Coal India Opens SWMA Coal Auctions To Neighbouring Nations

The decision follows approval by Coal India’s board, which amended the SWMA auction mechanism to enable foreign buyers to participate alongside domestic consumers. Previously, access to Coal India’s coal for overseas users was routed through Indian coal traders, who could purchase and resell coal without end-use restrictions. The revised framework removes this intermediary layer, allowing direct engagement by foreign buyers.

A senior company official said opening SWMA e-auctions to overseas participants reflects Coal India’s calibrated approach to expanding market reach while safeguarding domestic coal requirements. The move is expected to enhance transparency, competition and integration with regional markets. Key provisions for foreign buyers include one-time registration, digital bidding, advance electronic payments and exports through notified logistics channels.

Coal India said the payment mechanism will be fully transparent and compliant with foreign exchange regulations. Buyers from Nepal will be allowed to make payments in Indian rupees as well as US dollars, while buyers from Bangladesh and Bhutan will be required to pay in US dollars, with valuation carried out in Indian rupees. The company added that it had held consultations with prospective overseas consumers earlier to assess demand and finalise enabling provisions.