Coal India Ltd (CIL) on Friday announced that it will allow coal consumers in neighbouring countries such as Bangladesh, Bhutan and Nepal to directly import coal from India through auctions conducted by the company.
The CIL board has approved changes to the norms governing the Single Window Mode Agnostic (SWMA) auctions, enabling foreign buyers to participate alongside domestic consumers. The revised framework will come into effect from January 1, 2026.
Until now, overseas access to CIL’s coal was limited to domestic traders, who were permitted to purchase and sell coal without any end-use restrictions. The latest move opens up direct participation for end consumers across borders.
The announcement boosted sentiment, with CIL’s shares touching a 52-week high of ₹429.65 on the BSE before closing at ₹427.90, up 6.88 per cent over the previous close.
The policy change comes at a time coal demand has remained subdued. CIL’s production during April–December stood at 529.2 million tonnes, down 2.6 per cent from the corresponding previous period. Coal offtake declined 2.2 per cent year-on-year to 544.7 million tonnes.
Allowing overseas coal consumers to participate in auctions is also expected to aid the liquidation of surplus inventories. Coal stocks had risen to 105.16 million tonnes at the beginning of the year, according to data from the Coal Controller Organisation.
“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 official said.
Updated scheme
CIL said key provisions for foreign buyers include a one-time registration process, participation through digital bidding platforms, advance electronic payments and export through notified logistics channels.
The company added that payments will be governed by the Foreign Exchange Management Act (FEMA) rules. Buyers from Nepal will be allowed to make payments in Indian rupees as well as US dollars. Buyers from Bangladesh and Bhutan will make payments in US dollars, though valuation will be carried out in Indian rupees, the company said.
CIL also said it had earlier engaged in discussions with prospective overseas coal consumers to identify enabling clauses under the revised framework and to assess their coal requirements.