Centre Notifies Coking Coal as a Critical and Strategic Mineral
to Cut Imports and Boost Steel Sector Self-Reliance
·
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),
aligning with the visions of Aatmanirbhar Bharat and Viksit Bharat 2047.
·
The decision is based on recommendations of the High-Level Committee on Implementation
of Viksit Bharat Goals (HLC-VB) and policy inputs from NITI Aayog, recognising
coking coal’s strategic importance for mineral
security and the steel sector.
·
India has an estimated 37.37 billion tonnes of coking coal resources,
primarily in Jharkhand,
with additional reserves in Madhya
Pradesh, West Bengal and Chhattisgarh.
·
Despite domestic availability, coking coal imports rose from 51.20
million tonnes in 2020–21 to 57.58 million tonnes in 2024–25.
·
Currently, about 95%
of the steel sector’s coking coal requirement is met through imports,
resulting in substantial foreign
exchange outgo.
·
To address this dependence, the Centre amended the First Schedule of the MMDR Act
under Section 11C.
·
In Part
A, the term “Coal” has been expanded to “Coal, including Coking Coal”,
and “Coking Coal” has been
added to Part D, which lists Critical and Strategic Minerals.
·
The classification is expected to enable faster approvals,
improve ease of doing
business, and accelerate
exploration and mining, including 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, encouraging private sector participation.
·
The reform aims to reduce
import dependence, enhance supply-chain resilience for the steel industry,
and support the National
Steel Policy.
·
It is expected to spur private investment in exploration,
beneficiation and advanced
mining technologies, while generating employment across
mining, logistics and steel value chains.
·
The government clarified that under Section 11D(3) of the MMDR Act,
royalty, auction premium
and other statutory payments will continue to accrue to State Governments,
even if auctions are conducted by the Centre.
·
Overall, the move strengthens national mineral security,
promotes optimal use of domestic resources, and marks a significant step toward
a resilient, self-reliant
industrial ecosystem under the Viksit Bharat vision.
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). The details may be accessed through this link https://coal.nic.in/sites/default/files/2026-01/29-01-2026a-wn.pdf.
The
decision has been taken on the basis of the recommendations of the High-Level
Committee on Implementation of Viksit Bharat Goals (HLC-VB) and policy inputs
from NITI Aayog, recognising the strategic role of coking coal in ensuring
mineral security and meeting the requirements of the domestic steel sector.
India
has an estimated 37.37 billion tonnes of coking coal resources, largely located
in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal and
Chhattisgarh. Despite this domestic availability, imports of coking coal have
increased from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in
2024–25. Currently, around 95 % of the coking coal requirement of the
steel sector is met through imports, leading to 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
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. Mining of critical
minerals is exempt from public consultation requirements and permits the
utilisation of degraded forest land for compensatory afforestation, measures
that are also expected to encourage 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 promote private investment in exploration,
beneficiation, and the adoption of advanced mining technologies, while
generating employment across the mining, logistics, and steel value chain.
It
is clarified that, in accordance with Section 11D (3) of the MMDR Act, royalty,
auction premium, and other statutory payments related to mining leases shall
continue to accrue to the respective State Governments, even where mineral
auctions are conducted by the Central Government.
By
enabling optimal utilisation 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 towards building a resilient,
self-reliant industrial ecosystem and advancing the vision of Viksit Bharat.