India plans to establish a national coal exchange to boost transparency and competitiveness as demand rises to 1.6 billion tonnes by 2030, balancing development with a cleaner energy shift.
India’s coal demand is expected to climb to about 1.6 billion tonnes by 2030, a level officials say reflects the sheer scale of the country’s power, infrastructure and industrial needs. Coal Secretary Vikram Dev Dutt said the outlook underlines why the government is pushing ahead with reforms designed to make trading more competitive and more transparent.
According to the Hindu BusinessLine, the proposed overhaul would centre on a national coal exchange, moving away from the current one-to-many sales model towards a many-to-many market. Under that framework, multiple buyers and sellers would be able to trade on the same platform, with prices formed through competition rather than allocation. The ministry also wants the exchange to act as a central counterparty for clearing and settlement, which officials say would improve risk management for both sides of the market.
The government has already begun laying the groundwork. The Press Information Bureau said Coal Minister G Kishan Reddy launched an online portal for registration of coal exchanges in India, part of a regulated system overseen by the Coal Controller Organisation. That step is intended to widen access, improve transparency and create the basis for a more formal trading structure. Business Standard has also reported that Dutt assumed charge as coal secretary in October 2024, giving him a central role in steering the reforms.
The broader policy push comes as India balances a rapid build-out of renewable energy with continued dependence on coal for electricity generation. Reddy said coal still accounts for nearly 70% of power consumption and noted that domestic production and dispatch crossed 1 billion tonnes in the previous year. He also said state-run coal companies are diversifying into renewable energy and critical minerals, as the government tries to prepare the sector for a cleaner but still coal-heavy transition.
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