CERC notifies February 2026 coal escalation rates
Author: PPD Team Date: March 20, 2026
The Central Electricity Regulatory Commission (CERC) has notified monthly escalation rates for February 2026 applicable to payments under power purchase agreements (PPAs) executed by distribution licensees.
Escalation rates
CERC has specified the following rates for February 2026:
- Imported coal: 0.62%
- Transportation of imported coal: 4.27%
- Inland handling of imported coal: 0.57%
These rates are used in tariff adjustments under competitively bid PPAs.
Regulatory basis
The notification has been issued under Clause 5.6(vi) of the Ministry of Power’s Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees dated January 19, 2005, as amended.
It follows a Ministry of Power communication dated April 13, 2022, and a resolution dated July 11, 2022, which introduced changes linked to coal allocation under the Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) policy.
Applicability
The escalation rates apply to PPAs executed under the bidding guidelines and model bidding documents, including those incorporating SHAKTI-based coal allocation provisions.
The notification was signed by Harpreet Singh Pruthi, Secretary, CERC, and published in the Gazette of India on March 16, 2026.
The featured photograph is for representation only.
