The Indian government has scrapped its plan to create a unified platform for domestic steel companies to collectively import coking coal. The initiative was dropped after efforts to reconcile the varying grades of coking coal needed by different steel mills proved unworkable.
The proposed platform aimed to unite local steel producers in importing coking coal as a consortium, enhancing their bargaining power with international suppliers. However, the diverse quality requirements of each mill would have fragmented the import process, necessitating multiple suppliers and negating the intended leverage in price negotiations.
India's steel industry relies heavily on imports for about 85% of its coking coal needs, amounting to approximately 70 million metric tons annually.