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GOVERNMENT OF INDIA
MINISTRY OF STEEL
RAJYA SABHA
UNSTARRED QUESTION NO. 3985
FOR ANSWER ON 27.03.2026
CONSUMPTION OF COAL BY STEEL PLANTS
3985. SHRI ANIL KUMAR YADAV MANDADI:
Will the Minister of STEEL be pleased to state:
(a) whether it is a fact that steel plants across the country consume around 40 MT of
coal per year;
(b) if so, the details of coal allocated to steel plants across the country;
(c) whether all the steel plants have their own coal washeries;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a) During Financial Year 2024-25, the consumption of coking coal was approximately
~60 MT which is primarily utilized in blast furnace operations. Steel industry also uses
thermal coal, which is predominantly used in Direct Reduced Iron (DRI) production or
power generation.
(b)to(e): Steel is a deregulated sector. Steel companies procure raw material including
coal from multiple sources based on their requirement and techno-economic feasibility.
Among the Central Public Sector Enterprises (CPSE's), Coal India Limited (CIL) and
Steel Authority of India Limited (SAIL) have their own operational coal washeries. At
present all steel manufacturers do not have dedicated washeries. The reasons for the
same also include structural and techno-economic constraints, high ash content in
indigenous coal, limited availability of coking grade coal, and the capital-intensive nature
of washery infrastructure. A significant proportion of steel producers rely on imported
coking coal or third-party washed coal for consumption in their plants.
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