Steel cos may get to bid for coal blocks with washeries

The government plans to introduce a new policy to offer coking coal blocks to steel companies with attached washery operations. This, the government reckons, will allow steelmakers access to domestic fuel to run their operations that are largely being undertaken now using imported coking coal.

- Subhash Narayan & Rituraj Baruah

The steel sector needs over 60 million tonnes (mt) of coking coal, and 90% of the requirement is being met through imports. The new policy will allow steel firms to bid for coking coal blocks and increase domestic coal blending in blast furnaces to 25-35% using washed coal from their washeries. “The policy would change auction parameters reserving certain coal blocks with attached washeries only for steel companies. The auction parameter would be coal price quoted by the bidders and the investment to be made for reviving closed washeries of state-owned coal producing companies," said an official on condition of anonymity.