In a move aimed at strengthening mineral security and reducing India’s heavy reliance on imports for steelmaking, the government on Thursday notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957.
The notification is part of the ongoing structural reforms in the mining sector and aligns with the vision of Aatmanirbhar Bharat and Viksit Bharat 2047, the Ministry of Coal said.
The decision has been taken based on the recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog, recognising the strategic importance of coking coal in meeting the requirements of the domestic steel sector and ensuring mineral security.
Domestic Resource Overview
India has estimated coking coal resources of about 37.37 billion tonnes, largely concentrated in Jharkhand, with additional reserves located in Madhya Pradesh, West Bengal and Chhattisgarh. Despite this domestic availability, imports of coking coal have increased from 51.20 million tonnes in FY21 to 57.58 million tonnes in FY25.
At present, nearly 95 per cent of the steel sector’s coking coal requirement is met through imports, resulting in a significant foreign exchange outgo.
“To address this continued dependence, the Central government, in exercise of powers conferred under Section 11C of the MMDR Act, 1957, has amended the First Schedule of the Act. Accordingly, in Part A, the term ‘Coal’ now reads as ‘Coal, including Coking Coal’, and ‘Coking Coal’ has been included in Part D, which lists Critical and Strategic Minerals,” the ministry said.
The inclusion of coking coal in this category is expected to facilitate faster approvals, improve ease of doing business and accelerate exploration and mining activities, including of deep-seated deposits.
Private Sector Incentives
Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation, measures expected to encourage greater private sector participation.
The reform is aimed at reducing import dependence, strengthening supply-chain resilience for the steel sector and supporting the objectives of the National Steel Policy. It is also expected to promote private investment in exploration, beneficiation and advanced mining technologies, while generating employment across the mining, logistics and steel value chain.
The ministry clarified that under Section 11D (3) of the MMDR Act, royalty, auction premium 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.
