NEW DELHI: Piyush Goyal, Union
Minister of Commerce and Industry, Consumer Affairs, Food, Public Distribution
& Textiles, urged Steel Industry to make best use of the India-Australia
Economic Cooperation & Trade Agreement (ECTA) Agreement and look at
capturing new opportunities in Australia. He was speaking at the Third edition
of ISA Steel Conclave in New Delhi on Tuesday.
The availability of coking coal is a
major challenge for the domestic steel sector and the industry should
collaborate with eminent institutions like IITs to undertake research to find
alternate solutions, he said.
The industry needs to become
self-reliant on coking coal to remove India's dependency on a few countries for
the significant raw material for steel makers, he added. "Coking coal is a
matter of concern for the industry. We can look at investments and
alternatives. You can find solutions for its alternatives. I would urge the
industry to research with our IITs or the Indian Institute of Science. It is the
need of the hour to become self-sufficient," Goyal said.
The government is preparing a 'coking
coal mission' to diversify the sources of key steel-making raw material, for
which the country is heavily dependent on imports. India imports around 90% of
its coking coal requirement. Coal with high ash content is not suitable for
steel making through the blast furnace route. Currently, India imports coking
coal from other countries like Australia, South Africa, Canada, and the US. The
logistic costs from these distant nations add to the input cost of the steel
companies.
The minister also said that the steel
industry should make the "best" use of the India-Australia Economic
Cooperation and Trade Agreement (ECTA) and look at capturing new opportunities
there. Under the agreement, steel exports to Australia will become duty-free.
He added that the sector contributes significantly to export earnings. The
industry has significant growth potential and urged them to achieve the target
of 300 million tonnes by 2030. With large investments coming in future, the
sector will continue to grow, he said