India set to launch coal exchanges under new regulatory framework

India is set to introduce Coal Exchanges under a newly established regulatory framework, paving the way for a more transparent, competitive and market-driven coal trading ecosystem, according to an official statement issued by the Ministry of Coal on Tuesday.The move marks a significant step in modernising the country’s coal supply chain and is expected to transform the way coal is bought and sold by enabling efficient price discovery and broader market participation.
According to agency reports, the ministry said 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 facilitate transparent and efficient trading of minerals, including coal and its processed forms.To operationalise the provisions of the law, the government earlier this month notified the Coal Exchange Rules, 2026, establishing a comprehensive framework for the registration, regulation and functioning of coal trading platforms across the country.As part of the implementation process, the government had designated the Coal Controller Organisation (CCO) in December 2025 as the nodal authority responsible for registering and regulating Coal Exchanges.
According to information,under the new rules, eligible entities will be authorised by the CCO to establish and operate Coal Exchanges, formulate market regulations and bye-laws, and facilitate trading activities. Registrations granted to such entities will remain valid for a period of 25 years.According to the ministry, the introduction of Coal Exchanges represents a paradigm shift in coal marketing. The system is expected to move away from the traditional one-to-many sales model and create a competitive many-to-many trading platform where multiple buyers and sellers can transact efficiently.The government believes the framework will enhance transparency in coal transactions through market-based price discovery while improving overall efficiency in the sector. It will also provide coal producers, including commercial and captive miners, access to a wider pool of buyers and greater flexibility in marketing their output.
Public sector coal companies are also expected to benefit from increased participation in a more dynamic and competitive marketplace, enabling them to optimise sales and improve market reach.“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 Ministry of Coal said in the statement.The ministry added that a more efficient and competitive coal market would strengthen India's energy security, support industrial growth and contribute to the country's long-term development goals.The introduction of Coal Exchanges forms part of broader reforms aimed at modernising the mining and energy sectors, encouraging private participation and creating market-oriented mechanisms to improve resource allocation.According to the ministry, the initiative is expected to support the vision of Viksit Bharat by fostering sustainable economic growth, improving operational efficiency across the coal value chain and helping build a future-ready energy sector.