Coal Policy Reform: Cabinet Approves CoalSETU Window for Auction-Based Links; new route to enable industrial use and exports – The Times of India

The Cabinet Committee on Economic Affairs on Friday approved a new policy framework called the CoalSETU window, creating an additional auction route for long-term coal connections for all industrial uses and exports, an official press release said.The decision amends the existing Non-Regulated Sector (NRS) Link Auction Policy of 2016, which limits links to specific end-use sectors. The government said the new window will “enable the long-term allocation of coal links on an auction basis for any industrial use and export,” while clarifying that coking coal will not be offered through this route.According to the press release, the reform is aimed at improving ease of doing business, enabling accelerated utilization of domestic coal resources and reducing dependence on imports. “There was a need for a fresh look at the current coal supply arrangements to the NRS and an expansion of links with coal consumers, without any end-use restrictions,” the government said.Under CoalSETU, any domestic buyer – excluding traders – is eligible to participate. Clutches obtained under the window may be used for domestic consumption, export (up to 50% of the allotted quantity) or other permitted purposes such as coal washing, but resale within India is not permitted. The government said an allocation to car washes “would result in increased availability of washed coal in the country and would consequently reduce imports.”The existing auctions for the specified NRS end-user categories – such as cement, steel (coke), sponge iron, aluminum and captive power plants – will continue. These end users can also participate in the new window.The press release noted that declining imports and better use of domestic reserves remain important priorities. In line with commercial mining reforms, the expanded link auction mechanism removes previous end-use restrictions and provides group companies with flexibility in using the coal.