Govt Clears CoalSETU Window for Open Coal Linkage Auctions
New policy enables long-term coal linkages for industrial use and exports, boosting efficiency and resource utilisation
- Cabinet approves CoalSETU window to auction coal linkages without end-use restrictions.
- Coal can now be allocated for any industrial use and exports; coking coal excluded.
- Policy aims to cut coal imports and improve utilisation of domestic reserves.
- Washery operators to get access, increasing supply of washed coal.
GG News Bureau
New Delhi, 12th Dec: The Union Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the creation of a new CoalSETU window to auction coal linkages for long-term industrial use and exports. The move marks a major modification to the existing Non-Regulated Sector (NRS) Linkage Auction Policy of 2016, expanding access to coal beyond specified end-use sectors.
Under the revised policy, any domestic coal consumer requiring coal for industrial purposes will be able to participate in the auction. The government has clarified that coking coal will not be offered under this new window. Existing NRS auctions for cement, steel, sponge iron, aluminium and captive power plants will continue as usual.
According to the Cabinet, the new structure was needed to keep pace with market realities, improve ease of doing business and ensure accelerated use of the country’s coal reserves. The reform also aligns the linkage policy with the government’s earlier decision to liberalise commercial mining by removing end-use restrictions.
The new CoalSETU window will allow coal linkage holders to use coal for own consumption, export, coal washing, or any other purpose, except resale within India. Entities will be permitted to export up to 50% of their allocated quantity, and companies may utilise coal across their group entities as required. Traders, however, will not be eligible to bid.
Officials said the change will also benefit washery operators, helping improve the availability of washed coal in the domestic market while creating opportunities for exports. This could significantly reduce reliance on imported coal, particularly for industries that require higher-grade material.
The government stated that the introduction of CoalSETU adds to the coal sector reforms undertaken over the past few years, strengthening transparency, competition and resource optimisation in the sector.
