Govt notifies coking coal as critical mineral to cut import dependence

The Centre has notified coking coal as a critical mineral to speed up mining, attract private investment, and cut India's heavy dependence on imports for steelmaking

The government on Thursday notified coking coal, a key raw material for the steel sector, as a critical and strategic mineral to accelerate domestic mining and reduce India’s heavy reliance on imports.

 

The classification, notified through an amendment in the Mines and Minerals (Development and Regulation) Act , 1957, is expected to speed up approvals and accelerate exploration and mining, including in deep-seated deposits.

 

Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation.

 

“It is also expected to promote private investment in exploration, beneficiation, and the adoption of advanced mining technologies, while generating employment across the mining, logistics, and steel value chain,” the coal ministry said in a statement.

 

The amendment follows recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog.

 

India holds an estimated 37.37 billion tonnes of coking coal resources, primarily in Jharkhand, with additional reserves in Madhya Pradesh, West Bengal and Chhattisgarh. However, around 95 per cent of the steel sector’s coking coal requirement is met through imports, which rose from 51.20 million tonnes in 2020-21 to 57.58 million tonnes in 2024-25, resulting in significant foreign exchange outgo.

 

The announcement comes on a day the Economic Survey 2025–26 was tabled in Parliament, flagging this dependence as a key vulnerability for the steel industry. While India is largely self-sufficient in iron ore, coking coal remains a critical import. To address supply risks, the coal ministry launched Mission Coking Coal in 2022, targeting domestic raw coking coal production of 140 Mt by 2030.

 

Focusing on the need to boost critical mineral production, the Survey highlighted vulnerabilities in their supply chain essential for clean energy. “Given the strategic importance of critical minerals and to support development in line with climate priorities, regulations related to mining projects of critical, strategic, and atomic minerals have been streamlined," it said.