New Delhi, Dec 12 (UNI) The Cabinet Committee on Economic Affairs on Friday approved a landmark policy introducing the ‘CoalSETU window’ under the Non-Regulated Sector (NRS) Linkage Auction Policy, enabling seamless, efficient, and transparent utilization of coal for diverse industrial purposes and exports.
Information and Broadcasting Minister Ashwini Vaishnaw announced the decision at a press conference outlining the government’s ongoing coal sector reforms.
“This new CoalSETU window marks a significant step toward optimizing India’s coal resources by allowing long-term auction-based coal linkages for any industrial use and export, except coking coal. It reflects our commitment to ease of doing business and strategic energy security,” he said.
Under the CoalSETU policy, domestic buyers from any industrial sector can participate in auctions for coal linkages without end-use restrictions, a departure from the existing framework that limited coal linkages to specific industries such as cement, steel, sponge iron, and aluminum.
However, traders will be excluded from participating in this window to maintain transparency and direct industrial utility.
The policy aligns with earlier coal sector reforms that opened commercial mining and coal block allocations without end-use constraints. It aims to accelerate utilization of India’s coal reserves, reduce import dependence, and meet evolving market demands efficiently.
Coal linkage holders under CoalSETU will be permitted to use coal for their own consumption, export up to 50% of their linkage quantity, coal washing, or other purposes, but resale within India will be prohibited. The flexibility to use coal across group companies is also a notable feature of the policy.
“The introduction of CoalSETU will particularly benefit washery operators, increasing the availability of washed coal domestically and for export, thereby reducing imports and enhancing the quality of coal supply,” Vaishnaw added.
The existing auction system for specified end-user sub-sectors in NRS will continue alongside CoalSETU, allowing these users to also participate in the new window for greater flexibility.
The decision is expected to strengthen India’s coal supply chain, encourage industrial growth, and support the nation’s energy transition goals by optimizing resource utilization and enhancing export potential.
