The Indian government intends to launch a coal trading exchange to streamline domestic coal transactions. This initiative will foster a competitive market for coal, particularly given the expanding output from private mining operations.
Key Features of the Coal Exchange:
- Online Trading Platform: The exchange will offer a digital platform for commercial and public sector miners (including Coal India) to facilitate surplus coal sales.
- Transparent Price Determination: The platform will ensure transparent price discovery and buyer selection.
- Enhanced Private Sector Engagement: Anticipating 400 million metric tons of coal production from private mines by 2030, the exchange will transition the sales model from a “One-to-many” to a “many-to-many” structure.
Project Timeline:
- The Ministry of Coal has initiated a tender process for consultancy services to establish the exchange.
- Operational commencement is anticipated later this year, although some projections indicate a possible launch by fiscal year 2027.
Expected Impact:
The coal exchange will cultivate a robust coal trading market, benefiting both buyers and sellers.It will also contribute to meeting India’s rising energy demands, projected to increase at an annual rate of 2.6%, reaching 1421 Mt by 2027.
- Mohan Shukla , Senior Advisor & Mentor -Public Policy at Metals Minerals Publication of India (MMPI) opines , Ministry of Coals decision to set-up Coal exchange is a very positive and growth oriented step in view of galloping demand amidst global uncertainties in trade relations