The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the revised SHAKTI Policy, aimed at improving coal supply mechanisms for thermal power producers. The updated policy introduces two new allocation windows: one for central and state power utilities at notified prices, and another offering coal through auctions at a premium for all power producers, including those using imported coal.

Under Window-I, coal will be provided to central and state power generation companies at the notified price. This includes JVs and subsidiaries, with the existing linkage mechanism remaining in place. States will receive earmarked linkages, which can be utilized by their own generating companies or private producers selected through competitive bidding.

Window-II introduces a market-driven model where any thermal or imported coal-based power producer—whether with or without a power purchase agreement—can acquire coal via auction by paying a premium above the notified rate. The supply period can range from 12 months to 25 years, allowing producers more flexibility in electricity sales.

Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL) will be directed to implement the new policy. Relevant ministries, states, and regulatory bodies will be informed for further coordination and execution.