Sponge Iron, Steel Re-Rollers Seek 5 MT Coal Linkage From ECL's Sonepur Bazari Mines

The Steel Re-Rolling Mills Association of India (SRMA) and West Bengal Sponge Iron Manufacturers Association on Wednesday sought a 10-year coal linkage under the Fuel Supply Agreement (FSA) for 5 million tonnes (MT) of coal from the Sonepur Bazari collieries of Eastern Coalfields Ltd (ECL), citing the need for fuel security for the state's steel industry.

SRMA chairman Vivek Adukia made the demand at the BigMint India Ferrous Week 2026 conference here and urged the state government to intervene in the matter.

"Currently, the coal we get through linkages is of poor quality. We are demanding 5 million tonnes out of the 14 million tonnes produced by the Sonepur Bazari mines," Adukia said.

Adukia, who is also the vice-president of West Bengal Sponge Iron Manufacturers, said there are around 25 re-rolling mills located within a radius of about 10 km of the Sonepur Bazari mines, making availability of quality coal from nearby sources important for the industry.

Adukia said the association had already written to Coal India on the issue and was now seeking the state government's intervention.

He also pointed out that ECL had earlier provided a 2 MT coal linkage from the Sonepur Bazari mines to cement companies.

Meanwhile, BigMint CEO Dhruv Goel said India's steel demand growth could moderate to around 7-8% in FY27 from 8-9 % in the previous fiscal.

He attributed the expected moderation partly to a slowdown in government infrastructure spending amid fiscal constraints and geopolitical headwinds affecting energy imports.

"Infrastructure, which is largely government-driven, is facing some demand concerns. It accounts for around 30% of steel demand," Goel said.

However, he said the medium- and long-term growth trajectory for steel demand remained strong, with the underlying demand momentum remaining intact.

"The high-growth trajectory of steel demand remains unabated in the medium and long term," he said.