India's New Coal Trade Exchange: A Paradigm Shift in Commodity Trading

The Indian government is inviting public comments on proposed rules for a new Coal Trade Exchange, aimed at transforming coal trading into a more efficient, many-to-many model. The initiative empowers the Coal Controller Organisation as a regulator and anticipates increased coal availability necessitating market reforms.

The Indian government has extended the deadline for public feedback on the proposed Coal Trade Exchange, which aims to revolutionize the trading of coal as a commodity. The Ministry of Coal's draft legislations are available for consultation, and comments can now be submitted until May 7, 2025.

The proposed exchange will see the Coal Controller Organisation (CCO) appointed as the regulator. It seeks to shift from the current sales model, dominated by government-owned companies, to a 'many-to-many' platform where both buyers and sellers can engage in competitive bidding, making price discovery more efficient.

With India's coal output expected to exceed 1.5 billion tonnes by 2030, the ministry envisions a surplus coal scenario that necessitates market reform. The Coal Trade Exchange is anticipated to transform the current sales channels, promoting a more competitive market environment for coal sales.

(With inputs from agencies.)