8DECEMBER, 2024India, the world's second-largest producer of crude steel, currently imports 85 percent of its coking coal needs, with Australia being the dominant supplier. However, disruptions caused by erratic weather in Australia last year, which significantly impacted supply chains, have prompted Indian steelmakers to explore alternative sources.India's steel giants, JSW Steel and the state-run Steel Authority of India (SAIL), are in discussions with Mongolian authorities about importing coking coal, a critical raw material for steel production. According to sources familiar with the matter, JSW Steel plans to purchase 2,500 metric tons, while SAIL is considering importing 75,000 metric tons from Mongolia. These shipments are expected to be routed through either Russia or China, reflecting logistical considerations.Russia is eager to invest in and expand the manufacturing of trains and their components in India to meet its domestic requirements, a senior railway ministry official said on Tuesday. Last week, Russian railway major TMH had expressed interest in this plan.In response to a question on Russian investment in the railway sector in India, a top govt official said, "They have huge domestic requirements and for that they want to set up manufacturing facilities here. They want to get these supplies from India".The CEO of TMH, Kirill Lipa told a group of Indian journalists at the company's headquarters in Moscow, "The current interest rate in India is very different from other countries. So, we are interested and ready to invest in India. We are interested in developing several facilities in India, which are capable of providing certain components and we think some of them can be supplied to the Russian market as well".Mentioning that Russia currently has several supply contracts from India, Lipa said, "We have a historically good relationship with suppliers there (India) and that means we can increase this import into Russia from India".TMH is the major stakeholder in Kinet Railway Solutions, which has signed approximately 55,000 crore contract with Indian Railways to produce 1,920 Vande Bharat sleeper coaches and maintain them for 35 years. Lipa said they are "not looking at getting any supply from Russia" for Vande Bharat project."We found basic suppliers within India or some other countries which are more or less oriented for the relationship between India and Russia", he said while claiming that the current sanctions will not have any implications on the project. TOP STORIESINDIAN STEELMAKERS TURN TO MONGOLIA FOR COKING COALRUSSIA LOOKS TO INDIA FOR TRAIN MANUFACTURING EQUIPMENTSSAIL Chairman Amarendu Prakash confirmed that the company is evaluating the feasibility of receiving coking coal from Mongolia. In an official statement, SAIL emphasized its intention to diversify suppliers, a strategy that underscores India's broader efforts to secure stable and cost-effective raw material supplies.Mongolia, though landlocked, offers high-grade coking coal at competitive prices. Its strategic potential has drawn interest from Indian industry leaders as they seek to meet increasing domestic steel demand fueled by rapid economic growth and infrastructure investments.Efforts are also underway to establish regular Mongolian coal imports via Russia, which could provide an alternative to routes through China. These developments could help reduce India's reliance on traditional suppliers and enhance supply chain resilience, addressing the rising demand for coking coal in the country's burgeoning steel industry.
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