Draft Coal Exchange Rules, 2025 Issued for Comments

The Ministry of Coal has released the draft Coal Exchange Rules, 2025, applicable to coal and lignite, for stakeholder feedback. With domestic coal availability improving, the government is pursuing reforms aimed at fostering competitive markets for coal sales. Since the introduction of commercial coal mining in 2020, 134 mines have been auctioned across 12 rounds.

As per news reports, India aims to launch a Coal Exchange by FY 2027, enabling Coal India to sell beyond the long-term linkage mechanism and allowing captive miners to offload surplus coal more efficiently in the open market.

The draft proposes appointing the Coal Controller’s Organization (CCO) as the registering and regulatory authority for Coal Exchanges in India. These Exchanges will facilitate trading of coal as a commodity. Prospective operators may voluntarily apply for authorization from the CCO under these Rules. The functioning of Exchanges will be guided by regulations framed by the CCO.

The CCO will be empowered to issue detailed regulations covering registration, revocation, fees and charges, accounting, market oversight and surveillance, dispute resolution, and grievance redressal. Funding for the CCO will be met by the Ministry of Coal until FY 2027–28, after which it will be financed through fees and charges collected from Exchanges.

The CCO will also have the authority to issue directions or conduct inquiries to ensure fair trading, safeguard market participants, and prevent market abuse. It must submit quarterly reports to the Central Government, which retains the power to issue directions as necessary.

These Rules follow the Mines and Minerals (Development and Regulation) Amendment Act, 2025, which introduced Section 18B empowering the Central Government to promote mineral sector development, including trading through mineral exchanges. Coal, listed under Part A of the First Schedule of the MMDR Act, 1957, falls within this scope.

Comments may be shared via email to socpd.moc@nic.in.