Revolutionizing Coal Trade with a New Regulatory Framework
The government has proposed draft rules for the establishment of a Coal Exchange, regulated by the Coal Controller Organisation (CCO) under the Coal Ministry. Aimed at transforming coal trading into a competitive market, this initiative foresees a significant impact on coal sales and production efficiency.
- Country:
- India
The government is setting the stage for major changes in the coal sector with draft rules aimed at establishing a Coal Exchange. These rules propose forming the Coal Controller Organisation (CCO) to regulate the new market, with responsibilities spanning environmental sustainability, statistical oversight, and dispute resolution.
The Coal Ministry's draft, aiming for stakeholder feedback by mid-October, outlines how the CCO will oversee the operations of the anticipated coal exchanges, improving transparency and market efficiency. This move follows policy reforms that have made the country self-sufficient in coal production, crossing a billion tonnes and expected to exceed 1.5 billion tonnes by 2030.
With increased availability of domestic coal, a surplus scenario is emerging. The ministry anticipates a shift in sales dynamics, driving the need for a Coal Exchange to promote competition and market reform, backed by the MMDR Amendment Act, 2025.
(With inputs from agencies.)
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