INDIA’S
FIRST COAL EXCHANGE : ECONOMY
NEWS
:
India to Establish Its First Coal Exchange
WHAT’S
IN THE NEWS?
Union Coal and Mines Minister announced that India’s first coal
exchange is set to be established soon.
India's
First Coal Exchange:
- Online Trading Platform: Allows coal to be traded
like any other commodity with a clearing and settlement mechanism for
smooth transactions.
- Market Liberalization: Part of the Coal
Ministry’s action plan for 2024-25 to open up the coal market, making it
more transparent and competitive.
- Regulation and Supervision: Supervised by the Coal
Controller Organisation, ensuring adherence to regulatory norms.
- Coking Coal Imports: India may import coking
coal from Russia to meet domestic demand for steel production.
Implications:
- Enhanced Market Dynamics: Streamlines coal trading
with better price transparency and coal accessibility.
- Reduced Bottlenecks: Minimizes supply delays by
using an online trading platform.
- Support for Industrial
Growth:
Ensures reliable coal supply for power generation and steel industries.
Coal
Controller Organisation:
- Inspects collieries to
ensure correct coal grading and sizing.
- Acts as an appellate
authority for disputes between consumers and coal owners.
- Regulates coal stock
disposal and maintains quality surveillance.
- Grants permissions for
opening/re-opening coal mines and assesses excise duty on raw coal.
- Submits monthly coal data to
relevant ministries and organizations.
Directorate
General of Mines Safety (DGMS):
·
Regulates
safety in mines and the upstream petroleum industry.
·
Aims to
improve safety and health standards through proactive strategies and
professional conduct.
Source
: https://timesofindia.indiatimes.com/business/india-business/soon-india-will-have-first-coal-exchange-union-minister-g-kishan-reddy/articleshow/114443482.cms