Coal India Limited (CIL) has suggested that the proposed coal exchange in India should be rolled out in a phased manner to ensure market stability and operational readiness. The state-owned miner believes a gradual implementation would allow stakeholders to adapt to the new trading mechanism while minimising risks to coal supply for key sectors.
According to CIL, a phased approach would help address concerns related to pricing volatility, logistics integration, and participation readiness of buyers and sellers. Coal India supplies the bulk of the country’s coal requirements, particularly to the power sector, and any abrupt transition to a new trading platform could disrupt fuel availability.
The proposed coal exchange is aimed at introducing greater transparency, efficiency, and market-based price discovery in coal trading. However, Coal India has emphasised that long-term fuel supply agreements, especially for power producers, should continue to be protected even as exchange-based trading is introduced.
CIL officials have also pointed out that initial phases could focus on limited quantities and non-core grades of coal, allowing regulators and market participants to assess performance before expanding the scope. Lessons from early stages could then be used to refine rules, technology systems, and oversight mechanisms.
Industry experts view Coal India’s recommendation as a cautious but pragmatic stance, balancing reform objectives with the need to safeguard energy security. A phased rollout could also help build confidence among consumers, traders, and logistics providers.
The government is currently evaluating stakeholder feedback on the coal exchange framework, with Coal India’s inputs expected to play a significant role in shaping the final structure of the reform.