Latest news with #SchemeforHarnessingandAllocatingKoyalaTransparentlyinIndia
Mint
07-05-2025
- Business
- Mint
Cabinet approves fresh coal linkages to boost procurement and capacity addition by thermal plants amid high power demand
New Delhi: The cabinet committee on economic affairs (CCEA) on Wednesday approved fresh coal linkages in a revised SHAKTI policy to reduce import dependency and increase capacity addition by thermal power plants. The union cabinet also approved an academic and infrastructure capacity increase for five IITs (Indian Institute of Technology), upgradation of the National Scheme for Industrial Training Institute (ITI) and setting up of five National Centres of Excellence (NCOE) for Skilling as a centrally sponsored scheme. The new SHAKTI policy, which stands for Scheme for Harnessing and Allocating Koyala Transparently in India, will help thermal power generators procure coal for long-term use with some procedural easement compared with the previous iteration of the same policy. The policy, first announced in 2017, has been implemented in 2019 and 2023, before its latest revision on Wednesday. The new policy will allow thermal power generators to procure coal in two windows. The first window will be for coal linkages to central government generator companies and states at notified prices, while the second window will offer linkages to all generator companies at a premium above the notified price, a CCEA statement said, adding that state-run Coal India Ltd and Singareni Collieries Co. Ltd would receive directions to implement the policy. The new policy is also expected to reduce coal imports and may push the setting up of greenfield thermal power projects at pithead sites, a CCEA statement said. Pithead sites are those which are nearer to the coal source. "It (the new SHAKTI policy) will enable thermal capacity addition, reduce dependency on imported coal, and strengthen the country's energy self-reliance," said Rohit Bajaj, joint managing director, Indian Energy Exchange. "Further, allowing sale of un-requisitioned surplus power under PPAs in power markets will increase liquidity on exchanges and will present an opportunity for DISCOMs and C&I consumers to meet their demand efficiently and at competitive rates," he added. The CCEA's decision comes at a time when India's power demand has been hitting record-high levels for the past three years due to industrial revival after the pandemic as well as rising global temperatures. The peak power demand this year is expected to reach an all-time high of 270 gigawatt (GW) surpassing the previous high of 250GW registered on 30 May 2024. The cabinet on Wednesday also approved the infrastructure and academic expansion of five IITs in the country, with an outlay of with an outlay of over ₹ 11,800 crore over four years from FY26 to FY29. The plan is expected to increase the student strength in these five IITs—Tirupati, Palakkad, Bhilai, Jammu and Dharwad—by 6,500 in this period, the cabinet statement said. The cabinet also approved the creation of 130 professor-level faculty posts in these IITs, the statement said, adding that five new research parks will also be created to foster industry-academia collaboration. Cabinet also approved the National Scheme for Industrial Training Institute (ITI) and the creation of five COEs after an announcement was made in the budgets for FY25 and FY26, a press statement said. The total outlay for this would be ₹ ₹ 60,000 crore, with the centre financing half, states providing ₹ 20,000 crore, and industry providing ₹ 10,000 crore, as well as co-financing by multilateral banks such as Asian Development Bank and the World Bank, as per the statement. The scheme will upgrade 1,000 government ITIs aiming to skill 2 million youth over a five-year period, the statement said. "The financial assistance provided under various schemes in the past was suboptimal to meet the full upgradation needs of ITIs, particularly in addressing growing investment requirements for infrastructure upkeep, capacity expansion, and the introduction of capital-intensive, new-age trades," the statement said, adding that funding will now be on a need-based investment basis. For the first time, the upgradation of ITIs will also adopt an industry-led Special Purpose Vehicle (SPV) model, the statement said.
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Business Standard
07-05-2025
- Business
- Business Standard
CCEA approves revised SHAKTI scheme for allocation of coal to power plants
The approval was given by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, in a move aimed at simplification of the linkage process Press Trust of India New Delhi The Cabinet Committee on Economic Affairs on Wednesday approved the revised Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) for allocation of coal to the power sector to help them meet long-term and short-term coal requirement. The approval was given by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, in a move aimed at simplification of the linkage process. The CCEA "has approved grant of fresh coal linkages to thermal power plants of central sector/state sector/independent power producers (IPPs)," the coal ministry said in a statement. With the introduction of Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy, two windows --- coal linkage to central gencos/states at notified price and coal linkage to all gencos at a premium above notified price -- have been proposed. The ministry further said 'under coal at notified price' segment the existing mechanism for grant of coal linkage to central sector thermal power projects (TPPs) including joint ventures (JVs) and their subsidiary will continue. Moreover, coal linkage earmarked to states may be utilized by states in its own genco, Independent Power Producers (IPPs) to be identified through Tariff-Based Competitive Bidding (TBCB) or existing IPPs having Power Purchase Agreement (PPA) for setting up of a new expansion unit under 'coal at notified price' window. Under the 'premium over notified price' segment, any domestic coal-based power producer having PPA or untied and also Imported coal-based power plants (if they so require) can secure coal on auction basis for a period upto 12 months or for the period of more than 12 months upto 25 years. The Central Sector Thermal Power Projects (TPPs) shall continue to get coal linkage on nomination basis on the recommendation of Ministry of Power, whereas, the linkages earmarked to the States on nomination basis on the recommendation of Ministry of Power may be utilized by the States in the State Generating Company, the statement added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Business Standard
07-05-2025
- Business
- Business Standard
Cabinet clears revamped SHAKTI policy for coal allocation to power firms
The Union Cabinet Committee, under the chairmanship of Prime Minister Narendra Modi, on Wednesday approved a revision of the Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) for coal allocation to the power sector. In the revised scheme, the Cabinet Committee approved the grant of fresh coal linkages to thermal power plants (TPPs) of the central and state sectors and independent power producers (IPPs), meaning coal will be available to all entities as required. Existing mechanisms for the grant of coal linkages to central sector TPPs, including joint ventures (JVs) and their subsidiaries, will continue. Thermal power plants, railways, Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), end consumers, and state governments will benefit, the committee said in an official statement. Two windows have been proposed under the revised SHAKTI policy. In the first window, the existing mechanism for coal linkage to central sector thermal power projects, including JVs and their subsidiaries, will continue. Coal linkages will be earmarked to states and to an agency authorised by a group of states as per the existing mechanism, on the recommendation of the Ministry of Power (MoP). Additionally, coal earmarked to states can be utilised by their own Gencos, IPPs identified through tariff-based competitive bidding (TBCB), or existing IPPs having power purchase agreements (PPAs) under Section 62 of the Electricity Act, 2003, for the setting up of a new or expansion unit having a PPA under Section 62. In the second window, any domestic coal-based power producer having a PPA or untied and imported coal-based power plants can secure coal on an auction basis for up to 25 years by paying a premium above the notified price, with the flexibility to sell electricity as per their choice. With the revised policy, the existing eight paragraphs for coal allocation have been mapped to only two windows in the spirit of ease of doing business. It also caters to the dynamic coal requirements of the power sector and aims to promote coal import reduction or substitution, the committee said. Apart from supporting brownfield expansion, the revised SHAKTI policy will promote the setting up of greenfield thermal power projects, primarily at pithead sites closer to coal sources. It will also enable the sale of power generated through linkage coal in power markets. This will not only deepen power markets by increasing the availability of power in power exchanges but will also ensure optimum utilisation of generating stations, the statement added.
News18
07-05-2025
- Business
- News18
PM Modi-Led CCEA Approves Revised SHAKTI Scheme For Allocation Of Coal To Power Plants
The approval was given by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, in a move aimed at simplification of the linkage process. The Cabinet Committee on Economic Affairs on Wednesday approved the revised Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) for allocation of coal to the power sector to help them meet long-term and short-term coal requirement. The approval was given by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, in a move aimed at simplification of the linkage process. The CCEA 'has approved grant of fresh coal linkages to thermal power plants of central sector/state sector/independent power producers (IPPs)," the coal ministry said in a statement. With the introduction of Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy, two windows —coal linkage to central gencos/states at notified price and coal linkage to all gencos at a premium above notified price — have been proposed. The ministry further said 'under coal at notified price' segment the existing mechanism for grant of coal linkage to central sector thermal power projects (TPPs) including joint ventures (JVs) and their subsidiary will continue. Moreover, coal linkage earmarked to states may be utilized by states in its own genco, Independent Power Producers (IPPs) to be identified through Tariff-Based Competitive Bidding (TBCB) or existing IPPs having Power Purchase Agreement (PPA) for setting up of a new expansion unit under 'coal at notified price' window. Under the 'premium over notified price' segment, any domestic coal-based power producer having PPA or untied and also Imported coal-based power plants (if they so require) can secure coal on auction basis for a period up to 12 months or for the period of more than 12 months up to 25 years. The Central Sector Thermal Power Projects (TPPs) shall continue to get coal linkage on nomination basis on the recommendation of Ministry of Power, whereas, the linkages earmarked to the States on nomination basis on the recommendation of Ministry of Power may be utilized by the States in the State Generating Company, the statement added. Allowing flexible linkage for new capacity addition with or without PPA with a tenure ranging from 12 months to 25 years will encourage IPPs to plan new thermal capacities, which will help in achieving the future thermal capacity addition. The revised policy, besides supporting brownfield expansion, will promote setting up of new thermal power projects primarily at pithead sites i.e. nearer to the coal source. With the introduction of SHAKTI Policy, 2017, there was a paradigm shift of the coal allocation mechanism from a nomination-based regime to a more transparent way of allocation of coal linkages through an auction/tariff-based bidding. Nomination based allocation continued only for the central/state Sector power plants. The policy was amended in 2019 on the recommendations of the Group of Ministers and was further amended in 2023. SHAKTI Policy has various paras for allocation of a coal linkage to the various categories of power plants, subject to meeting the eligibility criteria. Central Sector thermal power projects will continue to get coal linkage on nomination basis on the recommendation of the power ministry, whereas, the linkages earmarked to the states on nomination basis on the recommendation of Ministry of Power might be utilised by the states in the state generating company. The requirement of power purchase pact has been entirely done away for selling the electricity generated through the coal-secured under 'premium over notified price' category, thereby providing the power plants the flexibility to sell the electricity as per their choice. Moreover, the imported coal-based plants can secure domestic coal under 'premium over notified price' segment, subject to the technical constraints of ICB (imported coal based) plants, thereby reducing their import coal dependency. 'The benefits accrued, on account of import coal substitution, would be determined by Appropriate Regulatory Commission and passed on to the electricity consumers/beneficiaries," the statement said.
Time of India
07-05-2025
- Business
- Time of India
CCEA approves revised SHAKTI scheme for allocation of coal to power plants
Live Events The Cabinet Committee on Economic Affairs on Wednesday approved the revised Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) for allocation of coal to the power sector to help them meet long-term and short-term coal requirement. The approval was given by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi , in a move aimed at simplification of the linkage CCEA "has approved grant of fresh coal linkages to thermal power plants of central sector/state sector/independent power producers (IPPs)," the coal ministry said in a the introduction of Revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy, two windows --- coal linkage to central gencos/states at notified price and coal linkage to all gencos at a premium above notified price -- have been ministry further said 'under coal at notified price' segment the existing mechanism for grant of coal linkage to central sector thermal power projects (TPPs) including joint ventures (JVs) and their subsidiary will coal linkage earmarked to states may be utilized by states in its own genco, Independent Power Producers (IPPs) to be identified through Tariff-Based Competitive Bidding (TBCB) or existing IPPs having Power Purchase Agreement (PPA) for setting up of a new expansion unit under 'coal at notified price' the 'premium over notified price' segment, any domestic coal-based power producer having PPA or untied and also Imported coal-based power plants (if they so require) can secure coal on auction basis for a period upto 12 months or for the period of more than 12 months upto 25 Central Sector Thermal Power Projects (TPPs) shall continue to get coal linkage on nomination basis on the recommendation of Ministry of Power, whereas, the linkages earmarked to the States on nomination basis on the recommendation of Ministry of Power may be utilized by the States in the State Generating Company, the statement added.
