New Delhi, Dec 12: On December 12, the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, approved a new policy titled Coal Linkage for Seamless, Efficient & Transparent Utilization (CoalSETU).
This policy introduces a framework for auctioning coal linkages specifically for various industrial uses and exports, expanding the current non-regulated sector linkage policy established in 2016. Under Coal SETU, domestic buyers can participate in linkage auctions, although coking coal will not be included.
The revised policy aims to enhance the coal supply to sectors such as cement, steel, and aluminium, facilitating ease of business while also addressing the growing demand for coal and reducing dependence on imports. It allows coal linkages to be allocated on a long-term auction basis without end-use restrictions, following the relaxation of regulations for commercial mining.
Importantly, traders are prohibited from accessing this new window, and coal linkage holders can use up to 50% of their allocation for exports. This flexibility is expected to enhance the availability of washed coal domestically, while also positioning it for export opportunities, thus supporting both local and international markets.
