Coking Coal Declared Critical Mineral to Cut Imports, Boost Steel Security

India holds an estimated 37.37 billion tonnes of coking coal resources, primarily in Jharkhand, with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh.

In a major push towards 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. The move aligns with the national vision of Aatmanirbhar Bharat and the long-term roadmap for Viksit Bharat 2047, and is aimed at reducing India’s heavy dependence on imported raw materials for steel production.

The decision follows recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals (HLC-VB) and policy inputs from NITI Aayog, recognising coking coal as indispensable for India’s steel sector and broader industrial resilience.

Tackling import dependence in steelmaking

India holds an estimated 37.37 billion tonnes of coking coal resources, primarily in Jharkhand, with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh. Yet, domestic production has not kept pace with demand. Imports have risen steadily 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 imports, resulting in significant foreign exchange outgo.

By classifying coking coal as a Critical and Strategic Mineral, the government aims to reverse this trend and unlock domestic capacity at scale.

Regulatory reform to accelerate mining and investment

Invoking powers under Section 11C of the MMDR Act, the Centre has amended the Act’s First Schedule to explicitly include “Coal, including Coking Coal” and list coking coal under Part D – Critical and Strategic Minerals. This regulatory shift is expected to:

• Enable faster approvals and clearances

• Improve ease of doing business for mining projects

• Accelerate exploration of deep-seated deposits

• Encourage private sector participation in mining and beneficiation

Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation, measures designed to speed up project timelines without compromising environmental safeguards.

Strengthening supply chains, supporting States

The reform is expected to bolster supply-chain resilience for the steel sector, support the National Steel Policy, and generate employment across mining, logistics and downstream steel manufacturing. Importantly, the government clarified that royalty, auction premium and statutory payments will continue to accrue to State Governments, even when mineral auctions are conducted by the Centre.

Call to action: invest early in domestic coking coal

With policy certainty now in place, the government has signalled a clear invitation to steel producers, mining companies, and technology providers to invest early in domestic coking coal exploration, beneficiation and advanced mining technologies. Early movers stand to gain from streamlined approvals, reduced import exposure, and a stronger role in shaping India’s self-reliant industrial future.

By unlocking domestic coking coal resources, the latest reform marks a decisive step towards a resilient, competitive and self-sustaining steel ecosystem, reinforcing India’s journey towards Viksit Bharat.