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). The policy, approved on December 12, 2025, establishes the "CoalSETU window" within the NRS Linkage Policy, allowing coal utilization for any industrial use and export. This policy represents a further reform in the coal sector by the Government.
**Key Points / Main Content**
* **CoalSETU Window:**
* Introduces a "CoalSETU window" in the NRS (Non-Regulated Sector) Linkage Auction Policy of 2016.
* Allows allocation of coal linkages on auction basis for long-term for any industrial use and export.
* Any domestic buyer requiring coal can participate in the linkage auction.
* Coking coal will not be offered under this window.
* **NRS Linkage Policy:**
* The existing policy for auction of coal linkages for the NRS provides for allocation of all fresh coal linkages to NRS.
* Sub-sectors are for specified end users only.
* The present auction of coal linkages for the specified end-user sub-sectors in NRS shall continue.
* The specified end-user(s) can also participate in the CoalSETU window.
* **Coal Utilisation:**
* Coal linkage obtained under the CoalSETU window can be used for own consumption, export, or any other purpose (including coal washing) except resale in the country.
* Coal linkage holders can export up to 50% of their coal linkage quantity.
* Coal linkage holders may flexibly utilize the coal obtained among its Group companies.
* The coal linkages to Washery operators will result in increased availability of washed coal and may also be used for the purpose of export.
* **Other Provisions:**
* Traders are not allowed to participate in the proposed CoalSETU window.
**Impact Analysis**
**Coal Consumers**
* **Impact:** Increased access to coal linkages for industrial use and export without end-use restrictions.
* **Action Required:** Participate in auctions under the CoalSETU window to secure coal linkages.
**Washery Operators**
* **Impact:** Increased demand for washed coal, enhancing availability and reducing imports.
* **Action Required:** Participate in auctions under the CoalSETU window to secure coal linkages.
**Coal Linkage Holders**
* **Impact:** Increased flexibility in utilizing coal linkages for own consumption, export, or other purposes.
* **Action Required:** Utilize coal obtained under the CoalSETU window as per their requirements and export allowance.
Key Entities Referenced
CoalSETU window: A new window in the NRS Linkage Policy to utilize coal for any industrial use and export.
NRS (Non-Regulated Sector) Linkage Auction Policy of 2016: The existing policy for auction of coal linkages for the NRS, modified by the CoalSETU window.
Ministry of Coal: The ministry under whose authority the policy changes are implemented.
Ministry of Coal
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 4:22PM 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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