NEW DELHI: Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food, Public Distribution & Textiles, urged Steel Industry to make best use of the India-Australia Economic Cooperation & Trade Agreement (ECTA) Agreement and look at capturing new opportunities in Australia. He was speaking at the Third edition of ISA Steel Conclave in New Delhi on Tuesday.
The availability of coking coal is a major challenge for the domestic steel sector and the industry should collaborate with eminent institutions like IITs to undertake research to find alternate solutions, he said.
The industry needs to become self-reliant on coking coal to remove India's dependency on a few countries for the significant raw material for steel makers, he added. "Coking coal is a matter of concern for the industry. We can look at investments and alternatives. You can find solutions for its alternatives. I would urge the industry to research with our IITs or the Indian Institute of Science. It is the need of the hour to become self-sufficient," Goyal said.
The government is preparing a 'coking coal mission' to diversify the sources of key steel-making raw material, for which the country is heavily dependent on imports. India imports around 90% of its coking coal requirement. Coal with high ash content is not suitable for steel making through the blast furnace route. Currently, India imports coking coal from other countries like Australia, South Africa, Canada, and the US. The logistic costs from these distant nations add to the input cost of the steel companies.
The minister also said that the steel industry should make the "best" use of the India-Australia Economic Cooperation and Trade Agreement (ECTA) and look at capturing new opportunities there. Under the agreement, steel exports to Australia will become duty-free. He added that the sector contributes significantly to export earnings. The industry has significant growth potential and urged them to achieve the target of 300 million tonnes by 2030. With large investments coming in future, the sector will continue to grow, he said.
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