The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the CoalSETU policy—introducing a new window for auctioning coal linkages under the NRS (Non-Regulated Sector) Linkage Policy. The CoalSETU window will enable long-term coal linkage allocation for any industrial use or export, marking another major reform in India’s coal sector.
Under the new policy, domestic buyers can participate in the auction process without end-use restrictions, though coking coal will not be included. This expands the earlier NRS linkage framework, which allowed coal linkages only for specified sectors such as cement, steel, sponge iron, aluminium, and captive power plants.
The move aims to support ease of doing business, boost efficient utilisation of coal reserves, and reduce dependence on coal imports. It aligns with the broader liberalisation of the coal sector, including commercial mining with no end-use constraints.
Key highlights of the CoalSETU window include:
Coal linkages to be used for own consumption, exports (up to 50%), coal washing, and other industrial purposes.
Resale within India will not be permitted, and traders cannot participate.
Linkage holders may use coal flexibly across group companies.
Washery operators can secure linkages, increasing availability of washed coal and reducing reliance on imports, while also enabling export of washed coal.
The existing NRS linkage auctions for specified end users will continue, and such users may also participate in the new window.