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What is the story about?
The Centre has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), as part of ongoing structural reforms in the mining sector. The move came following recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog, recognising the strategic importance of coking coal for mineral security and the domestic steel industry.
India has an estimated 37.37 billion tonnes of coking coal resources, primarily located in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal, and Chhattisgarh. Despite this, the country remains heavily dependent on imports, with coking coal imports rising from 51.20 million tonnes in FY21 to 57.58 million tonnes in FY25. At present, nearly 95% of the steel sector's coking coal requirement is met through imports, resulting in a significant foreign exchange outgo.
To curb this dependence, the government has amended the First Schedule of the MMDR Act under Section 11C, classifying coking coal as a critical and strategic mineral. The change is expected to enable faster approvals, improved ease of doing business, and accelerated exploration and mining, including of deep-seated deposits.
Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation — measures aimed at encouraging greater private sector participation.
The reform is expected to reduce import dependence, strengthen supply-chain resilience for the steel sector, and support the objectives of the National Steel Policy. It is also likely to boost private investment in exploration, beneficiation and advanced mining technologies, while generating employment across the mining, logistics and steel value chain.
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 in cases where mineral auctions are conducted by the Centre.
India has an estimated 37.37 billion tonnes of coking coal resources, primarily located in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal, and Chhattisgarh. Despite this, the country remains heavily dependent on imports, with coking coal imports rising from 51.20 million tonnes in FY21 to 57.58 million tonnes in FY25. At present, nearly 95% of the steel sector's coking coal requirement is met through imports, resulting in a significant foreign exchange outgo.
To curb this dependence, the government has amended the First Schedule of the MMDR Act under Section 11C, classifying coking coal as a critical and strategic mineral. The change is expected to enable faster approvals, improved ease of doing business, and accelerated exploration and mining, including of deep-seated deposits.
Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation — measures aimed at encouraging greater private sector participation.
The reform is expected to reduce import dependence, strengthen supply-chain resilience for the steel sector, and support the objectives of the National Steel Policy. It is also likely to boost private investment in exploration, beneficiation and advanced mining technologies, while generating employment across the mining, logistics and steel value chain.
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 in cases where mineral auctions are conducted by the Centre.
