Minister highlights importance of raw material security
The Mission Coking Coal, launched in 2021, aims to reduce import of coking coal, and has set a target of 140 million tonnes of domestic production, and increase domestic coal blending from 10% to 30% for the steel sector by 2030 https://www.commerce.gov.in/.
Underlining the targets set for coal, a critical input in steel manufacturing, the Minister of Coal and Mines, G. Kishan Reddy pointed out that it constitutes nearly 42% of steel production costs https://www.conexpoconagg.com/.
India currently imports around 85% of its coking coal needs, rendering the industry vulnerable to international price volatility and supply chain disruptions, he informed delegates at the 6th edition of India Steel, a premier biennial International Exhibition-cum Conference on the steel sector which was held in Mumbai https://www.indiasteelexpo.in/.
While efforts to enhance renewable energy are underway, the Minister reaffirmed that coal will remain central to India’s energy and industrial landscape in the foreseeable future, he said in a keynote address to the conference on 26 April.
India has achieved a landmark milestone of one billion tonne of coal production and dispatch in the last financial year—a transformative step toward national energy security http://worldsteel.org.
Energy Statistics 2025 reveal that coal continues to account for nearly 60% of India’s total energy requirements and 70% of its electricity generation.
Reddy emphasized that if steel forms the backbone of India’s economy, the coal and mining sector represents the strong foundation on which it rests https://www.globalcoal.com/.
He highlighted the importance of raw material security, especially in the context of Raw Material Strategy and the Shift in Raw Material Mix.
Ensuring the availability of critical raw materials like iron ore, coking coal, limestone, and essential alloying elements such as manganese, nickel, and chromium, he noted, is both an economic necessity and a strategic imperative.
The Minister elaborated on the Mission Coking Coal. Key initiatives under this mission include the identification of new exploration areas, boosting output from existing mines, increasing coal washing capacity, and auctioning new coking coal blocks to private enterprises.
The adoption of advanced technologies such as Stamp Charging has been encouraged to allow the use of high-ash domestic coal without compromising quality. The mission also aims to build 58 million tonnes of coal washing capacity and supply 23 million tonnes of washed coking coal by 2030.
The Minister called upon private stakeholders to actively participate in washeries, beneficiation plants, and block auctions. Pulverised Coal Injection (PCI) trials using domestic coal have already shown promise for import substitution, and greater innovation in beneficiation can further improve outcomes https://www.opec.org/.
Turning to iron ore, the Minister highlighted India’s vast reserves of over 35 billion tonnes making it the fifth largest globally. With 263 million tonnes of iron ore produced in FY 2024-25 and 50 million tonnes exported, the country is working to ensure supply keeps pace with growing domestic demand.
“Currently, we have 179 working iron ore mines, 126 blocks have been auctioned so far and 38 of them are already operational while many more are in pipelines,” he told delegates. However, that over 66% of reserves are of medium and low-grade quality and require beneficiation.
To address this, the Ministry of Mines has proposed a policy currently under public consultation to promote low-grade ore beneficiation. Policy reforms, including revised royalty rates for limestone and low-grade ore, are being pursued to encourage private sector involvement.
The Minister also emphasized the importance of timely utilization of greenfield mines. Delays in operationalizing such assets amount to a waste of national resources.
The Ministry is working closely with States and regularly reviewing progress with bidders to expedite development of mines.
Coordination with the Ministry of Environment, Forest and Climate Change (MoEFCC) has also been enhanced to streamline clearances. Several key guidelines have been issued over the past six months, with further reforms in progress.
The coal and mining sectors, the Minister stated, are evolving rapidly to align with sustainability goals and India’s climate commitments while reducing import dependence. The government is promoting innovation and embracing a whole-of-government approach to these challenges.
A flagship initiative in this direction is the National Coal Gasification Mission, which aims to achieve 100 million tonnes of gasification by 2030 with an investment of Rs.8,500 crore. This initiative promotes the use of high-ash, non-coking domestic coal to generate synthesis gas (syngas), a cleaner alternative for DRI (Direct Reduced Iron) steelmaking.
He urged the industry to invest in this transformational technology that not only reduces emissions but also enhances energy security and economic value chains.
In addition, the Minister called on the mining community to focus on recovery of critical minerals from dumps and tailings to support advanced alloys and green technologies. Testing and recovery from existing dumps must be taken up as a national priority.
The journey towards a secure, resilient, and sustainable raw material strategy is a collective one. India is progressing on a bold and ambitious path for the steel sector. The National Steel Policy envisions achieving 300 million tonnes of production capacity by 2030-31 and 500 million tonnes by 2047.
The Ministry of Coal and the Ministry Mines are fully aligned with this vision and is taking proactive steps to ensure its realization, he said.
Reddy expressed confidence that through close collaboration between the Centre, State Governments, and industry stakeholders, India will not only meet its raw material requirements domestically but also emerge as a global leader in sustainable, self-reliant steel production.
He urged all participants at the conference to contribute actively to shaping policies that will secure a greener and more resilient future for the nation’s steel ecosystem. Fiinews.com
