The entire demand of coking coal is not met indigenously as the supply of high quality coal or coking coal (low-ash-coal) in the country is limited and thus no option is left but to resort to import of coking coal.

As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty.

Further, CIL has a plan to augment supply of Coking Coal through washed coking coal. The imported quantity of 2017-18 at 208.27 MT is less than the imported quantity of 2014-15 which stood at 217.78 MT even as power generation and industrial activity grew substantially after 2014-15.

There has been a consistent effort to increase domestic coal production so as to reduce dependence on coal imports. The all India raw coal production has increased from 565.77 MT in 2013-14 to 676.48 MT in 2017-18. Absolute increase in all India coal production from 2013-14 to 2017-18 (four years) is 110.71 MT as compared to increase of coal production of 33.73 MT from 2009-10 to 2013-14 (four years).

The quantity of coking coal imported:

Year Coking Coal Import (Mt)
2014-15 43.71
2015-16 44.56
2016-17 41.64

An increase in cost of coking coal will increase the cost of production of steel.