BCCL's Strategic Initiatives Propel India's Coking Coal Self-Sufficiency

Following the Tranche VI auction, where none of the offered coal was booked, BCCL re-evaluated its strategy and initiated several improvements.

Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited (CIL) and the leading producer of coking coal in India, has made remarkable progress in reducing the nation's reliance on imported coal as part of the "Mission Coking Coal" initiative under the Aatmnirbhar Bharat vision.

The burden of coking coal imports strains India's foreign reserves, prompting BCCL to implement substantial reforms aimed at enhancing the flexibility, transparency, and appeal of its coking coal auction processes for domestic steel producers.

Following the Tranche VI auction, where none of the offered coal was booked, BCCL re-evaluated its strategy and initiated several improvements. A key change was the introduction of consortium bidding, allowing smaller consumers to collaborate and bid collectively, thereby broadening the bidder pool and enhancing accessibility.

To further attract participants, BCCL proposed amendments to the eligibility norms for linkage auction bidders. This proposal, which included allowing consortiums made up of steel plants, existing or new coking coal washeries, and other entities capable of utilizing coal by-products from washeries, was approved at BCCL's Functional Directors’ Meeting and subsequently forwarded to CIL. CIL quickly adopted this proposal, leading to the creation of a new Scheme Document for Tranche VII of the Linkage Auction tailored to the steel sub-sector.

Prior to officially notifying the Scheme Document, BCCL and CIL organized a Consumer Meet in Delhi to gather feedback from steel producers and industry associations. This initiative, along with ongoing follow-ups with potential bidders and proactive engagement efforts, significantly boosted participation in the auction process.

The results of these initiatives were evident in the recently concluded long-term linkage e-auction (Tranche VII) for the steel sub-sector, which achieved record success. Of the 3.36 million tonnes (MT) of coking coal offered, 2.40 MT was successfully booked, setting a new benchmark for coal bookings.

These efforts are expected to greatly enhance the utilization of domestic coking coal, reduce import dependency, and fortify India's steel industry. The implementation of consortium bidding and clear communication about the auction process has led to higher participation rates, benefiting both consumers and advancing the broader goal of import substitution aligned with the Aatmnirbhar Bharat vision.

Shri Samiran Dutta, CMD of BCCL, expressed his satisfaction with the success of Tranche VII, stating that the concerted efforts to make the auction process more inclusive and transparent have yielded significant results. He noted that the successful bookings reflect BCCL's commitment to boosting domestic coking coal production and reducing reliance on imports.