The Ministry of Coal on March 07, 2025, issued a Public Consultation on Coal Trade Exchange.
The Ministry proposes to empower the Coal Controller Organization (CCO) as the regulator for Coal Trading Exchanges (CTEs) in India. Legislative changes are needed, including an amendment to the Mines and Minerals (Development & Regulation) Act, 1957, to define "Coal Trading Exchange" and allow the Central Government to create rules for coal trading. These amendments will enable the licensing and regulation of exchanges, with the CCO overseeing operations and guiding exchange regulations and byelaws. Exchange operators will need authorization from the Coal Controller to set up and operate a CTE under these new rules.
Further, it is stated that recent reforms in the coal sector aim to enhance self-sufficiency and increase coal availability in the country. These reforms are expected to boost production from commercial coal miners, captive coal block holders, Coal India Limited (CIL), and Singareni Collieries Company Limited (SCCL). Coal production is set to reach 1 billion tonnes by 2024-25, with projections exceeding 1.5 billion tonnes by 2030. This increased domestic coal availability is anticipated to shift the country towards a surplus coal scenario, requiring significant market reforms and a regulatory framework to manage the evolving coal sales landscape.
Therefore, in the scenario of increased availability of domestic coal in the country, there is a necessity to introduce further reforms in the coal sector with a focus on promoting competitive markets for the sale of coal.
All the stakeholders are requested to send their comments/suggestions through email in MS Office Word Format to the following email id before April 06, 2025. [email protected].
