The government on Tuesday notified the Coal Exchange Rules, 2026, paving the way for the establishment of coal exchanges in India and marking a major shift towards market-based coal trading aimed at improving transparency, efficiency and price discovery in the country’s largest energy market.

The move follows the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2025, which introduced the concept of a mineral exchange and empowered the Centre to promote transparent and efficient trading of minerals, including coal and its processed forms.

“The recently enacted Mines and Minerals (Development and Regulation) Amendment Act, 2025 introduced the concept of a mineral exchange and empowered the central government to promote transparent and efficient trading of minerals, including coal and its processed forms. In pursuance of the above, the Coal Exchange Rules, 2026 have been published by the Ministry of Coal in the Official Gazette on June 4,” the coal ministry said in a statement.

The new framework is expected to transform coal marketing by moving away from the traditional allocation and bilateral sale model towards a competitive trading platform where multiple buyers and sellers can participate.

“The introduction of Coal Exchanges marks a paradigm shift in coal marketing by moving from the traditional ‘one-to-many’ sales model to a competitive ‘many-to-many’ trading platform,” the ministry said.

According to the ministry, the exchanges will facilitate transparent and market-driven price discovery, improve trading efficiency and provide coal producers with easier access to a wider buyer base.

“This will enable transparent and market-driven price discovery, improve efficiency, and provide coal producers, including commercial and captive miners, with easier access to a wider pool of buyers,” it said.

The government had already designated the Coal Controller Organisation (CCO) in December 2025 as the authority responsible for registering and regulating coal exchanges. Eligible entities will be authorised by the CCO to establish and operate exchanges, frame market rules and bye-laws, and facilitate coal trading.

Registrations will be valid for 25 years, providing long-term regulatory certainty for exchange operators.

The ministry said public sector coal companies would also be able to leverage the platform to enhance market participation.

“The coal exchange initiative reflects the government’s commitment to enhancing ease of doing business, promoting transparency, and building a modern, self-reliant energy ecosystem,” the statement said.

“By creating a more competitive and efficient coal market, the reform is expected to strengthen energy security, support industrial growth, and contribute significantly to the vision of Viksit Bharat through sustainable economic development and a future-ready energy sector.”

The notification marks the first formal step towards creating an organised coal trading ecosystem in India, with the government betting on competitive market mechanisms to improve efficiency across the coal supply chain while expanding opportunities for both producers and consumers.