Big change in coal business: The way has been cleared for setting up a coal exchange in India, a transparent and competitive market will be created.

The government has cleared the way for setting up a coal exchange in the country. This step is considered a major reform towards modernizing India’s coal supply system and developing a transparent and market-based trading system.

The concept of mineral exchange has been introduced for the first time under the recently enacted Minerals and Mining (Development and Regulation) Amendment Act, 2025, the Coal Ministry said in an official statement issued on Tuesday. Through this, the Central Government has been empowered to promote transparent and effective trade of various minerals including coal and its processed products.

According to the ministry, to implement this law, the government has notified the Coal Exchange Rules, 2026 this month.

To take this initiative forward, the government had in December 2025 appointed the Coal Controller Organization (CCO) as the authority that will take over the responsibility of registration and regulation of coal exchanges.

The ministry said that eligible entities will be allowed to set up and operate coal exchanges on behalf of the CCO. These institutions will prepare rules and bye-laws of the market and will work to facilitate the trade of coal.

According to the government, the registration of the coal exchange will be valid for 25 years.

The ministry said that the launch of coal exchange will prove to be a historic change in the coal marketing system. This will lead to the development of a competitive platform with “many sellers and many buyers” instead of the traditional “one seller to many buyers” system that has been in place till now.

Under the new framework, coal prices will be determined in a more transparent and market-based manner. This will increase business efficiency and provide an opportunity to all coal producers, including commercial and captive mine operators, to reach a larger number of buyers.

Apart from this, public sector coal companies will also be able to further strengthen their market share by using this platform.

“The coal exchange initiative reflects the government’s commitment to enhance ‘ease of doing business’, transparency and develop a modern and self-reliant energy system,” the coal ministry said in a statement.

According to the ministry, creating a more competitive and efficient coal market will strengthen the country’s energy security, accelerate industrial growth and help achieve the goal of ‘Developed India’. It will also support the development of the energy sector and sustainable economic progress in line with future needs.

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