Question : Coking Coal Reserves

a. the details of coking coal reserves in the country, State-wise;
b. the quantity of coking coal imported into the country during the last three years and the current year;
c. the impact of the cost of coking coal on the steel industry;
d. whether the Government proposes to acquire coking coal reserves sites in foreign countries and if so, the details thereof and the reasons therefor;
e. the time by which they are proposed to be acquired along with the amount of funds earmarked for the said purpose; and
f. the steps being taken by the Government to improve the supply of coking coal in the country?

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES
(SHRI PRALHAD JOSHI)

(a): The state wise coking coal resources in the country as per Geological Survey of India (GSI) as on 01.04.2018 is given below;

State wise Coking Coal resources as on 01.04.2018 (in Million Tonne)

State Proved Indicated Inferred Total
West Bengal 775.75 423.68 139.76 1339.19
Jharkhand 17880.95 11284.39 1660.09 30825.43
Madhya Pradesh 354.49 1560.11 272.83 2187.43
Chhattisgarh 70.77 99.25 0.00 170.02
Assam 0 0.39 0 0.39
Total 19081.96 13367.82 2072.68 34522.46


(b): As per Coal Directory of 2016-17 and provisional coal statistics of 2018-19 & 2019-20 (till April 2019) published by Coal Controller’s Organization, the quantity of coking coal imported into the country during last three years and the current year is as follows:



Year Qty. of Imported Coking Coal
(In Million Tonne) Value
(in Million Rs.)
2016-17 41.644 412301.00
2017-18 47.003 595226.36
2018-19 51.838 720497.64
2019-20
(Till April’19) 4.186 56946.90


(c): Coking coal constitutes 40-45% of the total cost of steel production through the Blast Furnace route. Any increase in cost of coking coal adversely affects the cost of steel production.

(d)-(e): In order to meet the demand of coking coal for steel sector, Coal India Limited (CIL) has taken initiatives to acquire coking coal assets abroad, with particular focus in Australia and Canada, with a view to import the produces to India and enhance raw material security of the country. Certain assets have been identified. The acquisition process will entail conducting detailed due diligence and closure of the commercial deal. The time required for such process is asset specific and therefore it is not possible to indicate any specific time period by which such deal can be closed. No specific amount of fund has been earmarked for the said purpose but the same will be arranged once the investment proposal for any specific asset has been finalized.

(f): In order to increase the availability of coking coal, following are the steps taken by the coal companies:
I. Re-categorisation of Coking coal grade: Notification of additional 2 coking coal grades viz. W-V & W-VI
II. Long term FSAs with Steel companies - 10-15 years’ linkage to Steel Sector
III. Construction of 9 coking coal washeries by Coal India Limited.
IV. Three (3) tranches of linkage auction of 11.73 MT against which 3.43 MT has been booked by coking coal consumer.

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