The Indian government has extended the deadline for public feedback on the draft rules for the proposed Coal Trading Exchange (CTE) to 7 May 2025. The Ministry of Coal announced the extension through a notification on its official website, stating that the original deadline of 6 April 2025 had been moved to allow more time for stakeholders to submit their views.
The proposed Coal Trading Exchange is a key part of India’s plan to reform its coal market. It aims to create a transparent, efficient, and competitive system for coal trading. If implemented, the exchange would replace the current ‘one-to-many’ model—where public sector giants like Coal India Ltd dominate sales—with a ‘many-to-many’ format. This would allow both public and private players to trade coal on a single digital platform.
To oversee this new exchange, the Ministry has suggested giving regulatory authority to the Coal Controller Organization (CCO). This would follow a structure similar to that used by other commodity exchanges, both in India and globally.
At present, coal sales in India mostly happen through state-controlled channels. The CTE aims to change that by offering a level playing field where commercial and captive coal miners can sell their coal. Public sector companies would continue to participate, but now alongside private sellers and buyers. The platform would allow multiple participants to bid at the same time, improving price discovery and market competition.
A key feature of the proposed exchange is the inclusion of a clearing and settlement mechanism. The exchange would act as a counterparty to all trades, reducing the risk of defaults and ensuring smoother transactions.
The Ministry also noted that India’s coal production is expected to exceed 1.5 billion tonnes by 2030. This growth may create a surplus, highlighting the need to move away from the current allocation-based sales model to a market-driven approach.
“With the increased availability of domestic coal, the coal sales scenario is expected to undergo a major change,” the ministry said, stressing the need for reforms backed by a strong regulatory framework.
Earlier, the government had indicated that the CTE could become operational by the end of 2025. Details of the exchange’s final structure are still under review.
The proposed Coal Trading Exchange is seen as a major step toward improving transparency, promoting competition, and encouraging private investment in the coal sector. Officials believe it will help ensure better resource use and support India’s long-term energy security goals.
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