Lok Sabha Question No. 1617 (UNSTARRED), answered on 2025-07-30
Subject: Allocation of Coal under SHAKTI  Policy
Ministry: COAL
Asked by: Shri Dineshbhai Makwana, Shri Kali Charan Singh, Dr. Hemant Vishnu Savara, Dr. Bhola Singh, Shri Chintamani Maharaj, Shri Damodar Agrawal, Shri Praveen Patel, Shri Satish Kumar Gautam, Dr. Lata Wankhede, Smt. Himadri Singh

## 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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