Government Notifies Coking Coal as Critical and Strategic Mineral

04 Feb 2026 CW Team

India has an estimated 37.37 billion tonnes (bn t) of coking coal resources, concentrated mainly in Jharkhand with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh. Despite domestic availability, imports of coking coal rose from 51.20 million tonnes (mn t) in 2020–21 to 57.58 million tonnes (mn t) in 2024–25, with around 95 per cent of sectoral requirement currently met through imports. The trend has resulted in substantial foreign exchange outgo.

The classification is expected to expedite approvals and improve ease of doing business by facilitating accelerated exploration, including of deep-seated deposits, and by encouraging private sector participation. Mining operations for critical minerals are exempt from public consultation requirements and permit the use of degraded forest land for compensatory afforestation, provisions that aim to reduce procedural delays. These measures are anticipated to unlock investment in exploration and beneficiation and to promote adoption of advanced mining technologies.

The reform is projected to reduce import dependence and strengthen supply chain resilience for the steel sector while supporting the objectives of the National Steel Policy. It is also expected to generate employment across mining, logistics and the steel value chain as private investment increases in exploration and processing. Royalty, auction premium and other statutory payments connected to mining leases will continue to accrue to the respective State Governments in accordance with the Act.

The move underlines national resource stewardship. It advances Viksit Bharat goals.

The Central Government has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), marking a policy shift intended to strengthen mineral security and support the domestic steel sector. The decision follows recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals and inputs from NITI Aayog. The amendment inserts coking coal in the First Schedule and lists it in the Part that identifies critical and strategic minerals. India has an estimated 37.37 billion tonnes (bn t) of coking coal resources, concentrated mainly in Jharkhand with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh. Despite domestic availability, imports of coking coal rose from 51.20 million tonnes (mn t) in 2020–21 to 57.58 million tonnes (mn t) in 2024–25, with around 95 per cent of sectoral requirement currently met through imports. The trend has resulted in substantial foreign exchange outgo. The classification is expected to expedite approvals and improve ease of doing business by facilitating accelerated exploration, including of deep-seated deposits, and by encouraging private sector participation. Mining operations for critical minerals are exempt from public consultation requirements and permit the use of degraded forest land for compensatory afforestation, provisions that aim to reduce procedural delays. These measures are anticipated to unlock investment in exploration and beneficiation and to promote adoption of advanced mining technologies. The reform is projected to reduce import dependence and strengthen supply chain resilience for the steel sector while supporting the objectives of the National Steel Policy. It is also expected to generate employment across mining, logistics and the steel value chain as private investment increases in exploration and processing. Royalty, auction premium and other statutory payments connected to mining leases will continue to accrue to the respective State Governments in accordance with the Act. The move underlines national resource stewardship. It advances Viksit Bharat goals.

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