CCEA approves new coal linkage policy 2017

Cabinet approve signing of Fuel Supply Agreement (FSA) with Letter of Assurance (LoA) holders of Thermal Power Plants(TPPs), fading away of the existing LoA-FSA Regime and Introduction of a new more transparent coal allocation policy for Power Sector, 2017-SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India).

The approved framework ensures that all projects with linkages are supplied coal as per their entitlement. This will ensure the rights of coal supplies for FSA holders and signing of FSA with LoA holders.

The salient features of the SHAKTI are as follows:
  1. TPPs having LoA shall be eligible to sign FSA after ensuring that the plants are commissioned, respective milestones met, all specified conditions of the LoA fulfilled within specified timeframe and where nothing adverse is detected against the LoA holders and the TPPs are commissioned before 31.03.22.
  2. TPPs, part of 78000 MW, that could not be commissioned by 31.03.15 shall now be eligible for coal drawal if the plants are commissioned before 31.03.22.
  3. Actual coal supplies to all TPPs shall be to the extent of long-term PPAs or medium term PPAs to be concluded in future.

    Important Takeaways from above News for SBI PO Mains Exam-
    • Minister of State with Independent Charge is Mr. Piyush Goyal
    • SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India)

    Source- Press Information Bureau (PIB)

    If you have any other takeaways, do share with us in the comment section

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