National Coal Exchange Planned For Transparency

2024-10-22 04:15:33

(MENAFN- KNN India) New Delhi, Oct 22 (KNN) The government is making significant progress toward establishing a national coal exchange, marking a transformative step in modernising the country's coal sector.

Coal Minister G Kishan Reddy announced that the exchange is in its final stages of development, following a recent internal review meeting on the initiative.

The establishment of the exchange represents a crucial component in the government's broader strategy to restructure India's long-standing coal production and supply framework.

This development aims to create a more transparent and competitive marketplace, building upon the foundation laid by commercial coal mine auctions.

The proposed exchange will serve as a centralised platform where multiple buyers and sellers can trade coal as a commodity, facilitating efficient market-based pricing and price discovery mechanisms.

This move is particularly significant given that India's coal market is currently dominated by Coal India Limited, which controls over 80 percent of the country's coal production and distribution.

The Ministry of Coal is simultaneously working on establishing a regulatory framework to oversee the exchange operations, acknowledging that such a trading platform requires proper oversight.

Officials indicate that the exchange could address existing market inefficiencies, including the volatile pricing seen in e-auctions where premiums reportedly surged by 400 percent during the summer of 2023.

Government officials note that the exchange will enable coal companies to offer innovative schemes at competitive prices, potentially alleviating concerns about limited quantities and high prices in spot and e-auction markets.

This development is expected to enhance India's competitive position in the global market, particularly in relation to competitors like China, while fostering a more robust private sector presence in the domestic coal industry.

(KNN Bureau)

MENAFN22102024000155011030ID1108805567

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.