Cabinet nod for revised SHAKTI coal policy IIT expansions and major skilling push

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a revised SHAKTI coal linkage policy to support capacity addition by thermal power plants and reduce dependence on coal imports, amid surging national power demand.

The revamped SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy will allow coal procurement by thermal generators in two categories: central and state-run generators at notified prices, and private generators through competitive bidding at a premium above the notified rate. State-owned miners Coal India Ltd and Singareni Collieries Co. Ltd will operationalise the scheme. The policy is expected to ease procedural hurdles, enable pithead-based greenfield thermal projects, and promote energy self-sufficiency. It will also allow the sale of un-requisitioned surplus power under existing PPAs through power exchanges, increasing liquidity and offering efficient pricing for DISCOMs and commercial users.

India’s power demand continues to climb, driven by post-pandemic industrial recovery and extreme summer conditions. Peak demand is forecast to hit a record 270 GW this year, up from 250 GW in May 2024. In parallel, the cabinet approved ₹11,800 crore for academic and infrastructure upgrades at five Indian Institutes of Technology—Tirupati, Palakkad, Bhilai, Jammu, and Dharwad—over FY26 to FY29. The plan will add 6,500 student seats, 130 new professor-level positions, and five new research parks to deepen industry-academia collaboration. Further, the National Scheme for Industrial Training Institute (ITI) upgradation and the creation of five National Centres of Excellence (COEs) for Skilling were also cleared. With a total outlay of ₹60,000 crore, the scheme aims to modernise 1,000 ITIs and train 2 million youth over five years. Funding will be shared by the Centre (₹30,000 crore), states (₹20,000 crore), and industry (₹10,000 crore), with additional support from the Asian Development Bank and World Bank. For the first time, an industry-led Special Purpose Vehicle (SPV) model will be adopted for ITI upgrades.

Officials said past financial support was insufficient to meet evolving infrastructure and technological needs. The new funding model will allow need-based investments in modern, capital-intensive skill development programmes.

Cabinet nod for revised SHAKTI coal policy IIT expansions and major skilling push