MCX earmarks 2 billion rupees to launch India’s first organised coal and mineral trading platforms

Multi Commodity Exchange of India is set to invest around $21 million to develop new coal and minerals trading platforms, aiming to enhance transparency and efficiency amid regulatory reforms and opening up of the sectors to private participation.

Multi Commodity Exchange of India is planning to commit as much as 2 billion rupees, or about $21 million, to build coal and minerals trading platforms as India opens the sectors to organised exchange-based trade, according to Bloomberg. Managing director Praveena Rai said the company is seeking licences for both ventures, and regulatory filings show that separate units have already been set up to run them.

The move comes after the Indian government published rules for coal exchanges in June, part of a wider push to improve transparency, efficiency and price discovery in a market long dominated by auctions and bilateral deals. The framework follows amendments to mining law that also created the concept of a mineral exchange, giving the central government powers to promote more open trading in minerals, including coal and processed coal products, according to Business Standard and other sector reports.

MCX’s plan also fits with broader policy changes that have opened commercial coal mining to private participation in a bid to attract investment, technology and competition. The Coal Ministry has said the new exchange regime is intended to support electronic trading, tighter market oversight and better settlement safeguards, while industry reports note that other exchange operators, including NSE and IEX, have also shown interest in the opportunity. In April, Business Standard reported that MCX had already won Securities and Exchange Board of India approval to incorporate a coal exchange company, underlining how quickly the project has moved from regulatory clearance to execution.