Boosting Domestic Coking Coal: A Strategic Move for India

A Niti Aayog report recommends including coking coal as a critical mineral to enhance domestic production, crucial for steel manufacturing and economic growth. India's dependency on imports, high costs, and low domestic productivity are noted. Policy changes and government actions could improve the sector's efficiency and sustainability.

A Niti Aayog report has called for the inclusion of coking coal in the list of critical minerals, emphasizing its importance for boosting domestic production pivotal for the steel industry. The recommendation comes as India aims for economic advancements while adhering to its Net Zero commitments by 2070.

The report highlights that coking coal accounts for 42% of steel production costs, integral to infrastructure and job creation, thus necessitating its classification as a critical mineral. Despite India holding substantial reserves, import dependency is at 85%, starkly higher compared to the EU's 62%, warranting immediate government intervention.

The report also suggests amendments to the Coal Bearing Areas Act and policy changes to improve Public-Private Partnership ventures, enhance coal washing efficiencies, and lower steel production costs. These strategic moves could ensure coking coal security, benefiting India's steel sector and economy overall.

(With inputs from agencies.)