The Ministry of Coal (MoC), on March 24, 2025, notified regarding the removing the restrictions on coal purchases for power plants.
The following has been stated namely: -
It states that the Shakti Policy, 2017 replaced the New Coal Distribution Policy (NCDP) for coal supply to thermal power plants, ensuring coal availability based on Power Purchase Agreement (PPA) requirements, beyond the Annual Contracted Quantity (ACQ) under Fuel Supply Agreements (FSA).
It states that the government has focused on increasing domestic coal production, with a record 997.826 million tonnes produced in 2023-24, and a 5.45% growth in coal production (929.15 MT) in the 2024-25 period (up to February).
It states that the government has implemented several measures to boost coal production, including the enactment of the MMDR Act, which allows captive mine owners to sell up to 50% of their coal production in the open market, and the introduction of a Single Window Clearance portal and Project Monitoring Unit to expedite coal mine operations.
It notified that the commercial mining auction scheme launched in 2020 offers incentives like a 50% rebate for early coal production, flexibility in coal utilization, a transparent bidding process, and 100% FDI through the automatic route.
[Press Release No: 2114310]
