The iron ore and steel industry has urged the government to abolish import duty and GST compensation cess on coking coal, a key and expensive requirement in iron smelting.
India doesn’t have good quality coking coal deposits, leading pig iron and steel manufacturers to lean heavily on imports.
At the end of this financial year, the country’s coking coal imports are pegged at 49.1 million tonnes–this corresponds to a share of 78 per cent of domestic consumption. India is projected to import 140.2 million tonnes (mt) by 2030- by then, the country’s crude steel production is envisaged at 300 mt. The dependence on coking coal is set to fall to 65 per cent by 2030-31 as outlined in the National Steel Policy.
Big steel makers have managed to manage coking coal price fluctuations, but the domestic merchant pig iron industry is reeling under losses. Sponge iron players, too, are dependent on imports.
