Introduction

In a decisive move to strengthen India's industrial resilience, the Central Government has officially designated Coking Coal as a "Critical and Strategic Mineral." This notification, issued under the Mines and Minerals (Development and Regulation) Act, 1957, aligns with the nation's ambitious Viksit Bharat 2047 goals. The policy shift aims to aggressively reduce the steel industry's heavy reliance on foreign imports by unlocking domestic mining potential through expedited approvals and regulatory reforms.

Key Facts
Domestic Resources

37.37 Billion Tonnes

Primary Location

Jharkhand (Major), MP, WB, Chhattisgarh

Current Import Dependency

~95% of Steel Sector Requirements

Import Volume Increase

51.20 MT (2020-21) to 57.58 MT (2024-25)

Legal Amendment

Listed in Part D (Critical & Strategic Minerals) of MMDR Act

Official Statement & Policy Highlights

The Strategic Rationale

Following recommendations from the High-Level Committee on Viksit Bharat Goals and NITI Aayog, the Ministry of Coal identified a critical gap in national mineral security. Despite vast reserves, India faces a significant foreign exchange drain due to rising imports.

Amendment to MMDR Act

Using powers under Section 11C of the MMDR Act, 1957, the First Schedule has been amended:

  • Part A: The definition has been broadened to "Coal, including Coking Coal."
  • Part D: "Coking Coal" is now explicitly listed as a Critical and Strategic Mineral.
Impact on Industry & Environment

Accelerating Operations

This classification allows for faster regulatory clearances. Notably, mining for critical minerals is exempt from mandatory public consultation requirements, streamlining the path from auction to extraction.

Land Use Reforms

To encourage private participation, the policy permits the utilization of degraded forest land for compensatory afforestation, resolving a common bottleneck in mining projects.

Economic Ripple Effect

The move is projected to catalyze private investment in advanced mining technologies and beneficiation (processing), creating employment across the logistics and steel value chains.

Financial Clarity for States

The Ministry has issued a crucial clarification regarding revenue sharing. Despite the Central Government managing the auctions for critical minerals, all statutory payments—including royalties and auction premiums—will continue to accrue to the respective State Governments. This ensures that resource-rich states like Jharkhand and West Bengal retain their economic benefits.

Source Information

Original Notification: Ministry of Coal via PIB

Download Official Gazette Notification (PDF)

Frequently Asked Questions

Q. Why was Coking Coal declared a critical mineral?
To reduce India's 95% import dependency for the steel sector and ensure national mineral security.
Q. Does this change who gets the revenue from mining?
No. Even if the Centre conducts the auction, all royalties and premiums go to the State Government where the mine is located.
Q. What are the regulatory benefits of this classification?
It allows for faster approvals, exemptions from public consultations for specific clearances, and easier land-use norms for afforestation.
Q. Where are India's Coking Coal reserves located?
The majority are in Jharkhand, with significant deposits in Madhya Pradesh, West Bengal, and Chhattisgarh.