India is encouraging companies to acquire iron ore, coking coal, and other key raw material assets overseas to support its expanding steel sector, Steel Secretary Sandeep Poundrik said, according to Reuters.
“We are encouraging our companies to acquire assets abroad, from iron ore to coking coal to limestone and dolomite,” Poundrik said at an industry event in Mumbai. “Raw material securitisation is the most important aspect of steelmaking.”
The world’s second-largest crude steel producer, India aims to raise its steelmaking capacity from about 200 mln tons to 300 mln tons by 2030. To meet this goal, coking coal imports are projected to surge to 160 mln tons by 2030 from around 58 mln tons currently.
India depends on imports for 85pct of its coking coal needs, with Australia supplying more than half. To diversify, India has been exploring partnerships with Mongolia, though logistical hurdles remain, Poundrik noted.