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Snapshot
Mining the future
Steel
- India is the 2nd largest crude steel producer in the world, generating an output of 99.6 MT in 2020.
- Domestic consumption of Total Finished Steel (alloy + non-alloy) was at 88.53 MT in 2020 as against 83.64 MT in 2016.
- Over 2030-31, crude steel demand/production forecasted to reach 255 MT
- Per capita finished steel consumption is expected to rise to 160 kg by 2030-31 (from 74.7 kg in 2019-20)
- Steel production (weight: 17.92 per cent)increased by 9.3 per cent in July, 2021 over July, 2020.
Coal
- India is home to 1,303 mines which reported mineral production (excluding atomic, fuel, and minor minerals) in 2019-20 and produces 95 minerals – 4 fuel-related, 10 metallic, 23 non-metallic, 3 atomic, and 55 minor minerals.
- India is the 2nd largest producer of coal. In 2020-21, all India coal production was 716.084 MT.
- Consumption / actual supply of coal (including imports) increased from 836.93 MT in 2016-17 to 968.03 MT in 2018-19.
- Coal is projected to remain the largest single source of electricity in India in 2040.
- Coal production (weight: 10.33 per cent) increased by 18.7 per centin July,2021 overJuly,2020.
- Captive Mine Coal Production Recorded 39. 68 % Growth
- Coal Production Increased by 10.35% During November to 67. 84 Mn Ton
- Coal India Limited (CIL) has dispatched around 64 Mn Ton more coal during April - November 2021 in comparison to the same period of last year
The country’s FDI Policy for the metals and mining sector allows:
- 100% FDI through automatic route in the steel sector
- 100% FDI through automatic route in the mining sector
- 100% FDI for coal and lignite under automatic route
For further details, please refer FDI Policy
- MT
Domestic steel production capacity by 2030
- $ bn
FDI equity inflows to metallurgical industries and mining (Apr 2000 - Mar 2021)
- $ mn
FDI equity inflows to coal production (Apr 2000 - Mar 2021)
Largest sponge iron (DRI) producer
Second largest crude steel and coal producer in the world
Fourth largest iron ore producer in the world
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
With the launch of the National Mineral Policy 2019 and the Mines and Minerals (Development and Regulation) Amendment Act 2021, India presents a major opportunity for investors looking to invest in the metal industry in India.
India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts.
The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification, and a focus on building renewable energy projects under the National Electricity Policy as well as the rise in infrastructure development.
*The production level of important minerals in March 2021 were: Coal 960 lakh tonnes, Lignite 52 lakh tonnes, Bauxite 2,103 thousand tonnes, Chromite 601 thousand tonnes, Copper conc 11 thousand tonnes, Iron ore 227 lakh tonnes, Lead conc 41 thousand tonnes, Manganese ore 331 thousand tonnes, Zinc conc 164 thousand tonnes, Limestone 391 lakh tonnes, Phosphorite 124 thousand tonnes, Magnesite 12 thousand tonnes, Gold 148 kg, and Diamond 34 carat.
*The production of important minerals showing positive growth during March 2021 over March 2020 included Manganese Ore (80.1%), Lead conc. (74.9%), Phosphorite (57.0%), Copper conc. (50.2%), Chromite (45.8%), Limestone (45.6%), Magnesite (44.9%), Zinc conc. (43.2%), Bauxite (33.4%), Lignite (25.3%), Iron ore (13.7%), and Coal (0.2%)
19 coals blocks were auctioned in 2020 for commercial mining. The total expected revenue from these mines is around INR 7,000 cr with a combined peak capacity of 51 MPTA.
Boosting of Domestic Production of Manganese Ore with current production trajectory, steel production could be a record 115 million tonnes in 2021.
The production performance of Steel sector during the first eight months of the current fiscal has been quite encouraging with cumulative production of crude steel at 76.44 MT and finished steel at 72.07 MT during April-November, 2021
The second tranche of auction for commercial coal mining offered 67 mines for sale of coal in March 2021.
Captive Coal Mines Record 40.98% Growth - Overall Coal Production Goes up by 6.74 % to 74.78 Million Ton in December, 2021.
* provisional
GROWTH DRIVERS
Cost advantage
Cost advantage in steel and alumina production-conversion
Rising demand from infrastructure and transportation sectors
Schemes such as Housing for all by 2022 and expansion of railway network
Unexplored mines
Only 20% of the total reserves have been mined till now
Supportive government policies
Permission granted to captive mines to sell coal in open market
Atmanirbhar Bharat Abhiyan
Production Linked Incentive scheme in specialty steel sector has been introduced under Atmanirbhar Bharat 3.0 package
Single Window Clearance Portal
A unified platform that facilitates the grant of clearances and approvals required for starting a coal mine in India
Production Linked Incentives (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Specialty Steel for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
INR 6,322 cr
Scheme outlay
Ministry
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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