New Delhi: The Ministry of Coal’s Mission Coking Coal, launched in August 2021, is significantly strengthening India’s domestic coking coal production and reducing reliance on imports—especially for the steel sector.
Production Surge Under Mission Coking Coal
India’s coking coal output has jumped from 44.79 million tonnes in FY21 to 66.47 million tonnes in FY25. Coal India Limited (CIL) has offered 11 discontinued coking coal mines to the private sector through an innovative revenue-sharing model, further boosting domestic availability.
In FY24, Bharat Coking Coal Limited (BCCL) commissioned the 5 MTPA New Madhuband Coking Coal Washery. CIL has also monetised one existing coking coal washery, unlocking additional resources for investment.
Policy Reforms Driving Import Substitution
The Ministry has extended the tenure of coking coal linkages in the Non-Regulated Sector (NRS) linkage auction to up to 30 years. This change is expected to reduce imports by providing greater security of supply for the steel industry.
In March 2024, a new sub-sector—Steel using Coking Coal through WDO route—was created under NRS linkage auctions. This aims to increase domestic consumption of coking coal and expand the availability of washed coking coal in the country.
Eight New Coking Washeries in Pipeline
As part of its infrastructure expansion, CIL is setting up eight new coking coal washeries with a combined capacity of 21.5 MTPA:
- Bhojudih: 2.0 MTPA; FY2025-26; West Bengal; Under construction.
- Patherdih II: 2.5 MTPA; FY2026-27; Jharkhand; Under construction.
- New Moonidih: 2.5 MTPA; FY2028-29; Jharkhand; Stage of tendering.
- New Kathara: 3.0 MTPA; FY2028-29; Jharkhand; Contract agreement signed.
- New Rajrappa: 3.0 MTPA; FY2029-30; Jharkhand; Letter of intimation issued.
- Dhori: 3.0 MTPA; FY2029-30; Jharkhand; Stage of tendering.
- Basantpur-Tapin: 4.0 MTPA; FY2028-29; Jharkhand; Letter of award issued.
- New Sawang: 1.5 MTPA; FY2028-29; Jharkhand; Letter of intimation issued.
Ensuring Transparency in Coal Distribution
Coal PSUs adhere to the Ministry’s policies for transparent coal distribution, including:
- New Coal Distribution Policy (NCDP)
- SHAKTI scheme
- Linkage Auction Policy for Non-Regulated Sector
- Bridge Linkage Policy
- Single Window Mode Agnostic Auctions
- Linkage Rationalisation
Supply is ensured through Fuel Supply Agreements between coal companies and consumers, with policies updated as required to meet industry needs. Union Minister of Coal and Mines G. Kishan Reddy shared these details in a written reply to the Rajya Sabha.
About the Ministry of Coal
The Ministry of Coal oversees coal exploration, development, and distribution in India. It works closely with major coal PSUs like CIL and SCCL to meet national energy demands. Through policy reforms and sustainable practices, the ministry is now guiding a shift toward greener mining practices and just transition for impacted communities.
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