Subscribe to enjoy similar stories. As part of its plans to ink long-term coking coal import contracts with Mongolia to meet the needs of domestic steelmakers, India is working out supply routes from the landlocked country, with plans to leverage the Russian Trans-Siberian Railways to bring coal to port city of Vladivostok and then ship it to India, and deliver coal at Chennai port. Government is also developing Estern Maritime Corridor linking eastern ports of India to Russian port in Vladivostok.
This route will help avoid ports in China that though cheaper are not a strategically viable option. Mongolia already has rail connectivity with both China and Russia. According to two people aware of the development, the logistics to bring Mongolian coking coal would be finalized soon before Indian steel companies including state-run Steel Authority of India (SAIL) sign long-term coking coal supplies from the Asian country.
“We will like to make another delegation-level visit comprising officials of steel ministry and private and public sector steel makers to Mongolia to finalize the logistics and then negotiate long term supply deals as has been worked out between Mongolia and China. This would be the first instance of India getting the fuel for its steel companies from a central Asian country," said the first person quoted above. The second person said that if deals go through, and the economics works well, India could expect to get almost 10-12 mt or more of coking coal from Mongolia in FY26.
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