SAIL and Bharat Coking Coal Join Hands Through New MoU

SAIL and BCCL sign an MoU to jointly develop and operate two West Bengal coal blocks, targeting 4 MTPA capacity and strengthening domestic coking coal availability for India’s steel industry.

Steel Authority of India Limited (SAIL) and Bharat Coking Coal Limited (BCCL) have signed a Memorandum of Understanding (MoU) for the joint development and operation of two coal blocks in West Bengal. The agreement covers SAIL’s Indikatta Ramnagore Coal Block and BCCL’s East of Damagoria (Kalyaneshwari) Coal Block.

The two public sector enterprises to develop domestic sources of coking coal and strengthen indigenous supplies for the steel industry. Coking coal is a key raw material used in the production of steel, making domestic availability an important factor for the sector.

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Under the proposed arrangement, the two companies will coordinate the development and operation of the adjoining coal assets. Available details indicate that the combined peak rated capacity of the two blocks is targeted at around 4 million tonnes per annum (MTPA), while Phase I extractable reserves are estimated at approximately 79 million tonnes.

The development model also includes coordinated mining and overburden management. During the first phase, mining is planned at the Kalyaneshwari block, while overburden generated from operations is proposed to be managed at the Ramnagore block. The arrangement is expected to be reversed during the second phase. The companies have not disclosed a commercial production timeline or investment commitment as part of the initial announcement.

The agreement comes as India seeks to expand domestic coking coal production and strengthen raw-material availability for its steel sector. SAIL, one of India’s major public sector steel producers, operates integrated steel plants and associated mining assets. BCCL, a subsidiary of Coal India Limited, is primarily engaged in coking coal mining and supplies the steel industry.

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The MoU was also disclosed to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

By bringing the two coal blocks under a coordinated development framework, SAIL and BCCL are seeking to improve the utilization of domestic coking coal resources and support the broader objective of increasing indigenous raw-material availability for steel production.