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The first bidding under the new scheme of the Centre, “SHAKTI coal scheme” to provide coal to private power units would see the revival of 10,000 MW worth of generating units of Adani Power, Lalitpur (Bajaj Hindustan), KSK Mahanadi, GMR Energy, GVK among eight others. These power plants were listed as stressed assets as they were languishing for want of coal.
The bidding which was concluded in September saw the entire offered amount contracted by the power developers. Leading private sector players to bid for the coal offered by state-owned Coal India Ltd quoting discounts in their power tariff in range of 1-4 paise per unit. Coal India board on Wednesday approved the coal quantity to be supplied under the SHAKTI scheme.
The bidding was for power units with power purchase agreements (PPAs) but no long-term coal supply. Under the new programme for allocating coal to power units - Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) - Coal India offered assured coal supply to units through bidding. The units had to quote the discount in their power tariffs that they would offer after getting cheaper coal from the company.
The total power generation capacity which would receive coal is 10,082 MW and Coal India executives said it would help generate 47 billion units per annum and a savings of Rs 126 crore every year to the consumers for 25 years.