India to Launch First Coal Exchange for Dynamic Trading

Union minister G Kishan Reddy announced plans for India's first coal exchange, aimed at transforming coal into a tradable commodity. This initiative will incorporate an online trading platform and a settlement mechanism to improve coal availability. Changes to the initial proposal are underway, with Cabinet approval pending.

Union minister G Kishan Reddy has announced that India is poised to establish its first coal exchange soon. This initiative will help in transforming coal into a tradable commodity by allowing more sellers and buyers to participate in the market.

During an event, Reddy cited the coal ministry's action plan targeting 2024-25, which includes the exchange as part of the strategy to open up the coal market. An online trading platform with a clearing and settlement mechanism will ensure easier access to coal.

Progress is moving forward with the draft note for the Cabinet undergoing inter-ministerial consultations before seeking final approval. This move holds the potential to revitalize the coal market, offering market-discovered rates for commodities.

(With inputs from agencies.)