To reduce dependence on imports and make India self-reliant, the country’s coal ministry aims for coking coal production to reach 140 million tonnes through the fiscal year ending 31 March 2030 (FY30), Kallanish notes.
India produced 51.7mt of raw coking coal in FY22, up by 15% on-year against 44.8mt produced in FY21. To further enhance raw coking coal production, the ministry has in the last two years auctioned ten coking coal blocks to the private sector, with a peak-rated capacity of 22.5mt. Most of these blocks are expected to start production by FY25.
Additionally, the ministry has identified four other coking coal blocks. The Central Mine Planning and Design Institute (CMPDI) will meanwhile finalise geological reserves (GR) for four to six new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of auctions for the private sector to further step up domestic raw coking coal supply in the country, the ministry says.
Currently, India’s domestic raw coking coal washing capacity is 23m t/y. Coalfield India (CIL) is planning to set up and operationalise nine more new washeries with 30m t/y combined washing capacity. CIL would thus be able to supply about 15mt of washed coking coal to the steel sector, thereby reducing coking coal imports.
“There is a need to set up more washeries to enhance capacity to meet the fast-increasing demand for coking coal in the country,” says the coal ministry. “During FY22, CIL supplied 1.7mt of washed coking coal to the steel sector and has set a target of 3.45mt during FY23.”
Sayed Aameer India