Date: 2025-12-12Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves CoalSETU window: Auction of coal linkages for diverse industrial uses and exports, ensuring fair access and optimal resource utilisation
**Executive Summary**
The Union Cabinet Committee on Economic Affairs approved the Policy for Auction of Coal Linkage for Seamless, Efficient & Transparent Utilisation (CoalSETU). This approval introduces the "CoalSETU window" within the Non-Regulated Sector (NRS) Linkage Auction Policy of 2016 to facilitate coal utilization for any industrial use and export. The policy aims to allocate coal linkages on auction basis on long-term. The update was announced on December 12, 2023.
**Key Points / Main Content**
* **CoalSETU Window:**
* A new window added to the NRS Linkage Policy to enable coal utilization for any industrial use and export.
* Any domestic buyer requiring coal can participate in the linkage auction through this window.
* Coking coal will not be offered under this window.
* **Linkage Auction & End-Use:**
* Allocation of coal linkages will be on auction basis for long-term.
* The existing policy for auction of coal linkages for NRS sectors (Cement, Steel (Coking), Sponge Iron, Aluminium, and Others [excluding Fertilizer (Urea)] including their Captive Power Plants (CPPs)) will continue.
* Specified end-users can also participate in this new window.
* **Coal Utilization & Export:**
* Coal linkage obtained under this window can be used for own consumption, export, or any other purpose including coal washing (except resale in the country).
* Coal linkage holders are eligible to export up to 50% of their coal linkage quantity.
* Linkage holders can flexibly utilize coal amongst their Group companies.
* Coal linkages to Washery operators will increase washed coal availability and potentially reduce imports; washed coal can also be exported.
* **Restrictions:**
* Traders are not allowed to participate in the proposed CoalSETU window.
**Impact Analysis**
**Stakeholder: Domestic Industrial Users**
* **Impact:** Provides access to coal linkages for any industrial use and allows for flexibility in coal utilization.
* **Action Required:** Evaluate participation in the CoalSETU window auctions.
**Stakeholder: Coal Exporters**
* **Impact:** Enables the export of coal obtained through the CoalSETU window, up to 50% of the linkage quantity.
* **Action Required:** Assess the opportunity to export coal under the new policy.
**Stakeholder: Coal Washery Operators**
* **Impact:** Offers opportunities to increase coal linkages and facilitate the export of washed coal.
* **Action Required:** Review coal linkage and export opportunities under the CoalSETU window.
Key Entities Referenced
Cabinet Committee on Economic Affairs (CCEA): The committee that approved the Policy for Auction of Coal Linkage.
CoalSETU window: New window in the NRS Linkage Policy to utilise coal for any industrial use and export.
Policy for Auction of Coal Linkage for Seamless, Efficient & Transparent Utilisation (CoalSETU): Policy enabling auction of coal linkages for industrial use and export through CoalSETU.
NRS (Non-Regulated Sector) Linkage Auction Policy of 2016: Existing policy to which CoalSETU is added as a new window.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves CoalSETU window: Auction of
coal linkages for diverse industrial uses and
exports, ensuring fair access and optimal
resource utilisation
प्रव तथ: 12 DEC 2025 4:18PM by PIB Delhi
The Union Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi
today has approved for the Policy for Auction of Coal Linkage for Seamless, Efficient & Transparent
Utilisation (CoalSETU) by creation of new window named "CoalSETU window" in the NRS Linkage
Policy to utilise coal for any industrial use and export. The new policy adds to the series of coal sector
reforms being undertaken by the Government.
The Policy will allow allocation of coal linkages on auction basis on long-term for any industrial use and
export by adding a separate window named CoalSETU in the NRS (Non-Regulated Sector) Linkage
Auction Policy of 2016 wherein any domestic buyer requiring coal can participate in the linkage auction.
The coking coal shall not be offered under this window.
The existing policy for auction of coal linkages for the NRS provides for allocation of all fresh coal
linkages to NRS viz. Cement, Steel (Coking), Sponge Iron, Aluminium, and Others [excluding Fertilizer
(Urea)] including their Captive Power Plants (CPPs) to be auction based. As per the present policy of NRS
Linkage, the sub-sectors are for specified end users only.
Looking at the current & future market dynamics and for the purpose of ease of doing business and for
accelerated utilization of existing coal reserves and reduce dependence on imported coal for meeting
country's energy requirement, there was a need to have a fresh look at the current arrangements of coal
supplies to the NRS, and extend the linkages in NRS to coal consumers without any end use restrictions.
In line with the opening of the coal sector for commercial mining, which allowed allocation of coal blocks
without any end use restrictions, this policy for auction of coal linkages for NRS has been modified for
allocation of coal linkages on auction basis on long-term for any industrial use and export by adding
another window/sub-sector. Traders shall not be allowed to participate in the proposed window.
The present auction of coal linkages for the specified end-user sub-sectors in NRS (Non-Regulated
Sector) shall continue. The specified end-user (s), can also participate in this window.
The coal linkage obtained under this window shall be for own consumption, export of coal, or any other
purpose (including coal washing) except resale in the country. Coal linkage holders will be eligible to
export coal upto 50% of their coal linkage quantity. The coal linkage holders may flexibly utilize the coal
obtained under this window as per their requirement amongst its Group companies. Considering the
demand for washed coal, which would increase in future, the coal linkages to the Washery operators will
result in increased availability of washed coal in the country and consequently reduce imports. Further, the
washed coal will also find takers outside the country and therefore, the washed coal may also be used for
the purpose of export.***
MJPS
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