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Cabinet Clears CoalSETU Linkage Window

  • 15 Dec 2025

On 12th December 2025, the Cabinet Committee on Economic Affairs (CCEA) approved a new policy mechanism named CoalSETU to expand long-term coal linkage access for industries and exports.

  • The decision was taken by the Cabinet Committee on Economic Affairs to introduce the CoalSETU window as an additional pathway for coal allocation.
  • CoalSETU will be integrated into the existing Non-Regulated Sector Linkage Auction Policy of 2016, expanding its scope beyond specified end-use sectors.
  • Unlike the current system that restricts participation to sectors such as cement, steel, aluminium, sponge iron, and captive power plants, the new window allows any domestic industrial consumer to bid.
  • Coking coal will not be offered under the CoalSETU mechanism, and coal traders will be barred from participating in the auctions.
  • The government stated that the policy reflects evolving market conditions, rising energy demand, and the objective of improving ease of doing business.
  • Existing Non-Regulated Sector auctions for designated sub-sectors will continue, and eligible end-users under the old system may also participate in the new CoalSETU window.