Page 66 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

published by Ministry of Coal in the Official Gazette on 04.06.2026. These are available at the website link
https://coal.gov.in/sites/default/files/2026-06/09-06-2026a-wn.pdf on the website of Ministry of Coal

To facilitate this initiative, the Ministry of Coal has already designated the Coal Controller Organisation
(CCO) in December 2025, as the authority responsible for registering and regulating Coal Exchanges.
Eligible entities will be authorized by CCO to establish and operate Coal Exchanges, frame market rules
and bye-laws, and facilitate coal trading. Registrations will be granted for a period of 25 years.

The introduction of Coal Exchanges marks a paradigm shift in coal marketing by moving from the
traditional “one-to-many” sales model to a competitive “many-to-many” trading platform. This will enable
transparent and market-driven price discovery, improve efficiency, and provide coal producers, including
commercial and captive miners, with easier access to a wider pool of buyers. Public Sector coal companies
can also leverage the platform to enhance market participation.

The Coal Exchange initiative reflects the Government’s commitment to enhancing ease of doing business,
promoting transparency, and building a modern, self-reliant energy ecosystem. By creating a more
competitive and efficient coal market, the reform is expected to strengthen energy security, support
industrial growth, and contribute significantly to the vision of Viksit Bharat through sustainable economic
development and a future-ready energy sector.

19. Prime Minister to Lay Foundation Stone of India’s First Commercial-Scale Coal-to-Ammonium
Nitrate Project in Odisha

In a major step towards strengthening India's energy security, promoting import substitution, and
accelerating industrial self-reliance, Prime Minister Shri Narendra Modi will lay the foundation stone of a
Rs 25,016 crore coal gasification project at Lakhanpur in Jharsuguda district, Odisha, on June 20, 2026.

Coal gasification is emerging as a key pillar of India's strategy to strengthen energy security, reduce
dependence on imported critical feedstocks, promote value addition to domestic coal resources and
support the development of downstream industries. The process converts coal into synthesis gas (syngas),
which can be used to produce a wide range of value-added products such as methanol, urea, ammonium
nitrate, synthetic natural gas, and other chemical feedstocks. This has the potential to drive industrial
growth, reduce dependence on imported raw materials, and strengthen the country's energy and
economic security.

India is the world's second-largest producer and consumer of coal, with Coal India Limited being the
largest coal-producing company globally. India is endowed with the world's fifth-largest coal reserves of
over 400 billion tonnes. Leveraging these resources through coal gasification can significantly transform
the country's industrial landscape while reducing import dependence on critical feedstocks and chemicals.

Recognizing the transformative potential of coal gasification, the Government of India has approved
incentive schemes with a cumulative outlay of up to Rs 46,000 crore to promote Surface Coal and Lignite
Gasification Projects across the country. The initiative aims to accelerate the establishment of coal
gasification projects across the country, encourage the use of domestic coal for strategic industrial and

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