Last Updated: 17 Oct 2025
SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy
Last Updated: 17 Oct 2025
The scheme ensures transparent coal allocation to thermal power plants through an auction-based system, replacing the old LoA-FSA regime. It aims to make coal supply more efficient and affordable, reducing power generation costs under the 2007 Coal Distribution Policy.
- Aim: To ensure the availability of coal to all the thermal power Plant in transparent manner and transfer the benefits of linkage coal to the end consumers.
- Phase out erstwhile Letter of Assurance (LoA)-Fuel Supply Agreement (FSA) regime.
- Provides for coal linkages or coal allocation through auctions to the power plants which do not have linkage or lack FSAs through coal auctions.
- Helps the generators to get cheaper coal and thereby reduction in cost of generation.
- Coal Distribution Policy (NCDP), 2007 governs Coal linkage to the power sector.
- Key beneficiaries and benefits:
- Power companies (assured coal supply)
- Consumers (reduced cost of power)
- Indigenous Coal Sector (reduction in Imported coal)
- Banking Sector (reduced NPAs)