India Opens Domestic Coal for Export in Major Policy Shift

India’s cabinet approved a landmark policy change on Friday. The new rules allow domestic coal buyers to export part of their supply. This major shift aims to find new markets for India’s growing coal production.The move breaks long-standing end-use restrictions. It comes as India’s annual coal output recently crossed one billion tonnes. According to Reuters, the policy seeks to reduce import dependence and boost trade.

New “CoalSETU” Auction Window to Drive Market Efficiency

The new policy is named CoalSETU. It creates a separate auction window for coal linkages. Holders of these long-term supply contracts can now export up to 50% of their procured coal.Previously, this coal was for self-use only in non-power sectors. The policy allows fuel supply agreements for up to 15 years. This provides stability for both producers and new buyers.Industry experts see this as a strategic move. It utilizes abundant domestic reserves and invites private sector participation. The change directly addresses the need for more offtakers as production surges.

Boosting Trade and Supporting a Landmark National Census

Officials highlight benefits for India’s trade balance. Neighbouring countries like Bangladesh and Nepal are seen as key export markets. Lower logistics costs make these regions economically viable.The cabinet also approved the 16th Census of India. This massive exercise will begin in April 2026. It will include caste enumeration for the first time in decades.Digital tools will ensure faster, more accurate data collection. The census data is crucial for national planning and state revenue sharing. The government allocated over ₹11,700 crore for the project.

Erika Kirk Speaks Out: ‘I Have Nothing to Say to You,’ Tells Husband’s Alleged Killer

India’s revised coal export policy marks a strategic pivot towards energy market integration. This initiative could reshape regional supply dynamics while supporting domestic industrial growth.

A quick knowledge drop for you

What is the new CoalSETU policy?

The CoalSETU policy creates an auction window for coal linkages. It allows domestic buyers to export up to 50% of their procured coal, removing previous end-use restrictions.

Why did India make this change now?

India’s coal production has surpassed one billion tonnes annually. The policy aims to find new buyers for this surplus and reduce reliance on imported coal, especially coking coal.

Which countries might import Indian coal?

Initial export markets are likely Nepal, Bangladesh, and Sri Lanka. Their geographic proximity helps keep logistics costs low, making Indian coal competitive.

What is significant about the upcoming census?

The 16th Census will include caste-based data collection. This is a major socio-political exercise not comprehensively done for many years, impacting future policy.

How long will the census take?

The census is scheduled to run from April 2026 to February 2027. It will employ approximately three million enumerators across the country.