The Indian government has taken a significant step toward enhancing mineral security and industrial self-reliance by officially notifying coking coal as a critical and strategic mineral. This pivotal decision, announced through an official statement, aims to substantially reduce India's heavy reliance on imports while fortifying the domestic steel supply chain.
Strategic Move to Curtail Import Dependence
Currently, approximately 95% of the steel sector's coking coal requirement is met through imports, leading to a considerable foreign exchange outflow. Despite India possessing estimated coking coal resources of around 37.37 billion tonnes—primarily located in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal, and Chhattisgarh—imports have surged from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25. This notification is expected to reverse this trend by facilitating faster approvals, improving ease of doing business, and accelerating exploration and mining activities, including the development of deep-seated deposits.
Legal Framework and Policy Alignment
As part of ongoing structural reforms in the mining sector and in alignment with the vision of Aatmanirbhar Bharat and Viksit Bharat 2047, the Government of India has notified coking coal under the Mines and Minerals (Development and Regulation) Act, 1957. To address continued import dependence, the Centre has amended the First Schedule of the MMDR Act. In Part A, the term "Coal" now reads as "Coal, including Coking Coal," while "Coking Coal" has been included in Part D, which lists critical and strategic minerals.
Expected Benefits and Economic Impact
The coal ministry emphasized that this reform will help lower import dependence, improve supply-chain resilience for the steel sector, and support the objectives of the National Steel Policy. Key benefits include:
- Encouraging private investment in exploration and beneficiation
- Promoting the use of advanced mining technologies
- Generating employment across mining, logistics, and steel-related activities
- Exempting critical mineral mining from public consultation requirements
- Permitting the utilization of degraded forest land for compensatory afforestation
These measures are anticipated to foster greater private sector participation and streamline operational processes.
Recommendations and Implementation
The decision follows recommendations from a high-level panel on implementing Viksit Bharat goals and policy inputs from NITI Aayog, which highlighted the strategic importance of coking coal for mineral security and the domestic steel industry. The government clarified that under Section 11D(3) of the MMDR Act, royalty, auction premium, and other statutory payments linked to mining leases will continue to accrue to the respective state governments, even where mineral auctions are conducted by the Centre.
Vision for a Self-Reliant Industrial Ecosystem
By enabling optimal utilization of domestic coking coal resources and reinforcing national mineral security, the notification of coking coal as a Critical and Strategic Mineral marks an important step toward building a resilient, self-reliant industrial ecosystem. This move advances the broader vision of Viksit Bharat, positioning India for sustainable growth in the steel sector and reducing vulnerabilities associated with import dependency.
