India’s steel secretary has announced a significant increase in coking coal imports, attributing this trend to limited availability of this essential steelmaking component. Steel Secretary Sandeep Poundrik outlined that imports are projected to rise to 160 million tons by 2030, up from approximately 58 million tons currently. In the fiscal year 2025, coking coal imports saw a slight decline of 0.7% year-on-year, largely due to reduced shipments from Australia and the United States.
This decrease occurred even as steel output continued to rise, as noted by commodities consultancy BigMint. The Indian government has ambitious goals for steel production, with Poundrik stating that the country is on track to achieve a steel production capacity of 300 million tons by 2030. Currently, India’s steel production is approximately 151.1 million tons, with a total steelmaking capacity of 200 million tons.
However, challenges remain in scaling up capacity, particularly concerning logistics. The preferred transportation method for steel is railways, which are more cost-effective compared to road transportation. The concentration of major steel plants in Odisha and Karnataka further complicates logistics, leading to congestion within the railway system.
Steel plants belonging to significant players such as Tata Steel, JSW Steel, and Jindal Steel are primarily located in Odisha, intensifying these challenges. The need for a strategic focus on improving logistics and transportation infrastructure is essential for the steel industry’s growth in India, as the country aims for greater production to meet domestic demand and enhance its global standing in steel manufacturing.