India: CIL opens coal e-auctions to foreign buyers under revised scheme from Jan’26

• Foreign buyers can register using their international tax identification numbers
• Scheme allows foreign entities to procure coal exclusively for export purposes

Coal India Limited (CIL) has formally enabled participation of foreign buyers in its e-auction platform under the revised Modified CIL E-Auction Scheme 2022, effective from 1 January 2026, marking a significant step towards expanding India’s coal trade footprint in global markets.

As per the updated guidelines, foreign buyers can register on the e-auction portal using their international tax identification numbers and participate alongside domestic bidders, subject to compliance with applicable Indian and international trade laws.

The scheme allows foreign entities to procure coal exclusively for export purposes, with strict provisions mandating overseas shipment of the material. Failure to export the purchased coal may lead to debarment from future auctions for up to one year.

Foreign bidders are required to submit bid security and process fees in advance through electronic transfers, including SWIFT payments in foreign currency such as USD, while valuation for auction purposes will be considered in Indian rupees. All associated bank charges, currency conversion costs, and foreign exchange risks will be borne by the foreign buyer.

CIL stated that, similar to Indian buyers, foreign participants can take part in auctions conducted by any CIL subsidiary, provided sufficient bid security and process fees are maintained with the service provider. Coal companies will also facilitate the issuance of commercial and export-related documentation to support overseas shipments.

Market participants view the move as a step towards improving transparency, broadening demand, and aligning India’s coal marketing framework with global trade practices, especially at a time when international buyers are seeking diversified supply sources amid volatile global energy markets.

CIL production, offtake fall y-o-y in CY’25

During the January-December 2025 period, CIL produced 767.16 mnt of coal, reflecting a y-o-y decline of 2.3%. The lower annual output was influenced by a combination of subdued incremental demand, selective capacity utilisation, and persistent logistical and regulatory challenges across key coal-bearing regions.

While BCCL, CCL, and WCL recorded notable production declines, SECL and Mahanadi Coalfields Limited (MCL) reported only marginal reductions, indicating relatively better operational resilience at these subsidiaries. CIL’s coal offtake during CY25 stood at 745.9 mnt, down 2% y-o-y.