Steel sector imports 90% of its 60 mn ton a year coking coal requirement
India needs aggressive focus on increasing coking coal production to reduce import dependence, said Coal Minister Pralhad Joshi, while inviting suggestions from all stakeholders for finding technology solution and using available coking coal in the country.
He urged the Government and Private Sectors to focus on Technology Solution to Enhance Coking Coal Production and Quality.
The Government is ready to bring in place all measures to enhance coking coal production, informed the Minister at a workshop on “Coking Coal Strategy for Indian Steel Sector”, organised by the Ministry of Coal, Coal India Limited (CIL) and the Confederation of Indian Industry on 18 Aug 2022.
The policy enablers are in place mainly with the amendments of MMDR Act with respect to relaxation of norms for private sector in allocation of coking coal mining blocks, exploration norms, and 50% rebate for coal gasification, among others.
There are nine new coking coal washeries having capacity 30 million ton to be set up by Coal India Ltd (CIL), necessary infrastructure reform for which has been made.
Also, at a time when the country is vigorously reviving its post-pandemic economic growth, Coal India’s capital expenditure has reached an all-time high of Rs.15,400 crores in FY’22.
Sanjay Singh, Secretary, Ministry of Steel, pointed out that the steel sector needs 60 million tons of coking coal a year, 90% of which is met through imports.
The ministry has initiated working on a strategy for having domestic coal use in blast furnaces and washeries and increase domestic coal blending to 25-35%.
Singh suggested increase in consumption and scrap generation as short-term strategy and four-time production increase in the longer-term for lowering dependence on iron ore and coking coal.
A K Jain, Secretary, Ministry of Coal, noted that coking coal is a fuel for the steel sector and reforms are needed to track investment in the industry, especially in the coal abundant areas.
Significant use of technology will be in focus for washing coal, lowering ash content and further bringing end to end solution to enhance domestic coking coal production, he said.
The Government is open to all ideas including opening of closed washeries, leasing out washeries set up by CIL, managing coking coal mines, and integrating technology applications, Jain added.
Welcoming the minister and other dignitaries in the workshop, Pramod Agrawal, CIL Chairman, underlined a four-point agenda of bringing balance between the supply and demand sides of coking coal, delineating the role of private sector, improving the quality by substituting low-grade coal, and bringing high focus on technology integration.
Technical sessions on demand and supply of coking coal to steel sector, beneficiation of coking coal, technology upgradation for steel, panel discussion, CEO session and question answer sessions were the highlights of the one-day workshop. fiinews.com
