ALSO READGovt may clear new coal linkage policy for power plants soon CCEA gives nod to new coal linkage policy Cabinet approves amendments in Mega Power Policy 2009 for Provisional Mega Power projects Cabinet approves Mega Power Policy amendments to boost power availability Cabinet nod soon on surplus coal availability policy: Secy
The Union cabinet on Wednesday approved the introduction of a new coal linkage policy -- Shakti -- for the power sector.
According to the Union cabinet, Shakti -- Scheme for Harnessing and Allocating of Koyala (coal) Transparently in India -- has been envisaged to make optimal allocation of the natural resource across power units.
"Allocation of linkages for power sector shall be based on auction of linkages or through Power Purchase Agreement (PPA) based on competitive bidding of tariffs, except for the state and the central power generating companies and the exceptions provided in Tariff Policy, 2016," an official statement said.
"Approved framework ensures that all projects with linkages are supplied coal as per their entitlement; ensures rights of coal supplies for FSA holders and signing of FSA with LoA holders."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)