Coal Ministry’s new Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) has started showing results as a study conducted by global analytics company CRISIL said that coal linkage under the scheme has lifted utilisation and slashed fuel cost for power plants.
However, the report mentioned that truant Power Purchase Agreements (PPAs) have the potential to weaken the show of the scheme.
The report added that one out of the five stressed assets that have coal linkage under the scheme is already out of stress and improvement in operational performance of other plants is expected to unlock better value for stakeholders and expedite the resolution process.
Ten power plants had won coal linkages totalling 27.18 mtpa for 25 years in the first round of auctions under SHAKTI, with discounts of 1-4 paisa/kWh on existing tariffs. Read More