State-run Coal India Limited has permitted direct foreign buyers participation in its coal India e-auctions, allowing entities from neighbouring countries to bid for coal supplies. The move, effective 1 January 2026, targets Bangladesh, Bhutan and Nepal amid falling global prices. Shares climbed 6% on the announcement made Friday, 2 January 2026.
Coal India Limited announced on 2 January 2026 that buyers from Bangladesh, Bhutan and Nepal can now directly engage in its Single Window Mode Agnostic auctions. This policy shift addresses surplus domestic production and aims to expand exports. The decision follows board approval and prior consultations with potential importers.
In South Asia, where energy demands rise steadily, this facilitates easier Bangladesh coal import and supplies to Nepal and Bhutan. Coal remains vital for power generation in the region, with India positioned as a key supplier.
Foreign Buyers Participation in Coal India E-auction
Under the new framework, foreign buyers participation marks a significant change for Coal India e-auction. Previously, consumers across borders relied on Indian traders to procure coal without end-use limits. Now, direct access streamlines the process.
A senior company official stated: “Opening SWMA e-auctions to foreign buyers reflects CIL’s calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration.”
The updated scheme includes one-time registration on the digital platform, advance electronic payments and exports via specified channels. Payments follow Foreign Exchange Management Act rules. Buyers from Nepal may pay in INR or USD, while those from Bangladesh and Bhutan must use USD, valued in INR.
This aligns with declining international coal prices, making Indian supplies more attractive. Coal prices stood at 107.50 USD per tonne as of 31 December 2025, down 13.72% year-on-year.
Neighbouring Countries Bid in SWMA Auctions
Neighbouring countries bid process integrates seamlessly with existing auctions. Bidders participate digitally alongside domestic users. Coal India e-auction volumes available for export remain part of the 20% allocation for spot sales.
For Bangladesh, this could ease its growing coal needs. The country imports over 15 million tonnes annually, spending 4-5 billion USD on foreign supplies mainly from Indonesia, Australia and South Africa. Direct neighbouring countries bid may reduce costs and logistics times.
Nepal and Bhutan, with smaller but steady demands, imported from India previously through intermediaries. India’s total coal exports reached 1.908 million tonnes in FY25, up 23.4% from FY24, primarily to these nations.
Background: Coal Dynamics in South Asia
Coal powers much of South Asia’s energy sector. Bangladesh relies on imports for its 10 gigawatts of coal-fired capacity, with plans to expand. Its annual coal import hit around 2 million tonnes equivalent in 2018 but has surged due to new plants.
India, via Coal India, produced over 1 billion tonnes in FY25, an 11.7% increase. Exports help manage stockpiles amid domestic sufficiency. The world’s largest coal miner, Coal India accounts for 84% of national output.
Global coal demand rose 0.5% in 2025 to 8.85 billion tonnes, per International Energy Agency projections. Yet, prices fell as renewables gain ground, creating export opportunities.
In Bhutan and Nepal, coal supports industries like cement and steel. Bhutan’s imports from India are modest, around 0.1-0.2 million tonnes yearly, while Nepal’s hover at 0.5 million tonnes.
This policy enhances regional ties, supporting energy security without straining India’s supplies.
Foreign buyers’ participation could boost competition in Coal India e-auction, potentially raising premiums over reserve prices.
What’s Next for Regional Coal Trade
Looking ahead, Coal India plans further dialogues with importers to refine the system. Bangladesh coal import may shift more towards India if logistics prove efficient.
Analysts expect exports to grow 10-15% in FY26, aided by this access. Global trade may see minor declines in 2026, with Asia’s imports softening, but South Asian demand persists.
The initiative positions Coal India e-auction as a regional hub, fostering sustainable trade.
As Coal India e-auction evolves with foreign buyers participation, it promises stronger energy links among South Asian nations.
Published in SouthAsianDesk, January 3rd, 2026
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