India’s Steel Sector Faces Challenges in Raw Material Supply

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India’s steel industry is grappling with concerns over the slow development of greenfield iron ore mines, prompting the government to encourage companies to acquire iron ore and coking coal assets overseas. The Ministry of Steel has emphasized the need for strategic investments to secure long-term raw material supplies and reduce dependency on imports.

Key Highlights:
- The government is actively urging companies to acquire iron ore and coking coal assets abroad to mitigate supply constraints.
- Logistical hurdles in importing coking coal from Mongolia remain a significant challenge, with efforts underway to explore alternative supply routes.
- The steel sector is focusing on diversifying coking coal imports to secure a stable supply chain for domestic production.
- India aims to increase coking coal imports to meet growing industry demand, with policy measures being developed to streamline trade agreements.
- The push for overseas acquisitions reflects the government’s commitment to strengthening the steel sector and ensuring long-term stability in raw material supplies.

Sources: Economic Times, Business Standard, Press Information Bureau, Times of India, MSN India, Deccan Herald, Financial Express