India’s ministry of coal is proposing amendments to coal block auction rules to enable the offering of linked washeries along with coal blocks put up for auction for steel companies, government sources said on Wednesday, June 21.
They said that, wherever coal blocks had washeries linked to mines, the latter would be included in the bidding process and steel companies would be eligible to submit a single bid for both of the assets - the coal block and the washeries.
However, existing coal block auction rules would need to be amended because they pertain to only coal blocks and not related assets.
It was pointed out that, by securing a coal block along with a washery, this would enable steel companies to increase use of washed coal to be blended coal with imported coking coal to the extent of 20-25 percent and would reduce the volumes of coking coal required to be imported.
Indian domestic demand for coking coal is estimated at 60 million mt per year, of which 80-90 percent needs to be imported.