**Executive Summary**
This document presents the Ministry of Coal's response to questions regarding the reduction in coking coal imports, the impact of international coal prices on the domestic steel industry, the modernization of domestic washing capacities under Mission Coking Coal, and the utilization of revenue generated from coal block allocations for affected local communities. The answers were provided on February 11, 2026. The document outlines various initiatives and their progress in reducing import dependence and supporting the steel sector.
**Key Points / Main Content**
* **Coking Coal Import Reduction:**
* Commercial coal mining auctions were launched in 2020. The 10th round was launched in December 2024 and the 13th in August 2025.
* The import of coking coal during 2024-25 was 57.58 Million Tonne, a 2.10% decrease compared to the previous year.
* **Impact on Steel Industry:**
* The steel industry relies on high-grade coking coal, which India has limited reserves of, necessitating imports subject to global price fluctuations.
* Stamp Charging battery technology promotes the blending of domestic coking coal.
* The Ministry of Coal grants coking coal linkages to the steel sector via Non-Regulated Sector (NRS) Linkage Auction (Steel–Coking sub-sector).
* Coal is supplied through Fuel Supply Agreements (FSAs) and Single Window Mode-Agnostic (SWMA) auctions.
* **Modernization of Washeries:**
* Status of modernization and renovation of old washeries of BCCL and CCL under Mission Coking Coal:
* CCL Rajarappa Washery: Renovation works completed.
* BCCL Moonidih Coal Washery: Physical progress at 91.00%; financial progress at 89.60%.
* BCCL Madhuban Washery: Estimate for renovation is under preparation at BCCL.
* CCL Kedla Washery: Proposal for renovation is under approval at CCL.
* **Revenue Sharing Model:**
* Revenue generated from coal block allocation accrues to the concerned States.
* The State Government decides on the utilization of revenue for development of affected local communities, adhering to budgetary processes and statutory provisions.
**Impact Analysis**
**Stakeholder: Steel Industry**
* **Impact:** Access to coking coal via linkages, FSAs, and SWMA auctions to meet buyers' requirements; encouragement to blend domestic coking coal. Affected by import prices and limited domestic reserves of high-grade coking coal.
* **Action Required:** Utilize the provided channels to procure coking coal and consider implementing Stamp Charging battery technology to blend domestic coking coal.
**Stakeholder: Local Communities Affected by Coal Mining**
* **Impact:** Potential benefits from the utilization of revenue generated from coal block allocation for community development.
* **Action Required:** None specified. Utilisation of funds is managed by the state government.
**Stakeholder: Concerned State Governments**
* **Impact:** Accrual of revenue generated from coal block allocation.
* **Action Required:** Decide on the utilization of the revenue for development of the affected local communities in accordance with budgetary processes and statutory provisions.
**Stakeholder: Ministry of Coal**
* **Impact:** Overseeing and implementing various initiatives, including auctions and the Mission Coking Coal.
* **Action Required:** Continue implementing the coal linkages and auctions to facilitate coal supply to the steel sector and monitor the modernization and renovation progress of old washeries under the Mission Coking Coal initiative.
Key Entities Referenced
Ministry of Coal: The primary government body responsible for policies related to coal and lignite.
Mission Coking Coal: A program focused on modernizing domestic coal washing capacities for the steel sector.
Commercial coal mining via coal mine auction: A process for allocating coal mines to private companies through auctions.
Fuel Supply Agreements (FSAs): Agreements for supplying coal, mentioned in relation to meeting buyer's requirements.
Non-Regulated Sector (NRS) Linkage Auction (Steel–Coking sub-sector): A specific auction mechanism to provide coking coal linkages to the steel sector.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION No. 1986
ANSWERED ON 11.02.2026
REDUCTION IN IMPORT OF COKING COAL
† 1986. SHRI NEERAJ MAURYA:
Will the Minister of COAL be pleased to state:
(a) the percentage reduction recorded in the import of coking coal following the last four rounds of
auctions for commercial coal mining;
(b) whether the Government is aware that the production costs of the domestic steel industry are being
affected due to fluctuations in coal prices in the international market and if so, the details thereof;
(c) the details of the modernization of domestic washing capacities specifically under Mission Coking
Coal for the steel sector; and
(d) the manner by which income is generated from the revenue-sharing model in the allocation of coal
blocks being utilized for the affected local communities?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) Commercial coal mining via coal mine auction was launched in 2020. 10th Round of Auction was
launched in December 2024 and 13th round was launched in August 2025. During 2024-25 the
import of coking coal was 57.58 Million Tonne and this was 2.10 % less than the previous year.
(b) Steel industry requires large quantity of high-grade coking coal, which is a key raw material for
the blast furnace process. India has limited reserves of this specific type of coal resulting in its
import to meet the demand, which may be subject to global price fluctuations. However,
implementing Stamp Charging battery technology in steel plants enables blending of domestic
coking coal. To promote the use of domestic coking coal in steel production, Ministry of Coal has
been granting coking coal linkages to the steel sector under the Non-Regulated Sector (NRS)
Linkage Auction (Steel–Coking sub-sector). In addition, coal is supplied through Fuel Supply
Agreements (FSAs) and offered via Single Window Mode-Agnostic (SWMA) auctions to meet
buyers’ requirements.
1(c) The status of modernization and renovation of old washeries of BCCL and CCL under Mission
Coking Coal is tabulated below:
Sl. No. Subsidiary Wash ery Present Status
i CCL Rajarappa Washery Renovation works completed
ii BCCL Moonidih Coal Washery Physical Progress: 91.00%
Financial Progress: 89.60%
iii BCCL Madhuban Washery Estimate for renovation is under preparation at
BCCL
iv CCL Kedla Washery Proposal for renovation is under approval at CCL
(d) Under the revenue-sharing model, the share of revenue generated from coal block allocation
accrues to the concerned States. The utilisation of such revenue, including for development of
affected local communities, is decided by the State Government in accordance with its budgetary
processes and applicable statutory provisions.
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