Lok Sabha Question No. 2846 (UNSTARRED), answered on 2023-12-20
Subject: Raw Material for Steel Industry
Ministry: STEEL
Asked by: Ramdas Chandrabhanji Tadas

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 2846 FOR ANSWER ON 20/12/2023

## RAW MATERIAL FOR STEEL INDUSTRY

2846.   SHRI RAMDAS C. TADAS:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government has taken steps to diversify the procurement of coking coal from other countries to ensure safety of raw materials in steel industry;
- (b) if so, the details thereof; and
- (c) the steps being taken by the Government to promote domestic production of coking coal and its utilisation thereof?

## ANSWER

THE MINISTER OF STATE IN THE                              (SHRI FAGGAN SINGH KULASTE)

MINISTRY OF STEEL

(a)&(b): Steel  CPSEs  has  been  procuring  coking  coal  from  a  diversified  group  of countries mainly Australia, United States, Indonesia, Mozambique etc. The import of coking coal from Russia has also increased after signing the Memorandum of Understanding (MoU) on 14.10.2021 with Russia on procurement of coking coal which is used in steel making.

The  import  of  coking  coal  in  the  last  two  years  &  the  current  year  is  attached  in Annexure .

- (c) To substitute Import of Coking Coal, the current domestic blending of coking coal by steel sector is to be increased. Accordingly, Ministry of coal has launched Mission Coking Coal in FY22 to meet the domestic coking coal demand projected in National steel policy, 2017. Following transformative measures have been taken by Ministry of Coal to promote domestic production of Coking coal -
- (i) Ramping up of domestic coking coal production:
- a.  Coal India Limited (CIL) has planned to increase raw coking coal production from existing  mines  up  to  26  MT  and  identified  ten  new  mines  with  Peak  Rated Capacity (PRC) of about 22 MT by FY 2025.
- b.  CIL has offered 8 discontinued mines on a new innovative model of revenue sharing  with  the  private  sector  in  Tranche  1  and  Tranche  II-  LOA  (Letter  of Assurance) issued for 6 nos, out of which, Agreement has been signed for 3 nos.
- c. Ministry of Coal has auctioned 16 coking coal blocks to the private sector with a PRC of 25.8 MT during the last two years. These blocks are expected to start production by 2028-29.

- (ii) Increase in coking coal supply to steel sector:
- a.  Enhance washing capacity : Presently,  the  washing  capacity  in  the  country  is about 23 MTPA including 9.26 MTPA of private sector. CIL is planning to set up and operationalize 9 new Washeries with a capacity of 26.5 MTPA. They are expected to be operationalized by 2027. Therefore, Washery capacity in CIL is likely to increase from 13.96 to 40.44 MTPA. Further, SAIL is planning to enhance Washery capacity from 2 to 6 MTPA, Tata Steel from 7.8 to 10 MTPA and JSW has planned 2 MTPA Washery.
- b.  Monetization  of  old  Washeries: CIL  is  exploring  options  to  monetize  old washeries to increase washing capacities in the country.

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## Import of Coking Coal

## (All figures in Million Tonne)

| S. No.   | Country     | April-August 2023 (p)   |
|----------|-------------|-------------------------|
| 1        | AUSTRALIA   | 13,210                  |
| 2        | CANADA      | 1,417                   |
| 3        | INDONESIA   | 864                     |
| 4        | LATVIA      | 0                       |
| 5        | MOZAMBIQUE  | 796                     |
| 6        | NETHERLAND  | 85                      |
| 7        | NEW ZEALAND | 99                      |
| 8        | POLAND      | 11                      |
| 9        | RUSSIA      | 2,600                   |
| 10       | SINGAPORE   | 2,199                   |
| 11       | SWITZERLAND | 596                     |
| 12       | U ARAB EMTS | 246                     |
| 13       | U K         | 0                       |
| 14       | UKRAINE     | 10                      |
| 15       | U S A       | 3,456                   |
| Total    | Total       | 25,589                  |

| S. No.       | Country      | 2022-23      |
|--------------|--------------|--------------|
| 1            | AUSTRALIA    | 30,100       |
| 2            | AUSTRIA      | 25           |
| 3            | CANADA       | 2,896        |
| 4            | COLOMBIA     | 13           |
| 5            | INDONESIA    | 2,234        |
| 6            | LATVIA       | 72           |
| 7            | MOZAMBIQUE   | 2,081        |
| 8            | NEW ZEALAND  | 294          |
| 9            | RUSSIA       | 4,481        |
| 10           | SINGAPORE    | 5,399        |
| 11           | SWITZERLAND  | 420          |
| 12           | U ARAB EMTS  | 660          |
| 13           | U K          | 103          |
| 14           | U S A        | 7,274        |
| Total 56,053 | Total 56,053 | Total 56,053 |

| S.No.   | Country     | 2021-22   |
|---------|-------------|-----------|
| 1       | AUSTRALIA   | 40,485    |
| 2       | AUSTRIA     | 32        |
| 3       | CANADA      | 2,115     |
| 4       | CHINA P RP  | 920       |
| 5       | GERMANY     | 82        |
| 6       | INDONESIA   | 1,104     |
| 7       | MALAYSIA    | 37        |
| 8       | MOZAMBIQUE  | 1,771     |
| 9       | NEW ZEALAND | 99        |
| 10      | RUSSIA      | 1,506     |
| 11      | SINGAPORE   | 4,302     |
| 12      | SWITZERLAND | 572       |
| 13      | U ARAB EMTS | 231       |
| 14      | U K         | 14        |
| 15      | U S A       | 3,850     |
| Total   | Total       | 57,123    |

Source: DGFT

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