India has to decided set up commercial Coal Exchange trading platform soon. According to the proposal to set up the India commercial Coal Exchange platform, the entire coal mined in the india is to be traded on a common platform called “Coal Exchange”.
Why is Coal Exchange important?
It is important to set up the commercial trading platform as it will pave way for multiple buyers and sellers in coal sector. It is to be noted that the Ministry of Coal will start auctions for commercial coal mining on 11th June 2020.
The Union Finance Minister Smt. Nirmala Sitaraman had declare that the monopoly of the Government in the commercial coal sector will be pull out completely. This is being done to expand manufacturing of coal in India and shrink its dependence of imported coal. India holding third largest coal reserves in the planet is still importing coal.
About Coal Exchange
Though India opens the coal sector to market access through the platform, Coal India will carry on the dominant player in the coal sector. This is mainly because of its fixed target and assign coal production of 1 billion tonnes by year 2024.