Coal market reform: Government notifies rules for setting up coal exchanges

In a step towards introducing market-based coal trading, the government on Tuesday notified rules for setting up coal exchanges aimed at improving price discovery, boosting transparency and modernising the country's coal supply chain.The ministry of coal on Tuesday said the Coal Exchange Rules, 2026 have been published, creating a regulatory framework for establishing and operating coal exchanges in the country.Coal exchanges are expected to facilitate transparent, market-driven price discovery, improve efficiency in coal trading and provide commercial as well as captive miners with access to a wider base of buyers. Public sector companies will also be able to participate through the platform."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 above, the Coal Exchange Rules, 2026 have been published by the Ministry of Coal in the Official Gazette on June 4," the coal ministry said in a statement.The ministry said the Coal Controller Organisation (CCO) was designated in December 2025 as the authority responsible for registering and regulating coal exchanges.Under the new framework, 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 valid for 25 years.The move comes as the government seeks to create a more competitive coal market and expand participation beyond traditional supply channels."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. By creating a more competitive and efficient coal market, the reform is expected to strengthen energy security, support industrial growth, and contribute significantly to the vision of Viksit Bharat through sustainable economic development and a future-ready energy sector," the statement said.