Archive · 13 Dec 2025
Cabinet Approves CoalSETU Policy for Flexible Coal Linkages
The Indian government has approved a new policy called CoalSETU.
This policy allows companies to buy coal through auctions for any industrial use or export, without strict rules on how they can use it.
The goal is to make it easier for businesses to use coal and to reduce the need to import coal from other countries.
The policy also supports coal washing facilities, which can help improve the quality of coal available in India.
However, coking coal, which is used in steel making, is not included in this policy.
The new policy will work alongside the existing rules for coal auctions, and companies can use the coal they buy for their own needs, for washing, or for export, but they cannot resell it within India.
A dedicated 'CoalSETU Window' has been introduced to enable auction-based long-term coal linkages for any industrial use or export, ensuring fair access to domestic coal and reducing import dependence.
The Union Cabinet approved the CoalSETU policy for flexible, long-term coal linkages.
The policy allows coal linkages to be allocated through auctions without end-use restrictions, except for coking coal.
The move aims to improve ease of doing business and reduce India's dependence on imported coal.
Coal allocated under CoalSETU can be used for own consumption, coal washing, or export, but resale within the country is not permitted.
The policy is expected to promote efficient coal utilisation, support industrial growth, and strengthen India's energy security.
- Who
- Union Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi
- What
- Approved the CoalSETU policy for flexible, long-term coal linkages
- When
- Approval date not specified in the article
- Where
- India
- Why
- To improve ease of doing business, ensure faster and more flexible utilisation of domestic coal reserves, and reduce India’s dependence on imported coal
- Policy Name
- CoalSETU
- Chairperson
- Prime Minister Narendra Modi
- Coal Types Excluded
- Coking coal
- Export Limit
- Up to 50% of allocated coal
- Key Beneficiaries
- Domestic coal consumers, coal washeries
- End-Use Restrictions
- No resale within the country
- Regulated Sector
- Thermal power generation
- CoalSETU Window
- Dedicated window under NRS linkage policy
- Flexibility
- Flexible utilization across group companies
Sources
Cabinet clears CoalSETU policy to allow flexible, long-term coal linkages
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'Important Step Towards Strengthening India's Energy Security': PM Modi After Cabinet Approves CoalSETU Window
