Lok Sabha Question No. 1665 (UNSTARRED), answered on 2019-02-13
Subject: SHAKTI Scheme
Ministry: COAL
Asked by: JAYSHREEBEN  PATEL, KIRIT PREMJIBHAI SOLANKI

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO.1665

## TO BE ANSWERED ON 13.02.2019

## SHAKTI Scheme

## 1665. SHRIMATI JAYSHREEBEN PATEL: DR. KIRIT P. SOLANKI:

## Will the Minister of COAL be pleased to state:

- (a)  the salient features of the SHAKTI scheme and the current status of its implementation in the country;
- (b)  the list of States/UTs that are currently eligible under the scheme; and
- (c)  whether the State of Gujarat is currently eligible under the scheme and if so, the details of the sanctioned/ongoing projects that are being undertaken by the State of Gujarat as well as the funds transferred under the scheme?

## ANSWER MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS (SHRI PIYUSH GOYAL)

(a): The Government approved fading away of the existing Letter of Assurance  (LoA)-Fuel  Supply  Agreement  (FSA)  regime  and  introduced Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), 2017, which was issued by Ministry of Coal on 22.05.2017. A few salient features under various paras of the SHAKTI policy are:

- A. It has allowed continuation of the existing coal supply to the capacities of about 68,000 MW at the rate of 75% of Annual Contracted Quantity (ACQ). The  coal supply may  further be increased in future based  on  coal availability. Also, the policy has enabled about 19,000 MW capacities out of the  68,000  MW  which  have  delayed  in  commissioning  for  signing  of FSA provided these plants are commissioned  within 31.03.2022. The medium term PPAs to be concluded in near future against bids invited by Discoms have also been made eligible for linkage coal supply. With these, the old regime of LoA-FSA came to finality and fade away.
2. B (i). Coal India Limited (CIL)/ Singareni Collieries Company Limited (SCCL) may grant coal linkages to State/Central Gencos/Joint Ventures at notified price on recommendations of Ministry of Power.
3. B  (ii).  Linkages  to  Independent  Power  Producers  (IPPs)  having  Long  Term Power Purchase Agreement (PPA) based on domestic coal but no linkage are
4. provided  where  IPPs  participating  in  auction  will  bid  for  discount  on  the tariff (in paise/unit).
5. B (iii). Linkages to IPPs/ Power Producers without PPAs shall be on auction basis  where  methodology  would  be  similar  to  that  followed  under  linkage auction to non-regulated sector.
6. B (iv). Coal linkages may also be earmarked for fresh PPAs, by pre-declaring the  availability  of  coal  linkage  with  description,  to  the  States.  States  may indicate these linkages to Discoms/SDAs.
7. B  (v).  Power  requirement  of  group  of  States  can  also  be  aggregated  and procurement  of such aggregated power can be made  by  an  agency designated by Ministry of Power or authorized by such States on the basis of tariff based bidding.
8. B  (vi).  Linkages  shall  be  granted  for  full  normative  quantity  to  Special Purpose Vehicle (SPV) incorporated by nominated agency for setting up Ultra Mega Power Projects  (UMPP)  under  Central  Government  initiative  through tariff  based competitive under the guidelines for determination of tariff, on the recommendation of Ministry of Power.
9. B (vii). Ministry of Coal in consultation with Ministry of Power may formulate a detailed methodology of a transparent bidding process for allocating coal linkages to IPPs, having PPAs based on imported coal, with full pass through of cost saving to consumers.

As  of  now,  coal  linkages  to  following  capacities  have  been  granted  under Para A (i), B (i) & B (ii) of the policy.

-  Para  A(i):  Clearance  has  been  given  for  signing  of  FSA  for  6  power plants with a total capacity of 4,730 MW.
-  Para  B(i): 18  TPPs  have  been  granted  linkage  for  a  total  capacity  of 22,160 MW,
-  Para  B(ii):  Linkage  auction  under  para  B(ii)  of  SHAKTI  policy  was conducted  in  Sep'17  whereby  27.18  MT  of  annual  coal  linkage  was booked by ten provisional successful bidders for 9,045 MW capacity.
- (b) & (c) : All the States/UTs are eligible under SHAKTI policy subject to its terms and conditions. No coal linkage has been granted/allotted to Gujarat State under this policy.

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