NEW DELHI: In a contemporary push to reform the coal sector, the cupboard committee on financial affairs (CCEA) on Friday permitted a CoalSETU coverage, a devoted window for long-term public sale of coal linkages for any industrial use and exports.The brand new ‘CoalSETU window’ (Coverage for Public sale of Coal Linkage for Seamless, Environment friendly and Clear Utilization) will likely be added to the present 2016 linkage public sale coverage for the non-regulated sector (NRS).In contrast to the present system, the place coal linkages are auctioned solely to specified finish customers reminiscent of cement, metal, sponge iron and aluminum crops, the brand new window will enable any home industrial purchaser to bid for coal linkages. Coking coal will, nevertheless, not be provided underneath this method, and merchants can even be barred from collaborating to stop market distortion.Officers stated the transfer goals at simplifying procedures, enhance ease of doing enterprise and guarantee sooner utilization of India’s coal reserves at a time when the nation is working to chop dependence on imports. It additionally aligns with the broader opening up of the coal sector for business mining, the place end-use restrictions had already been eliminated.The present linkage auctions for specified sectors will proceed, however these industries may take part within the new CoalSETU window. The gas provide agreements could be signed for a tenure of as much as 15 years, and versatile use of coal linkages amongst group corporations has additionally been allowed.Industrial mining of coal was launched in 2020, which considerably improved home coal availability. India crossed the landmark of 1 billion tonnes of coal manufacturing in a single yr for the primary time in 2024–25. Officers stated coal imports in 2024–25 additionally fell 8%, leading to foreign exchange financial savings of Rs 60,700 crore. Officers stated coal shares at home energy crops had been at a report excessive.Underneath the coverage, coal obtained by this window can be utilized for personal consumption, export (as much as 50% of the allotted amount), coal washing or by group corporations. Resale throughout the nation won’t be allowed. Govt expects the coverage to encourage extra washed coal manufacturing — which may assist scale back imports and even create export alternatives.
