India's coking coal imports are projected to increase significantly by 2030, driven by the country's expanding steel production capacity and infrastructure development. A recent report indicates that coking coal imports are expected to jump 42% to reach 160 million tonnes by 2030. This surge is attributed to the limited domestic availability of coking coal, a key ingredient in steel manufacturing, and the ambitious target set by the government to increase steelmaking capacity to 300 million tonnes by 2030.

The Indian government is actively promoting the growth of the domestic steel industry through various initiatives such as the National Infrastructure Pipeline and Make in India. These programs are designed to boost infrastructure projects across the country, leading to increased steel consumption. Union Minister Bhupathiraju Srinivasa Varma has stated that India's steel demand is set to grow in double digits, emphasizing the vital role of government initiatives in driving steel consumption nationwide.

While India aims to increase its domestic coking coal production to 140 million tonnes per year by 2030, up from the current 51.7 million tonnes, it will still rely heavily on imports to meet the growing demand. Coal India Limited (CIL) plans to increase its annual output of raw coking coal to 26 million tonnes at existing mines by fiscal year 2025 and open nine new mines with a peak capacity of 20 million tonnes per year. However, even with these efforts, a significant gap will remain, necessitating substantial imports. Currently, Australia meets more than 70% of India's coking coal demand.

The increasing reliance on imported coking coal poses challenges to the Indian steel industry, including high input costs and logistical issues. The concentration of major steel plants in Odisha and Karnataka leads to railway congestion, affecting the transportation of steel across the country. Steelmakers have voiced concerns about the high costs associated with imported coking coal and the need to improve competitiveness.

Furthermore, the Indian government is also focusing on promoting green steel production to reduce emissions and enhance sustainability. A government scheme worth ₹5,000 crore is expected to be rolled out to provide financial support to steelmakers for producing sustainable steel. Demand for green steel in India is projected to reach 4.49 million tonnes by 2030, driven by the construction, infrastructure, and automotive industries. Green hydrogen technology will be crucial in meeting this demand.

To address the challenges and achieve its steel production goals, India needs to focus on securing raw material supplies, improving logistics, promoting technology adoption, and encouraging the production of green steel.