Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited (CIL) and the nation’s largest producer of coking coal, has made substantial strides in enhancing domestic coal consumption, reducing India’s reliance on imports. Through its active participation in the “Mission Coking Coal” initiative under the Aatmnirbhar Bharat vision, BCCL has undertaken strategic reforms aimed at benefiting the country’s steel sector.
India’s heavy dependence on imported coking coal has long strained its foreign reserves. In response, BCCL has implemented significant reforms to make its coal auction processes more flexible, transparent, and attractive to steel producers. These reforms were crucial after the disappointing Tranche VI auction, where none of the offered coal was booked.
BCCL responded by reassessing its auction strategy, introducing critical changes, including consortium bidding. This innovative approach allowed smaller consumers to collaborate and collectively participate in the auction, making the process more inclusive and accessible.
In a notable move to attract more participants, BCCL proposed amendments to the eligibility norms for linkage auction bidders. The proposal, endorsed by BCCL’s Functional Directors and forwarded to CIL for further action, suggested the participation of consortiums consisting of steel plants, new or existing coking coal washeries, and other plants capable of consuming washeries’ by-products. CIL swiftly embraced the proposal, resulting in the development of a new Scheme Document for Tranche VII of the Linkage Auction, specifically for the steel sector.
To ensure widespread industry engagement, BCCL and CIL organised a Consumer Meet in Delhi, soliciting feedback from steel producers and industry associations. This proactive engagement, along with regular communication with potential bidders, significantly enhanced participation in the auction process.
The outcome of these efforts was a resounding success in the recently concluded long-term linkage e-auction (Tranche VII) for the steel sub-sector. Of the 3.36 million tonnes (MT) of coking coal offered, 2.40 MT was successfully booked, marking a new benchmark in coal bookings.
BCCL’s initiatives are expected to significantly boost domestic coking coal consumption, furthering the broader goal of reducing reliance on imports and supporting the steel industry. By fostering higher participation through consortium bidding and transparent communication, the company has contributed to the national objective of import substitution under Aatmnirbhar Bharat.
Expressing satisfaction with the success of Tranche VII, BCCL CMD Samiran Dutta remarked, “Our efforts to make the auction process more inclusive and transparent have paid off. The successful bookings underscore our commitment to increasing domestic coking coal production and reducing import dependency.”
BCCL’s proactive steps mark a pivotal shift in India’s coking coal landscape, empowering steel producers and further advancing the country’s mission towards self-reliance in essential resources.
