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Cabinet Approves CoalSETU Window to Auction Coal Linkages, Enable Exports

Officials say the reform targets wider offtake for growing output to cut thermal coal imports.

Overview

  • The new CoalSETU window under the 2016 NRS policy will auction long‑term linkages without end‑use restrictions to any eligible domestic industrial buyer.
  • Linkage holders may export up to 50% of their allotted quantity, while coking coal will not be offered under this window.
  • Traders are barred from participating, and coal obtained can be used for own consumption, export or washing, with domestic resale prohibited.
  • Fuel supply agreements under the revamped framework can run for up to 15 years, with flexibility to allocate supplies within group companies.
  • The government is eyeing nearby markets such as Nepal, Bangladesh, Bhutan and Sri Lanka, with detailed auction rules and timelines to follow.