**Policy Summary: Revised SHAKTI Policy, 2025**
The Ministry of Coal announced the Revised SHAKTI Policy, 2025, aimed at enhancing transparency and efficiency in coal allocation to the power sector. This policy supersedes the SHAKTI Policy, 2017, by offering greater flexibility, broader eligibility, and improved accessibility to coal resources. The core objectives include fostering competition, increasing efficiency, optimizing capacity utilization, enabling seamless thermal power capacity expansion at pit heads, and ensuring affordable power supply nationwide.
The Revised SHAKTI Policy, 2025 streamlines the coal linkage allocation process, consolidating multiple windows under the previous policy into two primary categories:
* **Window I:** Coal linkage to Central GENCOs and States at the Notified Price.
* **Window II:** Coal linkage to all GENCOs at a Premium above the Notified Price.
Eligibility for coal linkages is extended to all power producers, irrespective of ownership (Central GENCOs, State GENCOs, and Independent Power Producers (IPPs)). The policy anticipates increased coal availability for the power sector, stimulated mining activities in coal-bearing regions, and increased revenue generation for State Governments, which can be used for regional development.
The Ministry of Coal, along with associated coal companies, power companies and 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 are continuously monitoring coal supply to power plants and meet regularly to enhance coal supply to Thermal Power Plants. An Inter-Ministerial Committee (IMC) monitors coal supply and power generation capacity, comprising of Chairman, Railway Board; Secretary, Ministry of Coal; Secretary, Ministry of Environment, Forest and Climate Change; and Secretary, Ministry of Power. Secretary, Ministry of New and Renewable Energy and Chairperson, CEA are coopted as Special Invitees.
Detailed information about the Revised SHAKTI Policy, 2025 is available on the Ministry of Coal website: https:www.coal.nic.insitesdefaultfiles202505200520220awn.pdf.
The announcement was made by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in Rajya Sabha on July 28, 2025. Release ID: 2149190.
Key Entities Referenced
State Genco: State government-owned power generating companies.
SHAKTI Policy: A coal linkage allocation policy for the Power Sector
Revised SHAKTI Policy, 2025: A revised version of the SHAKTI Policy, aimed at a transparent allocation of coal to the Power Sector.
Ministry of Coal: The government ministry responsible for coal-related policies and regulations.
Central GENCOs: Central government-owned power generating companies.
States: Referring to State governments in India
Independent Power Producers IPPs: Privately owned power generating companies.
Ministry of Power: The government ministry responsible for power-related policies and regulations.
Ministry of Coal
Revised SHAKTI Policy
Posted On: 28 JUL 2025 12:46PM by PIB Delhi
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 pit head thermal capacity addition and affordable
power to the country.
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).
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.
This information was given by Union Minister of Coal and Mines Shri G. Kishan Reddy in a written reply in
Rajya Sabha today.
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Shahid T Komnath
(Release ID: 2149190)