The Coal Ministry has made a tender for 10 blocks of coking coal to the private sector in order to increase the production of raw coking coal, which is an important input in iron and steel production in the country.
According to the New Delhi Coal Ministry, most of the 10 coking coal blocks tendered to the private sector in the last two years are expected to start production in 2025. The Ministry has made a tender for 10 blocks of coking coal to the private sector in order to increase the production of raw coking coal, which is an important input in iron and steel production in the country. Referring to their achievements in 2022, the Coal Ministry said, "Most of these blocks are expected to start production by 2025." Local crude coking coal production is expected to amount 140 million tons (MT) by 2030.
Coal India (CIL), which accounts for more than 80 percent of domestic coal production, has planned to increase crude coking coal production from existing mines to 26 MT and has identified nine new mines with a PRC of about 22 MT.
The Coal Ministry has also identified four coking coal blocks, and the Central Mine Planning and Design Institute (CMPDI) will complete the geological report (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 increase the supply of local crude coking coal.
At present, the domestic crude coking coal washing capacity is about 23 mt per year, including 9.26 mt of the private sector. CIL plans to build and operate nine more new washing plants with a capacity of 30 million tons per year (MTPA). It is estimated that with the establishment of the new washing facilities, CIL will be able to supply approximately 15 MT of washed coking coal to the steel sector, thereby reducing the import of coking coal.