The Government of India has notified coking coal a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957, as part of ongoing reforms in the mining sector, as per the statement issued by the Ministry of Coal. The move is aligned with the government’s goals of self-reliance and long-term economic development.
The decision follows recommendations from a high-level committee formed to support the Viksit Bharat goals, along with policy inputs from NITI Aayog. The government said coking coal plays a key role in meeting the needs of the domestic steel industry and in strengthening the country’s mineral security.
India has an estimated 37.37 billion tonnes of coking coal reserves, mainly in Jharkhand, with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh. Despite this, imports of coking coal have risen from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25. At present, about 95 per cent of the steel sector’s coking coal requirement is met through imports, leading to high foreign exchange spending.
To address this dependence, the Central Government, in exercise of powers conferred under Section 11C of the MMDR Act, 1957, has amended the First Schedule of the Act. Accordingly, in Part A, the term “Coal” now reads as “Coal, including Coking Coal”, and “Coking Coal” has been included in Part D, which lists Critical and Strategic Minerals.
The government said this change is expected to speed up approvals, simplify procedures, and encourage exploration and mining, including of deeper deposits. Mining of critical minerals does not require public consultations and allows the use of degraded forest land for afforestation, steps aimed at encouraging more private sector participation.
Officials said the reform is expected to reduce import dependence, improve supply security for the steel industry, and support national steel policy goals. It is also likely to attract private investment in mining and processing, promote the use of modern technologies, and create jobs across mining, transport and steel-related activities.
The government clarified that, in accordance with Section 11D (3) of the MMDR Act, royalty, auction premiums and other statutory payments from mining operations will continue to go to the respective state governments, even if auctions are conducted by the Centre.
By promoting better use of domestic coking coal reserves, the government said the decision will help build a more resilient industrial base and support India’s push towards a self-reliant economy.
