CoalSETU Policy: Boosting Industrial Growth and Energy Security in India

CoalSETU Policy: Boosting Industrial Growth and Energy Security in India

CoalSETU Policy: Boosting Industrial Growth and Energy Security in India

The Government of India has introduced an important reform in the coal sector to support industrial growth and improve energy security. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the CoalSETU Policy.

Under this reform, a new “CoalSETU Window” has been added to the existing NRS (Non-Regulated Sector) linkage policy. This window allows coal to be used for any industrial purpose as well as for exports, removing earlier restrictions on end-use.

With the CoalSETU window, domestic industries will receive coal linkages through long-term auctions. Unlike previous policies, there will be no end-use conditions, giving industries greater flexibility in how they use coal. This change is expected to significantly improve the Ease of Doing Business in India and reduce the country’s dependence on imported coal.

To ensure fair and targeted use, traders will not be allowed to participate under this window, and coking coal is excluded from the scheme. The policy is designed mainly to support genuine industrial users.

Another key feature is that industries receiving coal linkages will be allowed to export up to 50% of the coal. In addition, the policy will help increase the availability of washed coal, which is more efficient and environmentally friendly.

Overall, the CoalSETU Policy is a forward-looking step that strengthens India’s energy security, supports domestic manufacturing, and promotes sustainable industrial development. By providing flexibility, transparency, and long-term supply assurance, this reform marks a significant milestone in India’s coal and energy policy.