Coal Ministry Amends SHAKTI Policy to Expand Coal Linkage

Current Context: The Ministry of Coal in India has announced an amendment to the SHAKTI Policy (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India).

• This amendment allows power plants, including private generators without Power Purchase Agreements (PPAs), to be granted coal linkage for a minimum of three months and up to a maximum of one year.
• The amendment is aimed at fostering a more transparent coal allocation mechanism.
• It dictates that power generated through such linkages must be sold via power exchanges or through transparent bidding processes on the Discovery of Efficient Energy Price (DEEP) portal.
• This methodology will be formulated by the Ministry of Power in consultation with the Ministry of Coal.
• The policy revision is expected to improve the availability and affordability of coal for power generation and enhance the overall efficiency of the sector.

Question:

Q.1 What is the minimum duration for which power plants can be granted coal linkage under the amended SHAKTI Policy?
a. One month
b. Three months
c. Six months
d. One year