SHAKTI coal auction: Govt revises guidelines to improve coal supply

06 Sep 2021 CW Team

The scheme SHAKTI was launched in 2018 to cater for the stressed coal power units which have a shortage of coal.

In a meeting with the Association of Power Producers (APP) and the MoP, the representative body for the private gencos agreed on three separate window auctions for three months, six months, and one year.

According to a statement, to make coal available for a longer time, MoP will look into the duration of the auction, whether it can be extended further than one year. The Issue of the Bank Guarantee will also be examined if the time is extended beyond one year.

Earlier, a nearly 9,389 MW power capacity bid was held under the SHAKTI scheme. In February, private power firms had alleged that Coal India was offering less coal than needed.

In the bidding for medium-term PPAs for assets that do not have PPAs, around six projects received interest from four states to buy power at Rs 4.24 per unit for three years.

The MoP has asked private gencos to cooperate with the Centre-owned gencos when power is restricted to defaulting states. As per the statement, MoP suggested Internet Printing Protocols (IPPs) on a reciprocal basis not to derail the power regulation by the Central Gencos in case of the payment of dues by discoms.

APP to amend the Mega Power Policy, which MoP has taken up through inter-ministerial consultation.

The mega power policy is valid for projects over 1,000 MW of power, which was to expire on 31 March 2017. The Cabinet Committee on Economic Affairs (CCEA) extended it for five years and doubled the period to get the mega power certificate.

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Also read: Commercial coal auction: New players take lead in second phase

Also read: Govt gets bids for 19 coal mines in commercial mining auction

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For making coal available to power plants that do not have any power purchase agreement (PPA), the Ministry of Power (MoP) has approved changes in the guidelines for the Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI). The scheme SHAKTI was launched in 2018 to cater for the stressed coal power units which have a shortage of coal. In a meeting with the Association of Power Producers (APP) and the MoP, the representative body for the private gencos agreed on three separate window auctions for three months, six months, and one year. According to a statement, to make coal available for a longer time, MoP will look into the duration of the auction, whether it can be extended further than one year. The Issue of the Bank Guarantee will also be examined if the time is extended beyond one year. Earlier, a nearly 9,389 MW power capacity bid was held under the SHAKTI scheme. In February, private power firms had alleged that Coal India was offering less coal than needed. In the bidding for medium-term PPAs for assets that do not have PPAs, around six projects received interest from four states to buy power at Rs 4.24 per unit for three years. The MoP has asked private gencos to cooperate with the Centre-owned gencos when power is restricted to defaulting states. As per the statement, MoP suggested Internet Printing Protocols (IPPs) on a reciprocal basis not to derail the power regulation by the Central Gencos in case of the payment of dues by discoms. APP to amend the Mega Power Policy, which MoP has taken up through inter-ministerial consultation. The mega power policy is valid for projects over 1,000 MW of power, which was to expire on 31 March 2017. The Cabinet Committee on Economic Affairs (CCEA) extended it for five years and doubled the period to get the mega power certificate. Image Source Also read: Commercial coal auction: New players take lead in second phase Also read: Govt gets bids for 19 coal mines in commercial mining auction

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