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Coal India Targets to Supply 3.45 MT Coking Coal to Steel Sector in 2022-23

Coal India Limited has set a target to increase the supply of washed coking coal to the steel sector in the current financial year to 3.45 million tonnes from 1.7 million tonnes recorded in 2021-22, the Ministry of Coal said.

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At present, the domestic raw coking coal washing capacity is about 23 MT per annum including 9.26 MT of the private sector. Coal India Ltd (CIL) is planning to set up and operationalise nine more new washeries with a capacity of 30 MTPA.

With the setting up of new washeries, it is estimated that CIL will be able to supply about 15 MT of washed coking coal to the steel sector, thereby reducing the import of coking coal. There is a need to set up more washeries to enhance capacity to meet the fast-increasing demand of coking coal in the country, the Ministry of Coal said in a statement.

Production of raw coking coal in India stood at 51.7 million tonnes in the financial year ended March 2022, which is 15 per cent higher than 44.8 MT recorded in the previous year.

Domestic raw coking coal production continues to witness an increasing trend in the current fiscal as well with a production of 8.3 MT, as per the figures up to May 2022, which is 20 per cent more compared to 6.9 MT during the same period of the previous year.

To further enhance raw coking coal production, the 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 Central Mine Planning and Design Institute (CMPDI) also will finalise 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, Coal Ministry said in the statement.

CIL has planned to increase raw coking coal production from existing mines up to 26 MT and identified nine new mines with PRC of about 20 MT by FY 2025. Also, CIL has offered six discontinued coking coal mines, out of the total 20 discontinued mines, on an innovative model of revenue sharing to the private sector with expected PRC of about 2 MT.

With these “transformative measures” domestic raw coking coal production is likely to reach 140 million tonnes by 2030.

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