Put coking coal blocks on auction & allocate them through competitive bidding: ASSOCHAM plea

With a view to boost indigenous production of coking coal and generate revenue for the exchequer, apex industry body ASSOCHAM has urged the government to put coking coal blocks on auctions and allocate the same through competitive bidding.

Coking coal blocks should not be allotted on nomination basis as it would delay the development of coking coal in India and create a non-level playing field in the steel industry, suggested The Associated Chambers of Commerce and Industry of India (ASSOCHAM) through a communication addressed to union steel ministry.

There is an urgent need to revamp domestic miners to bolster the production as Indian steel industry's demand for coking coal is expected to reach about 180 million tons per annum (MTPA) by 2025 from current level of about 50 MTPA, said Mr D.S. Rawat, secretary general of ASSOCHAM.

Allocation of coking coal blocks to steelmakers has much merit because the industry is capable of efficiently utilising 100 per cent prime coking coal reserves from the blocks, said Mr Rawat.

ASSOCHAM has also pointed out that many virgin blocks of Bharat Coking Coal Limited (BCCL) are currently lying underdeveloped despite being allocated long back, even the operating blocks of the company too are unable to produce to their full potential.

Besides, coking coal blocks allocated to steelmakers in the public sector too have failed to ramp up the production to address India's coking coal needs.

Owing to limited availability of appropriate coking coal quantities there is a huge gap in India's coking coal production vis-vis demand, two-thirds of which is being imported by the steel industry.

This is resulting in loss of forex reserves, stress in inland transportation and logistics together with congestion at ports, highlighted ASSOCHAM.

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