PM to Review Coal, Mines Push and Critical Minerals

02 Jan 2026 CW Team

For the Ministry of Coal, discussions will centre on increasing coal output, improving efficiency at existing and upcoming mines, and rehabilitating closed mines. India’s coal production is projected to rise by nearly 50 per cent from around 1 billion metric tonnes currently to about 1.5 billion metric tonnes by 2030. Coal demand to meet thermal power requirements is expected to grow by around 17 per cent over the same period.

The review of the Ministry of Mines will focus on prioritising mineral extraction and separation through smelters to enhance domestic availability. Progress under the National Critical Minerals Mission will also be assessed, including developments against long-term targets.

In September, the Union Cabinet approved an incentive scheme worth Rs 15 billion to build recycling capacity for the separation and production of critical minerals from secondary sources. The scheme, which forms part of the National Critical Minerals Mission, is aimed at strengthening domestic supply chains and reducing dependence on imports.

The Ministry of Mines has noted that the critical minerals value chain, spanning exploration, auctions, mine operationalisation and overseas asset acquisition, involves long gestation periods. Recycling from secondary sources is therefore being pursued as a near-term solution to improve supply chain sustainability.

The incentive scheme will run for six years from FY26 to FY31 and will cover eligible feedstock such as e-waste, lithium-ion battery scrap and other materials, including catalytic converters from end-of-life vehicles. One-third of the total outlay has been earmarked for small and new recyclers, including start-ups.

Incentives will apply to new units as well as the expansion, modernisation and diversification of existing facilities. Support will be linked to the actual extraction of critical minerals, rather than being limited to black mass production.

Prime Minister Narendra Modi is set to hold quarterly sectoral reviews of the Ministries of Coal and Mines on 2 January and 3 January respectively, government sources said. The reviews are expected to focus on production growth, efficiency improvements and long-term resource security. For the Ministry of Coal, discussions will centre on increasing coal output, improving efficiency at existing and upcoming mines, and rehabilitating closed mines. India’s coal production is projected to rise by nearly 50 per cent from around 1 billion metric tonnes currently to about 1.5 billion metric tonnes by 2030. Coal demand to meet thermal power requirements is expected to grow by around 17 per cent over the same period. The review of the Ministry of Mines will focus on prioritising mineral extraction and separation through smelters to enhance domestic availability. Progress under the National Critical Minerals Mission will also be assessed, including developments against long-term targets. In September, the Union Cabinet approved an incentive scheme worth Rs 15 billion to build recycling capacity for the separation and production of critical minerals from secondary sources. The scheme, which forms part of the National Critical Minerals Mission, is aimed at strengthening domestic supply chains and reducing dependence on imports. The Ministry of Mines has noted that the critical minerals value chain, spanning exploration, auctions, mine operationalisation and overseas asset acquisition, involves long gestation periods. Recycling from secondary sources is therefore being pursued as a near-term solution to improve supply chain sustainability. The incentive scheme will run for six years from FY26 to FY31 and will cover eligible feedstock such as e-waste, lithium-ion battery scrap and other materials, including catalytic converters from end-of-life vehicles. One-third of the total outlay has been earmarked for small and new recyclers, including start-ups. Incentives will apply to new units as well as the expansion, modernisation and diversification of existing facilities. Support will be linked to the actual extraction of critical minerals, rather than being limited to black mass production.

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