In a landmark achievement, the collaborative efforts between the Ministry of Steel and the Ministry of Coal have yielded significant positive outcomes aimed at enhancing the availability of domestic coking coal and reducing the country’s reliance on imports. These strategic initiatives are poised to strengthen the steel industry and drive industrial growth, aligning with the vision of a self-reliant India.
The Ministry of Coal embarked on a mission known as ‘Mission Coking Coal’ during the fiscal year 2022 to address the growing demand for coking coal, a crucial raw material for steel production, as projected in the National Steel Policy of 2017. This mission has set out to substantially curtail coking coal imports through transformative measures that fall under the umbrella of the ‘Aatmnirbhar Bharat’ (Self-Reliant India) initiative. These measures encompass a range of strategies, including exploration, increased production, technological advancements, private sector participation in coking coal blocks, establishment of new washeries, ramping up research and development activities, and quality enhancement.
One of the key milestones achieved by the Ministry of Coal was the successful auction of 16 coking coal blocks. Out of these, 4 blocks were auctioned during the 2022-23 period, with JSW securing two blocks. This accomplishment is projected to contribute a substantial 1.54 million tonnes to the overall coking coal production. The auctioning of these blocks not only strengthens domestic production but also fosters private sector involvement in the coal sector.
In a move to make the most of existing resources, Bharat Coking Coal Limited (BCCL) has taken the initiative to revitalize abandoned or discontinued mines. Agencies and companies have been invited to undertake coking coal extraction from these mines under a revenue sharing model. This forward-looking approach has the potential to resurrect 8 identified discontinued mines. Currently, Letters of Agreement (LoAs) have been issued for 4 mines, while the tendering process for the remaining 4 is underway.
Strategic collaboration between Steel Authority of India Limited (SAIL) and BCCL is set to significantly boost the availability of washed coking coal. An MoU has been signed for the supply of 1.8 million tonnes of washed coking coal. The commissioning of 4 new coking coal washeries, currently under construction by BCCL, is expected to further enhance the supply of washed coking coal, catering to the demands of the steel industry.
In another noteworthy development, auctions for raw coking coal organized by BCCL and Central Coalfields Limited (CCL) have witnessed active participation. Tata Steel secured an auction of 50,000 tonnes of raw coking coal from CCL mines, underscoring the commitment to source domestically.
To encourage coking coal availability, the Ministry of Coal is also promoting the establishment of greenfield washeries or the refurbishment of existing BCCL washeries. A Transaction Adviser appointed by BCCL is actively formulating a methodology for the refurbishment of existing washeries, bolstering the coking coal supply chain.
