India has emerged as the world’s second-largest steel producer, with ambitious plans to expand production capacity to 300 million tonnes/year by 2030. However, this expansion comes with a significant challenge ensuring a steady supply of coking coal, a crucial raw material in steel production. 

India heavily depends on imports for coking coal, making its steel industry vulnerable to global price fluctuations and supply chain disruptions. Can India develop strategies to reduce its reliance on imports and secure a more sustainable future for its steel industry?

India's growing demand for coking coal
As India pushes for infrastructure development and economic growth, the steel industry’s demand for coking coal is set to rise significantly. The National Steel Policy (NSP) projects that India’s steel production will reach 255mt by 2030, with approximately 145-150mt of crude steel produced via the blast furnace-converter route and around 187mt of hot metal produced in blast furnaces.

Currently, India consumes around 50-60mt of coking coal annually, with nearly 85% sourced through imports, making the industry vulnerable to global price fluctuations and supply chain disruptions. The projected growth of the steel industry necessitates long-term strategies to secure raw material availability. 

With increasing global emphasis on sustainability and carbon reduction, Indian steelmakers are under pressure to improve efficiency and reduce emissions while ensuring supply security.