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History

A short history of coal in India

From Raniganj in 1774 to nationalisation, Coal India, GCV grading, single-window e-auctions and coal exchanges — the milestones that shaped today's coal trade.

HistoricalLast checked by Coal Boss

Commercial coal mining in India began in 1774, when M/s Sumner and Heatly of the East India Company started mining in the Raniganj Coalfield, along the western bank of the Damodar river (Ministry of Coal).

Nationalisation came in two steps. In October 1971 the Coking Coal Mines (Emergency Provisions) Act provided for taking over coking coal mines; they were nationalised on 1 May 1972 under the Coking Coal Mines (Nationalisation) Act, 1972, and brought under Bharat Coking Coal Limited (BCCL). The Coal Mines (Taking Over of Management) Act, 1973 extended this to non-coking coal mines, which were nationalised on 1 May 1973 under the Coal Mines (Nationalisation) Act, 1973.

Coal India Limited came into being in November 1975 as the holding company for the nationalised coal companies.

Grading of non-coking coal moved from Useful Heat Value (UHV) to Gross Calorific Value (GCV) bands under the Ministry of Coal's notification S.O. 2920(E) of 30 December 2011 — the origin of today's G1–G17 grades.

In June 2020 the Government launched the auction of coal mines for commercial mining — mining for sale, not only for a company's own use.

Coal India's sale of coal by auction moved to a single-window, mode-agnostic e-auction under Ministry of Coal guidelines of 21 March 2022 (CIL e-Auction Scheme 2022). And in June 2026 the Coal Exchange Rules, 2026 were published, with the Coal Controller Organisation as the authority to register and regulate coal exchanges.

What it means if you trade coal

Much of today's trading vocabulary — PSU sale orders, G-grades, e-auction premiums — comes from these steps. Knowing where a rule came from makes it easier to read the next change.

Hinglish mein, short mein

India mein commercial coal mining 1774 mein Raniganj se shuru hui (Sumner aur Heatly, East India Company). Coking coal ki khadaanein 1 May 1972 ko rashtriyakrit hui (BCCL) aur non-coking 1 May 1973 ko; Coal India November 1975 mein bani. UHV ki jagah GCV wali grading (G1–G17) 30 December 2011 ki Ministry of Coal notification se aayi; commercial coal mine ki nilaami June 2020 mein shuru hui; Coal India 2022 ke guidelines se single-window e-auction pe gayi; aur June 2026 mein Coal Exchange Rules publish hue.

Sources

History, summarised from the dated official sources above.

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