Originally set to close on 6 April, the feedback window was extended via an official notification published on the ministry’s website. The CTE is being positioned as a major shift from India’s existing coal sales model, transitioning from the current ‘one-to-many’ format—dominated by state-run players like Coal India Ltd—to a ‘many-to-many’ marketplace where both private and public sector players can buy and sell through a unified digital platform.

The proposed reform aims to boost price transparency, streamline coal transactions, and foster competition. The draft also suggests that the Coal Controller Organisation (CCO) be designated as the exchange’s regulator, in line with global commodity trading norms.

At present, coal sales in India are primarily routed through government channels, with limited space for private commercial activity. The CTE is expected to open up a broader market for both commercial and captive coal producers, featuring multi-party bidding and an integrated clearing and settlement mechanism to minimise transactional risks.

The reform comes as India’s coal output is projected to cross 1.5 billion tonnes by 2030, creating a possible supply surplus and necessitating a more market-driven approach. The ministry has indicated that the exchange could go live sometime in 2025, with operational details under final review.

Officials say the CTE will play a pivotal role in improving market dynamics, increasing private participation, and aligning the sector with India’s broader energy security and resource efficiency goals.