Coal India Ltd (CIL) has invited applications from all Independent power producers who wish to take part in Coal linkage auction under ‘SHAKTI‘ scheme.
In order to move away from the existing LoA(Letter of Assurance)-FSA(Fuel Supply Agreement) regime, the Cabinet committee on Economic affairs(CCEA) had introduced new coal allocation for power producers-SHAKTI(Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) in May’17.
In this context, CIL has asked interested power utilities who wish to participate in the auction, to register on the website of MSTC Ltd on or before 7 Aug’17 at the following link:
http://www.mstcecommerce.com/auctionhome/shakti/index.jsp
Modalities of Coal Linkage Auction under SHAKTI Scheme:
1. Coal Linkages may be granted on notified price on auction basis for power producers that have concluded long term PPAs (power purchase agreements) based on domestic coal.
2. Power producers participating in the auction will bid for discounts on power tariff(in paisa/unit).
3. The criteria of bid evaluation would be based on the non-zero levellised value of the discount quoted by bidder on the existing tariff for each year of the balance period of the PPA.
In this regard, Ministry of Coal may consult Ministry of Power to work out a methodology on normative basis to be used in the bidding process for allocation of coal linkage.
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