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India reforms coal sector with new regulations and GST changes, cutting prices and boosting domestic coal use.
India has introduced new coal sector reforms, including draft rules to establish the Coal Controller Organisation as a regulator for a national coal exchange, aiming to modernize trading amid rising production exceeding one billion tonnes annually and projected to surpass 1.5 billion tonnes by 2030.
The reforms, enabled by the MMDR Amendment Act, 2025, streamline operations, ensure environmental oversight, and standardize coal grading.
Simultaneously, GST changes effective September 22, 2025, eliminate a ₹400/tonne cess and raise coal GST from 5% to 18%, correcting an inverted duty structure that previously blocked tax credits and strained producers.
The shift levels tax incidence uniformly at 39.81%, reducing coal prices by up to ₹329 per tonne and lowering power generation costs by 17–18 paise per kWh, while improving liquidity and supporting domestic coal competitiveness.
La India reforma el sector del carbón con nuevas regulaciones y cambios en el GST, reduciendo los precios y aumentando el uso interno de carbón.