The Government of India 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 and in line with the vision of Aatmanirbhar Bharat and Viksit Bharat 2047.

The decision follows recommendations of the High-Level Committee on Implementation of Viksit Bharat Goals (HLC-VB) and policy inputs from NITI Aayog, recognising the strategic importance of coking coal in ensuring mineral security and meeting the needs of 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 availability, coking coal imports rose from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25, with nearly 95 per cent of the steel sector’s requirement currently met through imports, resulting in significant foreign exchange outgo.

To address this dependence, the Centre has amended the First Schedule of the MMDR Act under powers conferred by Section 11C. Accordingly, in Part A, the term “Coal” has been revised to read “Coal, including Coking Coal”, while “Coking Coal” has been included in Part D, which lists Critical and Strategic Minerals.

The inclusion is expected to facilitate faster approvals, improve ease of doing business, and accelerate 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 promote private investment in exploration, beneficiation and advanced mining technologies, while generating employment across the mining, logistics and steel value chain.

The government clarified that, as per Section 11D(3) of the MMDR Act, royalty, auction premium and other statutory payments related to mining leases will continue to accrue to the respective State Governments, even where auctions are conducted by the Centre.

The notification marks a key step towards optimal utilisation of domestic coking coal resources, reinforcing national mineral security and advancing the goal of a self-reliant and resilient industrial ecosystem.