The government has introduced draft rules to establish an organization aimed at regulating the operations of a proposed coal exchange that will facilitate the trading of coal as a commodity.
The proposed Coal Controller Organisation (CCO) will serve as a subordinate office under the Ministry of Coal. Its duties will encompass activities related to coal mine closures to ensure environmental sustainability, the collection and dissemination of coal-related statistics, inspections of collieries, issuing directives regarding coal grades, and acting as an appellate authority for disputes related to these grades.
According to the draft coal exchange rules for 2025, “The Ministry of Coal proposes to appoint the Coal Controller Organisation (CCO) to register and regulate the coal exchange(s) to be established in the country.” The ministry has invited feedback from stakeholders on the draft by mid-October.
The operations of the coal exchange will be guided largely by regulations established by the CCO. The draft further notes that recent policy reforms in the coal sector have led to self-sufficiency and enhanced availability of this vital fuel in the country.
Coal production in India is projected to reach unprecedented levels, having already surpassed the one billion tonne mark in the last fiscal year and expected to exceed 1.5 billion tonnes by 2030. With the increasing availability of domestic coal, a significant shift towards a surplus coal scenario is anticipated, which will transform the current sales mechanisms and necessitate substantial market reforms supported by a robust regulatory framework.
The draft emphasizes that, “In light of the increased availability of domestic coal, further reforms in the coal sector are underway, focusing on fostering competitive markets for coal sales. Consequently, the Ministry of Coal proposes to establish coal exchanges under the enabling provisions of the MMDR Amendment Act, 2025.”
Published on September 22, 2025.
