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October 11, 2026 - India’s proposed expansion of its steel industry could substantially increase demand for steelmaking coal over the next two decades, according to a draft policy released for public consultation on October 10. The draft National Steel Policy Vision 2047 projects coking coal requirements of 236 million metric tons by 2047, compared with approximately 72 million metric tons in 2025. It also targets steelmaking capacity of 604 million metric tons annually, up from roughly 220 million metric tons currently.
Securing dependable raw material supplies is a central part of the proposal. The government plans to broaden its international sourcing relationships and pursue overseas assets as steel production expands. Iron ore demand is projected to reach 772 million metric tons by 2047.
For coking coal, the draft proposes expanding domestic mining and coal washing, improving transportation infrastructure and diversifying imports. Coking coal is converted into coke, which provides heat and helps remove oxygen from iron ore during conventional blast-furnace steel production.
The proposed measures address India’s substantial reliance on imported coking coal, which exposes steelmakers to international price changes and shipping disruptions. The draft also identifies artificial intelligence and advanced analysis as tools for improving coal blending and managing supply risks.
Alongside production growth, the policy seeks to lower average steelmaking emissions from 2.54 to approximately 1.54 metric tons of carbon dioxide per metric ton of crude steel by 2047. That represents a reduction in emissions intensity rather than a commitment to reduce total sector emissions by the same proportion.
The Ministry of Steel is accepting comments through October 30, 2026. The capacity and coal-demand figures remain draft-policy projections, with implementation dependent on future investment, infrastructure development and government decisions.
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