Here’s Everything You Need To Know About CIL’s Coking Coal Production Increase In 2022-23

Despite a difficult economic environment, Coal India Limited (CIL) has managed to make a remarkable comeback in coking coal production. As per their latest annual report, they have achieved significant milestones in the production level during 2022-23. This is a great sign for the coal industry in India.

CIL’s Production Growth: Overview

Here’s a look at the reasons behind CIL’s impressive coking coal production performance this year:

• Increase In Coking Coal Production In India- The state-owned miner Coal India Limited reported a 17.2% growth in production year over year, reaching 54.6 million tons (MT) in 2022–23.  CIL generated 46.6 MT of coking coal in the previous fiscal year 2021–2022. The Ministry of Coal asked CIL to increase its coking coal output to 105 MT by 2030 to reduce coking coal import in India and foreign exchange costs, therefore coal India’s production target for 2030 is bound to experience a substantial increase in coking coal production.
• Contribution From CIL’s Subsidiaries– Bharat Coking Coal Limited (BCCL) and Central Coalfields Limited (CCL), subsidiary firms, produced almost 33.7 MT and 20.6 MT, respectively, of the 54.3 MT total production in 2022–2023. Coking coal is a crucial component of the raw materials used to make steel, but India’s reserves that can be mined are few. Additionally, washing is necessary before using coking coal in the production of steel due to its quality.

Coking Coal Import In India

Coking coal imports totalled 56 MT in FY23, a decrease of 1.1 MT from FY22’s 57.1 MT. Although the decline in imports is encouraging, CIL hopes to reduce the country’s dependency on imports by 2030 by producing 12 MT of washed coking coal annually with an ash concentration of 18%-19%.

OFB’s Insight

With plans to expand by 9 washeries at an estimated cost of Rs 4,000 crore, CIL has opened 2 new coking coal washeries and rehabilitated three others. 11 washeries for coking coal are now operated by CIL. This will help to fulfil India’s coal consumption demand. Growth in coking coal production in India is an important step towards establishing  self-sufficiency in steel manufacturing, lowering imports, and minimising the outflow of foreign currency.

Read More – Is India Increasing Coal Imports To Fulfil High Domestic Demand?

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