Beginning August 1, Coal India Ltd. (CIL) said it is allowing thermal power plants (TPP) that use its linkage coal under long and medium term fuel supply agreements (FSAs), to sell un-requisitioned surplus (URS) power generated by them, in the power market and exchanges, a move that could benefit end-consumers.
Earlier, TPPs serving power purchase agreements (PPAs) using CIL’s linkage coal could sell the electricity generated only within the confines of the PPAs as the provisions disallowed the sale of power generated from long and medium term FSAs in the power market and exchanges.
As per the revised SHAKTI policy, CIL said it has done away with the earlier provision of restricting the sale of power in the open market. This applies evenly to all existing as well as future long and medium term power FSAs and extends to all the power generators – Central and State gencos, and independent power plants, a senior company official said.
“We have been cementing our relations with consumers consistently and the policy facilitates the power sector to meet consistent demand of affordable power,” the official said.
With the surplus power availability in the exchanges the spot prices are expected to come under check, leading to affordable power supply to end consumers.
In August last year, CIL allowed supplies beyond Annual Contracted Quantity (ACQ) to TPPs of the country including IPPS, doing away a provision which allowed coal supplies up to a maximum of 120% of ACQ.
For the current fiscal year, CIL has about 650 million tonnes of FSAs in place for the power sector.
Published – August 07, 2025 08:33 pm IST