CORPORATE
Coal India throws open e-auctions to neighbouring countries as domestic demand dips
- IBJ Bureau
- Jan 03, 2026
Coal India has opened up its e-auctions to foreign buyers from neighbouring Bangladesh, Bhutan and Nepal amid a decline in local demand for power generation.
India’s coal-based power generation has dropped in seven of the past 12 months, as renewable energy penetration has picked up. The State-run miner coal supplies to consumers have declined by 2.2 per cent on-year in the April-December 2025 period. New Delhi has approved export of surplus coal from power plants in December.
India’s neighbouring countries were buying coal via traders. In the year through November, India has exported about 1.54 million tonnes (mt) of coal, mainly to Bangladesh, Nepal and Bhutan, according data from coal trading firm I-Energy Natural Resources.
“Tepid domestic coal demand this year has hit coal e-auction premiums for Coal India. So, this move to level the playing field for foreign buyers will also help the company boost margins and reverse the trend of posting lower offtake volumes,” Rupesh Sankhe, a research analyst of Elara Securities, has said.
The countries have been buying Coal India’s supply through traders, notes Vasudev Pamnani, a director at I-Energy Natural Resources. Participating in auctions will replace that demand and not add new volume, he adds.
Inland logistics and port costs make India less competitive than Indonesia, which supplies coal to Bangladesh with better infrastructure and lower costs, adds Pamnani.
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