Union Coal Ministry Targets 15% Growth in Coking Coal Production for 2025-26

GG News Bureau
New Delhi, 29th Dec. The Union Ministry of Coal aims for a 15% increase in coking coal production in 2025-26, reaching 77 million tonnes (MT), marking significant progress toward the 140 MT target for 2030. The domestic coking coal production for 2023-24 was 66.82 MT. India, a major importer of coking coal to meet the steel industry’s demand, has consistently imported over 20% of its coal for the past decade.

In a bid to reduce imports, the government is focusing on enhancing domestic production, with Coal India aiming for 105 MT by FY30, up from 60.43 MT in FY24. Key steps include modernizing and renovating aging washeries of Coal India subsidiaries Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL), alongside the monetization of old BCCL washeries for better operational efficiency.

The government has also auctioned 14 coking coal blocks to the private sector, with production expected by 2028-29. Additionally, the coal ministry is promoting coking coal supply to the steel sector through the Non-Regulated Sector (NRS) linkage auction route.

Plans are underway for three new coking coal washeries by BCCL (7 MTY capacity) and five by CCL (14.5 MTY capacity). Two of these are already under construction. The coal ministry aims to achieve 1.3 billion tonnes of domestic coal production by FY27 and 1.5 billion tonnes by FY30.

To facilitate increased coal offtake, 102 first-mile connectivity (FMC) projects worth ₹30,000 crore are planned, with a capacity of 1,040 million tonnes per annum (MTPA). Currently, 37 FMC projects with 360 MTPA capacity have been commissioned, and the remaining 66 projects are set to be completed by FY28. The coal ministry has also projected the need for an additional 100,000 wagons to meet coal evacuation targets, with an 86% rail evacuation goal set for FY30.