Government and steel firms will collaborate to source coking coal from overseas

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Government and steel firms will collaborate to source coking coal from overseas

Notification 15 Jul 2024 11:03 AM IST Economic Times

The government is working with the steel sector to develop a "one nation, one buying coking-coal policy," intending to increase India's bargaining power over imported coking coal costs, according to Steel Secretary Nagendra Nath Sinha. "Individual steel producers like Jindal and SAIL import coking coal depending on their needs. However, because of this disjointed strategy, they cannot negotiate effectively with miners overseas, "Sinha stated at the 13th India Minerals and Metal Forum.

According to data from Niti Aayog, in FY23, India imported 56.04 MT of coking coal valued ₹1.53 lakh crore. The US was the second-largest supplier after Australia. "It's a challenge for individual steel manufacturers to come together and buy coking coal, but if the government takes the lead, we can have a coking-coal buyers' consortium," said Jindal Stainless MD Abhyuday Jindal.

Furthermore, diversification of coking coal imports is critical for ensuring uninterrupted supply. "India gets most of its coking coal from Australia, America, Canada, and Russia. However, we must broaden our sources," Sinha remarked. He also emphasised the importance of a beneficiation policy to fulfil the country's expanding demand for steel. India's iron ore consumption will increase quickly as its economy grows. "Right now, India produces 270 MT of iron ore, and it's estimated that by 2030, India will need 437 MT of iron ore to meet the 2030 steel production target," Sinha stated.

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Government and steel firms will collaborate to source coking coal from overseas

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