BCCL’s Big Win: 2.40 Million Tonnes of Coking Coal Booked in Auction
Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited (CIL) and the largest producer of coking coal in India, has made significant progress in reducing the country’s dependence on imported coking coal. In the recent long-term linkage e-auction (Tranche VII) for the steel sector, BCCL successfully auctioned 2.40 million tonnes (MT) of coking coal out of the 3.36 MT offered.
According to the Ministry of Coal, reforms introduced by BCCL, such as consortium bidding and better communication with industry stakeholders, have led to increased participation and confidence in the auction process. India’s steel industry heavily relies on coking coal, a crucial raw material for steel production, which has mostly been imported.
Under the ‘Mission Coking Coal’ initiative, part of the Aatmanirbhar Bharat vision, BCCL implemented key reforms to boost the use of domestic coking coal and reduce the financial burden of coal imports on India’s foreign reserves. Notable changes were made after the Tranche VI auction, where no coal was booked, highlighting the need for reforms.
In addition to consortium bidding, BCCL proposed changes to the eligibility criteria for auction participants. These changes were approved during BCCL’s Functional Directors’ Meeting and forwarded to CIL for further consideration. The amendments allowed participation from consortiums of steel plants, existing or new coking coal washeries, and other plants capable of using by-products from the washeries, such as power coal.
CIL quickly adopted these changes, resulting in a new Scheme Document for the Tranche VII Linkage Auction, specifically targeting the steel sector. To prepare for the auction, BCCL and CIL hosted a Consumer Meet in Delhi, engaging directly with steel producers and industry associations to gather feedback and ensure a more inclusive process.
Expressing satisfaction with the success of Tranche VII, CMD of BCCL, Samiran Dutta, stated that the efforts to make the auction process more inclusive and transparent have been highly successful. The successful bookings demonstrate a strong commitment to increasing domestic coking coal production and reducing import dependency.
Doubts Revealed
BCCL -: BCCL stands for Bharat Coking Coal Limited. It is a company in India that mines coal, which is used to make steel.
Coking Coal -: Coking coal is a special type of coal used to make steel. It is different from the coal used for electricity.
Auction -: An auction is a way to sell things where people bid money, and the highest bid wins. In this case, companies bid to buy coal.
Coal India Limited -: Coal India Limited is a big company in India that manages many coal mines. BCCL is one of its smaller companies.
Long-term linkage e-auction -: This is a special online auction where companies can buy coal for a long time, not just once.
Mission Coking Coal -: This is a plan by the Indian government to use more Indian coking coal and buy less from other countries.
Aatmanirbhar Bharat -: Aatmanirbhar Bharat means ‘Self-Reliant India.’ It is a vision by the Indian government to make India more independent in many areas, including coal.
Consortium bidding -: This means that different companies can join together to bid for coal in the auction, making it easier for smaller companies to participate.
Industry stakeholders -: These are people or companies that have an interest in the coal industry, like steel companies or coal miners.
