Coal India shares hit 52-week high: What's driving the surge?
What's the story
Coal India Limited (CIL)'s shares surged by 6.6% on Friday, hitting a new 52-week high of ₹426.95 on the BSE. The spike came after the company announced that it would allow direct participation of foreign coal consumers in its e-auction system. The move is applicable from January 1, 2026, and covers countries like Bangladesh, Bhutan, and Nepal.
Auction changes
New auction system allows direct foreign participation
The new Single Window Mode Agnostic (SWMA) auctions will allow foreign buyers to directly participate. Earlier, they had to go through domestic coal traders for access to Indian coal. The revised framework also includes one-time registration and participation through digital bidding. Payments are to be made in accordance with Foreign Exchange Management Act (FEMA) rules.
Payment details
Payment methods and strategic approach
According to the new rules, buyers from Nepal can pay in Indian rupee (INR) or US Dollars, while those from Bangladesh and Bhutan will have to transact in US Dollars only. A senior company official said this move reflects CIL's careful strategy for market expansion while ensuring domestic coal requirements are fully met. They added it enhances transparency, competition, and global market integration.
Information
Policy change approved by board after buyer consultations
The board of Coal India Limited has already approved this policy change. The decision was taken after discussions with prospective buyers to understand their needs and demand structure. The move will improve efficiency through digital bidding, advance payments, and export via notified logistics channels.