On Friday, New Delhi – Dec 12 (LatestNewsX) – the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, sanctioned a fresh CoalSETU policy that adds a dedicated auction window for coal linkages. This window allows any industrial user — or exporters — to bid on coal without being tied to a specific sector. “The new policy, which is part of the coal sector reforms being undertaken by the government, will allow allocation of coal linkages on an auction basis on long‑term for any industrial use and export by adding a separate window named CoalSETU in the NRS (Non‑Regulated Sector) Linkage Auction Policy of 2016, wherein any domestic buyer requiring coal can participate in the linkage auction. Coking coal shall not be offered under this window,” a Cabinet communique said.
Previously, all new coal linkages were confined to a handful of NRS industries—cement, steel (coking), sponge iron, aluminium, and a few others—so each linkage was earmarked for a single end‑user. By re‑examining this framework, the government aims to cut red tape, tap existing coal stocks more efficiently, and lessen dependence on imported coal. In line with the opening of the sector to commercial mining, where blocks can now be allocated without end‑use restrictions, the revamped auction model lets any industrial buyer bid for coal via the CoalSETU window. Traders will be excluded from this lane, while the older auction for the specified sub‑sectors will continue unchanged.
Coal linkages won under CoalSETU may be used for the holder’s own consumption, exported, or employed for activities such as coal washing—yet domestic resale is prohibited. Holders can export up to 50 % of the quantity they acquire and are free to reallocate the coal among their group companies as they wish. Anticipating a rise in demand for washed coal, the policy is expected to increase domestic supply, cut imports and also offer new export opportunities for washed coal.
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