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Steel Authority of India Limited (SAIL) has signed a MoU with Bharat Coking Coal Limited

ICICIdirect Research 28 Sep 2026 DISCLAIMER

News: Steel Authority of India Limited (SAIL) has signed a MoU with Bharat Coking Coal Limited (BCCL), subsidiary of Coal India Limited, to jointly develop and operationalize coking coal blocks. Under the strategic partnership, SAIL and BCCL will collaborate on exploration, mine development, extraction and beneficiation of prime coking coal to enhance domestic supply for SAIL's integrated steel plants. Both mines have a combined Peak rated capacity of 4 million tonnes per annum while the extractable coking coal resources are ~79 MT, combined. 

View: The agreement supports SAIL's vision of 35MT steel making capacity by FY30-31 and aims to reduce reliance on expensive imported coking coal amidst constantly rising prices. It also optimizes blast furnace feed quality and bolster raw material security across domestic steel manufacturing operations. The company produced 0.64 MT in FY26 from captive colleries. Out of the total ~18.7 MT requirement, coking coal imports stood at 16.5 MT. Thus, this development is positive for SAIL as it increases the captive coking coal capacity and helps rely less on coke imports.

Impact: Positive

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