India is exploring ways to reduce its reliance on coal imports by boosting domestic coal usage and increasing the blending of coking coal in the steel industry. Union Minister of Coal and Mines, G. Kishan Reddy, announced that the government aims to raise the blending percentage from the current 12% to between 30% and 35%. Coal blending involves mixing different coal types to achieve the desired quality for various uses, while coking is a thermal process that refines crude oil into multiple products.
The demand for domestic coal surged to 1,233.86 million tons in 2023-24, up from 1,115.04 MT the previous year. To meet this demand, domestic coal production increased by 11.65% to 997.26 million tons. The government plans to raise production by 6-7% annually, aiming to reach 1.5 billion tons by 2029-30.
Additionally, the Coal Ministry has launched a new project to address the anticipated rise in coking coal demand, with domestic production expected to hit 140 MT by 2030.
A recent study by IIM Ahmedabad indicates that India could potentially export 15 MT of coal to neighboring countries, including 8 MT to Bangladesh, 3 MT to Myanmar, 2 MT to Nepal, and 2 MT to other nations. The government views increased coal production and exports as a way to enhance economic growth, create jobs, and boost revenue while positioning India as a significant player in the global coal market.
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