The Ministry of Power recently announced a new scheme for the procurement of an aggregate power of 4500 MW on a competitive basis. This initiative is set to last for five years and will function under the Finance, Own and Operate (FOO) basis, specifically under B (v) of the SHAKTI Policy.
Key Features of the Scheme
PFC Consulting Ltd, a wholly-owned subsidiary of PFC Ltd, is spearheading this operation as the designated Nodal Agency by the Ministry of Power. In a bid to fuel this significant project, the Ministry of Coal has been asked to allocate approximately 27 MTPA (Million Tonnes per Annum).
This ambitious scheme harbours the potential to aid states grappling with power shortages significantly. Furthermore, it could stimulate generation plants to expand their capacities, ultimately boosting overall energy production.
About SHAKTI Policy
The Ministry of Power (MoP) launched the Coal Linkage Policy, known as SHAKTI (Scheme to Harness and Allocate Koyla Transparently in India) in 2017. This policy serves as a lifeline for power plants lacking fuel supply agreements (FSAs) by providing them with coal through auctions.
Objectives of the SHAKTI Policy
The SHAKTI scheme’s primary aim is to ensure all Thermal Power Plants in India have access to coal, promoting transparency and objectivity in its allocation. The benefits of this scheme are multi-fold, extending not only to the infrastructure sector, but also to public sector banks burdened with significant unpaid loans from power companies.
In addition, the scheme is poised to lessen reliance on imported coal, bolstering domestic industries in the process. This aligns with a broader economic agenda of promoting self-reliance and boosting national industries.
Throughout its operation, PFC Consulting Ltd will invite bids for the supply of 4,500 MW, offering power producers a competitive platform to supply the energy required under this project. This form of procurement also stimulates healthy competition in the sector, driving efficiency and inducing lower energy costs.
Implementing this scheme holds substantial promise for addressing power shortages across various states while simultaneously increasing the capacities of generation plants. The SHAKTI policy is a strategic step towards ensuring power plants have a consistent coal supply, thereby ensuring uninterrupted power supply to the broader population.
Concluding Remarks
The Ministry of Power’s latest scheme, nested under the SHAKTI Policy, marries the objectives of alleviating power shortages and nurturing the growth of domestic industries. By promoting transparency and fostering competition, this initiative truly encapsulates the spirit of SHAKTI – creating power through unity, harnessing potential, and aiming for an illuminate future.
*Kudos to the government for taking a significant stride in India’s power sector. The road might be long, with many a winding turn, but with rigorous implementation and constant monitoring, we’re well on our way to a brighter and more sustainable future.*