The government is examining the route for the import of coking coal from Mongolia to India, a government official said.
Coking coal is a key raw material needed for the manufacturing of steel through the blast furnace route.
"The route to import of coking coal from Mongolia is being examined," the official said requesting anonymity.
India has been in discussions with Mongolia to source coking coal from the landlocked nation.
The move aims at diversifying raw materials sources, and will not only increase the availability of the key steel-making material but also help in cost optimisation of producing the commodity.
India remains dependent on a select group of nations -- largely far located Australia -- to meet 80-90 per cent of its coking coal requirements.
As they are located far, it takes months for cargo ships to transport the raw materials to India. The logistics add to the overall cost production of steel makers.