Coal India Ltd clears way for sale of power in Exchanges

State owned Coal India Limited (CIL) in order of policy shift has cleared the way for un-requisitioned surplus (URS) power generated by the thermal power plants that use CIL’s linkage coal under long and medium term fuel supply agreements (FSAs), to be sold in the power market and exchanges with effect from 1 August 2025.

TPPs earlier that were 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.

Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel

With the revised SHAKTI policy, CIL has overcome the earlier provision of restricting the sale of power in the open market.

This would be applicable to all existing as well as future long, and medium term power FSAs and extends to all the power generators - Central and State Gencos, independent power plants. With the surplus power availability in the exchanges, ideally, the spot prices will be in check, leading to affordable power to all.

Earlier, CIL paved the way allowing supplies beyond Annual Contracted Quantity (ACQ) to TPPs of the country including IPPS, doing away with a provision which allowed coal supplies up to a maximum of 120% of ACQ.

For the current fiscal year CIL has around 650 million tonnes of FSAs in place for the power sector.