Coal Auction
Cabinet approves new coal auction policy without end-use restrictions
This story was originally published at 17:12 IST on 12 December 2025
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NEW DELHI – The Union Cabinet on Thursday approved a new coal auction policy by creating a new CoalSETU window under its non-regulated sector linkage policy, opening the door to long-term coal supplies for a broader range of industries and exports. The new policy adds to the series of coal sector reforms being undertaken by the government, an official release said.
The policy will allow the allocation of coal long-term linkages through auctions for industrial use and export, the release said. Under the new policy, any domestic buyer requiring coal can participate in the linkage auction.
The CoalSETU mechanism will allow users to participate in auctions without end-use restrictions, except for coking coal, the release said. The government will allow successful bidders to export up to 50% of the coal procured under the scheme. However, the resale of coal within India is not permitted.
Coal linkage holders will also be able to use the fuel flexibly within their corporate group or in coal washeries. The government said the move is intended to improve efficiency, increase the availability of washed coal, and ease doing business.
The reform is part of India's broader efforts to expand domestic coal utilisation and reduce dependence on imports, while creating new commercial avenues for producers and industrial consumers, it said. End
Reported by Pallavi Singhal
Edited by Saji George Titus
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