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The Union Minister of State for Coal and Mines provided details in the Lok Sabha on the Coal Exchange Rules, 2026, notified under Section 18B of the Mines and Minerals (Development and Regulation) Act, 1957.
The Rules create a statutory framework for Coal Exchanges — centralised electronic platforms for delivery-based spot trading of coal, lignite, and their processed forms.
The Coal Controller Organisation (CCO) has statutory oversight — approving/revoking exchange registrations and regulating bidding mechanisms and fee ceilings.
Exchanges must maintain a Settlement Guarantee Fund with at least 50% in safe, liquid instruments, plus market surveillance and grievance redressal mechanisms.
A centralised electronic trading platform where buyers (including PSUs, captive miners, small/medium consumers) and sellers transact delivery-based spot contracts for coal and lignite, with prices discovered competitively via CCO-approved algorithms and settlements adjusted for actual coal quality.
Simple Analogy: Like a stock exchange, but for physical coal — buyers and sellers trade openly instead of coal being allocated through legacy, non-market channels.
GS Paper III > Energy Sector Reforms, Mining
The statutory regulator overseeing Coal Exchange registrations and operations
A dedicated fund exchanges must maintain to manage counterparty risk in trades