New Delhi: The Central Government is preparing to launch coal and mineral exchanges, with around 90% of the preparatory work completed, Union Minister for Coal and Mines G Kishan Reddy has said. The two platforms are expected to begin operations soon and provide a common marketplace for buying and selling coal and minerals produced across different states.
Speaking at a conference of mining ministers in Goa on Thursday, Reddy said that work on both exchanges was nearing completion. He highlighted that the proposed platforms would bring companies, enterprises, traders and mineral producers together under a common trading mechanism.
The exchanges will cover coal as well as minerals such as iron ore, limestone, bauxite and critical minerals, enabling producers to trade their output through a single platform.
Coal and Mineral Exchanges to Provide Common Trading Platform
According to Reddy, the proposed coal and mineral exchanges will improve market access and facilitate transactions between buyers and sellers across different states.
Currently, production costs and mineral prices vary from state to state, influencing purchasing decisions. Buyers naturally prefer sourcing minerals from locations where prices are comparatively lower.
The common exchange platforms are expected to address these differences by providing a more accessible and organised mechanism for trading coal and minerals.
The minister also urged state governments to work collectively to integrate coal and mineral production from across the country into the proposed exchange system.
Rs 8,500 Crore Incentives for Surface Coal Gasification
Reddy also called upon state governments and public sector companies to explore both surface and underground coal gasification as important initiatives to reduce India’s dependence on imports and conserve foreign exchange.
Highlighting progress in the sector, the minister said that the first round of surface coal gasification auctions had been completed with incentives worth approximately Rs 8,500 crore. Projects have also started progressing at various locations.
Under the first phase of underground coal gasification, four coal blocks have been auctioned and work has commenced.
The second tranche of underground coal gasification blocks is currently being put up for auction.
Reddy emphasised that coal gasification could play an important role in reducing India’s import dependence and strengthening domestic resource utilisation. He urged state governments to actively participate in these initiatives.
Four States Developing Critical Mineral Parks
Highlighting the Centre’s efforts to strengthen India’s critical mineral ecosystem, Reddy said that Maharashtra, Andhra Pradesh, Odisha and Gujarat are developing critical mineral parks to promote activities related to the sector.
He added that state governments can also avail themselves of the Centre’s incentives for critical mineral-related activities without necessarily establishing dedicated mineral parks.
The minister encouraged all states to focus on developing the critical minerals sector and creating an ecosystem that supports domestic production and processing.
Centre Strengthening Global Partnerships for Critical Minerals
Reddy said that Prime Minister Narendra Modi is engaging with various countries to secure access to critical mineral resources.
Indian officials are also holding discussions with different countries and pursuing Memorandums of Understanding (MoUs) to ensure a stable and reliable supply of these important minerals.
He highlighted that demand for critical minerals is expected to increase significantly in the coming years as their applications continue to expand across multiple industries.
These minerals are essential for manufacturing products ranging from mobile phones and consumer appliances to advanced space technology and defence equipment.
G Kishan Reddy Calls for Centre-State Cooperation
The minister stressed the need for coordinated efforts between the Central Government and state governments to strengthen India’s coal and mineral sectors.
He said mineral-rich states should take advantage of emerging opportunities through improved policies, effective governance and cooperative federalism.
Reddy also urged states to actively participate in coal gasification projects, critical mineral development and the proposed exchange platforms to strengthen domestic resource utilisation.
The initiatives are part of the broader efforts to improve India’s mineral sector, reduce import dependence, conserve foreign exchange and build a stronger domestic industrial ecosystem.
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