New Delhi: In a significant policy push aimed at strengthening India’s mineral security, the government on Wednesday notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957, a move expected to fast-track mining projects and reduce the steel sector’s heavy reliance on imports.
The decision follows recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog, which flagged the strategic importance of coking coal for the domestic steel industry. Despite having estimated resources of 37.37 billion tonnes, India currently meets around 95% of its coking coal requirement through imports, leading to a significant foreign exchange outgo.
According to official data, imports of coking coal rose from 51.2 million tonnes in 2020-21 to 57.58 million tonnes in 2024-25, underscoring the growing dependence on overseas supplies even as domestic reserves remain underutilised. Major reserves are located in Jharkhand, with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh.
To operationalise the decision, the Centre has amended the First Schedule of the MMDR Act, explicitly including coking coal under the list of critical and strategic minerals. The classification is expected to enable faster statutory clearances, ease compliance requirements and encourage exploration of deep-seated deposits, officials said.
Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation, measures that are likely to improve ease of doing business and attract private sector participation in exploration and mining activities.
The reform is also expected to support the objectives of the National Steel Policy, improve supply-chain resilience for steelmakers and promote investments in beneficiation and advanced mining technologies. The government said the move could generate employment across the mining, logistics and steel value chain while lowering long-term input risks for domestic steel producers.
The coal ministry clarified that royalty, auction premium and other statutory payments will continue to accrue to state governments, even where mineral auctions are conducted by the Centre, in line with provisions of the MMDR Act.
By prioritising domestic coking coal development, the government aims to reduce vulnerability to global supply disruptions and reinforce India’s push towards a self-reliant industrial ecosystem, officials said.