Steel Authority of India Limited (SAIL) is poised to significantly augment its domestic coking coal sourcing with the planned operationalization of its 4 million tonnes per annum (MTPA) Tasra coking coal mine in Jharkhand by the second half of 2026. This is anticipated to curtail the company's reliance on expensive imports, aligning with its ambitious expansion plans to achieve a crude steel production capacity of 35.65 MTPA by 2031.

Currently, SAIL's dependence on imported coking coal is substantial. In the financial year 2023-24, the company consumed 19.37 million tonnes (mt) of coking coal, of which only 2.45 mt, or approximately 16%, was sourced domestically. The remaining 84% was imported, primarily from Australia, the United States, Singapore, and Russia. India's overall coking coal import bill for FY24 reached a staggering Rs 1.5 lakh crore, with a total import volume of 58 mt, highlighting the nation's heavy reliance on foreign suppliers.

The Tasra mine, once operational, is expected to produce 4 MTPA of high-quality coking coal at its peak capacity. This significant domestic supply will directly address SAIL's increasing coking coal requirements as it ramps up steel production.

The company is aggressively pursuing an expansion of its crude steel production capacity from 19.10 MTPA in FY24 to 35.65 MTPA by 2031. This expansion necessitates a corresponding increase in coking coal supply, and the Tasra mine will play a pivotal role in ensuring a stable and secure source of this critical raw material.

The operationalization of the Tasra mine also carries broader implications for India's steel industry. By increasing domestic coking coal production, SAIL will contribute to reducing the country's overall import dependence, thereby strengthening its energy security and mitigating the impact of volatile international coal prices. This move is aligned with the government's "Atmanirbhar Bharat" (self-reliant India) initiative, which aims to promote domestic manufacturing and reduce reliance on imports.

Furthermore, the Tasra mine's development will stimulate economic activity in the Jharkhand region, creating employment opportunities and fostering local industrial growth. The project will also contribute to the development of associated infrastructure, such as transportation and logistics, which will benefit the region's overall economy.

In conclusion, SAIL's commitment to operationalizing the Tasra coking coal mine by 2026 represents a significant step towards enhancing its domestic sourcing capabilities and supporting its ambitious steel production expansion plans. This strategic move will not only strengthen SAIL's position in the market but also contribute to India's energy security and economic growth.