Cabinet Approves CoalSETU Auction Window for Industrial Use and Export

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the creation of a new auction window under the CoalSETU policy to allow long-term coal linkages for wider industrial use and export.  

This window expands access in the Non-Regulated Sector (NRS) Linkage Policy of 2016 by removing end-use restrictions. 

CoalSETU Window Enables Broader Industrial Access to Coal 

The new CoalSETU window under the NRS Linkage Auction Policy introduces long-term coal linkage allocations through auction for any industrial purpose or export.  

Coking coal will not be available in this window. Any domestic buyer, other than traders, can participate. This move aims to optimise coal resource use and reduce dependence on imports. 

The existing process limited linkages to predefined sectors like cement, aluminium, sponge iron and captive power plants. With the CoalSETU window, coal can now be used for a diverse range of industrial operations and up to 50% allocated coal can be exported. 

Conditions and Operational Guidelines for New Linkages 

The linkages under this window are restricted to own consumption, coal washing or export. Coal resale in the domestic market is prohibited.  

Group companies can share coal received through this window based on internal requirements. Washery operators will also be eligible, ensuring increased domestic supply of washed coal. 

Read More: Centre Planning to Boost Coal Power for Additional 12 Years! 

Policy Alignment with Previous Reforms 

This development aligns with earlier coal sector reforms where commercial mining was allowed without end-use conditions.  

By providing auction-based linkages for multipurpose usage, the government seeks to improve ease of doing business and ensure optimal utilisation of domestic coal resources. 

Export Clause and Sector Participation 

Coal linkage holders may export up to 50% of their allocated quantity. All existing NRS end-users can also participate in this window.  

However, traders remain excluded from the eligibility list. The policy is designed to balance industrial supply and increase India’s coal export capacity through a structured approach. 

Conclusion 

The approval of the CoalSETU window under the NRS Linkage Policy introduces a broader, more flexible framework for coal usage across sectors. It promotes auction-based allocation for various industrial uses and export while continuing reserves management and reducing import reliance. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.