Executive Summary:
The Ministry of Coal responded to questions regarding the SHAKTI Policy in Lok Sabha on July 30, 2025. The revised SHAKTI Policy, 2025 aims to enhance transparency, efficiency, and ease of doing business in coal allocation to the power sector. It outlines measures for uninterrupted supply and fair distribution of coal to eligible power plants. The policy details are available on the Ministry of Coal website.
Key Points / Main Content:
SHAKTI Policy Revision:
* The Revised SHAKTI Policy, 2025, promotes transparency and efficiency in coal allocation to the power sector.
* It broadens the scope of the previous coal linkage allocation policy by offering greater flexibility, wider eligibility, and improved coal accessibility.
* The policy fosters competition, enhances efficiency, ensures better capacity utilization, and supports seamless pithead thermal capacity addition.
Ease of Doing Business:
* The Revised SHAKTI Policy, 2025, simplifies coal linkage allocation by consolidating multiple windows into two:
* Window I: Coal linkage to Central GENCOs States at Notified Price.
* Window II: Coal linkage to all GENCOs at a Premium above Notified Price.
* The policy ensures transparent coal linkages for all power producers, including Central Gencos, State Gencos, and Independent Power Producers (IPPs).
* Increased coal availability is expected to stimulate mining activities and boost revenue for State Governments, benefiting local development.
Coal Supply Assurance:
* Coal supply to power plants is continuously monitored.
* An Inter-Ministerial SubGroup regularly convenes to make operational decisions for enhancing coal supply to Thermal Power Plants.
* An Inter-Ministerial Committee (IMC) monitors the augmentation of coal supply and power generation capacity.
Impact Analysis:
Central GENCOs States:
* Impact: Access to coal linkage at Notified Price via Window I.
* Action Required: Comply with the requirements for coal allocation under Window I of the Revised SHAKTI Policy, 2025.
All GENCOs:
* Impact: Access to coal linkage at a Premium above Notified Price via Window II.
* Action Required: Adhere to the regulations for coal allocation under Window II of the Revised SHAKTI Policy, 2025.
Independent Power Producers (IPPs):
* Impact: Ensured transparent coal linkages like Central and State Gencos.
* Action Required: Follow the guidelines for coal linkage allocation under the Revised SHAKTI Policy, 2025.
State Governments:
* Impact: Potential for increased revenue due to enhanced mining activities in coal-bearing regions, which can be used for local development.
* Action Required: Utilize increased revenue for the development of coal-bearing regions and the local population.
Ministry of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL):
* Impact: Continuous monitoring and decision-making for coal supply to power plants through the Inter-Ministerial SubGroup.
* Action Required: Participate in regular meetings of the Inter-Ministerial SubGroup and implement operational decisions to enhance coal supply.
Chairman, Railway Board; Secretary, Ministry of Coal; Secretary, Ministry of Environment, Forest and Climate Change; and Secretary, Ministry of Power:
* Impact: Monitoring augmentation of coal supply and power generation capacity through the Inter-Ministerial Committee (IMC).
* Action Required: Participate in IMC meetings and monitor the augmentation of coal supply and power generation capacity.
Key Entities Referenced
SHAKTI Policy: Scheme for Harnessing and Allocating Koyala Transparently in India, a policy for coal allocation.
Revised SHAKTI Policy, 2025: A revised version of the SHAKTI Policy, aimed at enhancing transparency and efficiency in coal allocation to the power sector.
Ministry of Coal: The Indian government ministry responsible for coal and mining.
G. Kishan Reddy: Minister of Coal and Mines.
Central Electricity Authority CEA: An authority involved in monitoring coal supply to Thermal Power Plants.
Coal India Limited CIL: A coal company involved in monitoring coal supply to Thermal Power Plants.
Singareni Collieries Company Limited SCCL: A coal company involved in monitoring coal supply to Thermal Power Plants.
Inter-Ministerial Committee IMC: Committee constituted to monitor augmentation of coal supply and power generation capacity.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO. 1617
TO BE ANSWERED ON 30.07.2025
Allocation of Coal under SHAKTI Policy
†1617. Smt. Himadri Singh:
Shri Kali Charan Singh:
Dr. Hemant Vishnu Savara:
Dr. Bhola Singh:
Shri Chintamani Maharaj:
Shri Dineshbhai Makwana:
Shri Satish Kumar Gautam:
Dr. Lata Wankhede:
Shri Damodar Agrawal:
Shri Praveen Patel:
Will the Minister of COAL be pleased to state:
(a) the initiatives being taken by the Government to enhance transparency and efficiency in
allocation of coal to the power sector under the revised Scheme for Harnessing and Allocating
Koyala Transparently in India (SHAKTI) Policy;
(b) whether there are any specific provisions aimed at improving the ease of doing business for
power producers;
(c) if so, the details thereof;
(d) the manner in which simplification of the linkage window under the said policy is likely to
benefit both public and private companies; and
(e) the measures being taken by the Government to ensure uninterrupted supply and fair
distribution of coal to all eligible power plants?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a): Revised SHAKTI Policy, 2025 is a transparent way of allocation of coal to the Power
Sector. This Policy enhances scope of the erstwhile coal linkage allocation policy for Power
Sector by providing greater flexibility, wider eligibility and better accessibility to coal. It
encourages competition, enhances efficiency, ensures better use of capacity and provides for
seamless pithead thermal capacity addition and affordable power to the country.
(b), (c) and (d): In furtherance of ease of doing business, the Revised SHAKTI Policy, 2025,
has simplified and mapped the multiple windows for coal linkage allocation under the erstwhile
SHAKTI Policy, 2017 into only two Windows as under:
Window I: Coal linkage to Central GENCOs/ States at Notified Price.
Window II: Coal linkage to all GENCOs at a Premium above Notified Price.The Revised SHAKTI Policy, 2025 ensures coal linkages in a transparent manner to all power
producers irrespective of ownership i.e. Central Genco, State Genco and Independent Power
Producers (IPPs).
The new linkages offered to the power sector would increase the coal availability for the power
sector and increase the mining activities in the coal bearing regions resulting in generation of
higher revenue to the State Governments which can be utilized for development of these
regions and local population in general.
The details of the Revised Shakti Policy, 2025 are available at the website of the Ministry of
Coal (https://www.coal.nic.in/sites/default/files/2025-05/20-05-20220a-wn.pdf).
(e): The supply of coal to the power plants is a continuous process. Coal supply is continuously
monitored by the coal companies, power companies and also by an Inter-Ministerial Sub-Group
comprising of representatives from Ministry of Power, Ministry of Coal, Ministry of Railways,
Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries
Company Limited (SCCL) which meets regularly to take various operational decisions to
enhance supply of coal to Thermal Power Plants.
Besides, an Inter-Ministerial Committee (IMC) has also been constituted comprising of
Chairman, Railway Board; Secretary, Ministry of Coal; Secretary, Ministry of Environment,
Forest and Climate Change; and Secretary, Ministry of Power, to monitor augmentation of coal
supply and power generation capacity. Secretary, Ministry of New and Renewable Energy and
Chairperson, CEA are co-opted as Special Invitees as and when required by the IMC.
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