Shares of Coal India surged nearly 6% in Friday’s session, January 2, after the company announced a major policy change allowing coal consumers from neighbouring countries to directly participate in its Single Window Mode Agnostic (SWMA) coal auctions.
Coal India shares were trading at Rs 423.50, up 5.76% or Rs 23.05, compared with the previous close of Rs 400.45 on the NSE.
What triggered the rally in Coal India shares?
Coal India said that with effect from January 1, 2026, coal consumers located in Bangladesh, Bhutan, and Nepal will be permitted to directly participate in SWMA e-auctions. This marks a shift from the earlier framework, where foreign buyers could access Coal India’s coal only through Indian traders authorised to buy and sell coal without end-use restrictions.
The revised mechanism follows approval from Coal India’s Board, which modified the SWMA auction structure to enable direct participation by overseas buyers.
Key details of the revised SWMA framework
Under the updated guidelines, foreign buyers from the neighbouring countries will be able to bid in SWMA auctions alongside domestic consumers through the same digital platform. Coal India has incorporated operational and procedural requirements applicable to international participants.
Foreign buyers will be required to complete a one-time registration process, place bids electronically, and make advance payments through approved electronic modes. Coal exports will be routed through notified logistics channels, in line with applicable norms.
Payment terms under FEMA regulations
Coal India clarified that the payment process will adhere to provisions under the Foreign Exchange Management Act (FEMA). Buyers from Nepal will be allowed to make payments either in Indian Rupees or US Dollars, while buyers from Bangladesh and Bhutan will need to make payments in US Dollars, with pricing linked to INR-based valuation.
The company said it had previously engaged with prospective coal consumers from neighbouring countries to assess demand and identify enabling provisions, following which the necessary changes were incorporated into the SWMA scheme.
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