In a long awaited relief for the thermal power sector, the Cabinet has approved ‘Shakti’ (acronym Scheme to Harness and Allocate Koyla (Coal) Transparently in India), a policy which aims to auction long-term coal linkages to power companies. The move is expected to revive 30 GW of power plants awaiting fuel supply, including those of Reliance Power, Adani Power, Lanco Infratech, GMR Energy, DB Power, CESC and KSK Energy. The policy also aims to reduce dependence on imported coal.
Under the policy, coal linkages would be awarded to designated state-owned discoms, who will then assign linkages to state/Centre generation companies via allocation, and through auction to private units.
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