The government has notified coking coal as a critical and strategic mineral, a step aimed at reducing India’s heavy dependence on imports and strengthening the domestic steel supply chain, according to an official statement.The move is expected to facilitate faster approvals, improve ease of doing business and accelerate exploration and mining activities, including the development of deep-seated deposits. Coking coal is a key raw material in steel-making.The coal ministry said the reform would help lower import dependence, improve supply-chain resilience for the steel sector and support the objectives of the National Steel Policy. It is also expected to encourage private investment in exploration and beneficiation, promote the use of advanced mining technologies, and generate employment across mining, logistics and steel-related activities.“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 ministry said.Currently, about 95% of the steel sector’s coking coal requirement is met through imports, resulting in a significant foreign exchange outgo. Despite India having estimated coking coal resources of around 37.37 billion tonnes — mainly in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal and Chhattisgarh — imports have increased from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25.“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,” the statement said.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. The decision follows recommendations of 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.“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,” the statement said.
