The Ministry of Coal (MoC) proposed a Coal Trade Exchange (CTE) and initiated public consultations for the same on March 07, 2025.In addition to helping customers meet their coal demand by enabling efficient price discovery and ushering innovations in contracts and supply, the CTE will be  a major reform in the coal sector, and thus, its design requires careful thought. 

Prayas (Energy Group), a long-time proponent of a regulated coal exchange, provided inputs towards encouraging competition, innovation, accountability, and transparency in the setting up of the exchange. This included:

• Ensuring a robust CTE by recommending that the sale of all coal is allowed, only a single platform is permitted, and settlement in the nascent exchange only happens through physical delivery
• Establishing an independent regulator by requiring that a seperate Act is passed to empower the CCO as regulator, while transparency and accountability in its operations is ensured
• Increasing liquidity and enabling efficient price discovery through a phased approach for migrating all new coal procurement on to the CTE
• Ensuring that the CTE operator does not have affiliations with coal producers, consumers or traders
• Addressing complex interlinkages with other sectors such as the power, cement, and steel sector