New Delhi: Union Minister of Coal and Mines, G. Kishan Reddy, emphasized the vital relationship between the coal, mining, and steel sectors in India’s economic development during the 6th edition of India Steel 2025, a leading international exhibition and conference on the steel industry, held in Mumbai today.
In his keynote address, Reddy underscored that steel is the backbone of India’s economic progress and central to the national vision for Viksit Bharat 2047. The Minister highlighted that India’s growing steel industry is the driving force behind major infrastructure projects like the Chenab Bridge, the world’s highest railway bridge, and the Pamban Bridge in Tamil Nadu. These monumental feats, he pointed out, are powered by steel — a testament to India’s expanding industrial strength.
Steel and Coal: Integral to India’s Industrial Expansion
Reddy further emphasized that while steel fuels economic growth, it is the coal and mining sector that forms the strong foundation supporting the steel industry. To this end, securing critical raw materials like iron ore, coking coal, and essential alloys like manganese and chromium is both an economic necessity and a strategic imperative.
India’s coal production hit a milestone of 1 billion tonnes (BT) in the last financial year, strengthening national energy security. Coal currently meets nearly 60% of India’s energy needs, powering over 70% of the country’s electricity generation. While efforts to expand renewable energy are underway, coal remains central to India’s industrial and energy infrastructure.
Promoting Coking Coal Production and Coal Gasification
Focusing on coking coal, which accounts for around 42% of steel production costs, the Minister highlighted India’s dependence on imports for about 85% of its coking coal requirements. To address this, the government launched Mission Coking Coal in 2021, aiming to reduce import dependency by boosting domestic production and increasing the blending of domestic coal in steelmaking. By 2030, the goal is to produce 140 million tonnes (MT) of coking coal and increase blending from 10% to 30%.
The Mission also includes enhancing coal washing capacity, identifying new exploration areas, and encouraging technological advancements such as Stamp Charging to utilize high-ash domestic coal without compromising quality. Reddy also urged the private sector to engage in coal washing and beneficiation, key components in improving the quality and efficiency of domestic coal.
Reforming Iron Ore and Raw Material Strategy
On iron ore, Reddy acknowledged that India holds over 35 billion tonnes (BT) of reserves, making it the fifth-largest globally. The country produced 263 MT of iron ore in FY 2024-25, with 50 MT exported. However, with over 66% of the reserves being low- and medium-grade, he called for greater beneficiation efforts.
The Ministry of Mines is currently working on a policy to promote the beneficiation of low-grade ores, alongside revising royalty rates to incentivize private sector involvement. The Minister also stressed the need to operationalize greenfield mines without delays, which he described as a waste of valuable national resources.
National Coal Gasification Mission: A Step Towards Cleaner Steelmaking
The Minister also highlighted the National Coal Gasification Mission, a flagship initiative aimed at achieving 100 MT of coal gasification by 2030, backed by an ₹8,500 crore investment. This mission seeks to convert high-ash, non-coking domestic coal into synthesis gas (syngas), a cleaner alternative for Direct Reduced Iron (DRI) steelmaking. He urged industry stakeholders to invest in coal gasification technologies, which promise not only to reduce emissions but also to enhance energy security and the broader industrial value chain.
Looking Ahead: A Vision for Sustainable and Self-Reliant Steel Production
Reddy emphasized the importance of innovation and the collective effort of the government, private industry, and state authorities to strengthen the coal and steel sectors. India aims to achieve 300 MT of steel production capacity by 2030-31 and 500 MT by 2047 under the National Steel Policy.
The Minister expressed confidence that with continued collaboration, India would not only meet its raw material requirements but also emerge as a global leader in sustainable, self-reliant steel production. He encouraged participants at the conference to actively contribute to shaping policies that will secure a greener and more resilient future for the nation’s steel ecosystem.
Earlier, Prime Minister Narendra Modi addressed the event via video conferencing, emphasizing the importance of collaborative development across sectors for India’s future growth.
Conclusion: A Strategic Approach to Industrial Growth
As the India Steel Expo 2025 unfolds, the focus on coal and steel sectors’ strategic integration highlights India’s commitment to a sustainable and self-reliant industrial future. With continuous innovations, improved mining practices, and government support, India is poised to shape the future of the global coal and steel ecosystem.
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