India's Coking Coal Demand Projected To Reach 135 Mn Tonnes By 2030: Report

(MENAFN- KNN India) New Delhi, Sep 11 (KNN) India's demand for coking coal is expected to rise significantly, reaching 135 million tonnes by 2030, driven primarily by expansion in the steel sector, according to a joint report by EY Parthenon and the Indian Steel Association (ISA).

The report estimates an increase from 87 million tonnes in FY25, as the country works towards achieving 300 million tonnes of steel production capacity by the end of the decade.

The steel industry, which accounts for nearly 95 per cent of coking coal consumption, will remain the dominant driver of demand.

“India's steel industry is entering a transformative era, driven by rising domestic demand and global competition. Coking coal remains the backbone of steelmaking, and securing a reliable supply is a strategic necessity for national growth,” said Naveen Jindal, President, ISA, according to ET.

To curb reliance on imports, the government has set a target to more than double domestic raw coal production-from 66.8 million tonnes in FY24 to 140 million tonnes by FY30.

This includes output of 105 million tonnes from Coal India and 35 million tonnes from private sector allocations. Plans also include expanding washed coal capacity to 15 million tonnes, alongside policy measures such as permitting 100 per cent FDI in mining, revenue-sharing auctions, and subsidies for washeries.

Currently, India imports about 90 per cent of its coking coal, mainly from Australia, followed by the United States, Canada, and Russia.

The report recommends exploring new sourcing options, including Mongolia and Mozambique, to reduce supply risks.

“India's steel ambitions cannot be realised without addressing its heavy reliance on imported coking coal. While domestic production is projected to double by 2030, imports will still play a defining role in meeting demand. This dependence makes the sector vulnerable to price volatility and supply chain shocks,” Vinayak Vipul, Partner, Business Consulting, EY Parthenon, said.

The study also flagged environmental challenges, noting that steel accounts for around 12 per cent of India's greenhouse gas emissions, compared with the global average of 8 per cent.

It calls for accelerated investment in low-carbon technologies, green hydrogen, and carbon capture to align with the nation's 2070 net-zero commitment.

(KNN Bureau)

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