New Delhi, 09 June (H.S.):

The government has taken a major step toward making India’s coal trading system more transparent, efficient and modern by issuing rules for the establishment of a coal exchange. The initiative is expected to support the broader goal of Viksit Bharat 2047 by strengthening energy markets.

In a statement issued on Tuesday, the Ministry of Coal said it is working towards creating a framework for coal exchanges in the country. The ministry noted that the recently enacted Mines and Minerals (Development and Regulation) Amendment Act, 2025 has introduced the concept of mineral exchanges and empowered the central government to promote transparent and efficient trade in minerals, including coal and its processed forms.

In line with this, the ministry stated that the Coal Exchange Rules, 2026 were published in the official gazette on June 4. The rules are available on the ministry’s website.

To facilitate the initiative, the Ministry of Coal has designated the Office of the Coal Controller (Coal Controller Organisation) in December 2025 as the authority responsible for the registration and regulation of coal exchanges. Eligible entities will be authorised by the Coal Controller Organisation to establish and operate coal exchanges, frame market rules and bye-laws, and facilitate coal trading. Registrations will be valid for a period of 25 years.

According to the ministry, the introduction of coal exchanges will bring a transformational shift in coal marketing by moving away from the traditional “one-to-many” sales model to a competitive “many-to-many” trading platform. This will enable transparent, market-based price discovery, improve efficiency, and provide coal producers—including commercial and captive miners—access to a wider pool of buyers. Public sector coal companies will also be able to enhance their market participation through this platform.

The ministry further stated that the coal exchange initiative reflects the government’s commitment to improving ease of doing business, promoting transparency, and building a modern and self-reliant energy ecosystem. By creating a more competitive and efficient coal market, the reform is expected to strengthen energy security, support industrial growth, and contribute significantly to the vision of a developed India through sustainable economic development and a future-ready energy sector.

---------------

Hindusthan Samachar / Jun Sarkar