Solutions
• Ministry of Steel, GoI signed a memorandum of understanding (MoU) with Russian ministry of energy for collaboration in the mining and steel sectors, with special focus on coking coal.
• The move is part of India’s National Steel Policy 2017 under which the country is aiming to reach 300 million tonne steel production by 2030
• The MoU between the two countries signed in Moscow envisages implementation of joint projects and commercial activities in coking coal, including long-term supplies of high-quality coking coal to India, development of coking coal deposits and logistics development, sharing of experience in coking coal production management, technologies of mining, beneficiation and processing as well as training, said the steel ministry in its release.
• The MoU has come at a time when India’s non-power industries (aluminium, cement and secondary producers of steel) are facing severe thermal coal shortage issues.
• Coking coal and thermal coal, however, have different applications and do not overlap.
• Currently, India imports its coking coal largely from Australia, which places the domestic steel industry at the receiving end in terms of pricing power.
• Diversification of supplies could be of some advantage in terms of pricing for domestic steel consumers, said officials.