Recent reforms in India’s coal sector, such as commercial coal mining for private players and free open market sales from captive mines, have created a coal surplus in the domestic market.
Taking advantage of this, Coal India Limited (CIL) has now opened its e-auction system to buyers from Bangladesh, Bhutan, and Nepal starting January 1, 2026.
The move is significant because, in the past, coal imports surged as thermal power plants worked at full capacity to meet rising electricity demand.
Now, with moderate demand last summer, thermal power plants have reduced consumption, leaving surplus coal at pitheads.
From Domestic Surplus to Export Opportunity
Previously, foreign buyers could access CIL coal only through domestic traders, with no direct participation.
Now, countries like Bangladesh, Bhutan, and Nepal can directly join CIL’s Single Window Mode Agnostic (SWMA) auctions.
This is the first time foreign consumers can purchase coal without intermediaries, making the process more transparent and market-driven.
CIL said this move follows a policy approved by the Cabinet last month, allowing coal allocations for industrial use and exports through a separate auction window for non-regulated sectors.
Analysts say this step will help CIL utilize surplus coal efficiently and improve margins after a year of subdued domestic demand.
Digital Auctions for Transparency and Efficiency
The SWMA auction system, launched in 2022, consolidates all previous auction platforms into one unified, digital platform.
It simplifies coal procurement, making it easier for both domestic and foreign buyers.
Foreign buyers can now register once, bid digitally, make advanced electronic payments, and arrange exports through notified logistics channels.
This move not only boosts transparency but also strengthens India’s position as a reliable coal supplier in the region.
