Coal India has invited thermal projects and IPPs who have power purchase agreements but do not have assured domestic coal supply agreements, to participate in auctions to get fuel linkages.
This is in line with the provisions of the New Coal Allocation Policy for Power Sector, 2017, nicknamed as SHAKTI (Scheme for Harnessing and Allocating Koyla Transparently in India).
According to the policy, power producers participating in the auction will bid for a discount on the tariff (quoted in PPA). Bid evaluation should be based on the non-zero levelised value of the discount.