New Coking Coal Policy Might be Tabled Soon; Set to Improve Competitiveness of Steel Industry

Sources have reported that the government is planning to jointly collaborate with the steel industry to prepare a “one nation, one buying coking-coal policy”. The strategic move is aimed at forming a collective bargaining power over imported coking coal prices in an effort to improve global competitiveness of the domestic steel industry.

Steel secretary Nagendra Nath Sinha mentioned "Individual steel manufacturers such as SAIL and Jindal import coking coal based on their requirements. But this fragmented approach results in them having limited leverage with miners abroad," Sinha said, addressing the 13th India Minerals and Metal Forum on Friday.

In FY 23 India imported 56.04 mt of coking coal with a toal import bill of around ₹1.53 lakh crore, as per Niti Aayog data. Australia was the top supplier, followed by the US. "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.

Further, diversification of coking coal imports is also crucial for uninterrupted supply. "India imports most of its coking coal from Australia, America, Canada and Russia. But we need to diversify our sources," Sinha said. He also stressed the need for a beneficiation policy to meet growing demand for steel in the country. As India's economy expands, iron ore consumption will rise rapidly. "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 said.