Joint efforts between Ministry of Steel and Ministry of Coal enhance domestic coking coal availability: Centre

Coking coal, vital for steel production, has experienced increased availability, which is crucial for maintaining the momentum of industrial growth driven by steel production in the country, stated the Coal Ministry on Tuesday.

New Delhi: Collaborative efforts between the Ministry of Steel and the Ministry of Coal have yielded positive outcomes to enhance domestic coking coal availability and minimise import reliance, the Coal Ministry said on Tuesday. “Domestic raw coking coal production is projected to reach 140 MT (metric tonnes) by 2030, yielding about 48 MT of usable coking coal after washing. Coking coal, vital for steel production, has experienced increased availability, which is crucial for maintaining the momentum of industrial growth driven by steel production in the country,” the ministry said.

The Ministry of Coal launched 'Mission Coking Coal' in the financial year 2022 to address the growing domestic demand for coking coal as projected in the National Steel Policy 2017. The mission envisions significantly reducing coking coal imports through a transformative measure under the 'Aatmnirbhar Bharat' initiative.

These measures encompass exploration, enhanced production, technological adoption, private sector involvement in coking coal blocks, the establishment of new washeries, increased R&D activities and quality enhancement. The ministry further said that to strengthen the supply of indigenous coking coal for the steel sector and meet the rising demand, several strategic actions have been taken to auction off coking coal blocks.

The Ministry of Coal achieved a significant milestone with the allocation of 16 coking coal blocks. Out of which, four blocks were auctioned in 2022-23, with JSW (coal mining company) securing two blocks. This effort is projected to contribute a substantial 1.54 MT to coking coal production. The ministry also took initiatives like revitalising abandoned mines. “Bharat Coking Coal Limited (BCCL) has opened new avenues by inviting agencies and companies to undertake coking coal extraction from abandoned or discontinued BCCL-owned mines. Through a revenue sharing model, this initiative is likely to revive eight identified discontinued mines,” the ministry said.

Other initiatives taken by the ministry also include strategic collaboration with SAIL, auctioning of raw coking coal and innovative greenfield washeries. “These strategic initiatives emphasise the dedication to strengthening domestic coking coal production, and fostering the broader vision of self-reliance in which coking coal serves as a catalyst for industrial growth in India,” the ministry stated.