Cabinet clears CoalSETU to boost industrial use, coal exports

• Union Cabinet approved the new CoalSETU window under the Non-Regulated Sector (NRS) Linkage Auction Policy to boost industrial coal use and exports.
• CoalSETU is a long-term auction mechanism allowing eligible linkage holders to export up to 50% of their allocated coal, targeting global markets.
• The policy aims to meet strong demand from neighboring countries like Nepal, Bangladesh, and Bhutan, with a focus on exporting processed or washed coal.
• India's reduced coal imports (26% in FY15 to 19.2% in FY25) and record domestic production create room for export-oriented allocation.
• End-use restrictions are lifted for various industries (cement, steel, etc., excluding fertiliser-urea), and washery operators are included to increase washed coal supply.

Why It Matters: New CoalSETU window boosts industrial coal use and exports, reducing imports.