Steel capacity drive: Report projects coking coal demand to surge by 55% by 2030; import reliance seen easing below 80%

India’s dependence on coking coal is anticipated to develop significantly over the subsequent 5 years, because the nation pushes in direction of its formidable objective of 300 million tonnes (MT) of metal manufacturing capacity by 2030, in accordance to a brand new report by EY Parthenon in partnership with the Indian Steel Association (ISA).As per information company ANI, the report highlights that India, the world’s second-largest metal producer, consumes 95 per cent of its coking coal inside the metal sector, primarily by the blast furnace-basic oxygen furnace (BF-BOF) route. his course of presently makes up about 65 per cent of put in capacity and 58 per cent of precise output. Demand for coking coal is due to this fact projected to surge from 87 MT in FY25 to round 135 MT by FY30.To deal with this rising want, the federal government is advancing its Atmanirbhar Coal Mission below Mission Coking Coal. The plan goals to improve uncooked home output to 140 MT by 2030, with 105 MT anticipated from Coal India and 35 MT from non-public allocations. Washed coal capacity can be focused to develop to 15 MT. Policy measures, together with 100 per cent FDI in mining, revenue-sharing auctions, and capital subsidies of up to 30 per cent for washeries, are anticipated to reduce import reliance from practically 90 per cent at present to below 80 per cent by the tip of the last decade.Vinayak Vipul, Partner at EY Parthenon, underlined the significance of beneficiation and diversification. “The way ahead is clear—India must accelerate beneficiation to unlock the true value of its reserves, diversify sourcing to reduce risk, and invest in technologies that pave the way toward low-carbon steel. Building a transparent pricing index and a national reserve will be equally critical,” he stated, as per ANI.With coal-based steelmaking chargeable for 12 per cent of India’s greenhouse fuel emissions and up to 8 per cent globally, the report stresses the urgency of decarbonisation. Cleaner applied sciences corresponding to inexperienced hydrogen-based DRI, scrap-fed electrical arc furnaces, and carbon seize are seen as important to reaching the metal {industry}’s net-zero objective by 2070.Naveen Jindal, President of ISA, known as securing dependable coal provides a matter of strategic significance. “India’s steel industry is entering a transformative era, driven by rising domestic demand and global competition. Coking coal remains the backbone of steelmaking, and securing a reliable, high-quality supply is a strategic necessity for national growth,” he stated.The push for self-sufficiency comes whilst home coal manufacturing has confronted fluctuations. According to information company PTI, India’s coal output fell barely by 0.6 per cent to 381.75 MT in April–August this 12 months, although August manufacturing rose greater than 11 per cent year-on-year. Coal India, which accounts for over 80 per cent of provide, produced 280.15 MT within the five-month interval.The report concludes that constructing joint industry-government ventures, increasing washery infrastructure, organising strategic stockpiles at ports, and forging abroad mine partnerships might be important to securing India’s provide chains whereas balancing progress with sustainability.