Coal Remains King In India While Exports Optimize Domestic Stock

By Tsvetana Paraskova of OilPrice.com,

Coal India Limited, the biggest coal producer in the world’s second-biggest coal user, opened this year its online coal supply auctions directly to buyers in Bangladesh, Bhutan, and Nepal, as Indian coal supply has swelled amid weaker-than-expected demand in recent months. 

Amid an oversupply of coal and weaker demand, India and its top state coal producer are looking to optimize domestic supply and monetize exports to neighboring countries.
Until 2026, only middlemen could bid in Coal India’s online supply auctions. This has now changed with the new policy. 

“In a first, effective January 1, 2026, CIL has permitted coal consumers located in the neighbouring countries like Bangladesh, Bhutan and Nepal, who wish to import coal from India, to directly participate in the Single Window Mode Agnostic (SWMA) auctions conducted by the company,” Coal India said in a statement on Friday, as carried by The Economic Times.

“Opening SWMA e-auctions to foreign buyers reflects CIL’s calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration,” a senior company official told the publication. 

Opening the e-auctions directly to buyers sent Coal India’s shares rallying by 7% on the local stock exchange at close on Friday. 

Coal-fired power generation and capacity installations in India continue to rise and coal remains a key pillar of India’s electricity mix with about 60% share of total power output.

Despite booming renewable capacity additions, India continues to rely on coal to meet most of its power demand as authorities also look to avoid blackouts in cases of severe heat waves.

Coal will still be a key part of India’s power system for the next two decades, Rajnath Ram, adviser for energy NITI Aayog, said in September. 

“We cannot be subjective about coal. The question is how sustainably we can use it,” the official noted.