India intends to expand coking coal capacity over the next seven years, mainly by reducing dependence on third parties and avoiding supply disruptions.

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According to the latest announcement from the Ministry of Coal, India aims to produce 140 million tonnes of coking coal by FY2030, 174% higher than in FY2022. Coal India, India's largest coal producer, has acquired 10 coking coal blocks and plans to start producing coking coal in fiscal 2025.

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India plans to reduce its reliance on third-party suppliers and expand steelmaking capacity. According to preliminary data from the Ministry of Coal, India imported 57.16 million tonnes of coking coal in FY2022, up 12% year-on-year. The country relies heavily on Australia, which meets about 70 percent of its needs. However, Australian coking coal prices fluctuate considering the high overseas demand for Australian resources and adverse weather conditions that affect supply.