Indigenous coking coal will cut import, cushion forex:Assocham

India needs to emphasise on indigenous production of coking coal in order to reduce the dry fuel import, which has resulted in loss of forex reserves, according to Assocham.
Import of coking coal by domestic steel industry crossed 45 million tonnes(MT) in 2014-15 as against about 39 MT in 2013-14. It is likely to touch 180 MT in the wake of country's ambitious target of producing 300 MT of crude steel per annum by 2025, the industry body said in a statement.
Besides, the coking coal import has also increased from 13 MT in 2003-04 to over 39 MT in 2013-14 and during the same period the dry fuel production dropped from about 18 MT to 14 MT and supply of washed coking coal to steel plants was only 6.6 MT in 2013-14.

"This is resulting in a loss of forex reserves, stress in inland transportation and logistics and congestion at ports, as such it is imperative that indigenous production of coking coal is given a big thrust," Assocham Secretary General D S Rawat.
Allocation of coking coal blocks to steelmakers has much merit as steel industry is capable of efficiently utilising 100 per cent of prime coking coal reserves from the blocks, Rawat said.
The industry body has also urged the government to put coking coal blocks to auction and allocate them through competitive bidding in order to boost domestic production and generate revenue for the exchequer.

"Coking coal blocks should not be allotted on nomination basis as this would delay its development in India and discourage creation of level-playing field in steel sector," Assocham said in a communication addressed to Power and Coal Minister Piyush Goyal.
Many virgin coal blocks of Bharat Coking Coal Limited (BCCL), a Coal India arm, are lying undeveloped despite being allocated long back, while operational blocks of BCCL are unable to produce to their full potential.