India Considers New Regulator for Upcoming Coal Exchange to Boost Fairness and Transparency

The Indian government is considering setting up a new, independent regulator for a coal exchange that is expected to launch in the current fiscal year (FY25). This move aims to ensure fairness and transparency in coal transactions, especially after the market opened to private players in 2020.

Initially, the Coal Controller Organisation (CCO) was considered to regulate the exchange, but concerns about its independence have led to discussions about establishing a separate regulatory body. This new regulator would oversee the operations of the coal exchange, where surplus coal from Coal India and its subsidiaries would be traded, along with contributions from private miners.

The coal exchange is being developed as India’s coal production hits record highs, with the government targeting 1.08 billion tonnes for this fiscal year. The exchange is expected to help with fair pricing and make coal more accessible to industrial consumers, even as the country works towards reducing coal demand and achieving net-zero carbon emissions by 2070.

The decision on the new regulator is still pending, with details yet to be finalized. The coal ministry continues to work on the exchange, balancing the need for regulation with the restructuring of the CCO, which has been ongoing.