(BS)
The government has extended the deadline for public feedback on the draft rules for the proposed Coal Trading Exchange (CTE) until 7 May 2025, giving stakeholders additional time to submit suggestions on a major market reform set to transform coal sales in India.
The Ministry of Coal, in a notification published on its website, said, “Ministry of Coal had published the proposed draft legislations on Coal Trade Exchange for public consultation… Ministry of Coal has decided to extend the last date for submission of comments/suggestions from April 6, 2025 till May 7, 2025.”
The move is part of a broader initiative to reform the coal market by enabling transparent, efficient, and competitive trading of coal as a commodity. The proposed exchange is expected to shift the current ‘one-to-many’ sales model—where government-owned companies such as Coal India Ltd are the primary sellers—to a ‘many-to-many’ format, allowing both private and public players to actively trade coal through a common digital platform.
The coal ministry has proposed that the Coal Controller Organisation (CCO) be empowered as the regulator for the new exchange. This mirrors the regulatory framework governing other commodity exchanges operating both within India and globally.
Currently, coal sales in India are limited to specific government channels, mainly involving state-run coal producers. The proposed CTE seeks to change that by offering commercial and captive coal miners an accessible market to sell their output, while still allowing public sector firms to participate. The exchange will support simultaneous bidding by multiple buyers and sellers, leading to better price discovery and improved market dynamics.
Moreover, the CTE is expected to include a clearing and settlement system, where the exchange itself will act as a counterparty, reducing transactional risk and ensuring market integrity.
The coal ministry highlighted that India’s coal production is projected to exceed 1.5 billion tonnes by 2030, which could lead to a surplus scenario. This anticipated growth calls for a fundamental shift in coal sales mechanisms, moving away from allocation-based systems to market-driven structures.
“With the increased availability of domestic coal, the coal sales scenario is expected to undergo a major change… necessitating market reforms backed by a regulatory mechanism,” the ministry stated.
The government had earlier indicated that the coal exchange could become operational within 2025, with finer details of its structure currently under deliberation.
The creation of a Coal Trading Exchange is seen as a critical reform to promote competition, enhance transparency, and attract private sector participation in India’s coal sector—ultimately aligning with the country’s energy security goals and efficient resource utilisation.
