- Increased linkages from CIL key for steel sector
- Steel industry raises coke QR issue amid tightening supply
As part of its ongoing steel sector reforms, the Ministry of Steel* convened a key meeting focused on coking coal, following the earlier iron ore reforms discussion held on 26 August 2025. The meeting was attended by major steel producers including Tata Steel, JSW Steel, Jindal Steel & Power (JSPL), AM/NS India, Steel Authority of India Ltd (SAIL), along with Coal India Ltd (CIL).
The core agenda revolved around strengthening domestic coking coal availability through increased linkages from CIL. Officials emphasized the need to scale up supply of washed Grade-3 coal, which is critical for metallurgical processes.
Industry participants also raised the issue of rejects generated during washing, which are currently not permitted for sale. A possible framework for utilizing or monetizing these rejects was deliberated upon.
India is considering permitting a consortium of at least three steel producers, including major players, to jointly participate in coking coal linkage auctions. The framework would also allow for replacement of consortium members within a defined timeframe.
CIL outlined its upcoming tranche of coal linkage auctions, aimed at providing greater access and security of supply to the steel sector. The producers sought clarity on timelines and volumes, while highlighting the urgency of reliable coal availability to support India’s growing steel output.
Another major concern raised by steelmakers was the current restrictions on coke imports. Companies expressed their reservations about the quota system, arguing that flexibility in imports is vital to bridge the gap between domestic availability and rising demand.
The ministry assured industry participants that their inputs will be considered while framing reforms, signalling the government’s intent to create a more sustainable and competitive raw material ecosystem for the steel sector.
*Correction
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