MCX Plans ₹2 Billion Investment To Launch Coal And Minerals Trading Platforms

India's largest commodity exchange is moving beyond gold and energy into two new verticals. Multi Commodity Exchange of India (MCX) plans to invest up to ₹2 billion to establish separate coal and minerals trading platforms as the government opens both sectors to organised exchange-based trading to improve domestic price discovery.

MCX Managing Director Praveena Rai confirmed the plans in Mumbai on Thursday, saying the exchange has already incorporated separate units to run both operations. The Securities and Exchange Board of India (SEBI) has approved the investment plan.

What Is Being Built

• Two separate exchange entities: one for coal, one for minerals.

• Investment: Approximately ₹1 billion in each platform.

• Products: Physical delivery contracts for coal, iron ore, bauxite and other minerals.

• Structure: Centralised electronic trading platforms for buyers and sellers.

• Pending approvals: Coal Controller Organisation for coal exchange, Indian Bureau of Mines for minerals exchange.

• Expected launch: Financial year beginning 01 April.

Why The Government Is Pushing This

Despite being among the world's top producers of coal and minerals, India largely takes its price cues from international markets. Rai described this as the core policy rationale behind the government's decision. The new platforms are expected to widen market access and reduce disputes over quality, price and contract terms that currently affect trade.

Nearly 95% of India's critical mineral needs are met through imports. The Centre launched the National Critical Mineral Mission in 2025, backed by ₹34,300 crore over seven years for exploration domestically and offshore.

Where MCX Currently Makes Its Money

MCX's existing revenue is heavily concentrated:

• Gold: More than 50% of daily turnover in the April to June quarter.

• Energy including oil, gas and power: Approximately 40%.

• Coal and minerals: Currently nil but targeted as significant future growth segments.

Rai said each of the new segments will grow and that MCX wants to play a strong role in developing commodity markets further.

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