New Delhi, June 9 (IANS) The government has paved the way for the establishment of Coal Exchanges in the country, which is a major step towards modernising India's coal supply chain and creating a transparent, market-driven trading ecosystem, according to an official statement on Tuesday.

The Ministry of Coal said that the recently enacted Mines and Minerals (Development and Regulation) Amendment Act, 2025 introduced the concept of a Mineral Exchange and empowered the Central Government to promote transparent and efficient trading of minerals, including coal and its processed forms.

In pursuance of the legislation, the government earlier this month notified the Coal Exchange Rules, 2026, according to the statement.

To facilitate the initiative, the government had designated the Coal Controller Organisation (CCO) in December 2025 as the authority responsible for registering and regulating Coal Exchanges.

According to the ministry, eligible entities will be authorised by the CCO to establish and operate Coal Exchanges, frame market rules and bye-laws, and facilitate coal trading.

Registrations will be granted for a period of 25 years, it said.

The ministry further stated that the introduction of Coal Exchanges marks a paradigm shift in coal marketing by moving away from the traditional one-to-many sales model to a competitive many-to-many trading platform.

The new framework is expected to enable transparent and market-based price discovery, improve efficiency and provide coal producers, including commercial and captive miners, with easier access to a wider pool of buyers.

In addition, public sector coal companies will be able to leverage the platform to enhance market participation, according to the ministry.

"The Coal Exchange initiative reflects the government’s commitment to enhancing ease of doing business, promoting transparency and building a modern, self-reliant energy ecosystem," the ministry said in a statement.

It added that by creating a more competitive and efficient coal market, the reform is expected to strengthen energy security, support industrial growth and contribute to the vision of Viksit Bharat through sustainable economic development and a future-ready energy sector.

--IANS

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