India's New 'CoalSETU' Policy: Boosting Coal Auctions for Industrial and Export Use

India introduces the 'CoalSETU' policy, aimed at optimizing coal linkage auctions for diverse industrial uses and exports. Approved by the Union Cabinet, this move facilitates broader access and better resource utilization, allowing linkage holders to export coal and adapt allocations as per group company needs.

The Indian government has unveiled the new 'CoalSETU' policy, designed to streamline coal linkage auctions for industrial applications and export purposes. The Union Cabinet, led by Prime Minister Narendra Modi, sanctioned the initiative, which intends to enhance fair resource access and utilization.

The policy adds a specific window for coal linkage auctions, offering allocations on a long-term auction basis. This enables domestic buyers to participate without restrictions on the coal's end use, excluding coking coal, according to Information and Broadcasting Minister Ashwini Vaishnaw.

Coal linkage holders can now export up to 50 percent of their allotment and redistribute the coal among group companies as necessary. The move aligns with the liberalization of commercial coal mining, encouraging the use of domestic reserves and lessening reliance on imports.

(With inputs from agencies.)