Coal India is finally doing something it’s never done before: it’s cutting out the middlemen. As of Friday, January 2, 2026, the CIL board just gave the green light for neighboring countries like Bangladesh, Bhutan, and Nepal to bid directly in coal auctions.
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The thing is, until now, these countries had to go through Indian traders. It was a messy, indirect route. But starting January 1, 2026, they can register once and jump right into the digital bidding. Or nothing. Let’s be real, with coal production actually dipping a bit lately, finding new ways to offload surplus inventory is a smart play. Those too.
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The “Coal Auction” Log: Field Notes
It’s an ongoing situation where the market is absolutely loving this “regional integration” vibe.
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The “Kicker”: The stock hit a 52-week high of ₹429.65 on the news. Investors are smelling more competition and, frankly, better prices for Coal India.
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The Payment Twist: Nepal gets to pay in Indian Rupees or USD. Bangladesh and Bhutan? They have to stick to US Dollars, though the coal is still valued in INR.
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The Stockpiles: Pithead stocks have ballooned to over 105 million tonnes. CIL needs to move this coal before it degrades or poses a fire risk. Exporting directly to Dhaka or Thimphu is the fastest way to drain that swamp.
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The “Why Now?” Breakdown
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The Supply Gap: While production from April–December 2025 was down 2.6%
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(about 529 million tonnes), the inventory is still massive because domestic demand has been a bit “meh” lately.
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The Transparency Factor: The Single Window Mode Agnostic (SWMA) system is basically a “one-stop-shop” for e-auctions. By letting foreign buyers in, CIL is betting on higher premiums through pure competition.
It’s an ongoing situation where CIL is trying to act more like a global player and less like a domestic utility. They’ve already been talking to these overseas buyers to figure out exactly what they need—mostly non-coking coal for power and cement.
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