The Union Cabinet, chaired by PM Modi, has approved the CoalSETU policy to create a new auction window. PM Modi hailed it as a step to strengthen energy security, boost domestic coal use, and reduce imports, thereby aiding Ease of Doing Business.
After the Union Cabinet approved the CoalSETU window, Prime Minister Narendra Modi on Friday called it an “important step” towards strengthening India’s energy security and accelerating growth, adding that it will support “Ease of Doing Business”, boost domestic availability and reduce dependence on imported coal.
In a post on X, the Prime Minister wrote, “The Cabinet has approved the CoalSETU policy, creating a new window to enable seamless, efficient and transparent utilisation of coal. It will support Ease of Doing Business, boost domestic availability and reduce dependence on imported coal. It is yet another important step towards strengthening India’s energy security and accelerating growth.” The Cabinet has approved the CoalSETU policy, creating a new window to enable seamless, efficient and transparent utilisation of coal. It will support Ease of Doing Business, boost domestic availability and reduce dependence on imported coal. It is yet another important step… — Narendra Modi (@narendramodi) December 12, 2025
Cabinet Approves New Coal Linkage Policy
Earlier today, the Union Cabinet Committee on Economic Affairs, chaired by Prime Minister Modi, approved the Policy for Auction of Coal Linkage for Seamless, Efficient & Transparent Utilisation (CoalSETU) by creation of a new window named “CoalSETU window” in the NRS Linkage Policy to utilise coal for any industrial use and export.
Policy Mechanism and Scope
The new policy adds to the series of coal sector reforms being undertaken by the Government. The Policy will allow allocation of coal linkages on an auction basis on a long-term for any industrial use and export by adding a separate window named CoalSETU in the NRS (Non-Regulated Sector) Linkage Auction Policy of 2016, wherein any domestic buyer requiring coal can participate in the linkage auction. The coking coal shall not be offered under this window.
The existing policy for auction of coal linkages for the NRS provides for allocation of all fresh coal linkages to NRS viz. Cement, Steel (Coking), Sponge Iron, Aluminium, and Others [excluding Fertilizer (Urea)] including their Captive Power Plants (CPPs) to be auction-based. As per the present policy of NRS Linkage, the sub-sectors are for specified end users only.
‘Aligns with Broader Coal Sector Reforms’
While announcing the Cabinet decision, Union Minister Ashwini Vaishnaw said the move is aimed at improving ease of doing business, ensuring faster and more flexible utilisation of domestic coal reserves, and reducing India’s dependence on imported coal to meet its energy requirements. “The policy aligns with the Government’s broader coal sector reforms, including the opening of commercial coal mining without end-use restrictions,” he said. (ANI)
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