New steel mills may face local coal rule

existing steel capacitiestoo, the personadded, asavailability of good quality domestic washed coal improves.

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Currently, Indian steel plants are able to blend domestic coal only up to about 20%.

(BLOOMBERG)

Steelmakers import relatively purer coking coal suitable for metallurgy, while Indian coal typically has high amounts of ash and sulfur, which reduce blast furnace efficiency. Coal washeries help clean up the impurities, and make it suitable for steelmaking. Currently, Indian steel plants are able to blend domestic coal only up to about 20%, highlighting the need for technological adjustments and new capacity to accommodate higher blending levels.

India currently imports around 250 million tonnes of coal annually, a fourth of which is coking coal, used by the steel industry. It imported 57 mt of coking coal in FY25 valued at over ₹1 trillion. Increasing domestic blending is expected to ease pressure on imports and improve self-reliance.