THEBUSINESSBYTES
BUREAU
NEW DELHI, JANUARY 29,
2026
In a
significant reform aimed at strengthening India’s mineral security and boosting
domestic steel production, the Government of India has notified coking coal as
a Critical and Strategic Mineral under the Mines and Minerals (Development and
Regulation) Act, 1957. The move aligns with the national vision of Aatmanirbhar
Bharat and the long-term goal of Viksit Bharat 2047, signalling a decisive push
to reduce import dependence in one of the country’s most vital industrial inputs.
The decision
follows recommendations of the High-Level Committee on Implementation of Viksit
Bharat Goals and policy inputs from NITI Aayog, which underscored the strategic
importance of coking coal for the domestic steel sector. Although India holds
an estimated 37.37 billion tonnes of coking coal resources, primarily in
Jharkhand with additional reserves in Madhya Pradesh, West Bengal and
Chhattisgarh, the country remains heavily reliant on imports. Coking coal
imports have risen from 51.20 million tonnes in 2020–21 to 57.58 million tonnes
in 2024–25, with nearly 95 per cent of the steel sector’s requirement currently
met through overseas supplies, resulting in substantial foreign exchange outgo.
To address
this imbalance, the Central Government has exercised its powers under Section
11C of the MMDR Act to amend the First Schedule of the Act. As a result, the
term “Coal” has been expanded to read “Coal, including Coking Coal” in Part A,
while “Coking Coal” has been formally included in Part D, which lists Critical
and Strategic Minerals. This classification is expected to significantly ease
regulatory processes and accelerate exploration and mining activities,
including the development of deep-seated deposits.
Industry
stakeholders are expected to benefit from faster approvals and improved ease of
doing business, as mining of critical minerals is exempt from public
consultation requirements and allows the use of degraded forest land for
compensatory afforestation. These measures are likely to encourage greater
private sector participation, attract investment into exploration and
beneficiation, and support the adoption of advanced mining technologies.
The reform
is anticipated to enhance supply-chain resilience for the steel sector,
reinforce the objectives of the National Steel Policy, and generate employment
across the mining, logistics and steel value chain. Importantly, the government
has clarified that under Section 11D(3) of the MMDR Act, royalty, auction
premium and other statutory payments from mining leases will continue to accrue
to the respective State Governments, even when 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 crucial step towards building a
resilient, self-reliant industrial ecosystem and securing India’s position in
the global steel value chain.
