Coal
Import dependence no more? Indian govt tags coking coal as critical mineral
As part of ongoing structural reforms in the mining sector and in line with the vision of Aatmanirbhar Bharat and Viksit Bharat 2047, the Government of India has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
Details of the notification are available on the Ministry of Coal’s website.
The decision follows recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals (HLC-VB) and policy inputs from NITI Aayog, which recognised the strategic importance of coking coal for ensuring mineral security and meeting the needs of the domestic steel industry.
India has estimated coking coal resources of 37.37 billion tonnes, primarily located in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal and Chhattisgarh.
Despite these substantial domestic resources, imports have continued to rise—from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25. At present, nearly 95 percent of the steel sector’s coking coal requirement is met through imports, resulting in significant foreign exchange outgo.
To address this dependence, the Central Government, exercising powers under Section 11C of the MMDR Act, has amended the First Schedule of the Act. In Part A, the term “Coal” has been revised to read “Coal, including Coking Coal,” and “Coking Coal” has been included in Part D, which lists Critical and Strategic Minerals.
The inclusion is expected to facilitate faster statutory approvals, enhance ease of doing business, and accelerate exploration and mining activities, including the development of deep-seated deposits.
Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation—measures aimed at encouraging greater private sector participation.
The reform is anticipated to reduce import dependence, strengthen supply-chain resilience for the steel sector, and support the objectives of the National Steel Policy. It is also expected to boost private investment in exploration, beneficiation and the adoption of advanced mining technologies, while generating employment across the mining, logistics and steel value chain.
The government has clarified that, in accordance with Section 11D(3) of the MMDR Act, royalty, auction premiums and other statutory payments related to mining leases will continue to accrue to the respective State Governments, even where mineral auctions are conducted by the Centre.
By enabling optimal utilisation of domestic coking coal resources and reinforcing national mineral security, the notification marks a significant step towards building a resilient and self-reliant industrial ecosystem, in line with the broader vision of Viksit Bharat.
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