In a significant policy shift, state-run Maharatna Coal India Ltd has permitted the sale of requisitioned surplus (URS) power by thermal power plants (TPPs) utilising its linked coal under long- and medium-term Fuel Supply Agreements (FSAs) in the open power market and exchanges beginning August 1, 2025.  

This move lifts previous limits that limited such power sales to power purchase agreements (PPAs). The company stated that the modification is consistent with the spirit of the SHAKTI policy and applies to all current and future long- and medium-term FSAs.

It also includes Central and State Gencos, as well as independent power producers. “With the surplus power availability in the exchanges, ideally, the spot prices will be in check, leading to affordable power to all,” said Coal India.

The initiative is intended to assist the power sector by permitting more consistent electricity supply and moderating spot prices, particularly during peak demand periods.

In a similar move last August, Coal India removed the 120% ceiling on coal delivery beyond the Annual Contracted Quantity (ACQ), giving power producers more freedom.  

For FY26, Coal India has committed around 650 million tonnes of coal under FSAs for the power sector. 

Discover the next big investment! Unicorn Signals’ IPO screener helps you identify promising initial public offerings. Download Unicorn Signals and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!