Coal provides procured by the CoalSETU window may be utilised by an entity for its personal consumption (industrial use), exports and washing. Nonetheless, the commodity can’t be resold throughout the nation.
In a major improvement on December 12, the Cupboard Committee on Financial Affairs (CCEA) authorized the Coverage for Public sale of Coal Linkage for Seamless, Environment friendly & Clear Utilisation (CoalSETU) by creation of a window — CoalSETU.
This assumes significance as NRS industries comparable to cement, metal, sponge iron and captive energy models are a vital part of the infrastructure sector. Lengthy-term coal linkages with out finish use restrictions have been a long-standing demand.
The Ministry, final week, finalised the modalities and laws associated to the CoalSETU window.
Amended coverage
That is a part of the amended non-regulated sector (NRS) coal linkage coverage of 2016 and 2020, which now goals to utilise the dry gas for any industrial use and exports.
Now, any home purchaser can take part within the public sale and purchase coal for as much as 15 years with none finish use requirement. Nonetheless, merchants can not take part on this newly-created coal linkage public sale window.
“Allocation of coal linkages on public sale foundation for sectors with out the requirement of any particular finish use by a separate window within the NRS Linkage Public sale Coverage of 2016 whereby any home purchaser requiring coal can take part within the linkage public sale,” the brand new norms specify.
The current public sale for the required end-user sub-sectors, as per the NRS Linkage Public sale Coverage, 2016, shall proceed, it added.
“Coal linkage obtained beneath CoaISETU window shall be for personal consumption, export of coal, or some other function (together with coal washing) besides resale within the nation,” it added.
The modalities
Specifying the modalities, the Ministry stated that public sale beneath the CoaISETU window to be held after conducting auctions of end-use particular sub-sectors (as per the NRS Linkage Public sale Coverage of 2016) in a particular tranche of the NRS linkage public sale.
“The bottom or flooring worth of the coal at any supply for the public sale within the CoaISETU window (is) to be mounted at reserve worth not under the notified worth, as could also be determined by the coal firm,” it added.
The reserve worth for the NRS linkage auctions shall be suitably listed by Coal India (CIL) or Singareni Collieries Firm (SCCL) for subsequent years. Nonetheless, the bid premium shall stay fixed over the contract interval, it clarified.
The tenure of the gas provide agreements (FSAs) could also be for a most interval of 15 years.
Auctions will probably be carried out by CIL or SCCL and the process together with a clear public sale methodology, shall be devised by CIL or SCCL in a fashion that induces sufficient competitors and prevents cartelisation.
“Coal linkage holders could also be eligible to export coal as much as 50 per cent of their coal linkage amount. Coal linkage holders could flexibly utilise the coal obtained beneath this window as per their requirement amongst its Group firms,” the modalities stated.
Coal supplied by the CoaISETU public sale window will probably be topic to CIL and SCCL assembly the linkage necessities of their current agreements for the required finish customers — energy and NRS. It additionally consists of future linkages to those specified finish use sectors.
Revealed on December 25, 2025
