction or tariff-based bidding.
- Key Highlights of the Revised Policy: It introduces two streamlined windows-Window-I and Window-II, replacing eight older categories to enhance the ease of doing business.
- Window-I (Coal at Notified Price): Coal will be supplied at fixed prices for government-owned thermal plants, including joint ventures (JVs) and subsidiaries.
- Window-II (Premium above Notified Price): Power producers can secure coal through an auction at a premium over the notified price.
- Offering them flexibility in selling electricity via long-term (up to 25 years) or short-term (up to 12 months) contracts.
- Coal: India has the world's 5th largest coal reserves and is the 2nd biggest coal consumer.
- Coal remains vital, contributing 55% to India’s energy mix and powering over 74% of electricity generation.
- Odisha, Jharkhand, and Chhattisgarh are the top three coal-rich states in India, together holding about 69% of the country’s total coal reserves.
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