India approves revised SHAKTI policy to strengthen coal supply for power sector

In a landmark decision aimed at reforming coal allocation and strengthening the power sector, on May 8, India's Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy. The revised policy seeks to ensure more efficient, transparent and flexible coal distribution to power producers across India.

The original SHAKTI policy, launched in 2017, replaced the nomination-based coal allocation system with a more transparent, competitive framework using auctions and tariff-based bidding. The revised SHAKTI policy 2025 builds upon this by simplifying and consolidating the policy structure. Multiple earlier provisions have now been streamlined into two main