All about India to launch first ever Coal Trading Exchange.
                     ALL ABOUT INDIA TO LAUNCH FIRST-
EVER COAL TRADING EXCHANGE
INTRODUCTION
• India is reportedly planning to open its 
first coal trading exchange on the basis of 
commodity or energy exchanges.
• This will be an electronic system based that 
will provide an online platform to various 
traders .
Source: Google image
PURPOSE
• Coal mining procedure with the purpose of 
having more coal sellers apart from Coal India 
and Singareni Collieries. 
• Coal blocks have been allocated to the state-
level PSUs for coal sales in the market.
Source: Google image
COAL TRADING EXCHANGE DEAL
• The exchange will deal with proposed gas exchanges, 
power bourses, or commodity exchanges.
• This will probably lead to the end of Coal India’s new 
Fuel Supply Agreements (FSA) regime.
Source: Google image
BACKGROUND
• Government plans to bring in commercial mining 
activities in the coal sector on a revenue-sharing basis.
• Government monopoly in the sector will be completely 
removed and liberal entries will be allowed.
Source: Google image
NEED FOR SETTING UP THE COAL EXCHANGE
• The country’s coal import reduced by 20 percent to 
18.93 million tonnes in May 2020. 
• The government is planning to bring the country’s coal 
imports to zero by 2023-24. 
Source: Google image
NEED FOR SETTING UP THE COAL EXCHANGE
• The government is anticipating to have numerous buyers 
of coal along with many sellers.
• Setting up coal exchange will facilitate more trading of 
coal.
Source: Google image
WHY INVEST IN COAL?
• Portfolio -Investing in coal in combination with other 
commodities is a smart way to diversify an investment 
portfolio. 
• An investment in coal is a smart way to bet on the 
emerging market economies.
Source: Google image
COAL PRICING
• Coal prices have always been lower and more stable 
than oil and gas prices.
• Coal will remain one of the most affordable fuel for 
power generation.
Source: Google image
CONCLUSION
• Many countries across the world have coal exchanges 
and it is a well-tested model.
• Government should let the market growth with a large 
number of players obtaining the right value for coal.
Source: Google image
THANK YOU