Coal India Launches CoalSETU Window For Transparent Coal Auctions
POWER & RENEWABLE ENERGY

Coal India Launches CoalSETU Window For Transparent Coal Auctions

Coal India has introduced the CoalSETU (Seamless, Efficient and Transparent Utilisation) window under its Non-Regulated Sector Linkage Auction Policy to enable seamless, efficient and transparent utilisation of coal by eligible domestic industrial users. The facility permits industrial plants including cement, sponge iron, steel and independent washery operators to bid for coal linkages for internal consumption, for coal washing operations or for export, while explicitly excluding traders from participation.

CoalSETU will operate on a first-price sealed-bid electronic auction platform where prospective buyers must register their plants or units, provide normative coal requirements and remit process fees and bid security. The auction will proceed in three phases comprising preparation and announcement, confidential sealed bidding with reserve price enforcement, and post-auction allocation with issuance of a letter of intent and electronic execution of fuel supply agreements. Tie-breaking will favour larger submitted quantities and earlier submission times.

Pricing will follow a floor price plus winning premium model with an escalable component linked to prior auction performance to ensure market-aligned outcomes. For illustration a modulated notified price of Rs2,000 per tonne (t) with a 40 per cent winning premium and a five per cent escalable component would produce an as-delivered price calculated as Rs2,000 multiplied by one plus 0.40 plus 0.05, resulting in Rs2,900 per tonne. Bids below the reserve price will be rejected.

Non-coking coal washeries with approved flowsheets and environmental clearances may participate and may sell washed coal domestically or export up to 50 per cent of allocated quantities, while resale of raw coal in the domestic market is prohibited. Fuel supply agreements under CoalSETU will carry a 10-year term to provide long-term supply security and allocated quantities will be subject to verification by government or certified agencies. Coal India has invited stakeholder comments within 20 days of notification to refine modalities, underscoring the policy focus on transparent, efficient and environmentally responsible coal utilisation.

Coal India has introduced the CoalSETU (Seamless, Efficient and Transparent Utilisation) window under its Non-Regulated Sector Linkage Auction Policy to enable seamless, efficient and transparent utilisation of coal by eligible domestic industrial users. The facility permits industrial plants including cement, sponge iron, steel and independent washery operators to bid for coal linkages for internal consumption, for coal washing operations or for export, while explicitly excluding traders from participation. CoalSETU will operate on a first-price sealed-bid electronic auction platform where prospective buyers must register their plants or units, provide normative coal requirements and remit process fees and bid security. The auction will proceed in three phases comprising preparation and announcement, confidential sealed bidding with reserve price enforcement, and post-auction allocation with issuance of a letter of intent and electronic execution of fuel supply agreements. Tie-breaking will favour larger submitted quantities and earlier submission times. Pricing will follow a floor price plus winning premium model with an escalable component linked to prior auction performance to ensure market-aligned outcomes. For illustration a modulated notified price of Rs2,000 per tonne (t) with a 40 per cent winning premium and a five per cent escalable component would produce an as-delivered price calculated as Rs2,000 multiplied by one plus 0.40 plus 0.05, resulting in Rs2,900 per tonne. Bids below the reserve price will be rejected. Non-coking coal washeries with approved flowsheets and environmental clearances may participate and may sell washed coal domestically or export up to 50 per cent of allocated quantities, while resale of raw coal in the domestic market is prohibited. Fuel supply agreements under CoalSETU will carry a 10-year term to provide long-term supply security and allocated quantities will be subject to verification by government or certified agencies. Coal India has invited stakeholder comments within 20 days of notification to refine modalities, underscoring the policy focus on transparent, efficient and environmentally responsible coal utilisation.

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