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Coal Ministry Action Plan to Enhance Coking Coal Production Substantially

India produced 51.7 Million Ton (MT) raw of coking coal during the initial 2021-22 which is 15 % more than 44.8 MT during FY21. 

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

At present, 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 operationalize 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 country’s fast-increasing demand for coking coal. During FY 22, CIL supplied 1.7 MT of washed coking coal to the steel sector and set a target of 3.45 MT during FY23.

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 finalize GR for 4 to 6 new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of the auction for the private sector to further step up domestic raw coking coal supply in the country. 

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 an expected PRC of about 2 MT. 

With these transformative measures taken by the Ministry of Coal under the‘Atmanirbhar Bharat’ initiative of PM, domestic raw coking coal production is likely to reach 140 MT by 2030.

 

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