Scheme for Harnessing & Allocating Koyala Transparently in India Revival of Thermal Power Plants (Download PDF)


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Government approved a new policy for allocation of future coal linkages in a transparent manner for power sector consumers- ‘Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India’ (SHAKTI).

Image of Scheme for Harnessing and Allocating Koyala

Image of Scheme for Harnessing and Allocating Koyala

Image of Scheme for Harnessing and Allocating Koyala

  • Policy revives 30, 000 MW of power plants awaiting fuel supply.

  • Coal linkages would be awarded to designated state-owned power distribution companies (discoms), which in turn will assign these linkages to the state/central generation companies.

  • Policy is expected to boost energy, utilities and mining sectors.

Current Problems in Coal Allocation

  • The government is aiming to bring down thermal coal imports of power PSUs this financial year to “zero”. This should reduce the country’s import bill by around Rs. 17, 000 crore.

  • Coal, the key raw material for about 60 per cent of the power produced in the country, has been placed under the five per cent GST slab.

  • India is expected to double its coal production to 1.5 billion tonnes by 2020.

  • Inadequate domestic coal, rising imports and high price of imported coal necessitated government’s intervention so that power producing companies get sufficient coal. The policy will:

  • Ensure that power companies can operate in a true open market environment

  • Help them repay loans.

Companies Benefitting from The Policy

  • Reliance Power

  • Adani Power

  • Lanco Infratech

  • GMR Energy

  • DB Power

  • CESC

  • KSK Energy

- Published/Last Modified on: April 24, 2018

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