India’s push for mineral security took a decisive turn on January 29 as the government formally designated coking coal as a “Critical and Strategic Mineral” under the Mines and Minerals (Development and Regulation) Act, 1957. The announcement, made by the Ministry of Coal, immediately translated into market action with Coal India and Bharat Coking Coal (BCCL) shares gaining up to 5 percent in intraday trade.

BCCL rose nearly 5 percent to ₹39, while Coal India touched a fresh 52-week high of ₹456.95, gaining around 3 percent. The market response reflected investor recognition that the decision is not merely regulatory but structural in nature, directly linked to India’s steel sector supply chain and its persistent import vulnerability.

The classification follows recommendations from the High-Level Committee on Implementation of Viksit Bharat Goals and policy inputs from NITI Aayog. According to the ministry, the move acknowledges the strategic role of coking coal in ensuring mineral security and supporting the domestic steel industry.

India holds an estimated 37.37 billion tonnes of coking coal resources, largely concentrated in Jharkhand, with additional deposits in Madhya Pradesh, West Bengal and Chhattisgarh. Despite this geological availability, India’s dependence on imported coking coal has worsened over the past few years. Imports have risen from 51.20 million tonnes in FY21 to 57.58 million tonnes in FY25. Currently, nearly 95 percent of the steel sector’s coking coal requirement is met through imports, creating a significant foreign exchange burden and exposure to global supply risks.

By bringing coking coal under the critical mineral category, the government has effectively changed the regulatory pathway for exploration and mining. Mining of critical minerals is exempt from public consultation requirements and allows the use of degraded forest land for compensatory afforestation. These provisions are designed to shorten project timelines, reduce procedural friction and encourage greater private sector participation in mining deep-seated deposits.

This is closely aligned with the Ministry of Coal’s Mission Coking Coal launched in 2022, which aims to raise domestic raw coking coal production to 140 million tonnes by 2030. The latest move provides the regulatory backing to accelerate that target.

The timing is significant. Earlier in the day, the Economic Survey underscored coal’s centrality to India’s energy and industrial landscape. Coal contributes 55 percent to India’s energy mix and fuels over 74 percent of power generation. In FY25, India produced a record 1,047.52 million tonnes of coal, marking a 4.98 percent year-on-year increase and the highest ever output. Imports declined by 7.9 percent to 243.62 million tonnes, and the production-to-consumption ratio improved as domestic output growth outpaced demand.

However, the Survey specifically highlighted the steel sector’s acute dependence on imported coking coal as a strategic vulnerability. The latest notification directly addresses this concern.

For Coal India and BCCL, the policy change is potentially transformative. Both companies operate in regions rich in coking coal deposits, particularly in Jharkhand’s Jharia coalfields. Faster approvals and easier land use norms could translate into quicker capacity expansion and improved viability of deeper, previously constrained reserves.

From a business perspective, the development strengthens the long-term visibility of domestic coking coal mining economics. It also enhances the relevance of Coal India’s diversification beyond thermal coal, at a time when global narratives increasingly question thermal coal demand trajectories.