Cabinet Approves Revised SHAKTI Policy for Coal Allocation

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Revised SHAKTI Policy to streamline coal allocation for the power sector. The updated policy builds on the government’s ongoing coal sector reforms.
Introduced in 2017, the SHAKTI Policy marked a shift from the earlier nomination-based coal linkage system to a more transparent auction and tariff-based bidding process. The revised version simplifies the allocation mechanism by consolidating multiple provisions into just two windows. This move aims to boost ease of doing business, improve efficiency, and promote affordable power generation.
The revision introduces greater flexibility, wider eligibility, and improved access to coal, ultimately supporting enhanced capacity utilization and faster development of pit-head thermal power projects.