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News Topical, Digital Desk : The Cabinet Committee on Energy, chaired by Prime Minister Narendra Modi, on Friday approved a new coal window, Coal Setu, for seamless, efficient, and transparent coal utilization. Coal auctioned through the Coal Setu window will be exportable and reusable for any industrial production.
Under the current rules, to participate in a coal linkage auction, one had to first specify where the coal would be used. If a coal linkage was obtained for a power generation unit, the coal from that mine could only be used by that unit.
That coal could not be used in any other unit or for any other production. Coal exports were also prohibited. This rule will not apply in the auctions under Coalsetu, and the coal can be used anywhere.
Changes in government policy
Originally, coal was not allowed to be exported due to limited production and high demand for power generation. However, with the emergence of renewable energy sources and annual coal production surpassing 1 billion tons, the government has changed its policy.
Power generating companies no longer have a shortage of coal reserves. Coal imports have also decreased significantly. This is also saving foreign exchange. However, coking coal will not be auctioned under this window.
Read More: Coalsetu gets Cabinet nod for auction of coal linkages, exports now possible
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