Efforts to enhance production under Mission Coking Coal

Government has launched ‘Mission Coking Coal’ in August 2021 to suggest roadmap to augment the production and utilization of domestic coking coal in India by 2030. Mission Coking Coal document has made recommendations majorly relating to new exploration, enhancing production, enhancing washing capacity, auction of new coking coal mines. Domestic raw Coking Coal production is likely to reach 140 MT (105 MT by CIL and 35 MT by allocated coking coal blocks) by 2030. Several transformative measures are being taken by the Government under ‘Atmanirbhar Bharat’ initiative to increase the domestic production of coking coal.CIL has planned to increase raw coking coal production from existing mines up to 26 MT and identified ten new mines with PRC of about 22 MT by FY 2025. Also, CIL has offered eight discontinued coking coal mines on revenue sharing model to the private sector with a PRC of 2 MT. It is also setting up 9 new coking coal washeries and also revamping the existing coking coal washeries to augment washing capacity.Ministry of Coal has auctioned 10 coking coal blocks to the private sector with a PRC of 22.5 MT during the last two years. Most of these blocks are expected to start production by 2025.The Ministry has also identified four coking coal blocks and the CMPDI also will finalize GR for 4 to 6 new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of auction for private sector to further step up domestic raw coking coal supply in the country.Between May and November 2022, imports of Anthracite and coking coal attracted NIL import duty (Nil BCD and NIL AIDC). With effect from November 2022, imports of Anthracite and coking coal, along with other types of coal, attract a concessional rate of 2.5% Customs duty (1% BCD and1.5% AIDC). Government has taken this initiative to increase present blending of 10-12% of domestic coking coal with imported coking coal to 30% by FY2030 and reduce import of coking coal.CIL undertakes constant efforts to enhance coking coal production by capacity enhancement through expansion of existing coking coal producing mines and from implementation of new coking coal blocks. Mass Production Technology has been introduced in UG mines of CIL to enhance the domestic raw coking coal production. CIL is taking steps regarding offering of coking coal mines for production to investors on revenue sharing basis.