In a major policy shift Coal India (CIL) has cleared the decks 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 power market and exchanges with effect from 1 August 2025.

Earlier, TPPs 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.

In the spirit of the revised SHAKTI policy, CIL has done away with the earlier provision of restricting the sale of power in the open market. This applies evenly 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.

“We have been cementing our relations with consumers consistently and the policy facilitates the power sector to meet consistent demand of affordable power” said a senior official of the company.

With the surplus power availability in the exchanges, ideally, the spot prices will be in check, leading to affordable power to all.