The Indian government is considering floating a consortium of state-run companies to scout, source and import coking coal for supply to domestic steel mills, government sources said on Tuesday, January 16.
The sources said that an inter-ministerial committee is exploring the details of the proposal and the ministries of mines and steel will consult and decide on the government companies that could be participants in the consortium.
The government reckons that a consortium will be more efficient in globally scouting for coking coal sourcing, reaching out to suppliers, negotiating prices and terms of imports, and subsequently suppling the imported raw material to local steel mills.
Currently, India imports an average of 70 million mt of coking coal each year to meet about 80 percent of domestic demand.