·The Hindu·15 marks·250–350 wordsEconomy

Critically analyse the objectives and feasibility of 'Mission Coking Coal' in reducing India's import dependence on metallurgical coal.

In this answer
  1. Objectives
  2. Feasibility — enabling factors
  3. Feasibility — structural constraints

India imports roughly 90% of its metallurgical coal — 56.05 MT in 2022-23 [2]. 'Mission Coking Coal', launched by the Ministry of Coal, responds by targeting 140 MT of domestic raw coking coal by FY 2029-30 [1]. Its objectives are well-framed, but feasibility rests less on mining more coal than on making it usable.

Objectives

  • Import substitution in a sector where coking coal is over 30% of blast-furnace (BF-BOF) steelmaking cost, making the steel industry hostage to global price cycles [2].
  • Resource utilisation — tapping a base of about 34 billion tonnes of coking coal resources, of which ~18 billion tonnes are proven [3].
  • Supply-side reform — identifying fresh blocks for CIL and the private sector, auctioning CBM-overlap blocks, and allotting linkages to private washeries on an aggregator model [1].

Feasibility — enabling factors

  • A concrete roadmap splits the target as 105 MT by CIL and 35 MT from allocated blocks [1].
  • Institutional backing has deepened: coking coal has been notified a critical and strategic mineral under the MMDR Act, 1957 [5], and washed-coal supply to steel plants has been rising through Coal Ministry initiatives [6].
  • Complementary trade action — the 12% safeguard duty on flat steel imports (April 2025) — protects domestic capacity while supply reforms mature [4].

Feasibility — structural constraints

  • Indian coking coal is high-ash and unfit for direct blast-furnace use; mining and washing technology has not kept pace with steel industry needs [3].
  • The target counts raw, not washed, tonnes — without beneficiation capacity, higher output need not cut imports [1][3].
  • The Committee's own asks — advanced beneficiation and a policy for washery rejects and middlings — remain the binding gap, since unsold rejects keep washeries below capacity [1].
  • Underground mining, where most quality seams lie, still awaits the recommended tax incentives [1].

The Mission is therefore directionally right but presently measured by the wrong metric. Shifting the progress indicator to washed coking coal supplied to steel plants, coupled with scrap-based electric arc furnace capacity, would convert a production target into genuine Atmanirbharta in steel.

Sources

  1. 1Mission Coking Coal — Recommendations of Inter-Ministerial Committee for Augmenting Coking Coal Production, PIB (Ministry of Coal)140 MT by FY 2029-30 target; CIL 105 MT + 35 MT from blocks; beneficiation, washery rejects/middlings policy, CBM-overlap auctions, aggregator-model washeries, tax incentives for underground mining
  2. 2Demand for High Grade Coal for Domestic Consumption, PIB~90% import dependence, 56.05 MT imports in 2022-23, coking coal's share in steelmaking cost
  3. 3Need for Development and Investment in Coking Coal Mining and Washing Technology for Resource Efficiency, Sustainable Steel Industry and Self-Reliance, PIB34 billion tonne resource base, high-ash coal unfit for direct use, mining/washing technology lagging steel industry needs
  4. 4Centre imposes 12% safeguard duty to shield Indian steel sector, PIBsafeguard duty on flat steel imports, April 2025
  5. 5Government Notifies Coking Coal as Critical & Strategic Mineral under MMDR Act, 1957, PIBstrategic mineral notification
  6. 6Strategic Initiatives by Coal Ministry increase Availability of Domestic Coking Coal for Steel Production, Reduce Imports, PIBrising washed-coal supply to the steel sector
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