India Declares Coking Coal a Critical Mineral to Enhance Steel Production and Reduce Import Dependency
India has designated coking coal as a Critical and Strategic Mineral to bolster domestic steel production and decrease import reliance, as part of its Aatmanirbhar Bharat and Viksit Bharat 2047 initiatives. Despite having significant reserves, the country currently imports about 95% of its coking coal needs. This classification will enhance mining regulations, promote exploration, and is expected to generate employment while ensuring equitable revenue distribution to state governments.
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In January 2026, India classified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957. This policy aims to reduce import dependence, strengthen mineral security, and support domestic steel production in line with the Aatmanirbhar Bharat and Viksit Bharat 2047 initiatives.
Despite holding approximately 37.37 billion tonnes of coking coal reserves, India currently meets about 95% of its steel sector's coking coal needs through imports. The classification allows the government to enhance mining regulations and promote exploration while exempting critical minerals from public consultation requirements.
This reform is expected to boost domestic production, conserve foreign exchange, and generate employment in related sectors. Royalties and auction premiums from mining will continue to benefit state governments, ensuring equitable revenue distribution.
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