Railways to buy 1 Lakh wagons to boost coal supply for power plants

Railways have taken steps to purchase 1 Lakh wagons to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants.

The railways have started the process of buying 1 lakh waggons. In areas with coal extraction, the network of railways has also expanded.

The Scheme to Harness and Allocate Koyla Transparently in India (SHAKTI) Policy uses a transparent allocation process to distribute coal to power plants, particularly strained power plants.

The Cabinet Committee on Economic Affairs (CCEA) on 07.03.2019 had considered the note from the Ministry of Power on the recommendation of the Group of Ministers (GoM) constituted to examine the specific recommendation of the High Level Empowered Committee (HLEC) constituted to address the issues of Stressed Thermal Power Projects and has approved the amendments in the SHAKTI Policy issued by Ministry of Coal on 25.03.2019 and Para B(ii) (i), B(ii) (ii) and Para B(viii) (a) to (e) have been added to the SHAKTI Policy.

Moreover, coal connections to Independent Power Producers are allocated to State(s) for the purpose of giving the coal linkages to power plants based on tariff-based competitive bidding for concluding Power Purchase Agreements, or by way of a transparent auction system under the SHAKTI Policy (PPA). The demand for electricity has grown rapidly.

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