SHAKTI stands for Scheme for Harnessing and allocating Koyala Transparency in India. It is a transformational policy for auction and allotment of coal linkages. This policy will award fuel supply agreements to coal plants already holding letter of assurance. Coal linkage would be allocated to state owned power distribution companies. The major objective to bring accountability in the allocation of coal. These, in turn, would assign linkages to state or central power generation companies via allocation and private through auction. The independent power producer participating in the auction will bid for discounts on the existing tariff and this would be adjusted from the gross coal bills.
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