NEW DELHI: In a big move, Coal India Limited (CIL) has, for the first time, permitted countries such as Bangladesh, Bhutan and Nepal to participate in auctions conducted by the company, effective 1 January 2026. According to a Friday press note by CIL, India’s largest coal miner, consumers who wish to import coal from India will be allowed to directly participate in the Single Window Mode Agnostic (SWMA) auctions conducted by the company.
CIL’s Board has recently cleared the decks for this move by tweaking the scheme’s mechanism in the SWMA auction. Under the revised framework, foreign buyers can participate alongside domestic buyers in the SWMA auction. Earlier, access to CIL’s coal by consumers across borders was only through domestic coal traders, who were allowed to buy and sell coal without any end-use restrictions.
“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” said a senior company official. As per the company, key provisions for foreign buyers include one-time registration, participation through digital bidding, advance electronic payments and export through notified logistics channels.
Coal India further mentioned that the payment process would be transparent and in accordance with Foreign Exchange Management Act (FEMA) rules. In terms of payment, buyers from Nepal can make payments in INR as well as US dollars, while buyers from the other two countries are required to make payments in US dollars, the valuation of which would be in INR. Earlier, CIL had held dialogues with prospective coal consumers from abroad to categorise the enabling clauses and gauge their coal requirements.