Coking Coal Production Decline: Challenges and Government Initiatives
Coal India Ltd’s coking coal production witnessed an 8.7% drop to 4.53 million tonnes in May. The government endeavors to boost domestic coking coal production to 140 million tonnes by 2029-30 under its Mission Coking Coal initiative to lessen reliance on imports for the steel industry.
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State-owned Coal India Ltd (CIL) reported an 8.7% decline in coking coal production, totaling 4.53 million tonnes in May. This reduction occurs as the government ambitiously targets increasing domestic output to diminish import dependency.
Last recorded at 4.96 million tonnes in May 2024, the mission is to escalate production to 140 million tonnes by the 2029-30 fiscal year, crucial for the steel sector. Despite being essential for steel production, the company's production also fell by 3.4% in the April-May period.
However, the government is advancing initiatives for higher indigenous coking coal utilization, focusing on enhancing energy efficiency and decarbonizing the steel sector. Efforts include expanding domestic coal washing capacity and employing stamp charged coke oven batteries in steel plants to increase the usability of indigenous coking coal.
(With inputs from agencies.)
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