The Union Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a new policy framework for auction-based coal linkages through the creation of a CoalSETU window under the Non-Regulated Sector (NRS) Linkage Policy. The move is aimed at enabling seamless, efficient, and transparent utilisation of domestic coal for any industrial use and exports.
The CoalSETU window allows allocation of coal linkages on a long-term auction basis without end-use restrictions, marking a departure from the existing NRS framework where linkages are tied to specific industries such as cement, steel, sponge iron and aluminium. Coking coal will not be offered under this window, and coal traders will be excluded from participation.
Under the revised policy, any domestic buyer requiring coal for industrial use may participate in the auction, while existing specified end-user sectors will continue under the current NRS linkage regime and may also bid under the new window. Coal obtained through CoalSETU can be used for own consumption, coal washing or exports, though resale within the country will not be permitted.
Coal linkage holders will be allowed to export up to 50 percent of their allocated quantity and may flexibly utilise coal across group companies. The government said allowing washery operators access to linkages would increase the availability of washed coal domestically and help reduce imports, while also opening export opportunities.
The policy is part of a broader set of coal sector reforms aimed at improving ease of doing business, accelerating utilisation of existing reserves and reducing dependence on imported coal, in line with the opening up of the sector for commercial mining without end-use restrictions.
