New Delhi: Union Coal Ministry notified new rules to enable the establishment of Coal Exchanges, marking a major reform in India’s coal trading system. The move follows the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2025, which introduced the concept of a Mineral Exchange and empowered the Centre to promote transparent mineral trading.
The Ministry published the Coal Exchange Rules, 2026, in the Official Gazette on June 4. Officials said the reform aims to improve transparency, efficiency and competition across the coal supply chain.
Earlier, the government designated the Coal Controller Organisation (CCO) as the authority responsible for registering and regulating exchange platforms. The organisation will authorise eligible entities to establish and operate trading platforms, frame market regulations and facilitate transactions. Each registration will remain valid for 25 years.
The government said the initiative will create a more open marketplace and improve access for both buyers and sellers. It also expects the reform to strengthen market participation across the sector.
New framework aims to improve Coal Exchanges operations
The new framework replaces the traditional one-to-many sales approach with a competitive many-to-many trading system. As a result, coal producers will gain access to a broader range of buyers while purchasers will have more sourcing options.
Officials said the reform will support transparent price discovery through market-based mechanisms. Moreover, commercial miners and captive mine operators will find it easier to participate in coal trading.
Public sector coal companies can also use the platform to expand market access and improve trading efficiency. In addition, the new structure is expected to reduce information gaps and improve transaction transparency.
The Ministry stated that the initiative aligns with broader efforts to improve ease of doing business and modernise the energy sector. Furthermore, policymakers believe a competitive trading environment will encourage efficiency and support industrial growth.
According to the Ministry, the reform will strengthen energy security and help build a more resilient supply chain. It also supports the government’s vision of creating a future-ready energy ecosystem capable of meeting growing economic demands.
The government said the initiative will contribute to sustainable development while supporting the long-term goal of achieving Viksit Bharat.
