Business Desk 
Oct 22, 2024
India is on the cusp of a significant transformation in its energy sector. The country would soon have its coal exchange; a platform that would transform the way coal is traded and priced.
Coal and Mines Union Minister G Kishan Reddy announced on Monday. "We held an internal review meeting last week on plans to set up a coal exchange. It would soon be formalised for marketing and determining the rates of coal in India." The minister highlighted the need to decrease coal imports, which have risen over the past two months.
Current state of coal trading in India
Currently, India relies heavily on imported coal to meet its energy demands. However, with the proposed coal exchange, the country can increase domestic production and reduce imports.
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The exchange would provide a transparent platform for coal trading, eliminating middlemen and ensuring fair prices.
Benefits of coal exchange
The coal exchange would have numerous benefits for India's energy sector. These include:
- Increased transparency in coal trading
- Reduced dependence on imported coal
- Boost to domestic coal production
- Fair pricing for coal
- New opportunities for businesses and investors
Recent developments in India's energy sector
In anticipation of higher power demand, India has extended the mandate for imported coal-based power plants to operate at full capacity until December 31.
This move comes despite a decline in coal-fired power output in September due to slower electricity usage growth and a surge in solar generation. Imported coal-based power plants in India have a combined annual capacity of nearly 16GW.
