Government Releases Draft Rules for Coal Exchange, Proposes Coal Controller Organisation

New Delhi, September 22 – The Central Government has introduced draft rules to set up a regulatory framework for the upcoming coal exchange. This will pave the way for facilitating coal trading as a commodity and create a competitive structure in the sector. As per the draft rules, the CCO (Coal Controller Organisation) will be a nodal body under the Ministry of Coal and will monitor the exchange.

The role of the organization will extend beyond market regulations, encompassing mine closure activities to ensure environmental sustainability, conducting inspections, issuing directives on coal grades, and performing statistical assessments of coal. The organization will also act as an appellate authority in grade-related disputes between stakeholders.

The ministry has invited stakeholder comments on the draft rules by mid-October. Once implemented, operations of the coal exchange will be governed by regulations framed by the CCO.

Push for Market Reforms

The draft aims to create market reforms, highlighting that recent changes have contributed to self-sufficiency and improved domestic availability of goods in India. In FY 25, the country has surpassed 1 billion tonne production mark and it is all set to cross the 1.5 billion tonne milestone by 2030.

As the output of coal continues to rise, the Ministry of Coal anticipates a change from the existing supply-constrained environment to a surplus coal scenario that will require a fresh mechanism for sales. The exchange is a first step towards creating a transparent, competitive and regulated coal market in India.

The draft notes that the establishment of coal exchanges will be undertaken under the enabling provisions of the MMDR Amendment Act, 2025.

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