Government approves CoalSETU for auction of coal linkages without end use restrictions

The government on Friday approved the ‘CoalSETU’ window for auction of coal linkages for diverse industrial uses and exports to ensure fair access and optimum utilization of the resource.

The Union Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the policy for auction of coal linkages for seamless, efficient and transparent utilization (COALSETU), according to an official statement.

The policy will allow allocation of coal linkage on a long-term auction basis for any industrial use and export by adding a separate window called CoalSetu in the NRS (Non-Regulated Sector) Linkage Auction Policy of 2016.

Briefing the media about the Cabinet decision, Information and Broadcasting Minister Ashwini Vaishnav said any domestic buyer requiring coal can participate in the linkage auction regardless of end use.

Coking coal will not be offered under this window, he said.

The minister further said that the country has produced so much coal that we can start considering exports and the government is now focusing on promoting coal exports.

Linkage holders can now export up to 50 percent of their volume and use the fuel flexibly between group companies as required.