Coal India Limited (CIL) reported a nearly 9% drop in coking coal production for May 2025, producing 4.53 million tonnes compared to 4.96 million tonnes in the same month last year, according to provisional government data. This dip comes as India aims to boost domestic coking coal output under the ‘Mission Coking Coal’ initiative, which targets 140 million tonnes annually by 2029-30. Coking coal, also known as metallurgical coal, is vital for steel manufacturing, and the country currently relies heavily on imports to meet demand.
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Over the April–May period, CIL’s coking coal production also fell 3.4% to 9.36 million tonnes from 9.69 million tonnes a year ago. CIL, through subsidiaries like Bharat Coking Coal Ltd (BCCL) and Central Coalfields Limited (CCL), contributes significantly to the domestic coking coal supply, with BCCL being the key player in this segment. The decline in output raises concerns, especially as the steel sector continues to import large quantities to bridge the supply gap. In FY24, coking coal imports stood at 57.58 million tonnes.
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To counter this, the government and industry players are ramping up efforts to increase coal washing capacity and adopt advanced technologies like stamp charged coke oven batteries. These initiatives aim to enhance the quality of domestic coal by reducing ash content, making it suitable for steel production and gradually cutting import dependency.
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