Published: 29 January 2026Economy
Government Designates Coking Coal as Critical and Strategic Mineral for India
The Government of India designated coking coal as a critical and strategic mineral, through a Gazette notification dated January 27, 2026 and published on January 28, 2026. Around 95% of the steel sector's coking coal requirement is met through imports, making it vulnerable to supply disruptions and price volatility. Coking coal is essential for steel production -- India is the world's second-largest steel producer.
The strategic designation enables priority allocation of coal blocks for coking coal extraction, tax incentives for domestic exploration, fast-track environmental clearances for coking coal mines, and stockpiling provisions. India aims to reduce coking coal import dependency to 65% by 2030 through increased domestic production, coal washing, and development of alternative steel-making technologies like hydrogen-based direct reduction.
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Frequently asked questions
Why was coking coal notified as a critical and strategic mineral under the MMDR Act?
**Coking coal** was notified as a **Critical and Strategic Mineral under the MMDR Act, 1957**, because India imports nearly **95% of its steel sector requirement** for coking coal despite holding reserves of about **37.37 billion tonnes**. This heavy import dependence creates significant **foreign exchange outflows** and supply chain vulnerability.
What are India's domestic coking coal reserves and why are imports still high?
India holds approximately **37.37 billion tonnes** of coking coal reserves. However, most Indian coking coal is of lower quality (high ash content), making it unsuitable for direct use in steel manufacturing without blending, which is why nearly **95% of requirements** are met through imports — primarily from **Australia and USA**.
What is the significance of the MMDR Act designation for coking coal?
Under the **MMDR (Mines and Minerals Development and Regulation) Act, 1957**, designating coking coal as a **Critical and Strategic Mineral** enables the central government to prioritise its exploration, fast-track auctioning of mining blocks, and retain strategic control over allocation — reducing private sector limitations and boosting domestic production.
How does coking coal relate to India's steel industry?
**Coking coal** is an essential raw material for steel production via the **blast furnace route**. It is converted into **coke**, which acts as both a fuel and reducing agent in the steelmaking process. India, being a major steel producer, requires large quantities of high-quality coking coal — currently met almost entirely through imports.
What are the other minerals listed as critical and strategic under MMDR Act alongside coking coal?
India's Critical and Strategic Minerals list under the **MMDR Act** includes minerals like **lithium, cobalt, nickel, titanium, rare earth elements**, and now **coking coal**. These are minerals essential for national security, clean energy transition, and industrial development where India faces supply risks.
