Strong raw material strategy vital for growth, says Coal Minister Reddy

A robust raw material strategy is key to sustaining growth and the country must secure consistent availability of critical materials such as coking coal and iron ore, Union Minister G Kishan Reddy said on Saturday.

Addressing the concluding day of the 6th edition of the India Steel 2025 Exhibition and Conference, hosted jointly by the Ministry of Steel and Ficci here, the Union coal minister also said that steel is the backbone of India's economic growth and key driver of the country's collective vision of Viksit Bharat.

The three-day event saw the participation of over 1,000 delegates, over 200 exhibitors and featured nine sessions which included over 150 speakers from India and other countries, including the inaugural session, according to a release.

 

During this period, three Memoranda of Understanding (MoUs) were also signed highlighting the growing opportunities and collaborations within the steel sector, it said.

"If steel is the backbone of India's economy, then coal and mines are the foundation. A robust raw material strategy is key to sustaining growth. We must secure consistent availability of essential raw materials like coking coal, limestone, iron ore, and critical elements such as magnesium, nickel, and chromium," Reddy said, emphasizing the crucial role of the coal and mines sector in supporting economic development.

For the steel sector to grow, the coal sector must grow alongside and it is essential to reduce imports and support India's steel ambitions, he said, adding "the government launched Mission Coking Coal to reduce coal import dependency, targeting 140 million tons of domestic coking coal, blending from 10-30 per cent in steel making by 2030.

The Minister also urged the industry to set up new washeries and develop new technologies to further strengthen India's efforts.

Speaking at the event, Minister of State for Steel at the Centre, Bhupathiraju Srinivasa Varma reaffirmed the government's resolve to enable a resilient raw material ecosystem through progressive policies and public-private collaboration.

"We need to focus on 3 pillars- first, Geopolitical partnerships for diverse sourcing of raw material. This will ensure high quality supply for our producers. Second, Circular economy to maximize scrap and buy products.

As steel is recyclable, such practices will help both from an environmental perspective and reduce our reliance on primary raw materials, and third, breakthrough in R&D to unlock domestic reserves," he said.

Sandeep Poundrik, Secretary, Ministry of Steel, in his address, said that while the country is aiming at creating 300-million tons capacity of steel by 2030, the current production capacity stands at 200-million tons.

"To add further 100-million ton of capacity, our iron ore requirement will go to about 450 million tons, coal requirement will go to about 160-million tons. The Ministry of mines is already working on a proposal to incentivize beneficiation.