Coal India (CIL), for the first time, has permitted buyers from neighbouring countries Bangladesh, Bhutan, and Nepal can now join its online coal auctions directly, skipping the Indian middlemen. The move is effective from January 1.
The company announced the development on Friday through an exchange filing, following which the stock surged. Coal India’s share price gained nearly 6.26% in intra-day trade.
The move will help in utilising the surplus coal resources better and promote transparency.
Earlier, access to Coal India’s dry fuel by consumers across the borders was only through domestic coal traders who were allowed to buy and sell without any end-use restrictions.
“CIL’s Board has cleared the decks recently for this move, tweaking the scheme’s mechanism in the SWMA auction,” Coal India said in its BSE filing recently.
What is SWMA auction
SWMA auction is a unified, simplified e-auction system launched in 2022 to replace multiple existing auction windows (Spot, Special Spot, Forward) into one single platform, making coal procurement easier, transparent, and market-driven for all buyers.
What Coal India has revised?
Under the revised framework, foreign buyers can now participate alongside domestic buyers in the SWMA auctions.
“Opening SWMA e-auctions to foreign buyers reflects CIL’s calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration,” said a senior company official.
Coal India said all operational and procedural details have been included in the updated scheme to facilitate smooth participation by overseas buyers.
Export logistics and payment norms laid out
Under the new rules, foreign buyers will need to complete a one-time registration and participate through digital bidding. Payments will be made in advance through electronic modes, and coal exports will take place through notified logistics channels.
The release added, payment process will be transparent as per Foreign Exchange Management Act (FEMA) rules, with Nepal buyers allowed to pay in INR or US dollars, while those from the other two countries must pay in US dollars, valued in INR.
This move came after Coal India, earlier, held dialogues with prospective overseas coal consumers to frame enabling clauses and assess their requirements.