Chalks out detailed plans to increase washeries’ capacity, reduce
imports
Coking coal being
supplied to RINL steel plant from Adani Gangavaram Port, in Visakhapatnam |
Photo Credit: -
New
Delhi
India
is targeting a coking coal production of 80 million tonnes (mt) in FY25, a 20
per cent increase over last year’s 66.55 mt, as it aims to bring down its
import bill in the segment.
The
increase in mineral production — a key feedstock in steel-making — will be
supplemented by bringing on-stream washeries by Coal India Ltd. This include
commissioning of two coking coal washeries and monetising of four more, while
steel-mills such as Tata, JSW and SAIL will be looking at brownfield and
greenfield expansion .
The
world’s second largest crude steel maker, India, is already the largest
importer of coking coal with over 58 mt shipments of the material coming in.
A
policy for offering coking coal or PCI through washeries is under consideration
too, as per a document shared by the Coal Ministry with the Steel Ministry. (businessline has a copy of the
document)
At
present, domestic coking coal washing capacity is to the tune of 23 million
tonne per annum (mtpa) which includes 9.26–2 mtpa by SAIL and 7.6 mtpa by Tata
Steel.
“Further
engagement with the private sector is required to enhance the availability of
coking coal...” the document reviewed by businessline noted.
In
a response to Parliament, Union Coal Minister G Kishan Reddy said the current
domestic blending of coking coal by the steel sector “increase from present 10
– 12 per cent to 30 – 35 per cent.”
“The
available domestic coking coal resources have high ash content which require
washing and blending with low ash coking coal for its use in steel-making. Steel
CPSEs have been procuring coking coal from a diversified group of countries
mainly Australia, United States, Indonesia, Mozambique, Russia etc,” the
Minister said.
Ramping
Up Washery Capacities
The
Steel Ministry documents state that washery capacities will be ramped up by
Coal India. CIL has plans to set up 11 washeries with 33 mtpa capacity, of
which 15 mtpa is for supply to the steel sector.
“Of
these... three washeries with 11.6 mty (million tonne yearly) capacity are
already operational. The remaining are at different stages of construction or
tendering,” the documents noted.
During
the fiscal, “monitoring of remaining coking coal washeries to expedite
tendering and construction” will also be carried out.
Steel
mills like SAIL will ramp up washery capacities three times to 2 mtpa, Tata
Steel will ramp up capacities by 45 per cent to 11 mtpa, while JSW is setting
up a greenfield one at 2 mty.
