Revamped SHAKTI Scheme: A New Dawn for India's Power Sector

In a significant policy update, the Cabinet Committee on Economic Affairs has given the green light to a revised scheme under SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India). This initiative aims to restructure and simplify the allocation of coal resources to India's power sector, both for long-term and short-term needs.

Chaired by Prime Minister Narendra Modi, the committee's decision includes the provision of fresh coal linkages specifically tailored for central and state sector thermal power plants as well as for independent power producers. The new policy framework aims to enhance transparency and efficiency in the coal linkage process.

The revised SHAKTI policy introduces two pivotal linkages: coal at notified prices and a premium segment above the notified price. These measures ensure that central and state power projects, along with independent producers, have access to stable coal supplies essential for sustained energy production. The new scheme is expected to bolster the power sector's operations and growth.

(With inputs from agencies.)