In a significant policy move aimed at strengthening India’s mineral security and industrial self-reliance, the Government of India has officially notified Coking Coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). This decision forms part of the government’s broader structural reforms in the mining sector, aligned with the national vision of Aatmanirbhar Bharat and Viksit Bharat 2047.
The notification has been issued based on the recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals (HLC-VB) and strategic policy inputs from NITI Aayog, recognising the indispensable role of coking coal in India’s steel manufacturing ecosystem.
Why Coking Coal is Strategically Important
Coking coal is a critical raw material for steel production. India possesses an estimated 37.37 billion tonnes of coking coal resources, primarily concentrated in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal, and Chhattisgarh. Despite this substantial domestic availability, India remains heavily dependent on imports, with nearly 95% of the steel sector’s coking coal requirement met through imports.
Coking coal imports have steadily risen from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25, resulting in a significant foreign exchange outgo. This growing dependence has highlighted the urgent need to boost domestic exploration and production.
Key Amendments under the MMDR Act, 1957
To address this strategic challenge, the Central Government has exercised its powers under Section 11C of the MMDR Act, 1957, amending the First Schedule of the Act.
As per the amendment:
– In Part A, the term “Coal” now reads as “Coal, including Coking Coal”
– Coking Coal has been added to Part D, which lists Critical and Strategic Minerals
This classification places coking coal alongside minerals of high national importance.
Faster Approvals and Improved Ease of Doing Business
The inclusion of coking coal as a Critical and Strategic Mineral is expected to bring multiple regulatory and operational advantages. Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation. These provisions are expected to fast-track approvals, improve ease of doing business, and accelerate exploration and mining activities, including deep-seated deposits.
Boost to Private Investment and Employment
The reform is also expected to encourage greater private sector participation in coking coal mining. It is likely to attract investments in exploration, beneficiation, and advanced mining technologies, while generating employment across the mining, logistics, and steel value chain. This aligns closely with the objectives of the National Steel Policy, ensuring long-term supply-chain resilience.
Revenue to States Remains Protected
The government has clarified that, as per 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 where auctions are conducted by the Centre.
A Step Towards Mineral Security and Industrial Resilience
By enabling the optimal utilisation of domestic coking coal resources, this notification marks a crucial step towards reducing import dependence, strengthening national mineral security, and building a resilient, self-reliant industrial ecosystem—a cornerstone of India’s journey towards Viksit Bharat.
