Collaborative efforts between Ministries pave the way for reduced imports and increased industrial growth.
In a significant stride towards self-reliance, India’s Ministry of Coal and Ministry of Steel have joined forces to fortify the availability of domestic coking coal, a pivotal resource for steel production. This concerted push aims to reduce the country’s dependency on imports while powering the steel sector’s expansion. The result: an anticipated surge in raw coking coal production to 140 million tonnes by 2030, yielding 48 million tonnes of usable coking coal after processing.
Mission Coking Coal: A Strategic Response to Demand
Launched during the fiscal year 2022, “Mission Coking Coal” aligns with the National Steel Policy 2017’s projections and the “Aatmnirbhar Bharat” (Self-Reliant India) initiative. This mission encompasses multifaceted strategies including exploration, advanced production methods, increased private sector involvement, new washeries, robust R&D, and enhanced coal quality. The ultimate goal is a substantial reduction in coking coal imports.
Strategic Measures to Elevate Coking Coal Initiatives
The journey towards bolstering coking coal production includes several noteworthy steps:
Auctioning Coking Coal Blocks: With a commendable achievement of allocating 16 coking coal blocks, the Ministry of Coal’s efforts are evident. JSW secured two of these blocks in the recent auction, contributing a significant 1.54 million tonnes to coking coal production.
Revival of Abandoned Mines: Bharat Coking Coal Limited (BCCL) has embarked on a revival journey by inviting participation from agencies to extract coking coal from abandoned mines. This innovative revenue-sharing model is set to breathe new life into eight discontinued mines.
Collaboration with SAIL: Steel Authority of India Limited (SAIL) has teamed up with BCCL to secure a supply of 1.8 million tonnes of washed coking coal. The collaboration includes commissioning four new washeries by BCCL, a move set to enhance the supply further.
Auctioning Raw Coking Coal: In a significant move, BCCL and Central Coalfields Limited (CCL) organized an auction that saw Tata Steel secure 50,000 tonnes of raw coking coal, reaffirming their commitment to domestic sourcing.
Greenfield Washeries: Encouraging new greenfield washeries and refurbishment of existing ones, the Ministry of Coal is committed to augmenting coking coal availability. With the guidance of a Transaction Adviser, existing washeries are undergoing revitalization.
Paving the Way for Self-Reliance Through Coking Coal
These strategic initiatives underscore India’s commitment to boosting domestic coking coal production and fostering self-reliance. As a driving force behind industrial growth, coking coal holds the key to a thriving steel sector. With a resolute focus on reducing import dependency, these measures align seamlessly with India’s vision for sustainable industrial expansion.
In Conclusion
The combined efforts of the Ministry of Coal and Ministry of Steel stand as a testament to India’s determination to steer towards self-reliance. By enhancing the availability of coking coal, India is poised to strengthen its steel sector, reduce import reliance, and fuel industrial growth. These strategic moves mark a transformative journey towards self-sufficiency and a prosperous future for the nation.
