The Union Cabinet Committee on Economic Affairs chaired by the  Prime Minister Shri Narendra Modi today has approved for the Policy for Auction of Coal Linkage for Seamless, Efficient & Transparent Utilisation (CoalSETU) by creation of new window named "CoalSETU window" in the NRS Linkage Policy to utilise coal for any industrial use and export. The new policy adds to the series of coal sector reforms being undertaken by the Government.

The Policy will allow allocation of coal linkages on auction basis on long-term for any industrial use and export by adding a separate window named CoalSETU in the NRS (Non-Regulated Sector) Linkage Auction Policy of 2016 wherein any domestic buyer requiring coal can participate in the linkage auction. The coking coal shall not be offered under this window.

The existing policy for auction of coal linkages for the NRS provides for allocation of all fresh coal linkages to NRS viz. Cement, Steel (Coking), Sponge Iron, Aluminium, and Others [excluding Fertilizer (Urea)] including their Captive Power Plants (CPPs) to be auction based. As per the present policy of NRS Linkage, the sub-sectors are for specified end users only.

Looking at the current & future market dynamics and for the purpose of ease of doing business and for accelerated utilization of existing coal reserves and reduce dependence on imported coal for meeting country's energy requirement, there was a need to have a fresh look at the current arrangements of coal supplies to the NRS.

The present auction of coal linkages for the specified end-user sub-sectors in NRS (Non-Regulated Sector) shall continue. The specified end-user (s), can also participate in this window.