Coal Distribution Over the Years: From Allocation to Auction, Powering India’s Growth

The Ministry of Coal highlights the evolution of India's coal distribution framework over the past decade, shifting from traditional nomination-based allocation to competitive auctions, long-term supply assurance, and digital interfaces managed by Coal India Limited (CIL). Key milestones include the SHAKTI policy for the power sector, linkage auctions for non-power industries, e-auctions for short-term spot markets, and dedicated arrangements for MSMEs via State-Nominated Agencies. Procurement reforms feature fixed Gross Calorific Value delivery contracts, reduced interest rates on delayed payments, linkage rationalisation yielding annual savings, and streamlined digital interfaces. Furthermore, evacuation infrastructure has been strengthened through increased rail and road despatches, First Mile Connectivity projects, and mechanized loading systems.