The Ministry of Power (MoP) published the draft methodology for allocation of coal under para B (viii)(a) of SHAKTI Policy on 21. 08. 2019 and sought comments on it.

The proposed methodology is to auction coal linkages to power producers without Power Purchase Agreements (PPAs), for three months to a year, under the condition that power generated through the linkage must be sold in Day Ahead Markets (DAM) through power exchanges or in the short term through a transparent bidding process via the Discovery of Efficient Electricity Price (DEEP) portal. The introduction of this clause is aimed at encouraging competition in the sector, while also attempting to address the issue of stressed thermal power projects.

The  comments and suggestions put forward by PEG highlight areas that require clarity within the methodology and propose some ideas to aid the efficient and transparent implementation of the process.