The Cabinet Committee on Economic Affairs on Friday approved a new policy mechanism called the CoalSETU window, creating a fresh pathway for long-term coal linkages across diverse industrial users and for exports.
The CoalSETU window will be added to the existing Non-Regulated Sector (NRS) Linkage Auction Policy of 2016. Unlike the current system, where linkages are reserved for specified end-use sectors such as cement, sponge iron, aluminium, steel and captive power plants, the new mechanism allows any domestic industrial consumer to participate in auctions. Coking coal will not be offered under this window, and traders will not be permitted to bid.
According to the Government, the policy revision reflects evolving market needs and the aim of ensuring ease of doing business. With rising energy demand and the emphasis on utilising domestic reserves, expanding the scope of coal linkages is expected to support industries that were previously outside the specified end-user categories.
The existing NRS auctions for designated sub-sectors will continue. These end-users may also participate in the new window, which offers greater flexibility in how coal is used.
Under CoalSETU, linkage holders may use coal for their own consumption, washing, or export, but resale within India will be prohibited. Export is allowed for up to 50 per cent of the allocated quantity, and companies can distribute coal among their group entities as per operational needs.
The Government expects the move to encourage the growth of washery operators, increasing the supply of washed coal—an area where domestic availability has lagged behind demand. Better availability is expected to reduce imports and also open opportunities for export of washed coal.
The CoalSETU window is the latest in a series of reforms aimed at opening up the coal sector, following earlier steps that allowed commercial mining without end-use restrictions. The new policy is positioned as an extension of that shift, reinforcing the Government’s focus on transparent allocation and optimal utilisation of domestic mineral resources.
