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SHAKTI Policy, a Fruitless Endeavor?

SHAKTI has been implemented for over a year now and has come up with nothing but problems. Govt has not been able to effectively materialize the process of centralized coal supply ultimately affecting the generation. The advance payment system has resulted in cash flow issues with developers as well. With generation impacted, spot power tariffs are bound to increase and developer’s project viability will be at stake if PPA’s are not modified. DISCOM’s and ultimately common masses will take the hit if power tariffs are modified on the PPA’s and if Govt provides subsidies it will impact the fiscal deficit.

Govt needs to improvise on the scheme to make it more business friendly, coal supply needs to be maintained. Not just on papers but CIL’s monopoly needs to end in reality for better supply, Govt also needs to take care of railway rakes for uninterrupted supply.