The initiative tries to create a competitive market, which leaves PSU dominance, with a shift from the current “one-to-many” model to a “much-to-many” platform. | Photocredit: Istockphoto
The government has proposed the Coal Controller Organization (COO) to regulate and register coal exchanges, including the execution of market overview and supervision of their activities.
The proposal is part of the concept of the coal change of the Kolenministerie, 2025, for which it invited comments from stakeholders on 16 October 2025.
The design suggests that the coal exchange serves as a platform for buyers and sellers of coal and/or brown coal, or their processed shapes, to handle online contracts, to act and enter into contracts. Moreover, it suggests that the CCO will be the authority responsible for “registering and regulating” these transactions.
The CCO will prepare detailed regulations for “market overview and supervision of the activities of coal exchange (s) to guarantee compliance with the applicable laws and rules and to control market integrity, namely prevention of cartelization, trade with prior knowledge, circular trade, market manipulation and other matters.
Regulating supervision
A coal exchange can only work after it has been registered in accordance with the regulations informed by the CCO, suggest the draft standards.
Another proposal is that the CCO will make standards for the maintenance and preservation of accurate and complete book accounts, transaction files and other relevant information from the coal exchange (s).
“The CCO may also require that the coal exchange (s) retain access to additional information, such as audit paths, system logs and other data, and offer, as necessary, to guarantee compliance with the legal requirements,” it added.
It will also be the responsibility of the regulator to inform guidelines and procedures for creating a dispute settlement and complaints representative system for the activities related to coal exchange (s) and other market participants.
“The reimbursements and charges that have been levied under the regulations informed by the CCO under the provisions of Clause (B) of rule 3 of these rules are proportional to the requirements of the CCO,” the Ministry proposed.
Provided that up to FY28, the required CCO fund for performing its duties can be requested by the regulator as part of its budget requirements presented to the coal ministerie, it added.
“For the following years, such requirements are met the collected reimbursements and costs charged. Furthermore, on condition that the CCO contains separate accounts for the accumulated income and costs incurred because of the regulations issued by these,” explained it further.
Rationale for an exchange
Creating an alternative market, away from the dominance of the State -controlled PSUs of Mijnbouw, is crucial for an adult coal trading platform that is open, transparent and real -time.
The government wants to revise the decades of old production and delivery structure with more access to commercial mines through coal exchanges that will ultimately offer the dry fuel on request to the consuming industries, in particular MSMEs.
The exchange could transform the old coal sales model from India from a ‘one-to-many’ to ‘much-on-many’ model.
“With an elevated availability of domestic coal in the country, it is meant that there would be a paradigm shift to an excess coal scenario and resulting that the coal sales scenario will undergo an important change of the existing mechanisms of the sales channels, which means that an important market reform is an important market reforming, the service, the serving shape, the serving shape, the serving shape, the serving shape, the serving forming, the service reformed, the serving forming, the serving forming,” the serving shape, the service reformed, “the serving mechanism,” the serving shape, “the serving -up mechanism. It refers to the drawing standards.
That is why, in the scenario of increased availability of domestic coal in the country, further reforms are being implemented in the column sector with a focus on promoting competing markets for the sale of coal, and therefore proposes to set up coal exchange (s).
Published on September 17, 2025
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