Coal and Mines Minister Kishan Reddy Explained Revised SHAKTI Policy 2025

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.

Revised SHAKTI Policy, 2025

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.