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Ministry of Coal | Ministry of Mines | NITI Aayog
In a major structural reform aimed at achieving the vision of Aatmanirbhar Bharat, the Government of India has officially notified Coking Coal as a “Critical and Strategic Mineral” under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The notification, issued on January 29, 2026, involves amending the First Schedule of the Act: Part A now refers to “Coal, including Coking Coal,” and “Coking Coal” has been specifically added to Part D, which lists minerals of critical and strategic importance.
Addressing Steel Sector Vulnerabilities
This redesignation is primarily aimed at reducing the Indian steel industry’s massive dependence on foreign resources. While India holds approximately 37.37 billion tonnes of domestic coking coal resources—mainly in Jharkhand—nearly 95% of the steel sector’s requirement is currently met through imports. Imports have escalated from 51.20 million tonnes in 2020–21 to 57.58 million tonnes in 2024–25, causing significant foreign exchange outgo and exposing the supply chain to geopolitical risks.
Regulatory Fast-Tracking and Investment Incentives
The classification provides a new regulatory framework to accelerate domestic extraction:
Simplified Approvals: Critical minerals are now exempt from public consultation requirements, which is expected to significantly reduce project gestation periods.
Land Utilization: The reform permits the use of degraded forest land for compensatory afforestation, a move designed to encourage greater private sector participation in mining.
Continued State Revenue: It is clarified that under Section 11D (3) of the MMDR Act, all royalties, auction premiums, and other statutory payments will continue to accrue to the respective State Governments, even if auctions are conducted by the Central Government.
What is the role of coking coal in the steelmaking process? Coking coal (or metallurgical coal) is a high-grade coal used to produce “coke,” which is essential for manufacturing steel via the Blast Furnace route. It serves as both a fuel to reach high temperatures and a reducing agent to convert iron ore into molten iron. In India, coking coal accounts for approximately 42% of the total cost of steel production, making it a critical input for infrastructure development and downstream manufacturing industries.
Policy Relevance
The notification marks a transition from viewing coking coal as a bulk commodity to a strategic asset essential for industrial sovereignty.
Supply Chain Resilience: By incentivizing domestic beneficiation and the adoption of advanced mining technologies, the policy aligns with the National Steel Policy goals of achieving self-reliance.
Investment Magnet: The removal of public consultation hurdles and the introduction of new exploration licenses are intended to attract significant private investment in deep-seated and difficult-to-mine deposits.
Macroeconomic Stability: Reducing import reliance for such a high-cost input will help stabilize India’s Current Account Deficit (CAD) and protect the domestic industrial ecosystem from global price volatility.
Relevant Question for Policy Stakeholders: How can the Ministry of Coal leverage this new “Critical” status to modernize underperforming PSU washeries through public-private partnerships?
Follow the full news here: Government Notifies Coking Coal as Critical & Strategic Mineral under MMDR Act, 1957