CURRENT AFFAIRS
CURRENT AFFAIRS
Description
The Government of India has recently approved a revised version of the Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) to optimize coal distribution for the power sector. This updated framework, cleared by the Cabinet Committee on Economic Affairs (CCEA) under the leadership of Prime Minister Narendra Modi, aims to enhance transparency and efficiency in coal allocation for both short-term and long-term power generation needs.
Key Features Of Revised SHAKTI Policy
The revised SHAKTI framework introduces two main coal allocation windows, simplifying the earlier multi-layered system into a more streamlined approach:
Window I – Coal Linkage at Notified Price
This window continues the existing mechanism of coal linkages for central and state-owned power plants.
State governments can allocate their coal linkages to their own generating companies or Independent Power Producers (IPPs).
This model provides a predictable coal supply to established thermal power producers, supporting long-term planning.
Window II – Coal Linkage at Premium Price
This option is designed for domestic coal-based power producers with Power Purchase Agreements (PPAs).
It allows these companies to secure coal supplies through competitive auctions, with the flexibility to choose supply periods ranging from 12 months to 25 years.
This structure aims to attract a broader range of power producers, including those previously reliant on imported coal.
Implementation Strategy
The revised policy will be implemented by Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL), with guidelines communicated to relevant ministries and state governments to ensure smooth execution.
Major Benefits Of Revised Policy
Simplified Process - The updated policy reduces the complexity of the previous coal allocation framework, consolidating it into two clear windows.
Flexibility for Power Producers - Window II removes the PPA requirement, giving power plants the freedom to sell electricity without being tied to specific agreements.
Encouragement for New Projects - It supports the development of new thermal power projects, including those without pre-existing PPAs, to boost overall power generation capacity.
Reduced Dependence on Imported Coal - By providing easier access to domestic coal, the policy aims to reduce the need for costly coal imports, enhancing energy security.
Support for Pithead Power Plants - The policy promotes the establishment of power plants close to coal sources, reducing transportation costs and improving overall efficiency.
Long-Term Impact On Power Sector
The revised SHAKTI policy is expected to significantly improve coal availability for power generation, reduce costs, and strengthen India’s energy security. It also provides greater operational flexibility, allowing power producers to adapt quickly to changing market conditions. This approach aligns with India’s broader strategy to enhance domestic energy production and reduce carbon emissions.
Welcome to Notopedia.com, your free learning platform that caters to the diverse needs of students and aspirants across a spectrum of entrance exams and educational endeavors. Whether you're preparing for highly anticipated exams like CAT, NEET, JEE Main, or bank job vacancies, our platform offers a wealth of resources to guide you towards success. Stay up-to-date with the latest exam dates, announcements, and results for various government recruitment exams, including SSC CGL, CHSL, NDA, and UPSC. Explore comprehensive study materials, sample papers, and exam patterns to hone your skills and boost your confidence. From important dates like CBSE Class 10 and 12 date sheets to exam-specific information like JEE Main application form date, we cover it all. Notopedia.com is your go-to source for everything from admissions and admit cards to scholarships and college information. Whether you're aiming for a career in defense, government, banking, or higher education, our free learning platform equips you with the knowledge and resources you need to excel. Join us in your educational journey and unlock a world of opportunities, guidance, and comprehensive support.
For more Updates and Information - Visit Notopedia's Bulletin Board
For Latest Sarkari Jobs - Visit Notopedia's Sarkari Jobs Section
For access to more than 20,000 Colleges - Visit Notopedia's College Section
For School Studies and Exams Preparation across 14 Boards - Visit Notopedia's School Section
For Comprehensive Preparation of Sarkari Job Exams - Visit Notopedia's Sarkari Exams Section
