Coal India linkage auctions: 35 MT offer in June 2026

What Coal India announced and why it matters

Coal India Ltd (CIL) has rolled out a set of measures to improve coal availability for non-regulated sector (NRS) consumers and to add flexibility in how linkages and auctions work. The announcement comes as industrial demand for domestic coal remains high and policy focus stays on reducing import dependence, particularly for higher gross calorific value (GCV) grades used by certain industries. The headline move is a record offer of 35 million tonnes (MT) through the linkage auction window scheduled for June 12. CIL has said the offering is aimed mainly at consumers of higher-grade coal, including sponge iron units.

CIL’s statement positions these measures as operational changes meant to push more domestic volumes into the market, while keeping existing linkage commitments intact. The company is also aligning some rules with how industries actually use coal and coal by-products, especially in steel value chains. Alongside NRS steps, CIL is planning an additional short-term auction under the SHAKTI policy for power sector buyers.

Record 35 MT linkage auction window on June 12

CIL said it will offer an all-time high 35 MT under its linkage auction window on June 12. The company specifically highlighted the sponge iron segment as a key target for this offering. Sponge iron producers often require higher GCV coal, and the company expects the availability of domestic coal through this window to reduce imports in that grade.

The scale of the offer is also significant because linkage auctions typically serve as a structured route for long-term supply rather than spot procurement. By placing a large volume into a linkage auction, CIL is signalling intent to shift a part of industrial demand away from overseas suppliers and toward domestic sources, subject to bidders booking the offered quantities.

Tranche-X linkage auctions: what changed from June 3, 2026

These measures have been introduced under the ongoing Tranche-X linkage auctions, which began on June 3, 2026. One of the policy relaxations involves coal middlings, a by-product from coal washing. CIL noted that some steel plants use middlings in captive power generation, but surplus quantities can now be sold in the market under the revised framework.

This change matters for steel producers because it can improve how they manage by-products and inventory. It also potentially increases market availability of such materials, while allowing plants to monetise or reallocate surplus volumes rather than keeping them tied up.

13.75 MT offered to steel (coking) in the current tranche

CIL said around 13.75 MT has been offered to the steel (coking) sub-sector under the current tranche. Coking coal availability has been a recurring issue for India’s steel sector, which has historically relied on imports for a meaningful share of requirements. While the June 5 announcement focuses primarily on NRS consumers and higher-grade coal for sponge iron, the inclusion of a large offered quantity for steel (coking) underscores that linkage auctions are also being used to broaden domestic sourcing options for steelmakers.

CIL has separately said that the objective of linkage auctions for the steel sector includes generating premium revenues and supporting the government’s aim to reduce coking coal imports through higher domestic supply.

Higher flexibility for consortium bidders: up to five partner changes

CIL also increased flexibility for consortium-based bidders. It will now allow changes in consortium partners up to five times during the contract period, compared with two changes earlier. For large industrial consumers that bid through consortium arrangements, this can reduce execution friction over long-duration contracts, particularly if project structures, ownership, or offtake arrangements evolve.

For CIL, the change is framed as an operational improvement rather than a shift in supply obligations. It is intended to make participation easier without changing the underlying auction framework.

Pre-commissioning linkages for NRS greenfield and brownfield projects

Another key measure is allowing NRS consumers planning greenfield or brownfield projects to secure coal linkages even before commissioning. According to CIL, participants can source coal within three years after participation in the linkages. The company said this helps projects secure bank loans because fuel sourcing is tied up under the arrangement.

This is a practical change for project developers who need certainty of fuel availability to reach financial closure. By allowing linkage security ahead of commissioning, CIL is attempting to reduce one common bottleneck in industrial project planning.

SHAKTI auction on June 8: 34 MT offered to power sector

To increase availability in the market, CIL said it will conduct the next round of short-term auctions under the SHAKTI policy on June 8 for power sector consumers. Around 34 MT of coal will be offered in this round.

The SHAKTI mechanism is typically used to supply coal to power sector buyers through an auction-based route, while keeping contracted supplies under existing linkages separate. The June 8 offering is positioned as an additional supply avenue rather than a replacement of existing arrangements.

Key facts at a glance

Policy background and prior auction indicators

The coal linkage auction framework for NRS operates under Ministry of Coal policy guidelines dated February 15, 2016. Under the linkage auction policy, the initial floor price is set at the relevant CIL/SCCL run-of-mine (ROM) price, and bidders bid a premium above that. The floor price for NRS linkage auctions is not fixed by the ministry and is decided by CIL/SCCL as per the policy, based on price notifications.

The broader auction landscape shows mixed booking levels across tranches. During calendar year 2024 (up to December 2, 2024), one tranche (VIIth) under the NRS e-auction saw 17.84 MT booked against 34.65 MT offered. For SHAKTI B (VIII-A), four tranches conducted from January to September 2024 saw 23.98 MT booked against 47.64 MT offered. These data points provide context for how much demand converts into bookings across different auction formats.

Market impact: import substitution and domestic price signals

CIL’s June 2026 measures are explicitly aimed at reducing import dependence, especially for higher GCV coal commonly used by sponge iron units. The linkage auction volume of 35 MT is framed as a direct lever to pull those buyers toward domestic sources, assuming the auction clears at workable premiums.

Separately, auction data points cited in the broader context underline how pricing and volumes move through the system. Coal India has raised its target for selling coal through auction to 120 MT in the current financial year, compared with 66 MT sold via auction last year. ICICI Securities has reported September e-auction volumes at 20.5 MT, with a realisation of Rs 1,570 per tonne, down 28.1% year-on-year. These numbers indicate that auction volumes can be large, but realisations are sensitive to demand conditions, grade mix, and policy settings.

Related developments: coking coal auctions and import reduction objective

A separate PTI report from Kolkata (October 7) said coking coal linkage auctions by Bharat Coking Coal Limited (BCCL) are expected to gain traction after CIL made terms more industry-friendly. In tranche VII for the steel sub-sector, BCCL reported that 2.40 million tonnes were booked out of 3.36 million tonnes offered. BCCL’s leadership also flagged that higher domestic production could save USD 562 million in foreign exchange via import substitution.

While that update is not part of the June 5 measures, it reinforces the policy direction: using auctions and linkage terms to improve domestic supply uptake and reduce reliance on imported coal in segments such as steel.

Conclusion

Coal India’s June 2026 steps centre on a record 35 MT linkage auction for NRS consumers on June 12, paired with rule changes on middlings sale, consortium flexibility, and pre-commissioning linkages for new projects. In parallel, CIL will offer around 34 MT to power buyers under a SHAKTI short-term auction on June 8. The next clear milestones for the market are the two auction dates, which will indicate how much of the offered volumes convert into bookings under the revised framework.