MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES
(SHRI PRALHAD JOSHI)
(a): Yes, Sir.
(b): The Government approved the fading away of the existing Letter of Assurance (LoA) - Fuel Supply Agreement (FSA) regime and introduced Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), 2017, which was issued by the Ministry of Coal on 22.05.2017. The Government also approved amendments to the SHAKTI Policy, 2017, which was issued by the Ministry of Coal on 25.03.2019. A copy of SHAKTI policy is at Annexure.
Coal linkages to the following capacities have been granted under various provisions of the SHAKTI policy:
(i) Clearance has been given for signing of Fuel Supply Agreement (FSA) for 10 power plants with a total capacity of 6,550 MW under provisions of para A(i) of SHAKTI policy.
(ii) 23 Thermal Power Plants (TPPs) have been granted linkage for a total capacity of 25340 MW under provisions of para B (i) of SHAKTI policy.
(iii) First round of linkage auction under B(ii) of SHAKTI policy was conducted in September, 2017, whereby 27.18 Million Tonne Per Annum (MTPA) of annual coal linkage was booked by ten successful bidders for about 9,045 MW capacity. During the second round, quantity of 2.97 MTPA of linkage has been booked by eight bidders for about 874.9 MW capacity. In the third round, auction has been conducted by PFC Consulting Limited (PFCCL) during May, 2020, where, 2.8 MTPA linkages have been booked by 5 successful bidders.
(iv) The linkage auction for SHAKTI B (iii) was conducted in February, 2020, where out of the total offer of 11.8 MTPA, 6.5 MTPA was booked by 7 successful bidders.
(v) Coal linkage have been earmarked from CIL for the States of Gujarat, Uttar Pradesh and Madhya Pradesh for a capacity of 4000 MW, 1600 MW and 2640 MW respectively for linkage under B(iv) of SHAKTI Policy.
(vi) Coal linkage earmarked from CIL for a capacity of 2500 MW for linkage under B(v) of SHAKTI policy.
(vii) Auction for April-June’2020 was completed during March 2020 for linkage under provisions of paraB(viii)(a) of SHAKTI policy. Out of 5.77 MT of coal offered by CIL, 1.34 MT was booked by 9 successful bidders. Auction for July-September, 2020 was completed on 13.07.2020. 4.91 MT coal was offered by CIL and 0.63 MT coal was booked by 8 successful bidders.
(c): All the States and Union Territories are eligible under SHAKTI policy, subject to terms and conditions mentioned in the policy.
(d): SHAKTI policy is a transparent way of allocating coal to the Power Plants including stressed power plants.
(e): The Cabinet Committee on Economic Affairs (CCEA) on 07.03.2019 had considered the Note from the Ministry of Power on the recommendation of Group of Ministers (GoM) Constituted to examine the specific recommendation of High Level Empowered Committee (HLEC) constituted to address the issues of Stressed Thermal Power Projects and has approved the amendments in the SHAKTI Policy issued by Ministry of Coal on 25.03.2019 and para B(ii)(i), B(ii) (ii) and Para B(viii) (a) to (e) have been added to the SHAKTI policy.
(f): Coal linkage has been granted to Karnataka Power Corporation Limited for Bellary TPS Unit-3 (700 MW) and Yermarus Thermal Power Station (2x800 MW) under B(i) of SHAKTI Policy. There is no Provision of fund transfer under the SHAKTI Policy.
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