Lok Sabha Question No. 1203 (UNSTARRED), answered on 2022-12-14
Subject: Domestic Production of Coking Coal
Ministry: COAL
Asked by: Janardan Singh Sigriwal

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA UNSTARRED QUESTION NO. 1203 TO BE ANSWERED ON 14/12/2022

## Domestic Production of Coking Coal

## 1203. SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of COAL be pleased to state:

(a) whether the Government is working to increase the domestic production of coking coal as the country aims to have a steel making capacity of 300 million tonne by 2030-31;

(b)  if  so,  the  details  thereof  along  with  the  initiatives  being  taken  by  the  Government  in  this direction;

(c) whether the Government has taken decision to reduce duty on coking coal;

- (d) If so, the details thereof; and

(e) the other measures being taken by the Government to meet our requirement of coking coal?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a) & (b): Government has launched 'Mission Coking Coal' in August, 2021 to suggest roadmap to  augment  the  production  and  utilization  of  domestic  coking  coal  in  India  by  2030.  Mission Coking  Coal  document  has  made  recommendations  majorly  relating  to  new  exploration, enhancing production, enhancing washing capacity, auction of new coking coal mines. Domestic raw Coking Coal production is likely to reach 140 MT [105 MT by CIL and 35 MT by allocated coking  coal  blocks]  by  2030.  The  following  transformative  measures  have  been  taken  by  the Government under 'Atmanirbhar Bharat' initiative to increase the domestic production of coking coal -

-  CIL has planned to increase raw coking coal production from existing mines up to 26 MT and identified ten new mines with PRC of about 22 MT by FY 2025. Also, CIL has offered eight discontinued coking coal mines on revenue sharing model to the private sector with a PRC of 2 MT.
-  CIL is setting up 9 new coking coal washeries and also revamping the existing coking coal washeries to augment washing capacity.
-  Ministry of Coal has auctioned 10 coking coal blocks to the private sector with a PRC of 22.5 MT during the last two years. Most of these blocks are expected to start production by 2025.
-  The Ministry has also identified four coking coal blocks and the CMPDI also will finalize GR for 4 to 6 new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of auction for private sector to further step up domestic raw coking coal supply in the country.

(c) & (d): Between 22.05.2022 and 19.11.2022, imports of Anthracite and coking coal attracted NIL import duty [Nil BCD and NIL AIDC]. With effect from 19.11.2022, imports of Anthracite and coking coal, along with other types of coal, attract a concessional rate of 2.5% Customs duty [I% BCD and1.5% AIDC]. Government has taken this initiative to increase present blending of 10-12% of domestic coking coal with imported coking coal to 30% by FY2030 and reduce import of coking coal.

(e): CIL undertakes constant efforts to enhance coking coal production by capacity enhancement through  expansion  of  existing  coking  coal  producing  mines  and  from  implementation  of  new coking coal blocks. Mass Production Technology has been introduced in UG mines of CIL to enhance the domestic raw coking coal production. CIL is taking steps regarding offering of coking coal mines for production to investors on revenue sharing basis.

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