Steel Authority of India Limited and Bharat Coking Coal Limited have signed a Memorandum of Understanding for the joint development and operation of two coal blocks in West Bengal. This agreement aims to boost domestic production of coking coal.

Agreement details

The partnership covers the Indikatta Ramnagore Coal Block, owned by SAIL, and the East of Damagoria (Kalyaneshwari) Coal Block, owned by BCCL. The following table outlines the key details of the collaboration:

The MoU marks a significant step towards developing domestic sources of coking coal. By combining SAIL's block with BCCL's adjacent asset, the entities intend to streamline operations and enhance output efficiency in the region.

Regulatory disclosure

The development was intimated to the Bombay Stock Exchange and National Stock Exchange under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by M.B. Balakrishnan, Executive Director (Finance & Accounts) and Company Secretary of Steel Authority of India Limited.

Steel Authority of India Limited plans to raise its capital expenditure to ₹15,000 crore in FY27, alongside targets to expand steelmaking capacity by 35 MTPA by 2031 and commercialise hydrogen-based direct reduced iron technology.

Key strategic targets

SAIL's plans span capital investment, production capacity, and green steelmaking technology. The following table captures the headline commitments disclosed:

Capacity expansion and green steel push

The 35 MTPA capacity target by 2031 represents a significant scale-up ambition for the state-owned steelmaker. In parallel, SAIL aims to commercialise hydrogen-based direct reduced iron, a process that uses hydrogen as a reductant in ironmaking in place of conventional carbon-based fuels, positioning the company toward lower-emission steel production.