In a move to set up a coal trading exchange, the ministry of coal has prepared and circulated a draft note for the cabinet for amendment to the Mines & Minerals (Development & Regulations) Act, 1957, the coal ministry said.
“Ministry of Coal vide O.M (office memorandum) dated 07.03.2025 has circulated a draft note for the cabinet for amendment of the Mines & Minerals (Development & Regulations) Act, 1957 for setting up of a coal trading exchange for Inter-Ministerial Consultations,” the ministry said in its action plan prepared for FY26, adding that a notice for public consultation on the same has also been circulated seeking comments of the stakeholders.
The ministry highlighted that the establishment of a coal trading exchange would open up the coal market through an online trading platform along with clearing and settlement mechanisms and provide easy coal availability in the market.
“Legislative support is required for setting up of the Coal Trading Exchange, and providing for the Ministry of Coal to oversee and regulate the Exchange operations and issue the related rules,” it said.
The government is likely to come out with a coal exchange by next financial year 2026-27 and the Coal Controller Organisation will act as the regulator for the exchange, official sources have earlier told FE. The proposed exchange will serve as an online coal trading platform for commercial miners and the public sector companies including Coal India, with buyers having the options in coal grades and location.
An exchange will help the country to reduce its dependence on international markets for determining coal prices, the Union Minister of Coal and Mines, G Kishan Reddy had earlier said, adding that it will be launched soon.
Additionally, the coal ministry is targeting to roll out three more auctions of coal mines this fiscal putting as much as 25 mines under the hammer. During the fiscal, 12 mines are expected to obtain Mine Opening Permission and 7 mines are expected to commence coal production, the ministry said.
The ministry is targeting creation of additional coal production capacity to boost coal output as well as replace depleting mines.
Accordingly, the coal ministry has set a target of opening 100 new mines intending to create an addition in coal production capacity of 500 million tonnes per annum by 2029-30. “To achieve this target, it is proposed for operationalization of more than 20 new mines with an aggregate of over 80 million tonnes per annum during FY26, including coal PSUs & commercial/captive mines,” the coal ministry said. In FY25, the government operationalised 13 mines with a capacity of 83 MT.
India’s coal production reached 1.05 billion tonnes in FY25, compared to 997.83 million tonnes in FY24, marking a 4.99% growth, as per data from the coal ministry. Production from commercial and captive mines also surged, reaching 197.50 MT, up 28.11% increase from 154.16 MT recorded in the previous year.
For the current fiscal, the government is targeting an overall coal production of 1.15 billion tonnes of which Coal India is expected to produce 875 million tonnes. Singareni Collieries Company Limited has a target of 72 MT coal production for the year while captive and commercial mines are seen producing 203.39 MT of coal.
Furthermore, given the rising domestic coal output and in view of future surplus coal scenario, the government has planned to provide coal linkages for coal consumers without any requirement of specific end use, in addition to the present end use based linkages. For this purpose, the government is seeking amendments to the Non-Regulated Sector (NRS) linkage auction policy of 2016.
“This would further open up the coal sector and would lead to ease of doing business. The above would require amendment to the Non-Regulated Sector (NRS) linkage auction policy of 2016. Auction of coal linkages to the sub-sectors of NRS under the existing NRS linkage auction policy shall, however, continue,” the Action Plan said.