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Cabinet clears new coal linkage plan 'Shakti'

This policy for power plants will help producers ensure fuel supplies in an organised manner

Press Trust of India  |  New Delhi 

Photo: Reuters
Photo: Reuters

A new policy to ensure an adequate supply of the fuel to through reverse auction received approval of the Cabinet Committee on Economic Affairs (CCEA) in New Delhi.

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.

The new policy for will help producers ensure in an organised manner.

The government's initiatives as well as international market conditions have helped bring down price of the and boosted domestic production. But a mechanism is required for providing coal linkages to at competitive rates.

According to sources, the new policy will address this concern and put in place a proper mechanism for sourcing of the by the power plants as per their schedules.

First Published: Wed, May 17 2017. 16:28 IST