Govt looking to increase use of domestic coking coal in steel production

22 Nov 2022 , 02:39 PM

According to Union minister Jyotiraditya Scindia, who talked to PTI, the government is putting together a "coking coal mission" to diversify the sources of a crucial raw material for steel production for which the nation is largely reliant on imports.

The mission is a component of the government's attempts to enhance the use of locally accessible coal in the gasification process used to make steel and decrease reliance on imported coking coal, the steel minister told PTI in an interview.

"It's being created by us, (the government) coking coal mission. The coal ministry is responsible for it "In answer to a query regarding the government's plan to increase the country's supply of raw materials, Scindia remarked.

About 90% of India's needs for coking coal are met by imports. The minister claimed that domestically produced coal has a high ash level.

High ash content coal should not be used to make steel in a blast furnace.

The minister stated that India is seeking to collaborate with a few nations to diversify its sources of coking coal without naming any specific nations.

A deal between India and Russia involving cooperation on coking coal was ratified in July 2021 by the Union Cabinet, which is presided over by Prime Minister Narendra Modi.

India now sources its coking coal from nations including Australia, South Africa, Canada, and the US. The input costs for the steel producers are increased by the logistic costs from these far-off nations.

Regarding coal gasification, he stated that the government is considering building a facility with a 100 million tonne annual capacity (MT).

Coal can be transformed into syngas during a gasification process, which can then be used to create steel and sponge iron.

According to the minister, all of these initiatives would boost the indigenous steel industry, which has already seen the government abolish the tax on exports of steel.

The government has reduced the export tariff on steel products and iron ore to zero beginning November 19, 2022, six months after the charge was imposed on May 21.

Scindia also pointed out that, for the apparent reason that many nations are on the verge of recessionary tendencies, the global demand scenario is not as promising as it had been earlier.

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