The CAG has recently criticized SAIL’s inordinate dependence on the imports of coking coal despite having three indigenous captive mines

The Comptroller and Auditor General of India (CAG) has recently denounced the Steel Authority of India Ltd (SAIL), a state-owned entity, for its significant reliance on imported coking coal despite possessing three operational mines dedicated to its consumption. SAIL's annual need for coking coal is around 15 million tonnes, out of which 12-13 million tonnes are sourced through international tenders or long-term procurement deals.

According to the CAG's assessment, SAIL's dependence on imports is disproportionate considering its ownership of three captive coking coal mines. SAIL's operational mines include Jitpur and Chasnalla, alongside limited operations at the Tasra colliery. The report says these mines should ideally bolster domestic coal supplies and shield the company from volatile international prices.

In response to this, SAIL attributed various challenges such as inadequate external support, equipment scarcity, sand shortages, and frequent equipment malfunctions as reasons for the low output from these sites.

The prolonged process in the development of the Tasra mine further complicates the situation. SAIL took from June 2002 until July 2007 just to submit the required mining plan to the Ministry of Coal, which only approved it in June 2009. While small-scale mining commenced in 2009, full-scale mining operations began only in September 2013 after a mine operator was engaged four years later.

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In response to the CAG's observations, SAIL has recognized the issues and is actively working on strategies to cut down on production inefficiencies, particularly at the Jitpur and Chasnalla mines. The management's commitment to addressing these issues reflects their ongoing efforts to enhance operational efficiency and reduce dependency on imported coal.