New Delhi: In a first-of-its-kind move, Coal India Limited (CIL) will allow coal consumers from neighbouring countries — Bangladesh, Bhutan and Nepal — to directly participate in its Single Window Mode Agnostic (SWMA) e-auctions with effect from January 1. The decision follows recent approval by CIL’s Board, which cleared changes to the auction mechanism to enable participation by overseas buyers while retaining safeguards for domestic coal supply.
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“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 company official said.
Under the revised framework, foreign buyers will be able to bid alongside domestic buyers in SWMA auctions. Earlier, coal consumers across the borders could access CIL’s coal only through domestic coal traders, who were permitted to buy and sell coal without any end-use restrictions.
CIL said all operational and procedural modalities have been incorporated into the updated scheme to facilitate seamless participation by overseas buyers.
Key provisions for foreign buyers include one-time registration, participation through digital bidding, advance electronic payments and exports routed through notified logistics channels.
The payment process will be aligned with Foreign Exchange Management Act (FEMA) rules. Buyers from Nepal will be allowed to make payments in Indian rupees as well as US dollars, while buyers from Bangladesh and Bhutan will be required to pay in US dollars, with valuation linked to the rupee.
CIL said it had held prior discussions with prospective coal consumers abroad to identify enabling provisions and assess their coal requirements. The move also signals surplus availability of coal in India, with Coal India — the country’s largest coal miner — accounting for about 80 percent of India’s total coal production.
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CIL shares reflected investor optimism, opening at Rs 401.35 apiece on Friday and climbing to Rs 425 during the session, buoyed by the historic development.